diff --git a/libbb/loop.c b/libbb/loop.c
index c78535a..6387e40 100644
--- a/libbb/loop.c
+++ b/libbb/loop.c
@@ -90,9 +90,9 @@ int FAST_FUNC set_loop(char **device, const char *file, unsigned long long offse
 	char *try;
 	bb_loop_info loopinfo;
 	struct stat statbuf;
-	int i, dfd, ffd, mode, rc;
+	int i, dfd, ffd, mode, rc, mknod_flag;
 
-	rc = dfd = -1;
+	rc = dfd = mknod_flag = -1;
 
 	/* Open the file.  Barf if this doesn't work.  */
 	mode = (flags & BB_LO_FLAGS_READ_ONLY) ? O_RDONLY : O_RDWR;
@@ -123,8 +123,10 @@ int FAST_FUNC set_loop(char **device, const char *file, unsigned long long offse
 			 && try == dev
 			) {
 				/* Node doesn't exist, try to create it.  */
-				if (mknod(dev, S_IFBLK|0644, makedev(7, i)) == 0)
+				if (mknod(dev, S_IFBLK|0644, makedev(7, i)) == 0) {
+					mknod_flag = 0;
 					goto try_to_open;
+				}
 			}
 			/* Ran out of block devices, return failure.  */
 			rc = -1;
@@ -140,6 +142,10 @@ int FAST_FUNC set_loop(char **device, const char *file, unsigned long long offse
 		if (dfd < 0) {
 			if (errno == ENXIO) {
 				/* Happens if loop module is not loaded */
+				if (mknod_flag == 0) {
+					mknod_flag = -1;
+					(void)unlink(dev);
+				}
 				rc = -1;
 				break;
 			}