diff --git a/CHANGELOG.md b/CHANGELOG.md
index 19ddec1e1..52737ead6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -21,6 +21,7 @@ at anytime.
 ### Fixed
   * Fix restart procedure in DaemonControl
   *
+  * Create download directory if it doesn't exist
   *
 
 ## [0.9.2rc1] - 2017-03-21
diff --git a/lbrynet/lbrynet_daemon/Daemon.py b/lbrynet/lbrynet_daemon/Daemon.py
index d106704bb..c57749ea7 100644
--- a/lbrynet/lbrynet_daemon/Daemon.py
+++ b/lbrynet/lbrynet_daemon/Daemon.py
@@ -232,6 +232,8 @@ class Daemon(AuthJSONRPCServer):
         conf.settings.update(last_version)
         self.db_dir = conf.settings['data_dir']
         self.download_directory = conf.settings['download_directory']
+        if not os.path.exists(self.download_directory):
+            os.mkdir(self.download_directory)
         self.created_data_dir = False
         if not os.path.exists(self.db_dir):
             os.mkdir(self.db_dir)