diff --git a/winsup/cygwin/ChangeLog b/winsup/cygwin/ChangeLog
index ca7c93b21..52cb849ab 100644
--- a/winsup/cygwin/ChangeLog
+++ b/winsup/cygwin/ChangeLog
@@ -1,3 +1,8 @@
+2006-11-27  Corinna Vinschen  <corinna@vinschen.de>
+
+	* fhandler.cc (fhandler_base::open): Fix handling of files with
+	HIDDEN attribute set.
+
 2006-11-27  Christopher Faylor  <cgf@timesys.com>
 
 	* include/cygwin/signal.h: Add __extension__ to various anonymous
diff --git a/winsup/cygwin/fhandler.cc b/winsup/cygwin/fhandler.cc
index 794b221dc..78c070d14 100644
--- a/winsup/cygwin/fhandler.cc
+++ b/winsup/cygwin/fhandler.cc
@@ -684,6 +684,13 @@ fhandler_base::open (int flags, mode_t mode)
       if ((c && c[1] == '.') || *get_win32_name () == '.')
 	file_attributes |= FILE_ATTRIBUTE_HIDDEN;
 #endif
+      /* Starting with Windows 2000, when trying to overwrite an already
+	 existing file with FILE_ATTRIBUTE_HIDDEN attribute set, CreateFile
+	 fails with "Permission denied".  Per MSDN you have to create the
+	 file with the same attributes as already specified for the file. */
+      if (exists () && has_attribute (FILE_ATTRIBUTE_HIDDEN))
+        file_attributes |= pc.file_attributes ();
+
       /* If the file should actually be created and ntsec is on,
 	 set files attributes. */
       if (allow_ntsec && has_acls ())