diff --git a/openbsd-compat/port-linux-sshd.c b/openbsd-compat/port-linux-sshd.c
index c18524e..d04f4ed 100644
--- a/openbsd-compat/port-linux-sshd.c
+++ b/openbsd-compat/port-linux-sshd.c
@@ -409,6 +409,28 @@ sshd_selinux_setup_exec_context(char *pwname)
 	debug3("%s: done", __func__);
 }
 
+void
+sshd_selinux_copy_context(void)
+{
+	security_context_t *ctx;
+
+	if (!ssh_selinux_enabled())
+		return;
+
+	if (getexeccon((security_context_t *)&ctx) != 0) {
+		logit("%s: getcon failed with %s", __func__, strerror (errno));
+		return;
+	}
+	if (ctx != NULL) {
+		/* unset exec context before we will lose this capabililty */
+		if (setexeccon(NULL) != 0)
+			fatal("%s: setexeccon failed with %s", __func__, strerror (errno));
+		if (setcon(ctx) != 0)
+			fatal("%s: setcon failed with %s", __func__, strerror (errno));
+		freecon(ctx);
+	}
+}
+
 #endif
 #endif
 
diff --git a/openbsd-compat/port-linux.h b/openbsd-compat/port-linux.h
index 8ef6cc4..b18893c 100644
--- a/openbsd-compat/port-linux.h
+++ b/openbsd-compat/port-linux.h
@@ -25,6 +25,7 @@ void ssh_selinux_setup_pty(char *, const char *);
 void ssh_selinux_change_context(const char *);
 void ssh_selinux_setfscreatecon(const char *);
 
+void sshd_selinux_copy_context(void);
 void sshd_selinux_setup_exec_context(char *);
 #endif
 
diff --git a/session.c b/session.c
index 2bcf818..b5dc144 100644
--- a/session.c
+++ b/session.c
@@ -1538,6 +1538,9 @@ do_setusercontext(struct passwd *pw)
 			    pw->pw_uid);
 			chroot_path = percent_expand(tmp, "h", pw->pw_dir,
 			    "u", pw->pw_name, (char *)NULL);
+#ifdef WITH_SELINUX
+			sshd_selinux_copy_context();
+#endif
 			safely_chroot(chroot_path, pw->pw_uid);
 			free(tmp);
 			free(chroot_path);
@@ -1565,6 +1568,11 @@ do_setusercontext(struct passwd *pw)
 		/* Permanently switch to the desired uid. */
 		permanently_set_uid(pw);
 #endif
+
+#ifdef WITH_SELINUX
+		if (in_chroot == 0)
+			sshd_selinux_copy_context();
+#endif
 	} else if (options.chroot_directory != NULL &&
 	    strcasecmp(options.chroot_directory, "none") != 0) {
 		fatal("server lacks privileges to chroot to ChrootDirectory");
@@ -1588,9 +1588,6 @@ do_pwchange(Session *s)
 	if (s->ttyfd != -1) {
 		fprintf(stderr,
 		    "You must change your password now and login again!\n");
-#ifdef WITH_SELINUX
-		setexeccon(NULL);
-#endif
 #ifdef PASSWD_NEEDS_USERNAME
 		execl(_PATH_PASSWD_PROG, "passwd", s->pw->pw_name,
 		    (char *)NULL);
@@ -1826,9 +1835,6 @@ do_child(Session *s, const char *command)
 		argv[i] = NULL;
 		optind = optreset = 1;
 		__progname = argv[0];
-#ifdef WITH_SELINUX
-		ssh_selinux_change_context("sftpd_t");
-#endif
 		exit(sftp_server_main(i, argv, s->pw));
 	}
 
diff --git a/sshd.c b/sshd.c
index 07f9926..a97f8b7 100644
--- a/sshd.c
+++ b/sshd.c
@@ -632,6 +632,10 @@ privsep_preauth_child(void)
 	/* Demote the private keys to public keys. */
 	demote_sensitive_data();
 
+#ifdef WITH_SELINUX
+	ssh_selinux_change_context("sshd_net_t");
+#endif
+
 	/* Demote the child */
 	if (getuid() == 0 || geteuid() == 0) {
 		/* Change our root directory */
@@ -755,6 +755,9 @@ privsep_postauth(Authctxt *authctxt)
 
 #ifdef DISABLE_FD_PASSING
 	if (1) {
+#elif defined(WITH_SELINUX)
+	if (options.use_login) {
+		/* even root user can be confined by SELinux */
 #else
 	if (authctxt->pw->pw_uid == 0 || options.use_login) {
 #endif
diff --git a/session.c b/session.c
index 684f867..09048bc 100644
--- a/session.c
+++ b/session.c
@@ -1538,7 +1538,7 @@ do_setusercontext(struct passwd *pw)
 
 	platform_setusercontext(pw);
 
-	if (platform_privileged_uidswap()) {
+	if (platform_privileged_uidswap() && (!is_child || !use_privsep)) {
 #ifdef HAVE_LOGIN_CAP
 		if (setusercontext(lc, pw, pw->pw_uid,
 		    (LOGIN_SETALL & ~(LOGIN_SETPATH|LOGIN_SETUSER))) < 0) {