diff --git a/nova/Chart.yaml b/nova/Chart.yaml
index 62dec55244..4a1d8f7dd0 100644
--- a/nova/Chart.yaml
+++ b/nova/Chart.yaml
@@ -14,7 +14,7 @@ apiVersion: v1
 appVersion: v1.0.0
 description: OpenStack-Helm Nova
 name: nova
-version: 0.3.7
+version: 0.3.8
 home: https://docs.openstack.org/nova/latest/
 icon: https://www.openstack.org/themes/openstack/images/project-mascots/Nova/OpenStack_Project_Nova_vertical.png
 sources:
diff --git a/nova/templates/bin/_ssh-start.sh.tpl b/nova/templates/bin/_ssh-start.sh.tpl
index abbf9f0ec3..562da442d5 100644
--- a/nova/templates/bin/_ssh-start.sh.tpl
+++ b/nova/templates/bin/_ssh-start.sh.tpl
@@ -35,4 +35,6 @@ cat /tmp/sshd_config_extend >> /etc/ssh/sshd_config
 
 rm /tmp/sshd_config_extend
 
+mkdir -p /run/sshd
+
 exec /usr/sbin/sshd -D -e -o Port=$SSH_PORT
diff --git a/releasenotes/notes/nova.yaml b/releasenotes/notes/nova.yaml
index 59754abdc7..78a9096465 100644
--- a/releasenotes/notes/nova.yaml
+++ b/releasenotes/notes/nova.yaml
@@ -76,4 +76,5 @@ nova:
   - 0.3.5 Replace node-role.kubernetes.io/master with control-plane
   - 0.3.6 Fix VNC access issues
   - 0.3.7 Fix live migration without DNS resolution
+  - 0.3.8 Fix missing privilege separation directory for nova compute ssh
 ...