diff --git a/changes/bug27335 b/changes/bug27335
new file mode 100644
index 0000000000..dcc55a945a
--- /dev/null
+++ b/changes/bug27335
@@ -0,0 +1,4 @@
+  o Minor bugfixes (hidden service v3):
+    - In case the hidden service directory can't be created or has wrong
+      permissions, do not BUG() on it which lead to a non fatal stacktrace.
+      Fixes bug 27335; bugfix on 0.3.2.1.
diff --git a/src/or/hs_service.c b/src/or/hs_service.c
index 33088480d1..408625c3ac 100644
--- a/src/or/hs_service.c
+++ b/src/or/hs_service.c
@@ -974,9 +974,9 @@ load_service_keys(hs_service_t *service)
    * files to that directory so make sure it exists and has the right
    * permissions. We do this here because at this stage we know that Tor is
    * actually running and the service we have has been validated. */
-  if (BUG(hs_check_service_private_dir(get_options()->User,
-                                       config->directory_path,
-                                       config->dir_group_readable, 1) < 0)) {
+  if (hs_check_service_private_dir(get_options()->User,
+                                   config->directory_path,
+                                   config->dir_group_readable, 1) < 0) {
     goto end;
   }