diff --git a/kernel/src/fs/VFS.cpp b/kernel/src/fs/VFS.cpp
index adaf43a3..5852b9d1 100644
--- a/kernel/src/fs/VFS.cpp
+++ b/kernel/src/fs/VFS.cpp
@@ -17,14 +17,9 @@ namespace VFS
 
         kdbgln("vfs: trying to resolve path %s", path);
 
-        SharedPtr<Inode> current_inode;
+        SharedPtr<Inode> current_inode = root_fs->root_inode();
 
-        if (parser.is_absolute()) { current_inode = root_fs->root_inode(); }
-        else
-        {
-            kwarnln("vfs: cannot resolve path '%s', as relative paths are not supported yet", path);
-            return err(ENOTSUP);
-        }
+        // FIXME: Properly handle relative paths.
 
         const char* section;
         while (parser.next().try_set_value(section))
@@ -35,4 +30,18 @@ namespace VFS
 
         return current_inode;
     }
+
+    Result<SharedPtr<Inode>> create_directory(const char* path)
+    {
+        auto parser = TRY(PathParser::create(path));
+        auto parent_path = TRY(parser.dirname());
+
+        auto parent_inode = TRY(resolve_path(parent_path.chars()));
+
+        auto child_name = TRY(parser.basename());
+
+        kdbgln("vfs: creating directory '%s' in parent '%s'", child_name.chars(), parent_path.chars());
+
+        return parent_inode->create_subdirectory(child_name.chars());
+    }
 }
diff --git a/kernel/src/fs/VFS.h b/kernel/src/fs/VFS.h
index d3179af1..c699d99a 100644
--- a/kernel/src/fs/VFS.h
+++ b/kernel/src/fs/VFS.h
@@ -78,5 +78,7 @@ namespace VFS
 
     Result<SharedPtr<Inode>> resolve_path(const char* path);
 
+    Result<SharedPtr<Inode>> create_directory(const char* path);
+
     Inode& root_inode();
 }
diff --git a/kernel/src/main.cpp b/kernel/src/main.cpp
index b403cdeb..6d636928 100644
--- a/kernel/src/main.cpp
+++ b/kernel/src/main.cpp
@@ -58,7 +58,7 @@ static Result<void> try_init_vfs()
     kinfoln("root inode's '.' entry inode number: %zu", TRY(root_inode.find("."))->inode_number());
     kinfoln("root inode's '..' entry inode number: %zu", TRY(root_inode.find(".."))->inode_number());
 
-    TRY(root_inode.create_subdirectory("etc"));
+    TRY(VFS::create_directory("/etc/"));
 
     kinfoln("root inode's 'etc' entry inode number: %zu", TRY(root_inode.find("etc"))->inode_number());
 
diff --git a/libluna/CMakeLists.txt b/libluna/CMakeLists.txt
index 067e2a83..9ff201e9 100644
--- a/libluna/CMakeLists.txt
+++ b/libluna/CMakeLists.txt
@@ -7,6 +7,7 @@ set(FREESTANDING_SOURCES
     src/Format.cpp
     src/NumberParsing.cpp
     src/CString.cpp
+    src/CPath.cpp
     src/Units.cpp
     src/SystemError.cpp
     src/Bitmap.cpp
diff --git a/libluna/include/luna/CPath.h b/libluna/include/luna/CPath.h
new file mode 100644
index 00000000..5bbd38c0
--- /dev/null
+++ b/libluna/include/luna/CPath.h
@@ -0,0 +1,4 @@
+#pragma once
+
+char* basename(char*);
+char* dirname(char*);
diff --git a/libluna/include/luna/CString.h b/libluna/include/luna/CString.h
index 7b607e71..6d17c6e7 100644
--- a/libluna/include/luna/CString.h
+++ b/libluna/include/luna/CString.h
@@ -33,4 +33,5 @@ extern "C"
     [[deprecated]] char* strcat(char* dst, const char* src);
 
     char* strchr(const char* str, int c);
+    char* strrchr(const char* str, int c);
 }
diff --git a/libluna/include/luna/PathParser.h b/libluna/include/luna/PathParser.h
index a1da5ee5..33588ed7 100644
--- a/libluna/include/luna/PathParser.h
+++ b/libluna/include/luna/PathParser.h
@@ -1,6 +1,7 @@
 #pragma once
 #include <luna/CString.h>
 #include <luna/Heap.h>
+#include <luna/OwnedStringView.h>
 
 class PathParser
 {
@@ -17,6 +18,9 @@ class PathParser
         return *m_original == '/';
     }
 
+    Result<OwnedStringView> basename();
+    Result<OwnedStringView> dirname();
+
     Option<const char*> next();
 
   private:
diff --git a/libluna/src/CPath.cpp b/libluna/src/CPath.cpp
new file mode 100644
index 00000000..cbe31799
--- /dev/null
+++ b/libluna/src/CPath.cpp
@@ -0,0 +1,47 @@
+#include <luna/CPath.h>
+#include <luna/CString.h>
+
+static char dot[] = ".";
+
+char* basename(char* path)
+{
+    // If path is NULL, or the string's length is 0, return .
+    if (!path) return dot;
+    size_t len = strlen(path);
+    if (!len) return dot;
+
+    // Strip trailing slashes.
+    char* it = path + len - 1;
+    while (*it == '/' && it != path) { it--; }
+    *(it + 1) = 0;
+    if (it == path) return path;
+
+    // Return path from the first character if there are no more slashes, or from the first character after the last
+    // slash.
+    char* beg = strrchr(path, '/');
+    if (!beg) return path;
+    return beg + 1;
+}
+
+char* dirname(char* path)
+{
+    // If path is NULL, or the string's length is 0, return .
+    if (!path) return dot;
+    size_t len = strlen(path);
+    if (!len) return dot;
+
+    // Strip trailing slashes.
+    char* it = path + len - 1;
+    while (*it == '/' && it != path) { it--; }
+    *(char*)(it + 1) = 0;
+    if (it == path) return path;
+
+    // Search for the last slash. If there is none, return .
+    // Otherwise, we end the string there and return.
+    char* end = strrchr(path, '/');
+    if (!end) return dot;
+    if (end != path) *end = 0;
+    else
+        *(end + 1) = 0;
+    return path;
+}
diff --git a/libluna/src/CString.cpp b/libluna/src/CString.cpp
index d3fef924..38160120 100644
--- a/libluna/src/CString.cpp
+++ b/libluna/src/CString.cpp
@@ -126,6 +126,15 @@ extern "C"
         return NULL;
     }
 
+    char* strrchr(const char* str, int c)
+    {
+        const char* s = str + strlen(str);
+        while (s != str && *s != (char)c) s--;
+        if (s != str) return const_cast<char*>(s);
+        if (*s == (char)c) return const_cast<char*>(s);
+        return NULL;
+    }
+
     usize strlcpy(char* dest, const char* src, usize len)
     {
         usize src_len = strlen(src);
diff --git a/libluna/src/PathParser.cpp b/libluna/src/PathParser.cpp
index 9d47c5f0..47cdb94e 100644
--- a/libluna/src/PathParser.cpp
+++ b/libluna/src/PathParser.cpp
@@ -1,4 +1,6 @@
+#include <luna/CPath.h>
 #include <luna/PathParser.h>
+#include <luna/ScopeGuard.h>
 
 Result<PathParser> PathParser::create(const char* path)
 {
@@ -31,3 +33,29 @@ Option<const char*> PathParser::next()
 
     return result;
 }
+
+Result<OwnedStringView> PathParser::basename()
+{
+    char* copy = strdup(m_original);
+    if (!copy) return err(ENOMEM);
+
+    auto guard = make_scope_guard([copy] { free_impl(copy); });
+
+    char* result = ::basename(copy);
+
+    // We must copy this as we cannot rely on the original string.
+    return OwnedStringView::from_string_literal(result);
+}
+
+Result<OwnedStringView> PathParser::dirname()
+{
+    char* copy = strdup(m_original);
+    if (!copy) return err(ENOMEM);
+
+    auto guard = make_scope_guard([copy] { free_impl(copy); });
+
+    char* result = ::dirname(copy);
+
+    // We must copy this as we cannot rely on the original string.
+    return OwnedStringView::from_string_literal(result);
+}
diff --git a/libluna/src/TarStream.cpp b/libluna/src/TarStream.cpp
index 5b91307e..73bb60bd 100644
--- a/libluna/src/TarStream.cpp
+++ b/libluna/src/TarStream.cpp
@@ -46,7 +46,7 @@ Result<TarStream::Entry> TarStream::parse_header(const TarStream::TarHeader* hdr
     entry.mode = (mode_t)parse_unsigned_integer(hdr->mode, nullptr, 8);
 
     entry.m_pos = m_offset;
-    entry.m_data = (u8*)(m_base + m_offset);
+    entry.m_data = (u8*)m_base + m_offset;
 
     switch (hdr->typeflag)
     {