diff --git a/CHANGELOG.md b/CHANGELOG.md
index b13253fd..6bf65a0d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -55,6 +55,7 @@
 ### Bug Fixes
 
 * [#580](https://github.com/foosel/OctoPrint/issues/580) - Properly unset job data when instructed so by callers
+* [#604](https://github.com/foosel/OctoPrint/issues/604) - Properly initialize settings basedir on server startup
 * [IRC] Also allow downloading .g files via Tornado
 
 ## 1.1.0 (2014-09-03)
diff --git a/src/octoprint/settings.py b/src/octoprint/settings.py
index b0c5faa0..8e99d797 100644
--- a/src/octoprint/settings.py
+++ b/src/octoprint/settings.py
@@ -205,6 +205,9 @@ class Settings(object):
 		else:
 			self.settings_dir = _resolveSettingsDir(APPNAME)
 
+		if not os.path.isdir(self.settings_dir):
+			os.makedirs(self.settings_dir)
+
 	def _getDefaultFolder(self, type):
 		folder = default_settings["folder"][type]
 		if folder is None: