diff --git a/dlls/msi/install.c b/dlls/msi/install.c
index 2098cb2fc14..7e9fdad3b9f 100644
--- a/dlls/msi/install.c
+++ b/dlls/msi/install.c
@@ -360,7 +360,10 @@ UINT MSI_SetTargetPathW(MSIPACKAGE *package, LPCWSTR szFolder,
     if (attrib == INVALID_FILE_ATTRIBUTES)
     {
         if (!CreateDirectoryW(szFolderPath,NULL))
+        {
+            msi_free( path );
             return ERROR_FUNCTION_FAILED;
+        }
         RemoveDirectoryW(szFolderPath);
     }