diff --git a/gnu/build/activation.scm b/gnu/build/activation.scm
index c6c7e7fd3b..6d69628eb2 100644
--- a/gnu/build/activation.scm
+++ b/gnu/build/activation.scm
@@ -1,5 +1,5 @@
 ;;; GNU Guix --- Functional package management for GNU
-;;; Copyright © 2013, 2014, 2015, 2016, 2017, 2018, 2019 Ludovic Courtès <ludo@gnu.org>
+;;; Copyright © 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020 Ludovic Courtès <ludo@gnu.org>
 ;;; Copyright © 2015 Mark H Weaver <mhw@netris.org>
 ;;;
 ;;; This file is part of GNU Guix.
@@ -247,7 +247,19 @@ (define (make-setuid-program prog)
                          string<?))
       (mkdir-p %setuid-directory))
 
-  (for-each make-setuid-program programs))
+  (for-each (lambda (program)
+              (catch 'system-error
+                (lambda ()
+                  (make-setuid-program program))
+                (lambda args
+                  ;; If we fail to create a setuid program, better keep going
+                  ;; so that we don't leave %SETUID-DIRECTORY empty or
+                  ;; half-populated.  This can happen if PROGRAMS contains
+                  ;; incorrect file names: <https://bugs.gnu.org/38800>.
+                  (format (current-error-port)
+                          "warning: failed to make '~a' setuid-root: ~a~%"
+                          program (strerror (system-error-errno args))))))
+            programs))
 
 (define (activate-special-files special-files)
   "Install the files listed in SPECIAL-FILES.  Each element of SPECIAL-FILES