diff --git a/Changelog.md b/Changelog.md
index 495bb8b8..a31b3596 100644
--- a/Changelog.md
+++ b/Changelog.md
@@ -1,6 +1,7 @@
 # Changelog
 
 **latest**
+- disable UsePrivilegeSeparation in sshd configuration, fixes #122
 - added OAUTH_BLOCK_AUTO_CREATED_USERS configuration option
 - added OAUTH_ALLOW_SSO configuration option
 - added github oauth configuration support
diff --git a/assets/setup/install b/assets/setup/install
index d3e64fb2..34358e2b 100755
--- a/assets/setup/install
+++ b/assets/setup/install
@@ -90,6 +90,7 @@ EOF
 
 # disable pam authentication for sshd
 sed 's/UsePAM yes/UsePAM no/' -i /etc/ssh/sshd_config
+sed 's/UsePrivilegeSeparation yes/UsePrivilegeSeparation no/' -i /etc/ssh/sshd_config
 
 # configure supervisor to start sshd
 mkdir -p /var/run/sshd