diff --git a/setup.sh b/setup.sh
index bcc0f63..81a1c3b 100644
--- a/setup.sh
+++ b/setup.sh
@@ -23,7 +23,7 @@ set -e
 
 if ! [ -f "/etc/ixvd/version" ]; then
     echo "applying overlay..."
-    cp -r skel /
+    cp -r skel/. /
 fi
 
 if ! [ -d "/etc/ixvd/secrets" ]; then