diff --git a/lib/fakefs.rb b/lib/fakefs.rb
index 1e3c388..7529583 100644
--- a/lib/fakefs.rb
+++ b/lib/fakefs.rb
@@ -38,10 +38,10 @@ module FakeFS
       end
 
       if dst_file and File.directory?(dst_file)
-        FileSystem.add(File.join(dest, src), src_file.entry.clone(dest))
+        FileSystem.add(File.join(dest, src), src_file.entry.clone(dst_file))
       else
         FileSystem.delete(dest)
-        FileSystem.add(dest, src_file.entry.clone(dest))
+        FileSystem.add(dest, src_file.entry.clone)
       end
     end
 
@@ -64,18 +64,18 @@ module FakeFS
       # about and cleaned up.
       if new_dir
         if src[-2..-1] == '/.'
-          dir.values.each{|f| new_dir[f.name] = f }
+          dir.values.each{|f| new_dir[f.name] = f.clone(new_dir) }
         else
           new_dir[dir.name] = dir.entry.clone(new_dir)
         end
       else
-        FileSystem.add(dest, dir.entry.clone(dest))
+        FileSystem.add(dest, dir.entry.clone)
       end
     end
 
     def mv(src, dest)
       if target = FileSystem.find(src)
-        FileSystem.add(dest, target.entry.clone(dest))
+        FileSystem.add(dest, target.entry.clone)
         FileSystem.delete(src)
       else
         raise Errno::ENOENT, src
@@ -353,15 +353,16 @@ module FakeFS
 
   class MockFile
     attr_accessor :name, :parent, :content
+
     def initialize(name = nil, parent = nil)
       @name = name
       @parent = parent
       @content = ''
     end
 
-    def clone(parent)
+    def clone(parent = nil)
       clone = super()
-      clone.parent = parent
+      clone.parent = parent if parent
       clone
     end
 
@@ -369,6 +370,10 @@ module FakeFS
       self
     end
 
+    def inspect
+      "(MockFile name:#{name.inspect} parent:#{parent.to_s.inspect} size:#{content.size})"
+    end
+
     def to_s
       File.join(parent.to_s, name)
     end
@@ -386,11 +391,16 @@ module FakeFS
       self
     end
 
-    def clone(parent)
+    def inspect
+      "(MockDir name:#{name.inspect} parent:#{parent.to_s.inspect} size:#{size})"
+    end
+
+    def clone(parent = nil)
       clone = Marshal.load(Marshal.dump(self))
       clone.each do |key, value|
-        value.parent = parent
+        value.parent = clone
       end
+      clone.parent = parent if parent
       clone
     end
 
diff --git a/test/fakefs_test.rb b/test/fakefs_test.rb
index 8d32d63..aee941f 100644
--- a/test/fakefs_test.rb
+++ b/test/fakefs_test.rb
@@ -422,6 +422,18 @@ class FakeFSTest < Test::Unit::TestCase
     assert_equal 'footext', File.open('symdir/subdir/foo'){|f| f.read }
   end
 
+  def test_cp_r_sets_parent_correctly
+    FileUtils.mkdir_p '/path/foo'
+    File.open('/path/foo/bar', 'w'){|f| f.write 'foo' }
+    File.open('/path/foo/baz', 'w'){|f| f.write 'foo' }
+
+    FileUtils.cp_r '/path/foo', '/path/bar'
+
+    assert File.exists?('/path/bar/baz')
+    FileUtils.rm_rf '/path/bar/baz'
+    assert_equal %w( /path/bar/bar ), Dir['/path/bar/*']
+  end
+
   def test_clone_clones_normal_files
     RealFile.open(here('foo'), 'w'){|f| f.write 'bar' }
     assert !File.exists?(here('foo'))