diff --git a/CHANGELOG.md b/CHANGELOG.md
index c7c0c3b3..778e95de 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,7 +5,8 @@
 - [#1006](https://github.com/Azure/azure-storage-fuse/issues/1006) Remove user and group config from logrotate file.
 - [csi-driver #809](https://github.com/kubernetes-sigs/blob-csi-driver/issues/809) Fail to mount when uid/gid are provided on command line.
 - [#1032](https://github.com/Azure/azure-storage-fuse/issues/1032) `mount all` CLI params parsing fix when no `config-file` and `tmp-path` is provided.
-- [#1015](https://github.com/Azure/azure-storage-fuse/issues/1015) Default value of `ignore-open-flags` config parameter changed to `true`
+- [#1015](https://github.com/Azure/azure-storage-fuse/issues/1015) Default value of `ignore-open-flags` config parameter changed to `true`.
+- [#1038](https://github.com/Azure/azure-storage-fuse/issues/1038) Changing default daemon permissions.
 
 ## 2.0.1 (2022-12-02)
 - Copy of GA release of Blobfuse2. This release was necessary to ensure the GA version resolves ahead of the preview versions.
diff --git a/cmd/mount.go b/cmd/mount.go
index 4f626925..28973eee 100644
--- a/cmd/mount.go
+++ b/cmd/mount.go
@@ -376,7 +376,7 @@ var mountCmd = &cobra.Command{
 			dmnCtx := &daemon.Context{
 				PidFileName: pidFileName,
 				PidFilePerm: 0644,
-				Umask:       027,
+				Umask:       022,
 			}
 
 			ctx, _ := context.WithCancel(context.Background()) //nolint