diff --git a/src/uu/mkfifo/src/mkfifo.rs b/src/uu/mkfifo/src/mkfifo.rs
index 3586eb7c37c..607b8a9aaf9 100644
--- a/src/uu/mkfifo/src/mkfifo.rs
+++ b/src/uu/mkfifo/src/mkfifo.rs
@@ -44,6 +44,7 @@ pub fn uumain(args: impl uucore::Args) -> UResult<()> {
                 1,
                 translate!("mkfifo-error-cannot-create-fifo", "path" => f.quote()),
             ));
+            continue;
         }
 
         // Explicitly set the permissions to ignore umask
diff --git a/tests/by-util/test_mkfifo.rs b/tests/by-util/test_mkfifo.rs
index ac0b78b3a3b..35869fe5ddb 100644
--- a/tests/by-util/test_mkfifo.rs
+++ b/tests/by-util/test_mkfifo.rs
@@ -137,11 +137,9 @@ fn test_create_fifo_permission_denied() {
     at.mkdir(no_exec_dir);
     at.set_mode(no_exec_dir, 0o644);
 
-    let err_msg = format!(
-        "mkfifo: cannot create fifo '{named_pipe}': File exists
-mkfifo: cannot set permissions on '{named_pipe}': Permission denied (os error 13)
-"
-    );
+    // We no longer attempt to modify file permission if the file was failed to be created.
+    // Therefore the error message should only contain "cannot create".
+    let err_msg = format!("mkfifo: cannot create fifo '{named_pipe}': File exists\n");
 
     scene
         .ucmd()
@@ -199,3 +197,29 @@ fn test_mkfifo_selinux_invalid() {
         }
     }
 }
+
+#[test]
+fn test_mkfifo_permission_unchanged_when_failed() {
+    use uucore::fs::display_permissions;
+
+    let scene = TestScenario::new(util_name!());
+    let at = &scene.fixtures;
+
+    let file_name = "test_file";
+    at.write(file_name, "content");
+    at.set_mode(file_name, 0o600);
+
+    let err_msg = format!("mkfifo: cannot create fifo '{file_name}': File exists\n");
+
+    scene
+        .ucmd()
+        .arg(file_name)
+        .arg("-m")
+        .arg("666")
+        .fails()
+        .stderr_is(err_msg.as_str());
+    let metadata = std::fs::metadata(at.subdir.join(file_name)).unwrap();
+    let permissions = display_permissions(&metadata, true);
+    let expected = "-rw-------";
+    assert_eq!(permissions, expected.to_string());
+}