diff --git a/winsup/cygwin/ChangeLog b/winsup/cygwin/ChangeLog
index ea3041806..79106eb19 100644
--- a/winsup/cygwin/ChangeLog
+++ b/winsup/cygwin/ChangeLog
@@ -1,3 +1,9 @@
+2002-05-28  Christopher Faylor  <cgf@redhat.com>
+
+	* fhandler_disk_file.cc (fhandler_disk_file::fstat_helper): Properly
+	check for whether we should be opening the file to search for #!
+	characters.  Set path_conv structure execability, too, if found.
+
 2002-05-28  Corinna Vinschen  <corinna@vinschen.de>
 
 	* security.cc (set_security_attribute): Call getegid32() instead of
diff --git a/winsup/cygwin/fhandler_disk_file.cc b/winsup/cygwin/fhandler_disk_file.cc
index a1237cc3c..de8476445 100644
--- a/winsup/cygwin/fhandler_disk_file.cc
+++ b/winsup/cygwin/fhandler_disk_file.cc
@@ -266,7 +266,7 @@ fhandler_disk_file::fstat_helper (struct __stat64 *buf, path_conv *pc,
       else
 	{
 	  buf->st_mode |= S_IFREG;
-	  if (!pc->exec_state () == dont_know_if_executable)
+	  if (pc->exec_state () == dont_know_if_executable)
 	    {
 	      DWORD cur, done;
 	      char magic[3];
@@ -283,7 +283,10 @@ fhandler_disk_file::fstat_helper (struct __stat64 *buf, path_conv *pc,
 		  magic[0] = magic[1] = magic[2] = '\0';
 		  if (ReadFile (get_handle (), magic, 3, &done, NULL) &&
 		      has_exec_chars (magic, done))
+		    {
 		      set_execable_p ();
+		      pc->set_exec ();
+		    }
 		  SetFilePointer (get_handle(), cur, NULL, FILE_BEGIN);
 		}
 	    }