diff --git a/mysql-test/suite/innodb/r/truncate.result b/mysql-test/suite/innodb/r/truncate.result
index e25cd6a0bea..a44d37da230 100644
--- a/mysql-test/suite/innodb/r/truncate.result
+++ b/mysql-test/suite/innodb/r/truncate.result
@@ -27,3 +27,18 @@ SHOW TABLE STATUS;
 Name	Engine	Version	Row_format	Rows	Avg_row_length	Data_length	Max_data_length	Index_length	Data_free	Auto_increment	Create_time	Update_time	Check_time	Collation	Checksum	Create_options	Comment
 t1	InnoDB	#	Compressed	#	#	#	#	#	#	1	#	#	NULL	latin1_swedish_ci	NULL	key_block_size=4	
 DROP TABLE t1;
+#
+# MDEV-17859 Operating system errors in file operations
+# after failed CREATE
+#
+CREATE TABLE t1 (a INT) ENGINE=InnoDB;
+INSERT INTO t1 VALUES (1);
+call mtr.add_suppression("InnoDB: (Operating system )?[Ee]rror number");
+call mtr.add_suppression("InnoDB: Cannot create file '.*t1\\.ibd");
+FLUSH TABLES;
+CREATE TABLE t1 (a INT) ENGINE=InnoDB;
+ERROR HY000: Tablespace for table '`test`.`t1`' exists. Please DISCARD the tablespace before IMPORT
+SELECT * FROM t1;
+a
+1
+DROP TABLE t1;
diff --git a/mysql-test/suite/innodb/t/truncate.test b/mysql-test/suite/innodb/t/truncate.test
index 16a3b06a8ae..5a80f7c49e3 100644
--- a/mysql-test/suite/innodb/t/truncate.test
+++ b/mysql-test/suite/innodb/t/truncate.test
@@ -36,3 +36,20 @@ TRUNCATE TABLE t1;
 --replace_column 3 # 5 # 6 # 7 # 8 # 9 # 10 # 12 # 13 #
 SHOW TABLE STATUS;
 DROP TABLE t1;
+
+--echo #
+--echo # MDEV-17859 Operating system errors in file operations
+--echo # after failed CREATE
+--echo #
+let $MYSQLD_DATADIR= `select @@datadir`;
+CREATE TABLE t1 (a INT) ENGINE=InnoDB;
+INSERT INTO t1 VALUES (1);
+call mtr.add_suppression("InnoDB: (Operating system )?[Ee]rror number");
+call mtr.add_suppression("InnoDB: Cannot create file '.*t1\\.ibd");
+FLUSH TABLES;
+--move_file $MYSQLD_DATADIR/test/t1.frm $MYSQLD_DATADIR/test/hidden.frm
+--error ER_TABLESPACE_EXISTS
+CREATE TABLE t1 (a INT) ENGINE=InnoDB;
+--move_file $MYSQLD_DATADIR/test/hidden.frm $MYSQLD_DATADIR/test/t1.frm
+SELECT * FROM t1;
+DROP TABLE t1;
diff --git a/storage/innobase/handler/ha_innodb.cc b/storage/innobase/handler/ha_innodb.cc
index 00672bf91bd..fd970a069e3 100644
--- a/storage/innobase/handler/ha_innodb.cc
+++ b/storage/innobase/handler/ha_innodb.cc
@@ -10966,6 +10966,7 @@ create_table_info_t::create_table_def()
 	DBUG_PRINT("enter", ("table_name: %s", m_table_name));
 
 	DBUG_ASSERT(m_trx->mysql_thd == m_thd);
+	DBUG_ASSERT(!m_drop_before_rollback);
 
 	/* MySQL does the name length check. But we do additional check
 	on the name length here */
@@ -11228,6 +11229,7 @@ err_col:
 				table, m_trx,
 				(fil_encryption_t)options->encryption,
 				(uint32_t)options->encryption_key_id);
+			m_drop_before_rollback = (err == DB_SUCCESS);
 		}
 
 		DBUG_EXECUTE_IF("ib_crash_during_create_for_encryption",
@@ -12531,6 +12533,9 @@ int create_table_info_t::create_table(bool create_fk)
 		DBUG_RETURN(error);
 	}
 
+	DBUG_ASSERT(m_drop_before_rollback
+		    == !(m_flags2 & DICT_TF2_TEMPORARY));
+
 	/* Create the keys */
 
 	if (m_form->s->keys == 0 || primary_key_no == -1) {
@@ -12591,6 +12596,7 @@ int create_table_info_t::create_table(bool create_fk)
 			dict_table_close(innobase_table, TRUE, FALSE);
 			my_error(ER_WRONG_NAME_FOR_INDEX, MYF(0),
 				 FTS_DOC_ID_INDEX_NAME);
+			m_drop_before_rollback = false;
 			error = -1;
 			DBUG_RETURN(error);
 		case FTS_EXIST_DOC_ID_INDEX:
@@ -12607,16 +12613,6 @@ int create_table_info_t::create_table(bool create_fk)
 		dict_table_close(innobase_table, TRUE, FALSE);
 
 		if (error) {
-			/* Drop the being-created table before rollback,
-			so that rollback can possibly rename back a table
-			that could have been renamed before
-			the failed creation. */
-			m_trx->error_state = DB_SUCCESS;
-			row_drop_table_for_mysql(m_table_name, m_trx,
-						 SQLCOM_TRUNCATE);
-			trx_rollback_to_savepoint(m_trx, NULL);
-
-			m_trx->error_state = DB_SUCCESS;
 			DBUG_RETURN(error);
 		}
 	}
@@ -12686,6 +12682,9 @@ int create_table_info_t::create_table(bool create_fk)
 		error = convert_error_code_to_mysql(err, m_flags, NULL);
 
 		if (error) {
+			/* row_table_add_foreign_constraints() dropped
+			the table */
+			m_drop_before_rollback = false;
 			DBUG_RETURN(error);
 		}
 	}
@@ -12859,9 +12858,11 @@ ha_innobase::create(
 		/* Drop the being-created table before rollback,
 		so that rollback can possibly rename back a table
 		that could have been renamed before the failed creation. */
-		trx->error_state = DB_SUCCESS;
-		row_drop_table_for_mysql(info.table_name(), trx,
-					 SQLCOM_TRUNCATE, true);
+		if (info.drop_before_rollback()) {
+			trx->error_state = DB_SUCCESS;
+			row_drop_table_for_mysql(info.table_name(),
+						 trx, SQLCOM_TRUNCATE, true);
+		}
 		trx_rollback_for_mysql(trx);
 		row_mysql_unlock_data_dictionary(trx);
 		if (own_trx) {
diff --git a/storage/innobase/handler/ha_innodb.h b/storage/innobase/handler/ha_innodb.h
index d7fd26612d7..b62045fd963 100644
--- a/storage/innobase/handler/ha_innodb.h
+++ b/storage/innobase/handler/ha_innodb.h
@@ -646,7 +646,7 @@ public:
 	m_trx(trx),
 	m_form(form),
 	m_create_info(create_info),
-	m_table_name(table_name),
+	m_table_name(table_name), m_drop_before_rollback(false),
 	m_remote_path(remote_path),
 	m_innodb_file_per_table(file_per_table)
 	{}
@@ -719,6 +719,9 @@ public:
 	const char* table_name() const
 	{ return(m_table_name); }
 
+	/** @return whether the table needs to be dropped on rollback */
+	bool drop_before_rollback() const { return m_drop_before_rollback; }
+
 	THD* thd() const
 	{ return(m_thd); }
 
@@ -760,6 +763,8 @@ private:
 
 	/** Table name */
 	char*		m_table_name;
+	/** Whether the table needs to be dropped before rollback */
+	bool		m_drop_before_rollback;
 
 	/** Remote path (DATA DIRECTORY) or zero length-string */
 	char*		m_remote_path;