diff --git a/src/dir.rs b/src/dir.rs
index 5417c5b..e39d98d 100644
--- a/src/dir.rs
+++ b/src/dir.rs
@@ -225,7 +225,15 @@ impl DirEntryData {
 
     fn deserialize(rdr: &mut Read) -> io::Result<DirEntryData> {
         let mut name = [0; 11];
-        rdr.read_exact(&mut name)?;
+        match rdr.read_exact(&mut name) {
+            Err(ref err) if err.kind() == io::ErrorKind::UnexpectedEof => {
+                return Ok(DirEntryData::File(DirFileEntryData {
+                    ..Default::default()
+                }));
+            }
+            Err(err) => return Err(err),
+            _ => {},
+        }
         let attrs = FileAttributes::from_bits_truncate(rdr.read_u8()?);
         if attrs & FileAttributes::LFN == FileAttributes::LFN {
             let mut data = DirLfnEntryData {
@@ -617,8 +625,14 @@ impl <'a, 'b> Dir<'a, 'b> {
         let mut num_free = 0;
         let mut i = 0;
         loop {
-            let data = DirEntryData::deserialize(&mut stream)?;
-            if data.is_free() {
+            let raw_entry = DirEntryData::deserialize(&mut stream)?;
+            if raw_entry.is_end() {
+                if num_free == 0 {
+                    first_free = i;
+                }
+                stream.seek(io::SeekFrom::Start(first_free as u64 * DIR_ENTRY_SIZE))?;
+                return Ok(stream);
+            } else if raw_entry.is_free() {
                 if num_free == 0 {
                     first_free = i;
                 }
@@ -627,13 +641,6 @@ impl <'a, 'b> Dir<'a, 'b> {
                     stream.seek(io::SeekFrom::Start(first_free as u64 * DIR_ENTRY_SIZE))?;
                     return Ok(stream);
                 }
-            } else if data.is_end() {
-                if num_free == 0 {
-                    first_free = i;
-                }
-                stream.seek(io::SeekFrom::Start(first_free as u64 * DIR_ENTRY_SIZE))?;
-                // FIXME: make sure new allocated cluster is zeroed
-                return Ok(stream);
             } else {
                 num_free = 0;
             }
@@ -728,16 +735,12 @@ pub struct DirIter<'a, 'b: 'a> {
 }
 
 impl <'a, 'b> DirIter<'a, 'b> {
-    fn read_dir_entry_raw_data(&mut self) -> io::Result<DirEntryData> {
-        DirEntryData::deserialize(&mut self.stream)
-    }
-
     fn read_dir_entry(&mut self) -> io::Result<Option<DirEntry<'a, 'b>>> {
         let mut lfn_buf = LongNameBuilder::new();
         let mut offset = self.stream.seek(SeekFrom::Current(0))?;
         let mut begin_offset = offset;
         loop {
-            let raw_entry = self.read_dir_entry_raw_data()?;
+            let raw_entry = DirEntryData::deserialize(&mut self.stream)?;
             offset += DIR_ENTRY_SIZE;
             match raw_entry {
                 DirEntryData::File(data) => {
diff --git a/src/file.rs b/src/file.rs
index 81fcd37..0ad246c 100644
--- a/src/file.rs
+++ b/src/file.rs
@@ -217,9 +217,21 @@ impl<'a, 'b> Write for File<'a, 'b> {
                 None => {
                     // end of chain reached - allocate new cluster
                     let new_cluster = self.fs.alloc_cluster(self.current_cluster)?;
+                    trace!("allocated cluser {}", new_cluster);
                     if self.first_cluster.is_none() {
                         self.set_first_cluster(new_cluster);
                     }
+                    if self.entry.clone().map_or(true, |e| e.data.size().is_none()) {
+                        // zero new directory cluster
+                        trace!("zeroing directory cluser {}", new_cluster);
+                        let abs_pos = self.fs.offset_from_cluster(new_cluster);
+                        let mut disk = self.fs.disk.borrow_mut();
+                        disk.seek(SeekFrom::Start(abs_pos))?;
+                        for _ in 0..cluster_size/32 {
+                            let zero = [0u8; 32];
+                            disk.write(&zero)?;
+                        }
+                    }
                     new_cluster
                 },
             }
diff --git a/tests/write.rs b/tests/write.rs
index 433e08e..6908785 100644
--- a/tests/write.rs
+++ b/tests/write.rs
@@ -125,7 +125,7 @@ fn test_remove_fat32() {
 
 fn test_create_file(fs: FileSystem) {
     let mut root_dir = fs.root_dir();
-    let dir = root_dir.open_dir("very/long/path").unwrap();
+    let mut dir = root_dir.open_dir("very/long/path").unwrap();
     let mut names = dir.iter().map(|r| r.unwrap().file_name()).collect::<Vec<String>>();
     assert_eq!(names, [".", "..", "test.txt"]);
     {
@@ -140,6 +140,13 @@ fn test_create_file(fs: FileSystem) {
         file.read_to_string(&mut content).unwrap();
         assert_eq!(&content, &TEST_STR);
     }
+    // Create enough entries to allocate next cluster
+    for i in 0..512/32 {
+        let name = format!("test{}", i);
+        dir.create_file(&name).unwrap();
+    }
+    names = dir.iter().map(|r| r.unwrap().file_name()).collect::<Vec<String>>();
+    assert_eq!(names.len(), 4 + 512/32);
 }
 
 #[test]