diff --git a/lgsm/functions/check_steamcmd.sh b/lgsm/functions/check_steamcmd.sh
index 9b84686dc3..030cbbf03a 100755
--- a/lgsm/functions/check_steamcmd.sh
+++ b/lgsm/functions/check_steamcmd.sh
@@ -17,5 +17,6 @@ if [ ${shortname} == "ark" ]; then
 fi
 fn_check_steamcmd_dir
 fn_check_steamcmd_dir_legacy
+fn_check_steamcmd_steamapp
 fn_check_steamcmd_user
 fn_check_steamcmd_exec
diff --git a/lgsm/functions/core_steamcmd.sh b/lgsm/functions/core_steamcmd.sh
index ece274f0fa..5fbd5db9f1 100755
--- a/lgsm/functions/core_steamcmd.sh
+++ b/lgsm/functions/core_steamcmd.sh
@@ -97,6 +97,13 @@ fn_check_steamcmd_dir_legacy(){
 	fi
 }
 
+fn_check_steamcmd_steamapp(){
+	# Check that steamapp directory fixes issue #3481
+	if [ ! -d "${serverfiles}/steamapps" ]; then
+		mkdir -p "${serverfiles}/steamapps"
+	fi
+}
+
 fn_check_steamcmd_ark(){
 	# Checks if SteamCMD exists in
 	# Engine/Binaries/ThirdParty/SteamCMD/Linux