diff --git a/components/engine/docs/reference/commandline/exec.md b/components/engine/docs/reference/commandline/exec.md
index b5ddc64dc7..2ff1205604 100644
--- a/components/engine/docs/reference/commandline/exec.md
+++ b/components/engine/docs/reference/commandline/exec.md
@@ -17,7 +17,7 @@ weight=1
 
       -d, --detach=false         Detached mode: run command in the background
       -i, --interactive=false    Keep STDIN open even if not attached
-      --privileged=false         Give extended privileges to the command
+      --privileged=false         Give extended Linux capabilities to the command
       -t, --tty=false            Allocate a pseudo-TTY
       -u, --user=                Username or UID (format: <name|uid>[:<group|gid>])
 
@@ -53,4 +53,3 @@ This will create a new file `/tmp/execWorks` inside the running container
     $ docker exec -it ubuntu_bash bash
 
 This will create a new Bash session in the container `ubuntu_bash`.
-
diff --git a/components/engine/integration-cli/docker_cli_exec_test.go b/components/engine/integration-cli/docker_cli_exec_test.go
index bce007b15a..e22431f854 100644
--- a/components/engine/integration-cli/docker_cli_exec_test.go
+++ b/components/engine/integration-cli/docker_cli_exec_test.go
@@ -534,18 +534,18 @@ func (s *DockerSuite) TestExecWithUser(c *check.C) {
 
 func (s *DockerSuite) TestExecWithPrivileged(c *check.C) {
 
-	runCmd := exec.Command(dockerBinary, "run", "-d", "--name", "parent", "--cap-drop=ALL", "busybox", "top")
-	if out, _, err := runCommandWithOutput(runCmd); err != nil {
-		c.Fatal(out, err)
-	}
+	// Start main loop which attempts mknod repeatedly
+	dockerCmd(c, "run", "-d", "--name", "parent", "--cap-drop=ALL", "busybox", "sh", "-c", `while (true); do if [ -e /exec_priv ]; then cat /exec_priv && mknod /tmp/sda b 8 0 && echo "Success"; else echo "Privileged exec has not run yet"; fi; usleep 10000; done`)
 
-	cmd := exec.Command(dockerBinary, "exec", "parent", "sh", "-c", "mknod /tmp/sda b 8 0")
+	// Check exec mknod doesn't work
+	cmd := exec.Command(dockerBinary, "exec", "parent", "sh", "-c", "mknod /tmp/sdb b 8 16")
 	out, _, err := runCommandWithOutput(cmd)
 	if err == nil || !strings.Contains(out, "Operation not permitted") {
-		c.Fatalf("exec mknod in --cap-drop=ALL container without --privileged should failed")
+		c.Fatalf("exec mknod in --cap-drop=ALL container without --privileged should fail")
 	}
 
-	cmd = exec.Command(dockerBinary, "exec", "--privileged", "parent", "sh", "-c", "mknod /tmp/sda b 8 0 && echo ok")
+	// Check exec mknod does work with --privileged
+	cmd = exec.Command(dockerBinary, "exec", "--privileged", "parent", "sh", "-c", `echo "Running exec --privileged" > /exec_priv && mknod /tmp/sdb b 8 16 && usleep 50000 && echo "Finished exec --privileged" > /exec_priv && echo ok`)
 	out, _, err = runCommandWithOutput(cmd)
 	if err != nil {
 		c.Fatal(err, out)
@@ -555,6 +555,19 @@ func (s *DockerSuite) TestExecWithPrivileged(c *check.C) {
 		c.Fatalf("exec mknod in --cap-drop=ALL container with --privileged failed: %v, output: %q", err, out)
 	}
 
+	// Check subsequent unprivileged exec cannot mknod
+	cmd = exec.Command(dockerBinary, "exec", "parent", "sh", "-c", "mknod /tmp/sdc b 8 32")
+	out, _, err = runCommandWithOutput(cmd)
+	if err == nil || !strings.Contains(out, "Operation not permitted") {
+		c.Fatalf("repeating exec mknod in --cap-drop=ALL container after --privileged without --privileged should fail")
+	}
+
+	// Confirm at no point was mknod allowed
+	logCmd := exec.Command(dockerBinary, "logs", "parent")
+	if out, _, err := runCommandWithOutput(logCmd); err != nil || strings.Contains(out, "Success") {
+		c.Fatal(out, err)
+	}
+
 }
 
 func (s *DockerSuite) TestExecWithImageUser(c *check.C) {
diff --git a/components/engine/man/docker-exec.1.md b/components/engine/man/docker-exec.1.md
index 312fa397f5..5cfdb5434b 100644
--- a/components/engine/man/docker-exec.1.md
+++ b/components/engine/man/docker-exec.1.md
@@ -16,7 +16,7 @@ CONTAINER COMMAND [ARG...]
 
 # DESCRIPTION
 
-Run a process in a running container. 
+Run a process in a running container.
 
 The command started using `docker exec` will only run while the container's primary
 process (`PID 1`) is running, and will not be restarted if the container is restarted.
@@ -35,11 +35,12 @@ container is unpaused, and then run
    Keep STDIN open even if not attached. The default is *false*.
 
 **--privileged**=*true*|*false*
-   Give extended privileges to the process to run in a running container. The default is *false*.
+   Give the process extended [Linux capabilities](http://man7.org/linux/man-pages/man7/capabilities.7.html)
+when running in a container. The default is *false*.
 
-   By default, the process run by docker exec in a running container
-have the same capabilities of the container. By setting --privileged will give
-all the capabilities to the process.
+   Without this flag, the process run by `docker exec` in a running container has
+the same capabilities as the container, which may be limited. Set
+`--privileged` to give all capabilities to the process.
 
 **-t**, **--tty**=*true*|*false*
    Allocate a pseudo-TTY. The default is *false*.