diff --git a/meta/classes/useradd.bbclass b/meta/classes/useradd.bbclass
index 6017ded860..0f51e5522b 100644
--- a/meta/classes/useradd.bbclass
+++ b/meta/classes/useradd.bbclass
@@ -100,7 +100,7 @@ useradd_sysroot () {
 	# Pseudo may (do_prepare_recipe_sysroot) or may not (do_populate_sysroot_setscene) be running 
 	# at this point so we're explicit about the environment so pseudo can load if 
 	# not already present.
-	export PSEUDO="${FAKEROOTENV} PSEUDO_LOCALSTATEDIR=${STAGING_DIR_TARGET}${localstatedir}/pseudo ${PSEUDO_SYSROOT}${bindir_native}/pseudo"
+	export PSEUDO="${FAKEROOTENV} ${PSEUDO_SYSROOT}${bindir_native}/pseudo"
 
 	# Explicitly set $D since it isn't set to anything
 	# before do_prepare_recipe_sysroot