diff --git a/Makefile.am b/Makefile.am
index 4bc4e28a9f..507bf2c30c 100644
--- a/Makefile.am
+++ b/Makefile.am
@@ -5524,7 +5524,7 @@ if SSSD_USER
 	-$(SETCAP) cap_dac_read_search=p $(DESTDIR)$(sssdlibexecdir)/ldap_child
 	-chgrp $(SSSD_USER) $(DESTDIR)$(sssdlibexecdir)/krb5_child
 	chmod 750 $(DESTDIR)$(sssdlibexecdir)/krb5_child
-	-$(SETCAP) cap_dac_read_search,cap_setuid,cap_setgid=p $(DESTDIR)$(sssdlibexecdir)/krb5_child
+	-$(SETCAP) cap_dac_read_search=p $(DESTDIR)$(sssdlibexecdir)/krb5_child
 	-chgrp $(SSSD_USER) $(DESTDIR)$(sssdlibexecdir)/proxy_child
 	chmod 750 $(DESTDIR)$(sssdlibexecdir)/proxy_child
 	-chgrp $(SSSD_USER) $(DESTDIR)$(sssdlibexecdir)/sssd_pam
diff --git a/contrib/sssd.spec.in b/contrib/sssd.spec.in
index 20bbbdcc93..a959761c0c 100644
--- a/contrib/sssd.spec.in
+++ b/contrib/sssd.spec.in
@@ -779,7 +779,7 @@ install -D -p -m 0644 %{SOURCE1} %{buildroot}%{_sysusersdir}/sssd.conf
 %license COPYING
 %attr(775,sssd,sssd) %dir %{pubconfpath}/krb5.include.d
 %attr(0750,root,sssd) %caps(cap_dac_read_search=p) %{_libexecdir}/%{servicename}/ldap_child
-%attr(0750,root,sssd) %caps(cap_dac_read_search,cap_setuid,cap_setgid=p) %{_libexecdir}/%{servicename}/krb5_child
+%attr(0750,root,sssd) %caps(cap_dac_read_search=p) %{_libexecdir}/%{servicename}/krb5_child
 %config(noreplace) %{_sysconfdir}/krb5.conf.d/enable_sssd_conf_dir
 %dir %{_datadir}/sssd/krb5-snippets
 %{_datadir}/sssd/krb5-snippets/enable_sssd_conf_dir
diff --git a/src/providers/krb5/krb5_ccache.c b/src/providers/krb5/krb5_ccache.c
index 67de16bf78..3d37ba138e 100644
--- a/src/providers/krb5/krb5_ccache.c
+++ b/src/providers/krb5/krb5_ccache.c
@@ -37,7 +37,11 @@
 #include "util/util.h"
 
 
-/* real id == user id; set id == service id */
+/* `switch_to_()` functions expect that
+ * real id == user id; set id == service id.
+ * This is prepared (set) in `privileged_krb5_setup()`
+ * if process has corresponding capabilities.
+ */
 errno_t switch_to_user(void)
 {
     int ret;
diff --git a/src/providers/krb5/krb5_child.c b/src/providers/krb5/krb5_child.c
index 05c73455c1..9a693c634e 100644
--- a/src/providers/krb5/krb5_child.c
+++ b/src/providers/krb5/krb5_child.c
@@ -121,6 +121,7 @@ struct krb5_req {
     struct cli_opts *cli_opts;
 };
 
+static bool krb5_child_has_setid_cap = true;
 static krb5_context krb5_error_ctx;
 
 #define KRB5_CHILD_DEBUG_INT(level, errctx, krb5_error) do { \
@@ -1845,6 +1846,10 @@ static errno_t k5c_attach_ccname_msg(struct krb5_req *kr)
     char *msg = NULL;
     int ret;
 
+    if (!krb5_child_has_setid_cap) {
+        return EOK;
+    }
+
     if (kr->ccname == NULL) {
         DEBUG(SSSDBG_CRIT_FAILURE, "Error obtaining ccname.\n");
         return ERR_INTERNAL;
@@ -2523,6 +2528,12 @@ static krb5_error_code get_and_save_tgt(struct krb5_req *kr,
         goto done;
     }
 
+    if (!krb5_child_has_setid_cap) {
+        /* no set-id capability => can't populate user ccache */
+        kerr = 0;
+        goto done;
+    }
+
     /* Make sure ccache is created and written as the user */
     kerr = switch_to_user();
     if (kerr != EOK) {
@@ -4085,32 +4096,43 @@ static krb5_error_code privileged_krb5_setup(struct krb5_req *kr,
     int ret;
     char *mem_keytab;
 
-    /* Make use of cap_set*id first to bootstap process */
-    sss_set_cap_effective(CAP_SETGID, true);
-    if (geteuid() != 0) {
-        ret = setgroups(0, NULL);
+    /* Make use of cap_set*id (if available) first to bootstrap process */
+    if (sss_set_cap_effective(CAP_SETGID, true) == EOK) {
+        if (geteuid() != 0) {
+            ret = setgroups(0, NULL);
+            if (ret != 0) {
+                ret = errno;
+                DEBUG(SSSDBG_CRIT_FAILURE, "Failed to drop supplementary groups: %d\n", ret);
+                return ret;
+            }
+        } /* Otherwise keep supplementary groups to have access to DB_PATH to store FAST ccache */
+        ret = setresgid(kr->gid, -1, -1);
         if (ret != 0) {
             ret = errno;
-            DEBUG(SSSDBG_CRIT_FAILURE, "Failed to drop supplementary groups: %d\n", ret);
+            DEBUG(SSSDBG_CRIT_FAILURE, "Failed to set real GID: %d\n", ret);
             return ret;
         }
-    } /* Otherwise keep supplementary groups to have access to DB_PATH to store FAST ccache */
-    ret = setresgid(kr->gid, -1, -1);
-    if (ret != 0) {
-        ret = errno;
-        DEBUG(SSSDBG_CRIT_FAILURE, "Failed to set real GID: %d\n", ret);
-        return ret;
+    } else {
+        krb5_child_has_setid_cap = false;
     }
-    sss_set_cap_effective(CAP_SETUID, true);
-    ret = setresuid(kr->uid, -1, -1);
-    if (ret != 0) {
-        ret = errno;
-        DEBUG(SSSDBG_CRIT_FAILURE, "Failed to set real UID: %d\n", ret);
-        return ret;
+    if (krb5_child_has_setid_cap && (sss_set_cap_effective(CAP_SETUID, true) == EOK)) {
+        ret = setresuid(kr->uid, -1, -1);
+        if (ret != 0) {
+            ret = errno;
+            DEBUG(SSSDBG_CRIT_FAILURE, "Failed to set real UID: %d\n", ret);
+            return ret;
+        }
+    } else {
+        krb5_child_has_setid_cap = false;
     }
     sss_drop_cap(CAP_SETUID);
     sss_drop_cap(CAP_SETGID);
 
+    if (!krb5_child_has_setid_cap) {
+        DEBUG(SSSDBG_CONF_SETTINGS, "'krb5_child' doesn't have CAP_SETUID and/or "
+                                    "CAP_SETGID. User ccache won't be updated.\n");
+    }
+
     kr->realm = kr->cli_opts->realm;
     if (kr->realm == NULL) {
         DEBUG(SSSDBG_MINOR_FAILURE, "Realm not available.\n");
@@ -4337,7 +4359,7 @@ int main(int argc, const char *argv[])
      * is only allowed for authenticated users. Since PKINIT is part of
      * the authentication and the user is not authenticated yet, we have
      * to use different privileges and can only drop it after the TGT is
-     * received. IDs the backend (and thus 'krb5_child) is running with are
+     * received. IDs the backend (and thus 'krb5_child') is running with are
      * either root or the 'sssd' user. Root is allowed by default and
      * the 'sssd' user is allowed with the help of the sssd-pcsc.rules
      * policy-kit rule. So those IDs are a suitable choice and needs to
@@ -4346,11 +4368,13 @@ int main(int argc, const char *argv[])
      * to make sure the empty ccache is created with the expected
      * ownership. */
     if (!IS_SC_AUTHTOK(kr->pd->authtok) || offline) {
-        ret = switch_to_user();
-        if (ret != EOK) {
-            DEBUG(SSSDBG_CRIT_FAILURE, "Failed to switch to user IDs: %d\n", ret);
-            ret = EFAULT;
-            goto done;
+        if (krb5_child_has_setid_cap) {
+            ret = switch_to_user();
+            if (ret != EOK) {
+                DEBUG(SSSDBG_CRIT_FAILURE, "Failed to switch to user IDs: %d\n", ret);
+                ret = EFAULT;
+                goto done;
+            }
         }
     }
 
@@ -4370,7 +4394,9 @@ int main(int argc, const char *argv[])
     case SSS_PAM_AUTHENTICATE:
         /* If we are offline, we need to create an empty ccache file */
         if (offline) {
-            ret = create_empty_ccache(kr);
+            if (krb5_child_has_setid_cap) {
+                ret = create_empty_ccache(kr);
+            }
         } else {
             DEBUG(SSSDBG_TRACE_FUNC, "Will perform online auth\n");
             ret = tgt_req_child(kr);
@@ -4391,6 +4417,10 @@ int main(int argc, const char *argv[])
             ret = KRB5_KDC_UNREACH;
             goto done;
         }
+        if (!krb5_child_has_setid_cap) {
+            ret = KRB5_CC_NOTFOUND;
+            goto done;
+        }
         ret = renew_tgt_child(kr);
         break;
     case SSS_PAM_PREAUTH: