diff --git a/fsutils/passwd/passwd_find.c b/fsutils/passwd/passwd_find.c
index 0ba671ed0..e377bbb30 100644
--- a/fsutils/passwd/passwd_find.c
+++ b/fsutils/passwd/passwd_find.c
@@ -73,6 +73,10 @@ int passwd_find(FAR const char *username, FAR struct passwd_s *passwd)
   stream = fopen(CONFIG_FSUTILS_PASSWD_PATH, "r");
   if (stream == NULL)
     {
+      /* Free an I/O buffer for the transfer */
+
+      free(iobuffer);
+
       int errcode = errno;
       DEBUGASSERT(errcode > 0);
       return -errcode;