diff --git a/cmd/lotus-miner/init.go b/cmd/lotus-miner/init.go
index 1cce52a41..4c80e031c 100644
--- a/cmd/lotus-miner/init.go
+++ b/cmd/lotus-miner/init.go
@@ -12,6 +12,7 @@ import (
 	"os"
 	"path/filepath"
 	"strconv"
+	"strings"
 
 	"github.com/docker/go-units"
 	"github.com/google/uuid"
@@ -413,6 +414,10 @@ func storageMinerInit(ctx context.Context, cctx *cli.Context, api v1api.FullNode
 	}
 	defer lr.Close() //nolint:errcheck
 
+	if err := makeDealStaging(lr); err != nil {
+		return err
+	}
+
 	log.Info("Initializing libp2p identity")
 
 	p2pSk, err := makeHostKey(lr)
@@ -552,6 +557,56 @@ func storageMinerInit(ctx context.Context, cctx *cli.Context, api v1api.FullNode
 	return nil
 }
 
+func makeDealStaging(lr repo.LockedRepo) error {
+	dir := filepath.Join(lr.Path(), "deal-staging")
+	dirInfo, err := os.Stat(dir)
+	if err == nil {
+		if !dirInfo.IsDir() {
+			return xerrors.Errorf("%s is not a directory", dir)
+		}
+		// The dir exists already, below migration has already occurred.
+		return nil
+	}
+
+	// if the directory doesn't exist, create it
+	if os.IsNotExist(err) {
+		if err := os.MkdirAll(dir, 0755); err != nil {
+			return xerrors.Errorf("failed to mk directory %s for deal staging: %w", dir, err)
+		}
+	} else { // if we failed for other reasons, abort.
+		return err
+	}
+
+	// if this is the first time we created the directory, symlink all staged deals into it. "Migration"
+	// get a list of files in the miner repo
+	dirEntries, err := os.ReadDir(lr.Path())
+	if err != nil {
+		return xerrors.Errorf("failed to list directory %s for deal staging: %w", lr.Path(), err)
+	}
+
+	for _, entry := range dirEntries {
+		// ignore directories, they are not the deals.
+		if entry.IsDir() {
+			continue
+		}
+		// the FileStore from fil-storage-market creates temporary staged deal files with the pattern "fstmp"
+		// https://github.com/filecoin-project/go-fil-markets/blob/00ff81e477d846ac0cb58a0c7d1c2e9afb5ee1db/filestore/filestore.go#L69
+		if strings.Contains(entry.Name(), "fstmp") {
+			// from the miner repo
+			oldPath := filepath.Join(lr.Path(), entry.Name())
+			// to its subdir "deal-staging"
+			newPath := filepath.Join(dir, entry.Name())
+			// create a symbolic link in the new deal staging directory to preserve existing staged deals.
+			// all future staged deals will be created here.
+			if err := os.Symlink(oldPath, newPath); err != nil {
+				return xerrors.Errorf("failed to symlink %s to %s: %w", oldPath, newPath, err)
+			}
+			log.Infow("symlinked staged deal", "oldPath", oldPath, "newPath", newPath)
+		}
+	}
+	return nil
+}
+
 func makeHostKey(lr repo.LockedRepo) (crypto.PrivKey, error) {
 	pk, _, err := crypto.GenerateEd25519Key(rand.Reader)
 	if err != nil {
diff --git a/node/modules/storageminer.go b/node/modules/storageminer.go
index 5497eab58..2fb52dccd 100644
--- a/node/modules/storageminer.go
+++ b/node/modules/storageminer.go
@@ -607,7 +607,7 @@ func StorageProvider(minerAddress dtypes.MinerAddress,
 	df dtypes.StorageDealFilter,
 ) (storagemarket.StorageProvider, error) {
 	net := smnet.NewFromLibp2pHost(h)
-	store, err := piecefilestore.NewLocalFileStore(piecefilestore.OsPath(r.Path()))
+	store, err := piecefilestore.NewLocalFileStore(piecefilestore.OsPath(filepath.Join(r.Path(), "deal-staging")))
 	if err != nil {
 		return nil, err
 	}
diff --git a/node/repo/memrepo.go b/node/repo/memrepo.go
index 00ea32b88..3be4ab567 100644
--- a/node/repo/memrepo.go
+++ b/node/repo/memrepo.go
@@ -107,6 +107,12 @@ func (lmem *lockedMemRepo) Path() string {
 	}
 
 	if lmem.t == StorageMiner {
+		// this is required due to the method makeDealStaging from cmd/lotus-storage-miner/init.go
+		// deal-staging is the directory deal files are staged in before being sealed into sectors
+		// for offline deal flow.
+		if err := os.MkdirAll(filepath.Join(t, "deal-staging"), 0755); err != nil {
+			panic(err)
+		}
 		if err := config.WriteStorageFile(filepath.Join(t, fsStorageConfig), stores.StorageConfig{
 			StoragePaths: []stores.LocalPath{
 				{Path: t},