diff --git a/src/shiv/builder.py b/src/shiv/builder.py
index f1f89e3..c3bd387 100644
--- a/src/shiv/builder.py
+++ b/src/shiv/builder.py
@@ -116,6 +116,9 @@ def create_archive(
     timestamp = datetime.strptime(env.built_at, BUILD_AT_TIMESTAMP_FORMAT).replace(tzinfo=timezone.utc).timestamp()
     zipinfo_datetime: Tuple[int, int, int, int, int, int] = time.gmtime(int(timestamp))[0:6]
 
+    # Create leading directories when -o points into a missing path (#231).
+    target.parent.mkdir(parents=True, exist_ok=True)
+
     with target.open(mode="wb") as fd:
 
         # Write shebang.
diff --git a/test/test_builder.py b/test/test_builder.py
index ec5af35..ac4482a 100644
--- a/test/test_builder.py
+++ b/test/test_builder.py
@@ -64,6 +64,15 @@ def test_create_archive(self, sp, env):
             with pytest.raises(ZipAppError):
                 create_archive(sp, target, sys.executable, "alsjdbas,,,", env)
 
+
+    def test_create_archive_creates_missing_parent_dirs(self, sp, env):
+        """-o into a missing directory must create parents (#231)."""
+        with tempfile.TemporaryDirectory() as tmpdir:
+            target = Path(tmpdir, "nested", "out", "test.zip")
+            assert not target.parent.exists()
+            create_archive(sp, target, sys.executable, "code:interact", env)
+            assert zipfile.is_zipfile(str(target))
+
     @pytest.mark.skipif(os.name == "nt", reason="windows has no concept of execute permissions")
     def test_archive_permissions(self, sp, env):
         with tempfile.TemporaryDirectory() as tmpdir: