diff --git a/WHATS_NEW_DM b/WHATS_NEW_DM
index 43cc9e388..4da95deed 100644
--- a/WHATS_NEW_DM
+++ b/WHATS_NEW_DM
@@ -1,5 +1,6 @@
 Version 1.02.71 - 
 ====================================
+  Fix memory leak in fail path of parse_loop_device_name() in dmsetup.
   Check for missing reply_uuid in dm_event_get_registered_device().
   Check for allocation failure in dmeventd restart().
   Add few missing allocation failures tests in dmsetup.
diff --git a/tools/dmsetup.c b/tools/dmsetup.c
index 11c7bcd7e..f59d39d23 100644
--- a/tools/dmsetup.c
+++ b/tools/dmsetup.c
@@ -3043,6 +3043,8 @@ static char *_get_abspath(const char *path)
 	_path = canonicalize_file_name(path);
 #else
 	/* FIXME Provide alternative */
+	log_error(INTERNAL_ERROR "Unimplemented _get_abspath.");
+	_path = NULL;
 #endif
 	return _path;
 }
@@ -3050,7 +3052,7 @@ static char *_get_abspath(const char *path)
 static char *parse_loop_device_name(const char *dev, const char *dev_dir)
 {
 	char *buf;
-	char *device;
+	char *device = NULL;
 
 	if (!(buf = dm_malloc(PATH_MAX)))
 		return NULL;
@@ -3083,7 +3085,9 @@ static char *parse_loop_device_name(const char *dev, const char *dev_dir)
 	return buf;
 
 error:
+	dm_free(device);
 	dm_free(buf);
+
 	return NULL;
 }