diff --git a/CHANGELOG.md b/CHANGELOG.md
index 64058deb3213..ddef61d673ab 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -54,6 +54,7 @@ BUG FIXES:
  * csi: Fixed a bug where multi-writer volumes were allowed only 1 write claim. [[GH-9040](https://github.com/hashicorp/nomad/issues/9040)]
  * csi: Fixed a bug where `nomad volume detach` would not accept prefixes for the node ID parameter. [[GH-9041](https://github.com/hashicorp/nomad/issues/9041)]
  * driver/docker: Fixed a bug where the default `image_delay` configuration was ignored if the `gc` configuration was not set. [[GH-9101](https://github.com/hashicorp/nomad/issues/9101)]
+ * driver/rawexec: Fixed a bug where raw_exec attempts to create a freezer cgroups for the tasks even when `no_cgroups` is set. [[GH-9328](https://github.com/hashicorp/nomad/issues/9328)]
 
 ## 0.12.8 (November 10, 2020)
 
diff --git a/drivers/rawexec/driver_unix_test.go b/drivers/rawexec/driver_unix_test.go
index 77bb7c4acc73..5b72a274a879 100644
--- a/drivers/rawexec/driver_unix_test.go
+++ b/drivers/rawexec/driver_unix_test.go
@@ -338,3 +338,62 @@ func TestRawExec_ExecTaskStreaming(t *testing.T) {
 	dtestutil.ExecTaskStreamingConformanceTests(t, harness, task.ID)
 
 }
+
+func TestRawExecDriver_NoCgroup(t *testing.T) {
+	t.Parallel()
+	if runtime.GOOS != "linux" {
+		t.Skip("Linux only test")
+	}
+
+	expectedBytes, err := ioutil.ReadFile("/proc/self/cgroup")
+	require.NoError(t, err)
+	expected := strings.TrimSpace(string(expectedBytes))
+
+	d := newEnabledRawExecDriver(t)
+	d.config.NoCgroups = true
+	harness := dtestutil.NewDriverHarness(t, d)
+
+	task := &drivers.TaskConfig{
+		ID:   uuid.Generate(),
+		Name: "nocgroup",
+	}
+
+	cleanup := harness.MkAllocDir(task, true)
+	defer cleanup()
+
+	tc := &TaskConfig{
+		Command: "/bin/cat",
+		Args:    []string{"/proc/self/cgroup"},
+	}
+	require.NoError(t, task.EncodeConcreteDriverConfig(&tc))
+	testtask.SetTaskConfigEnv(task)
+
+	_, _, err = harness.StartTask(task)
+	require.NoError(t, err)
+
+	// Task should terminate quickly
+	waitCh, err := harness.WaitTask(context.Background(), task.ID)
+	require.NoError(t, err)
+	select {
+	case res := <-waitCh:
+		require.True(t, res.Successful())
+		require.Zero(t, res.ExitCode)
+	case <-time.After(time.Duration(testutil.TestMultiplier()*6) * time.Second):
+		require.Fail(t, "WaitTask timeout")
+	}
+
+	// Check the log file to see it exited because of the signal
+	outputFile := filepath.Join(task.TaskDir().LogDir, "nocgroup.stdout.0")
+	testutil.WaitForResult(func() (bool, error) {
+		act, err := ioutil.ReadFile(outputFile)
+		if err != nil {
+			return false, fmt.Errorf("Couldn't read expected output: %v", err)
+		}
+
+		if strings.TrimSpace(string(act)) != expected {
+			t.Logf("Read from %v", outputFile)
+			return false, fmt.Errorf("Command outputted\n%v; want\n%v", string(act), expected)
+		}
+		return true, nil
+	}, func(err error) { require.NoError(t, err) })
+}
diff --git a/drivers/shared/executor/executor.go b/drivers/shared/executor/executor.go
index 15a41bbce9c3..370a0cea13ef 100644
--- a/drivers/shared/executor/executor.go
+++ b/drivers/shared/executor/executor.go
@@ -280,8 +280,10 @@ func (e *UniversalExecutor) Launch(command *ExecCommand) (*ProcessState, error)
 	}
 
 	// Setup cgroups on linux
-	if err := e.configureResourceContainer(os.Getpid()); err != nil {
-		return nil, err
+	if e.commandCfg.ResourceLimits || e.commandCfg.BasicProcessCgroup {
+		if err := e.configureResourceContainer(os.Getpid()); err != nil {
+			return nil, err
+		}
 	}
 
 	stdout, err := e.commandCfg.Stdout()
diff --git a/drivers/shared/executor/executor_linux_test.go b/drivers/shared/executor/executor_linux_test.go
index 11e038825af9..223ccc515d75 100644
--- a/drivers/shared/executor/executor_linux_test.go
+++ b/drivers/shared/executor/executor_linux_test.go
@@ -571,3 +571,46 @@ func TestExecutor_cmdMounts(t *testing.T) {
 
 	require.EqualValues(t, expected, cmdMounts(input))
 }
+
+// TestUniversalExecutor_NoCgroup asserts that commands are executed in the
+// same cgroup as parent process
+func TestUniversalExecutor_NoCgroup(t *testing.T) {
+	t.Parallel()
+	testutil.ExecCompatible(t)
+
+	expectedBytes, err := ioutil.ReadFile("/proc/self/cgroup")
+	require.NoError(t, err)
+
+	expected := strings.TrimSpace(string(expectedBytes))
+
+	testExecCmd := testExecutorCommand(t)
+	execCmd, allocDir := testExecCmd.command, testExecCmd.allocDir
+	execCmd.Cmd = "/bin/cat"
+	execCmd.Args = []string{"/proc/self/cgroup"}
+	defer allocDir.Destroy()
+
+	execCmd.BasicProcessCgroup = false
+	execCmd.ResourceLimits = false
+
+	executor := NewExecutor(testlog.HCLogger(t))
+	defer executor.Shutdown("SIGKILL", 0)
+
+	_, err = executor.Launch(execCmd)
+	require.NoError(t, err)
+
+	_, err = executor.Wait(context.Background())
+	require.NoError(t, err)
+
+	tu.WaitForResult(func() (bool, error) {
+		act := strings.TrimSpace(string(testExecCmd.stdout.String()))
+		if expected != act {
+			return false, fmt.Errorf("expected:\n%s actual:\n%s", expected, act)
+		}
+		return true, nil
+	}, func(err error) {
+		stderr := strings.TrimSpace(string(testExecCmd.stderr.String()))
+		t.Logf("stderr: %v", stderr)
+		require.NoError(t, err)
+	})
+
+}