diff --git a/Source/cmFileCommand.cxx b/Source/cmFileCommand.cxx
index b504e761a7..f79cd39aa6 100644
--- a/Source/cmFileCommand.cxx
+++ b/Source/cmFileCommand.cxx
@@ -3255,8 +3255,9 @@ bool HandleCreateLinkCommand(std::vector<std::string> const& args,
   // Check if the new file already exists and remove it.
   if (cmSystemTools::PathExists(newFileName)) {
     cmsys::Status rmStatus;
-    if (cmp0205 == cmPolicies::NEW &&
-        cmSystemTools::FileIsDirectory(newFileName)) {
+    if (cmp0205 == cmPolicies::NEW && arguments.CopyOnError &&
+        cmSystemTools::FileIsDirectory(newFileName) &&
+        !cmSystemTools::FileIsSymlink(newFileName)) {
       rmStatus = cmSystemTools::RepeatedRemoveDirectory(newFileName);
     } else {
       rmStatus = cmSystemTools::RemoveFile(newFileName);
diff --git a/Tests/RunCMake/file-CREATE_LINK/CMP0205-common-NEW.cmake b/Tests/RunCMake/file-CREATE_LINK/CMP0205-common-NEW.cmake
index 15e6a361c6..cd8d718526 100644
--- a/Tests/RunCMake/file-CREATE_LINK/CMP0205-common-NEW.cmake
+++ b/Tests/RunCMake/file-CREATE_LINK/CMP0205-common-NEW.cmake
@@ -1,6 +1,15 @@
 cmake_policy(SET CMP0205 NEW)
 include("${CMAKE_CURRENT_LIST_DIR}/CMP0205-common.cmake")
 
+# Note that unlike the tests for CMP0205 OLD and WARN, the resulting files
+# in the source and destination should be the same here regardless of whether
+# COPY_ON_ERROR was actually executed (i.e, whether through the link, or actual
+# files).
+
+if(NOT allFilesSrc)
+  message(SEND_ERROR "Source directory is empty: '${allFilesSrc}'")
+endif()
+
 if(NOT allFilesDst)
   message(SEND_ERROR "Destination directory is empty: '${allFilesDst}'")
 endif()
diff --git a/Tests/RunCMake/file-CREATE_LINK/CMP0205-common-OLD.cmake b/Tests/RunCMake/file-CREATE_LINK/CMP0205-common-OLD.cmake
index 76add41239..ca65eea57c 100644
--- a/Tests/RunCMake/file-CREATE_LINK/CMP0205-common-OLD.cmake
+++ b/Tests/RunCMake/file-CREATE_LINK/CMP0205-common-OLD.cmake
@@ -1,6 +1,15 @@
 cmake_policy(SET CMP0205 OLD)
 include("${CMAKE_CURRENT_LIST_DIR}/CMP0205-common.cmake")
 
-if(allFilesDst)
-  message(SEND_ERROR "Directory is not empty: '${allFilesDst}'")
+# We only really care about when COPY_ON_ERROR was actually executed, but we'll
+# test both cases for posterity.
+
+if(NOT madeSymlink)
+  if(allFilesDst)
+    message(SEND_ERROR "Directory is not empty: '${allFilesDst}'")
+  endif()
+else()
+  if(NOT allFilesDst)
+    message(SEND_ERROR "Destination directory is empty: '${allFilesDst}'")
+  endif()
 endif()
diff --git a/Tests/RunCMake/file-CREATE_LINK/CMP0205-common-WARN.cmake b/Tests/RunCMake/file-CREATE_LINK/CMP0205-common-WARN.cmake
index ee940466b7..4e7dadc307 100644
--- a/Tests/RunCMake/file-CREATE_LINK/CMP0205-common-WARN.cmake
+++ b/Tests/RunCMake/file-CREATE_LINK/CMP0205-common-WARN.cmake
@@ -1,6 +1,15 @@
 # CMP0205 is unset
 include("${CMAKE_CURRENT_LIST_DIR}/CMP0205-common.cmake")
 
-if(allFilesDst)
-  message(SEND_ERROR "Directory is not empty: '${allFilesDst}'")
+# We only really care about when COPY_ON_ERROR was actually executed, but we'll
+# test both cases for posterity.
+
+if(NOT madeSymlink)
+  if(allFilesDst)
+    message(SEND_ERROR "Directory is not empty: '${allFilesDst}'")
+  endif()
+else()
+  if(NOT allFilesDst)
+    message(SEND_ERROR "Destination directory is empty: '${allFilesDst}'")
+  endif()
 endif()
diff --git a/Tests/RunCMake/file-CREATE_LINK/CMP0205-common.cmake b/Tests/RunCMake/file-CREATE_LINK/CMP0205-common.cmake
index deb313f9a5..3886a76909 100644
--- a/Tests/RunCMake/file-CREATE_LINK/CMP0205-common.cmake
+++ b/Tests/RunCMake/file-CREATE_LINK/CMP0205-common.cmake
@@ -10,5 +10,30 @@ if(NOT result STREQUAL "0")
   message(SEND_ERROR "COPY_ON_ERROR failed: '${result}'")
 endif()
 
+# When CMP0205 is NEW, we must verify after running command this again that:
+# * on systems which support directory symlinks, the source directory to which
+#   the newly-created link points is not deleted, only the symlink itself.
+# * on systems which do not support directory symlinks, the destination
+#   directory which was created via COPY_ON_ERROR is appropriately deleted
+#   at the beginning of executing this command, before creating the new link
+#   (and copying instead, again).
+cmake_policy(GET CMP0205 _cmp0205)
+if("${maybe_SYMBOLIC}" STREQUAL "SYMBOLIC" AND "${_cmp0205}" STREQUAL "NEW")
+  file(CREATE_LINK
+    ${CMAKE_CURRENT_LIST_DIR}/CMP0205 ${CMAKE_CURRENT_BINARY_DIR}/CMP0205-${link_name}
+    ${maybe_SYMBOLIC}
+    RESULT result
+    COPY_ON_ERROR
+    )
+  if(NOT result STREQUAL "0")
+    message(SEND_ERROR "COPY_ON_ERROR failed: '${result}'")
+  endif()
+endif()
+
+set(madeSymlink OFF)
+if(IS_SYMLINK ${CMAKE_CURRENT_BINARY_DIR}/CMP0205-${link_name})
+  set(madeSymlink ON)
+endif()
+
 file(GLOB_RECURSE allFilesSrc LIST_DIRECTORIES true RELATIVE "${CMAKE_CURRENT_LIST_DIR}/CMP0205" "${CMAKE_CURRENT_LIST_DIR}/CMP0205/*")
 file(GLOB_RECURSE allFilesDst LIST_DIRECTORIES true RELATIVE "${CMAKE_CURRENT_BINARY_DIR}/CMP0205-${link_name}" "${CMAKE_CURRENT_BINARY_DIR}/CMP0205-${link_name}/*")
diff --git a/Tests/RunCMake/file-CREATE_LINK/RunCMakeTest.cmake b/Tests/RunCMake/file-CREATE_LINK/RunCMakeTest.cmake
index ed83312207..5d5b4ebf7f 100644
--- a/Tests/RunCMake/file-CREATE_LINK/RunCMakeTest.cmake
+++ b/Tests/RunCMake/file-CREATE_LINK/RunCMakeTest.cmake
@@ -12,23 +12,13 @@ if(NOT WIN32
   run_cmake(CREATE_LINK-SYMBOLIC-noexist)
 endif()
 
+run_cmake_script(CMP0205-SymLink-WARN)
+run_cmake_script(CMP0205-SymLink-OLD)
+run_cmake_script(CMP0205-SymLink-NEW)
+
+# Some older versions of macOS with HFS+ filesystems support directory hard
+# links. Inspect whether this test case is applicable on the current system.
 file(MAKE_DIRECTORY ${RunCMake_BINARY_DIR}/CMP0205-Inspect/Dest)
-
-file(REMOVE_RECURSE ${RunCMake_BINARY_DIR}/CMP0205-Inspect-SymLink)
-file(CREATE_LINK
-  ${RunCMake_BINARY_DIR}/CMP0205-Inspect/Dest ${RunCMake_BINARY_DIR}/CMP0205-Inspect-SymLink
-  SYMBOLIC
-  RESULT SymLink_RESULT
-)
-if(SymLink_RESULT STREQUAL "0")
-  message(STATUS "CMP0205-SymLink-* skipped: directory symbolic link creation works")
-  file(REMOVE ${RunCMake_BINARY_DIR}/CMP0205-Inspect-SymLink)
-else()
-  run_cmake_script(CMP0205-SymLink-WARN)
-  run_cmake_script(CMP0205-SymLink-OLD)
-  run_cmake_script(CMP0205-SymLink-NEW)
-endif()
-
 file(REMOVE_RECURSE ${RunCMake_BINARY_DIR}/CMP0205-Inspect-HardLink)
 file(CREATE_LINK
   ${RunCMake_BINARY_DIR}/CMP0205-Inspect/Dest ${RunCMake_BINARY_DIR}/CMP0205-Inspect-HardLink