Fix: Could Not Create Directory (Error Code: IS-0003)

“Could Not Create Directory (Error Code: IS-0003)” appears when the Epic Games Launcher fails to create or access the folder where game files are supposed to be installed. It usually happens during a new installation or game update, right after the download begins, stopping the process entirely.

This error means that the launcher can reach your storage drive but cannot write data or generate directories inside it. This happens when Windows blocks file creation because of missing permissions, corrupted cache data, or an invalid installation path.

It can also appear when the launcher isn’t running with administrator privileges or if the target drive was recently moved, renamed, or disconnected.

Now that you understand the causes, let’s go through the most effective solutions.

1. Run Epic Games Launcher as Administrator

This issue often occurs when the launcher lacks the permissions needed to create or modify folders during game installation. Running it as an administrator ensures full access to system resources and prevents permission-related errors.

1. Right-click on Epic Games Launcher and select Run as administrator.

To make it permanent:

1. Right-click the Epic Games Launcher shortcut and choose Properties.
2. Open the Compatibility tab.
3. Check Run this program as an administrator and click Apply.

2. Delete the Webcache Folder

A corrupted cache can prevent the launcher from functioning correctly. The webcache folder stores temporary data, and when it becomes damaged, installation errors like IS-0003 can appear.

Deleting this folder forces Epic Games Launcher to rebuild a clean cache, which often resolves the problem.

1. Press Win + R, type %localappdata%, and press Enter.
   

2. Navigate to EpicGamesLauncher > Saved and delete the folder named webcache (or any similar folder like webcache_4430 if present).
   

3. Restart the launcher and try installing or updating the game again.

3. Set Epic Games Launcher Compatibility to Windows 7

Occasionally, the launcher conflicts with Windows file access policies or driver updates, leading to directory creation failures. Running it in Windows 7 or Windows 8 compatibility mode can help test whether compatibility settings resolve the issue. If it works, switch back afterward to normal mode.

1. Right-click on Epic Games Launcher and select Properties.

2. Go to the Compatibility tab and enable Run this program in compatibility mode for → Windows 7.

3. Click Apply and try reinstalling or updating your game.

4. Install the Game on Another Drive

If your current drive has bad sectors, file corruption, insufficient free space, or restricted write permissions (such as FAT32 or an external NTFS drive with limited access), the launcher may fail to create directories. Installing the game on another drive with adequate space and stable performance eliminates read/write errors and avoids storage-related causes.

5. Disable Controlled Folder Access Temporarily

Windows Defender’s Controlled Folder Access feature can block the Epic Games Launcher from creating or modifying folders, even when it has admin rights. Temporarily disabling this feature or whitelisting the launcher often resolves Error IS-0003.

1. Open Windows Security from the Start menu.
2. Go to Virus & threat protection > Ransomware protection.
   
3. Click Manage Controlled Folder Access.
4. Turn it Off temporarily, or click Allow an app through Controlled Folder Access and add EpicGamesLauncher.exe.