diff --git a/changelogs/fragments/73024-unarchive-apply-permissions-top-folder.yml b/changelogs/fragments/73024-unarchive-apply-permissions-top-folder.yml
new file mode 100644
index 00000000000..5a9a87d05df
--- /dev/null
+++ b/changelogs/fragments/73024-unarchive-apply-permissions-top-folder.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - unarchive - apply ``owner`` and ``group`` permissions to top folder (https://github.com/ansible/ansible/issues/35426)
diff --git a/lib/ansible/modules/unarchive.py b/lib/ansible/modules/unarchive.py
index 7d00f2425a8..3dccb219179 100644
--- a/lib/ansible/modules/unarchive.py
+++ b/lib/ansible/modules/unarchive.py
@@ -1044,6 +1044,7 @@ def main():
     # Run only if we found differences (idempotence) or diff was missing
     if res_args.get('diff', True) and not module.check_mode:
         # do we need to change perms?
+        top_folders = []
         for filename in handler.files_in_archive:
             file_args['path'] = os.path.join(b_dest, to_bytes(filename, errors='surrogate_or_strict'))
 
@@ -1052,6 +1053,21 @@ def main():
             except (IOError, OSError) as e:
                 module.fail_json(msg="Unexpected error when accessing exploded file: %s" % to_native(e), **res_args)
 
+            if '/' in filename:
+                top_folder_path = filename.split('/')[0]
+                if top_folder_path not in top_folders:
+                    top_folders.append(top_folder_path)
+
+        # make sure top folders have the right permissions
+        # https://github.com/ansible/ansible/issues/35426
+        if top_folders:
+            for f in top_folders:
+                file_args['path'] = "%s/%s" % (dest, f)
+                try:
+                    res_args['changed'] = module.set_fs_attributes_if_different(file_args, res_args['changed'], expand=False)
+                except (IOError, OSError) as e:
+                    module.fail_json(msg="Unexpected error when accessing exploded file: %s" % to_native(e), **res_args)
+
     if module.params['list_files']:
         res_args['files'] = handler.files_in_archive
 
diff --git a/test/integration/targets/unarchive/tasks/main.yml b/test/integration/targets/unarchive/tasks/main.yml
index 60bdd1b08f3..148e583f2b0 100644
--- a/test/integration/targets/unarchive/tasks/main.yml
+++ b/test/integration/targets/unarchive/tasks/main.yml
@@ -19,3 +19,4 @@
 - import_tasks: test_unprivileged_user.yml
 - import_tasks: test_different_language_var.yml
 - import_tasks: test_invalid_options.yml
+- import_tasks: test_ownership_top_folder.yml
diff --git a/test/integration/targets/unarchive/tasks/test_ownership_top_folder.yml b/test/integration/targets/unarchive/tasks/test_ownership_top_folder.yml
new file mode 100644
index 00000000000..75bd125b6ba
--- /dev/null
+++ b/test/integration/targets/unarchive/tasks/test_ownership_top_folder.yml
@@ -0,0 +1,73 @@
+- name: Create unarchivetest3 user
+  user:
+    name: unarchivetest3
+    group: "{{ group_table[ansible_facts['distribution']] | default(omit) }}"
+  register: user
+  vars:
+    group_table:
+      MacOSX: staff
+
+- name: Test unarchiving as root and apply different ownership to top folder
+  become: yes
+  become_user: root
+  block:
+
+    - name: Create top folder owned by root
+      file:
+        path: "{{ user.home }}/tarball-top-folder"
+        state: directory
+        owner: root
+
+    - name: Add a file owned by root
+      copy:
+        src: foo.txt
+        dest: "{{ user.home }}/tarball-top-folder/foo-unarchive.txt"
+        mode: preserve
+
+    - name: Create a tarball as root. This tarball won't list the top folder when doing "tar tvf test-tarball.tar.gz"
+      shell: tar -czf test-tarball.tar.gz tarball-top-folder/foo-unarchive.txt
+      args:
+        chdir: "{{ user.home }}"
+        creates: "{{ user.home }}/test-tarball.tar.gz"
+
+    - name: Create unarchive destination folder in /home/unarchivetest3/unarchivetest3-unarchive
+      file:
+        path: "{{ user.home }}/unarchivetest3-unarchive"
+        state: directory
+        owner: unarchivetest3
+        group: "{{ user.group }}"
+
+    - name: unarchive the tarball as root. apply ownership for unarchivetest3
+      unarchive:
+        src: "{{ user.home }}/test-tarball.tar.gz"
+        dest: "{{ user.home }}/unarchivetest3-unarchive"
+        remote_src: yes
+        list_files: True
+        owner: unarchivetest3
+        group: "{{ user.group }}"
+
+    - name: Stat the extracted top folder
+      stat:
+        path: "{{ user.home }}/unarchivetest3-unarchive/tarball-top-folder"
+      register: top_folder_info
+
+    - name: verify that extracted top folder is owned by unarchivetest3
+      assert:
+        that:
+          - top_folder_info.stat.pw_name == "unarchivetest3"
+          - top_folder_info.stat.gid == {{ user.group }}
+
+  always:
+    - name: remove our unarchivetest3 user and files
+      user:
+        name: unarchivetest3
+        state: absent
+        remove: yes
+      become: no
+
+    - name: Remove user home directory on macOS
+      file:
+        path: /Users/unarchivetest3
+        state: absent
+      become: no
+      when: ansible_facts.distribution == 'MacOSX'