diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9cede27ce04..d83fcfd8b42 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -98,6 +98,8 @@ Ansible Changes By Release
   https://github.com/ansible/ansible/pull/32269
 * Fix vars placement in ansible-inventory
   https://github.com/ansible/ansible/pull/32276
+* Correct options for luseradd in user module
+  https://github.com/ansible/ansible/pull/32262
 
 
 <a id="2.4.1"></a>
diff --git a/lib/ansible/modules/system/user.py b/lib/ansible/modules/system/user.py
index af7e3147e52..b1f1f46930a 100644
--- a/lib/ansible/modules/system/user.py
+++ b/lib/ansible/modules/system/user.py
@@ -421,6 +421,10 @@ class User(object):
 
         if self.createhome:
             cmd.append('-m')
+            if self.local:
+                cmd.append('-M')
+            else:
+                cmd.append('-m')
 
             if self.skeleton is not None:
                 cmd.append('-k')