diff --git a/py/execnet/rsync.py b/py/execnet/rsync.py
index 8e8b00e20..f9638a6df 100644
--- a/py/execnet/rsync.py
+++ b/py/execnet/rsync.py
@@ -85,26 +85,33 @@ class RSync(object):
                 elif command == "send":
                     modified_rel_path, checksum = data
                     modifiedpath = os.path.join(self.sourcedir, *modified_rel_path)
-                    f = open(modifiedpath, 'rb')
-                    data = f.read()
+                    try:
+                        f = open(modifiedpath, 'rb')
+                        data = f.read()
+                    except IOError:
+                        data = None
 
                     # provide info to progress callback function
                     modified_rel_path = "/".join(modified_rel_path)
-                    self.paths[modified_rel_path] = len(data)
+                    if data is not None:
+                        self.paths[modified_rel_path] = len(data)
+                    else:
+                        self.paths[modified_rel_path] = 0
                     if channel not in self.to_send:
                         self.to_send[channel] = []
                     self.to_send[channel].append(modified_rel_path)
 
-                    f.close()
-                    if checksum is not None and checksum == md5.md5(data).digest():
-                        data = None     # not really modified
-                    else:
-                        # ! there is a reason for the interning:
-                        # sharing multiple copies of the file's data
-                        data = intern(data)
-                        print '%s <= %s' % (
-                            channel.gateway._getremoteaddress(),
-                            modified_rel_path)
+                    if data is not None:
+                        f.close()
+                        if checksum is not None and checksum == md5.md5(data).digest():
+                            data = None     # not really modified
+                        else:
+                            # ! there is a reason for the interning:
+                            # sharing multiple copies of the file's data
+                            data = intern(data)
+                            print '%s <= %s' % (
+                                channel.gateway._getremoteaddress(),
+                                modified_rel_path)
                     channel.send(data)
                     del data
                 else:
@@ -118,7 +125,11 @@ class RSync(object):
         self.links.append(("link", basename, linkpoint))
 
     def _send_directory_structure(self, path):
-        st = os.lstat(path)
+        try:
+            st = os.lstat(path)
+        except OSError:
+            self._broadcast((0, 0))
+            return
         if stat.S_ISREG(st.st_mode):
             # regular file: send a timestamp/size pair
             self._broadcast((st.st_mtime, st.st_size))
diff --git a/py/execnet/rsync_remote.py b/py/execnet/rsync_remote.py
index bb770ebc7..9b5a15571 100644
--- a/py/execnet/rsync_remote.py
+++ b/py/execnet/rsync_remote.py
@@ -65,7 +65,10 @@ def f():
             f = open(path, 'wb')
             f.write(data)
             f.close()
-        os.utime(path, (time, time))
+        try:
+            os.utime(path, (time, time))
+        except OSError:
+            pass
         del data
     channel.send(("links", None))
 
diff --git a/py/execnet/testing/test_rsync.py b/py/execnet/testing/test_rsync.py
index 7b01c3ae3..cba7e76fc 100644
--- a/py/execnet/testing/test_rsync.py
+++ b/py/execnet/testing/test_rsync.py
@@ -78,3 +78,24 @@ def test_callback():
 
     assert total == {("list", 110):True, ("ack", 100):True, ("ack", 10):True}
 
+def test_file_disappearing():
+    base = py.test.ensuretemp("file_disappearing")
+    dest = base.join("dest")
+    source = base.join("source")
+    source.ensure("ex").write("a" * 100)
+    source.ensure("ex2").write("a" * 100)
+
+    class DRsync(RSync):
+        def filter(self, x):
+            if x.endswith("ex2"):
+                self.x = 1
+                source.join("ex2").remove()
+            return True
+
+    rsync = DRsync()
+    rsync.add_target(gw, dest)
+    rsync.send(source)
+    assert rsync.x == 1
+    assert len(dest.listdir()) == 1
+    assert len(source.listdir()) == 1
+