diff --git a/rse/plugins/org.eclipse.rse.efs/src/org/eclipse/rse/internal/efs/RSEFileStoreImpl.java b/rse/plugins/org.eclipse.rse.efs/src/org/eclipse/rse/internal/efs/RSEFileStoreImpl.java
index 5b6f5b35cc1..b91f2ca039d 100644
--- a/rse/plugins/org.eclipse.rse.efs/src/org/eclipse/rse/internal/efs/RSEFileStoreImpl.java
+++ b/rse/plugins/org.eclipse.rse.efs/src/org/eclipse/rse/internal/efs/RSEFileStoreImpl.java
@@ -1,5 +1,5 @@
 /********************************************************************************
- * Copyright (c) 2006, 2010 IBM Corporation and others. All rights reserved.
+ * Copyright (c) 2006, 2012 IBM Corporation and others. All rights reserved.
  * This program and the accompanying materials are made available under the terms
  * of the Eclipse Public License v1.0 which accompanies this distribution, and is
  * available at http://www.eclipse.org/legal/epl-v10.html
@@ -36,6 +36,7 @@
  * Szymon Brandys  (IBM)         - [303092] [efs] RSE portion to deal with FileSystemResourceManager makes second call to efs provider on exception due to cancel
  * Martin Oberhuber (Wind River) - [314496] [efs] Symlink target not reported
  * Martin Oberhuber (Wind River) - [314433] [efs] NPE on openOutputStream to broken symlink
+ * David McKnight  (IBM)         - [398006] [efs] cached remote file should be cleared if exists() is false
  ********************************************************************************/
 
 package org.eclipse.rse.internal.efs;
@@ -333,7 +334,7 @@ public class RSEFileStoreImpl extends FileStore
 	private IRemoteFile getRemoteFileObject(IProgressMonitor monitor, boolean forceExists) throws CoreException {
 		IRemoteFile remoteFile = getCachedRemoteFile();
 		if (remoteFile!=null) {
-			if (remoteFile.getParentRemoteFileSubSystem().isConnected()) {
+			if (remoteFile.getParentRemoteFileSubSystem().isConnected() && remoteFile.exists()) {
 				return remoteFile;
 			} else {
 				//need to re-initialize cache