diff --git a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/SystemTempFileListener.java b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/SystemTempFileListener.java
index caecc53ece5..281d8c5aa45 100644
--- a/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/SystemTempFileListener.java
+++ b/rse/plugins/org.eclipse.rse.files.ui/src/org/eclipse/rse/files/ui/resources/SystemTempFileListener.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
- * Copyright (c) 2002, 2008 IBM Corporation and others.
+ * Copyright (c) 2002, 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
@@ -25,6 +25,7 @@
  * David McKnight   (IBM)        - [235221] Files truncated on exit of Eclipse
  * David McKnight   (IBM)        - [251631] NullPointerException in SystemTempFileListener
  * David McKnight   (IBM)        - [256048] Saving a member open in Remote LPEX editor while Working Offline doesn't set the dirty property
+ * David McKnight   (IBM)        - [381482] Improper use of save participant is causing a workspace hang
  *******************************************************************************/
 
 package org.eclipse.rse.files.ui.resources;
@@ -68,6 +69,7 @@ import org.eclipse.rse.ui.RSEUIPlugin;
 import org.eclipse.rse.ui.SystemBasePlugin;
 import org.eclipse.swt.widgets.Shell;
 import org.eclipse.ui.IWorkbenchWindow;
+import org.eclipse.ui.PlatformUI;
 import org.eclipse.ui.progress.UIJob;
 import org.eclipse.ui.progress.WorkbenchJob;
 
@@ -95,14 +97,15 @@ public abstract class SystemTempFileListener implements IResourceChangeListener
 		}
 
 		public void saving(ISaveContext context) throws CoreException {
-			
 			// wait for completion of synch
-			while (isSynching()){
-				try {
-					Thread.sleep(1000);				
-				}
-				catch (Exception e){
-					
+			if (PlatformUI.getWorkbench().isClosing() &&
+					context.getKind() == ISaveContext.FULL_SAVE) {
+				while (isSynching()){
+					try {
+						Thread.sleep(1000);				
+					}
+					catch (Exception e){					
+					}
 				}
 			}
 		}