diff --git a/rse/plugins/org.eclipse.rse.core/src/org/eclipse/rse/internal/persistence/RSEPersistenceManager.java b/rse/plugins/org.eclipse.rse.core/src/org/eclipse/rse/internal/persistence/RSEPersistenceManager.java
index b4842139591..c2844671357 100644
--- a/rse/plugins/org.eclipse.rse.core/src/org/eclipse/rse/internal/persistence/RSEPersistenceManager.java
+++ b/rse/plugins/org.eclipse.rse.core/src/org/eclipse/rse/internal/persistence/RSEPersistenceManager.java
@@ -244,7 +244,9 @@ public class RSEPersistenceManager implements IRSEPersistenceManager {
 		for (int i = 0; i < ids.length && isComplete; i++) {
 			String id = ids[i];
 			ProviderRecord pr = getProviderRecord(id);
-			isComplete = pr.isAutostart() && pr.isRestored();
+			if (pr.isAutostart()) {
+				isComplete = isComplete && pr.isRestored();
+			}
 		}
 		return isComplete;
 	}
diff --git a/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/persistence/PersistenceTest.java b/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/persistence/PersistenceTest.java
index a5011df2931..fa6e0b70b9a 100644
--- a/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/persistence/PersistenceTest.java
+++ b/rse/tests/org.eclipse.rse.tests/src/org/eclipse/rse/tests/persistence/PersistenceTest.java
@@ -50,6 +50,19 @@ public class PersistenceTest extends RSECoreTestCase {
 		super.tearDown();
 	}
 	
+	public void testPersistenceManagerStartup() {
+		IRSEPersistenceManager m = RSECorePlugin.getThePersistenceManager();
+		for (int i = 0; i < 5; i++) {
+			if (m.isRestoreComplete()) break;
+			try {
+				Thread.sleep(1000);
+			} catch (InterruptedException e) {
+				throw new RuntimeException(e);
+			}
+		}
+		assertTrue("Restore not complete", m.isRestoreComplete());
+	}
+	
 	public void testProfilePersistence() {
 		/*
 		 * Set up this particular test.