diff --git a/rse/plugins/org.eclipse.dstore.core/src/org/eclipse/dstore/core/model/DataStore.java b/rse/plugins/org.eclipse.dstore.core/src/org/eclipse/dstore/core/model/DataStore.java
index d64b5dd3993..5c52b1a26dc 100644
--- a/rse/plugins/org.eclipse.dstore.core/src/org/eclipse/dstore/core/model/DataStore.java
+++ b/rse/plugins/org.eclipse.dstore.core/src/org/eclipse/dstore/core/model/DataStore.java
@@ -38,6 +38,7 @@
  * David McKnight   (IBM) - [283613] [dstore] Create a Constants File for all System Properties we support
  * David McKnight   (IBM) - [340080] [dstore] empty string should not be allowed as a DataElement ID
  * David McKnight  (IBM)  - [351993] [dstore] not able to connect to server if .eclipse folder not available
+ * David McKnight   (IBM) - [366070] [dstore] fix for bug 351993 won't allow tracing if .dstoreTrace doesn't exist
  *******************************************************************************/
 
 package org.eclipse.dstore.core.model;
@@ -3693,6 +3694,12 @@ public final class DataStore
 			if (SystemServiceManager.getInstance().getSystemService() == null){
 				String logDir = getUserPreferencesDirectory();
 				_traceFileHandle = new File(logDir, ".dstoreTrace"); //$NON-NLS-1$
+				if (!_traceFileHandle.exists()){
+					try { // try to create it
+						_traceFileHandle.createNewFile();
+					} catch (IOException e) {
+					}
+				}
 				if (_traceFileHandle.canWrite()){
 					try
 					{