diff --git a/csync/src/csync_reconcile.c b/csync/src/csync_reconcile.c
index 91b8bf8643..6a1cc8d161 100644
--- a/csync/src/csync_reconcile.c
+++ b/csync/src/csync_reconcile.c
@@ -138,6 +138,12 @@ static int _csync_merge_algorithm_visitor(void *obj, void *data) {
                 /* Do not remove a directory that has ignored files */
                 break;
             }
+            CSYNC_LOG(CSYNC_LOG_PRIORITY_TRACE, "Will Remove %s  %d", cur->path, cur->child_modified);
+            if (cur->child_modified) {
+                /* re-create directory that has modified contents */
+                cur->instruction = CSYNC_INSTRUCTION_NEW;
+                break;
+            }
             cur->instruction = CSYNC_INSTRUCTION_REMOVE;
             break;
         case CSYNC_INSTRUCTION_EVAL_RENAME:
diff --git a/csync/src/csync_update.c b/csync/src/csync_update.c
index 1a12b22504..61b31c3153 100644
--- a/csync/src/csync_update.c
+++ b/csync/src/csync_update.c
@@ -708,11 +708,6 @@ int csync_ftw(CSYNC *ctx, const char *uri, csync_walker_fn fn,
     rc = fn(ctx, filename, fs, flag);
     /* this function may update ctx->current and ctx->read_from_db */
 
-    if (ctx->current_fs && previous_fs && ctx->current_fs->child_modified) {
-        /* If a directory has modified files, put the flag on the parent directory as well */
-        previous_fs->child_modified = ctx->current_fs->child_modified;
-    }
-
     /* Only for the local replica we have to destroy stat(), for the remote one it is a pointer to dirent */
     if (ctx->replica == LOCAL_REPLICA) {
         csync_vio_file_stat_destroy(fs);
@@ -747,6 +742,11 @@ int csync_ftw(CSYNC *ctx, const char *uri, csync_walker_fn fn,
       }
     }
 
+    if (ctx->current_fs && previous_fs && ctx->current_fs->child_modified) {
+        /* If a directory has modified files, put the flag on the parent directory as well */
+        previous_fs->child_modified = ctx->current_fs->child_modified;
+    }
+
     if (flag == CSYNC_FTW_FLAG_DIR && ctx->current_fs
         && (ctx->current_fs->instruction == CSYNC_INSTRUCTION_EVAL ||
             ctx->current_fs->instruction == CSYNC_INSTRUCTION_NEW)) {
diff --git a/csync/tests/ownCloud/t1.pl b/csync/tests/ownCloud/t1.pl
index 68e55414ea..ee73dce21d 100755
--- a/csync/tests/ownCloud/t1.pl
+++ b/csync/tests/ownCloud/t1.pl
@@ -169,6 +169,19 @@ assertLocalAndRemoteDir( '', 0);
 assert( -e localDir().'remoteToLocal1/rtlX' );
 assert( -e localDir().'remoteToLocal1/rtlX/rtl11/file.txt' );
 
+printInfo( "Remove a directory on the server with new files on the client");
+removeRemoteDir('remoteToLocal1/rtlX');
+system("echo hello > " . localDir(). "remoteToLocal1/rtlX/rtl11/hello.txt");
+csync();
+assertLocalAndRemoteDir( '', 0);
+# file.txt must be gone because the directory was removed on the server, but hello.txt must be there
+#   as it is a new file
+assert( ! -e localDir().'remoteToLocal1/rtlX/rtl11/file.txt' );
+assert( -e localDir().'remoteToLocal1/rtlX/rtl11/hello.txt' );
+
+
+
+
 # ==================================================================
 
 cleanup();