diff --git a/src/gui/folder.cpp b/src/gui/folder.cpp
index 993dcb69e1..3a33d45427 100644
--- a/src/gui/folder.cpp
+++ b/src/gui/folder.cpp
@@ -669,8 +669,10 @@ void Folder::setVirtualFilesEnabled(bool enabled)
 
         _definition.virtualFilesMode = newMode;
         startVfs();
-        if (newMode != Vfs::Off)
+        if (newMode != Vfs::Off) {
             _saveInFoldersWithPlaceholders = true;
+            SyncEngine::switchToVirtualFiles(path(), _journal, *_vfs);
+        }
         saveToSettings();
     }
 }
diff --git a/src/libsync/syncengine.cpp b/src/libsync/syncengine.cpp
index 9813e63cb6..47f24f832c 100644
--- a/src/libsync/syncengine.cpp
+++ b/src/libsync/syncengine.cpp
@@ -1019,6 +1019,16 @@ void SyncEngine::wipeVirtualFiles(const QString &localPath, SyncJournalDb &journ
     // But hydrated placeholders may still be around.
 }
 
+void SyncEngine::switchToVirtualFiles(const QString &localPath, SyncJournalDb &journal, Vfs &vfs)
+{
+    qCInfo(lcEngine) << "Convert to virtual files inside" << localPath;
+    journal.getFilesBelowPath({}, [&](const SyncJournalFileRecord &rec) {
+        SyncFileItem item;
+        QString localFile = localPath + rec.path();
+        vfs.convertToPlaceholder(localFile, item, localFile);
+    });
+}
+
 void SyncEngine::abort()
 {
     if (_propagator)
diff --git a/src/libsync/syncengine.h b/src/libsync/syncengine.h
index 991ef48202..9d0bada92d 100644
--- a/src/libsync/syncengine.h
+++ b/src/libsync/syncengine.h
@@ -134,6 +134,8 @@ public:
      */
     static void wipeVirtualFiles(const QString &localPath, SyncJournalDb &journal, Vfs &vfs);
 
+    static void switchToVirtualFiles(const QString &localPath, SyncJournalDb &journal, Vfs &vfs);
+
     auto getPropagator() { return _propagator; } // for the test
 
 signals: