diff --git a/plugins/maven/maven2-server-impl/src/org/jetbrains/idea/maven/server/embedder/Maven2ServerIndexerImpl.java b/plugins/maven/maven2-server-impl/src/org/jetbrains/idea/maven/server/embedder/Maven2ServerIndexerImpl.java
index cd877937884e..9e78892d30a3 100644
--- a/plugins/maven/maven2-server-impl/src/org/jetbrains/idea/maven/server/embedder/Maven2ServerIndexerImpl.java
+++ b/plugins/maven/maven2-server-impl/src/org/jetbrains/idea/maven/server/embedder/Maven2ServerIndexerImpl.java
@@ -132,12 +132,16 @@ public class Maven2ServerIndexerImpl extends MavenRemoteObject implements MavenS
 
     try {
       if (isLocal(index)) {
-        indicator.setIndeterminate(true);
-        try {
-          myIndexer.scan(index, new MyScanningListener(indicator), false);
-        }
-        finally {
-          indicator.setIndeterminate(false);
+        File repository = index.getRepository();
+
+        if (repository != null && repository.exists()) {
+          indicator.setIndeterminate(true);
+          try {
+            myIndexer.scan(index, new MyScanningListener(indicator), false);
+          }
+          finally {
+            indicator.setIndeterminate(false);
+          }
         }
       }
       else {
diff --git a/plugins/maven/src/test/java/org/jetbrains/idea/maven/indices/MavenIndicesTest.java b/plugins/maven/src/test/java/org/jetbrains/idea/maven/indices/MavenIndicesTest.java
index b215d88b5623..45ccc391ed81 100644
--- a/plugins/maven/src/test/java/org/jetbrains/idea/maven/indices/MavenIndicesTest.java
+++ b/plugins/maven/src/test/java/org/jetbrains/idea/maven/indices/MavenIndicesTest.java
@@ -84,6 +84,13 @@ public class MavenIndicesTest extends MavenIndicesTestCase {
     assertUnorderedElementsAreEqual(i.getGroupIds(), "junit");
   }
 
+  public void testCreatingAndUpdatingLocalWhenNoDirectory() throws Exception {
+    MavenIndex i = myIndices.add("id", myRepositoryHelper.getTestDataPath("do_not_exist"), MavenIndex.Kind.LOCAL);
+    myIndices.updateOrRepair(i, true, getMavenGeneralSettings(), EMPTY_MAVEN_PROCESS);
+
+    assertUnorderedElementsAreEqual(i.getGroupIds());
+  }
+
   public void testCreatingSeveral() throws Exception {
     MavenIndex i1 = myIndices.add("id1", myRepositoryHelper.getTestDataPath("local1"), MavenIndex.Kind.LOCAL);
     MavenIndex i2 = myIndices.add("id2", myRepositoryHelper.getTestDataPath("local2"), MavenIndex.Kind.LOCAL);