diff --git a/platform/vcs-log/impl/src/META-INF/vcs-log.xml b/platform/vcs-log/impl/src/META-INF/vcs-log.xml
index 4f44100f5b9e..960c14f95090 100644
--- a/platform/vcs-log/impl/src/META-INF/vcs-log.xml
+++ b/platform/vcs-log/impl/src/META-INF/vcs-log.xml
@@ -25,6 +25,8 @@
     <logHighlighterFactory implementation="com.intellij.vcs.log.ui.IndexHighlighter$Factory"/>
 
     <postStartupActivity implementation="com.intellij.vcs.log.impl.VcsProjectLog$InitLogStartupActivity"/>
+
+    <cachesInvalidator implementation="com.intellij.vcs.log.impl.VcsLogCachesInvalidator"/>
   </extensions>
 
   <actions>
diff --git a/platform/vcs-log/impl/src/com/intellij/vcs/log/data/EmptyIndex.java b/platform/vcs-log/impl/src/com/intellij/vcs/log/data/EmptyIndex.java
new file mode 100644
index 000000000000..a83d4e16310b
--- /dev/null
+++ b/platform/vcs-log/impl/src/com/intellij/vcs/log/data/EmptyIndex.java
@@ -0,0 +1,59 @@
+/*
+ * Copyright 2000-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.vcs.log.data;
+
+import com.intellij.openapi.vfs.VirtualFile;
+import com.intellij.vcs.log.VcsLogDetailsFilter;
+import com.intellij.vcs.log.data.index.VcsLogIndex;
+import org.jetbrains.annotations.NotNull;
+
+import java.util.List;
+import java.util.Set;
+
+public class EmptyIndex implements VcsLogIndex {
+  @Override
+  public void scheduleIndex(boolean full) {
+  }
+
+  @Override
+  public boolean isIndexed(int commit) {
+    return false;
+  }
+
+  @Override
+  public boolean isIndexed(@NotNull VirtualFile root) {
+    return false;
+  }
+
+  @Override
+  public void markForIndexing(int commit, @NotNull VirtualFile root) {
+  }
+
+  @Override
+  public boolean canFilter(@NotNull List<VcsLogDetailsFilter> filters) {
+    return false;
+  }
+
+  @NotNull
+  @Override
+  public Set<Integer> filter(@NotNull List<VcsLogDetailsFilter> detailsFilters) {
+    throw new UnsupportedOperationException();
+  }
+
+  @Override
+  public void markCorrupted() {
+  }
+}
diff --git a/platform/vcs-log/impl/src/com/intellij/vcs/log/data/VcsLogData.java b/platform/vcs-log/impl/src/com/intellij/vcs/log/data/VcsLogData.java
index 16af2331ad5d..be451c68b38b 100644
--- a/platform/vcs-log/impl/src/com/intellij/vcs/log/data/VcsLogData.java
+++ b/platform/vcs-log/impl/src/com/intellij/vcs/log/data/VcsLogData.java
@@ -15,6 +15,7 @@
  */
 package com.intellij.vcs.log.data;
 
+import com.intellij.ide.caches.CachesInvalidator;
 import com.intellij.openapi.Disposable;
 import com.intellij.openapi.application.ApplicationManager;
 import com.intellij.openapi.components.ServiceManager;
@@ -35,6 +36,8 @@ import com.intellij.vcs.log.*;
 import com.intellij.vcs.log.data.index.VcsLogIndex;
 import com.intellij.vcs.log.data.index.VcsLogPersistentIndex;
 import com.intellij.vcs.log.impl.FatalErrorConsumer;
+import com.intellij.vcs.log.impl.VcsLogCachesInvalidator;
+import com.intellij.vcs.log.util.PersistentUtil;
 import com.intellij.vcs.log.util.StopWatch;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
@@ -91,15 +94,30 @@ public class VcsLogData implements Disposable, VcsLogDataProvider {
     myUserRegistry = (VcsUserRegistryImpl)ServiceManager.getService(project, VcsUserRegistry.class);
     myFatalErrorsConsumer = fatalErrorsConsumer;
 
-    myHashMap = createLogHashMap();
+    VcsLogProgress progress = new VcsLogProgress();
+    Disposer.register(this, progress);
+
+    VcsLogCachesInvalidator invalidator = CachesInvalidator.EP_NAME.findExtension(VcsLogCachesInvalidator.class);
+    if (invalidator.isValid()) {
+      myHashMap = createLogHashMap();
+      myIndex = new VcsLogPersistentIndex(myProject, myHashMap, progress, logProviders, myFatalErrorsConsumer, this);
+    }
+    else {
+      // this is not recoverable
+      // restart won't help here
+      // and can not shut down ide because of this
+      // so use memory storage (probably leading to out of memory at some point) + no index
+      String message = "Could not delete " + PersistentUtil.LOG_CACHE + "\nDelete it manually and restart IDEA.";
+      LOG.error(message);
+      myFatalErrorsConsumer.displayFatalErrorMessage(message);
+      myHashMap = new InMemoryStorage();
+      myIndex = new EmptyIndex();
+    }
+
     myTopCommitsDetailsCache = new TopCommitsCache(myHashMap);
     myMiniDetailsGetter = new MiniDetailsGetter(myHashMap, logProviders, myTopCommitsDetailsCache, this);
     myDetailsGetter = new CommitDetailsGetter(myHashMap, logProviders, this);
 
-    VcsLogProgress progress = new VcsLogProgress();
-    Disposer.register(this, progress);
-    myIndex = new VcsLogPersistentIndex(myProject, myHashMap, progress, logProviders, myFatalErrorsConsumer, this);
-
     myRefresher = new VcsLogRefresherImpl(myProject, myHashMap, myLogProviders, myUserRegistry, myIndex, progress, myTopCommitsDetailsCache,
                                           this::fireDataPackChangeEvent, FAILING_EXCEPTION_HANDLER, RECENT_COMMITS_COUNT);
 
diff --git a/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/FatalErrorConsumer.java b/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/FatalErrorConsumer.java
index 566ec3d80c1c..0573ed544ba6 100644
--- a/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/FatalErrorConsumer.java
+++ b/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/FatalErrorConsumer.java
@@ -20,4 +20,6 @@ import org.jetbrains.annotations.Nullable;
 
 public interface FatalErrorConsumer {
   void consume(@Nullable Object source, @NotNull Exception exception);
+
+  void displayFatalErrorMessage(@NotNull String message);
 }
diff --git a/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/VcsLogCachesInvalidator.java b/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/VcsLogCachesInvalidator.java
new file mode 100644
index 000000000000..e0260bbf485e
--- /dev/null
+++ b/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/VcsLogCachesInvalidator.java
@@ -0,0 +1,46 @@
+/*
+ * Copyright 2000-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.intellij.vcs.log.impl;
+
+import com.intellij.ide.caches.CachesInvalidator;
+import com.intellij.openapi.util.io.FileUtil;
+import com.intellij.util.ArrayUtil;
+import com.intellij.vcs.log.util.PersistentUtil;
+
+public class VcsLogCachesInvalidator extends CachesInvalidator {
+
+  public synchronized boolean isValid() {
+    if (PersistentUtil.getCorruptionMarkerFile().exists()) {
+      boolean deleted = FileUtil.delete(PersistentUtil.LOG_CACHE);
+      if (!deleted) {
+        // if could not delete caches, ensure that corruption marker is still there
+        FileUtil.createIfDoesntExist(PersistentUtil.getCorruptionMarkerFile());
+      }
+      return deleted;
+    }
+    return true;
+  }
+
+  @Override
+  public void invalidateCaches() {
+    if (PersistentUtil.LOG_CACHE.exists()) {
+      String[] children = PersistentUtil.LOG_CACHE.list();
+      if (!ArrayUtil.isEmpty(children)) {
+        FileUtil.createIfDoesntExist(PersistentUtil.getCorruptionMarkerFile());
+      }
+    }
+  }
+}
diff --git a/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/VcsLogManager.java b/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/VcsLogManager.java
index 84f4b4bbf5a9..cb685aea87f3 100644
--- a/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/VcsLogManager.java
+++ b/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/VcsLogManager.java
@@ -240,5 +240,10 @@ public class VcsLogManager implements Disposable {
         myLogData.getIndex().markCorrupted();
       }
     }
+
+    @Override
+    public void displayFatalErrorMessage(@NotNull String message) {
+      VcsBalloonProblemNotifier.showOverChangesView(myProject, message, MessageType.ERROR);
+    }
   }
 }
diff --git a/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/VcsProjectLog.java b/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/VcsProjectLog.java
index 3664dd8b9033..390b7cc1b0a0 100644
--- a/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/VcsProjectLog.java
+++ b/platform/vcs-log/impl/src/com/intellij/vcs/log/impl/VcsProjectLog.java
@@ -15,6 +15,7 @@
  */
 package com.intellij.vcs.log.impl;
 
+import com.intellij.ide.caches.CachesInvalidator;
 import com.intellij.openapi.application.ApplicationManager;
 import com.intellij.openapi.components.ServiceManager;
 import com.intellij.openapi.project.Project;
@@ -111,7 +112,10 @@ public class VcsProjectLog {
       logManager.scheduleInitialization();
     }
     else if (PostponableLogRefresher.keepUpToDate()) {
-      HeavyAwareExecutor.executeOutOfHeavyProcessLater(logManager::scheduleInitialization, 5000);
+      VcsLogCachesInvalidator invalidator = CachesInvalidator.EP_NAME.findExtension(VcsLogCachesInvalidator.class);
+      if (invalidator.isValid()) {
+        HeavyAwareExecutor.executeOutOfHeavyProcessLater(logManager::scheduleInitialization, 5000);
+      }
     }
   }
 
diff --git a/platform/vcs-log/impl/src/com/intellij/vcs/log/util/PersistentUtil.java b/platform/vcs-log/impl/src/com/intellij/vcs/log/util/PersistentUtil.java
index 407c77cce7c6..b39928c3b663 100644
--- a/platform/vcs-log/impl/src/com/intellij/vcs/log/util/PersistentUtil.java
+++ b/platform/vcs-log/impl/src/com/intellij/vcs/log/util/PersistentUtil.java
@@ -33,6 +33,7 @@ import java.util.Map;
 
 public class PersistentUtil {
   @NotNull public static final File LOG_CACHE = new File(PathManager.getSystemPath(), "vcs-log");
+  @NotNull private static final String CORRUPTION_MARKER = "corruption.marker";
 
   @NotNull
   public static String calcLogId(@NotNull Project project, @NotNull Map<VirtualFile, VcsLogProvider> logProviders) {
@@ -83,4 +84,9 @@ public class PersistentUtil {
                                            new PersistentHashMap<>(storageFile, new IntInlineKeyDescriptor(), externalizer, Page.PAGE_SIZE),
                                          storageFile);
   }
+
+  @NotNull
+  public static File getCorruptionMarkerFile() {
+    return new File(LOG_CACHE, CORRUPTION_MARKER);
+  }
 }
diff --git a/platform/vcs-log/impl/test/com/intellij/vcs/log/data/VcsLogRefresherTest.java b/platform/vcs-log/impl/test/com/intellij/vcs/log/data/VcsLogRefresherTest.java
index da9fe03e983b..d438daa36f4d 100644
--- a/platform/vcs-log/impl/test/com/intellij/vcs/log/data/VcsLogRefresherTest.java
+++ b/platform/vcs-log/impl/test/com/intellij/vcs/log/data/VcsLogRefresherTest.java
@@ -33,6 +33,7 @@ import com.intellij.vcs.log.graph.GraphCommit;
 import com.intellij.vcs.log.impl.*;
 import com.intellij.vcs.test.VcsPlatformTest;
 import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
 
 import java.util.*;
 import java.util.concurrent.*;
@@ -194,7 +195,17 @@ public class VcsLogRefresherTest extends VcsPlatformTest {
   }
 
   private VcsLogRefresherImpl createLoader(Consumer<DataPack> dataPackConsumer) {
-    myLogData = new VcsLogData(myProject, myLogProviders, (source, exception) -> LOG.error(exception));
+    myLogData = new VcsLogData(myProject, myLogProviders, new FatalErrorHandler() {
+      @Override
+      public void consume(@Nullable Object source, @NotNull Exception exception) {
+        LOG.error(exception);
+      }
+
+      @Override
+      public void displayFatalErrorMessage(@NotNull String message) {
+        LOG.error(message);
+      }
+    });
     Disposer.register(myProject, myLogData);
     return new VcsLogRefresherImpl(myProject, myLogData.getHashMap(), myLogProviders, myLogData.getUserRegistry(), myLogData.getIndex(),
                                    new VcsLogProgress(),
diff --git a/platform/vcs-log/impl/test/com/intellij/vcs/log/data/VisiblePackBuilderTest.kt b/platform/vcs-log/impl/test/com/intellij/vcs/log/data/VisiblePackBuilderTest.kt
index 172b294d2b55..44071cfd9fbc 100644
--- a/platform/vcs-log/impl/test/com/intellij/vcs/log/data/VisiblePackBuilderTest.kt
+++ b/platform/vcs-log/impl/test/com/intellij/vcs/log/data/VisiblePackBuilderTest.kt
@@ -247,31 +247,5 @@ class VisiblePackBuilderTest {
     }
   }
 
-  class EmptyIndex : VcsLogIndex {
-    override fun isIndexed(root: VirtualFile): Boolean {
-      return false
-    }
-
-    override fun isIndexed(commit: Int): Boolean {
-      return false
-    }
-
-    override fun canFilter(filters: MutableList<VcsLogDetailsFilter>): Boolean {
-      return false
-    }
-
-    override fun scheduleIndex(full: Boolean) {
-    }
-
-    override fun markForIndexing(index: Int, root: VirtualFile) {
-    }
-
-    override fun filter(detailsFilters: MutableList<VcsLogDetailsFilter>): MutableSet<Int> {
-      throw UnsupportedOperationException()
-    }
-
-    override fun markCorrupted() {
-    }
-  }
 }