diff --git a/rhodecode/controllers/admin/settings.py b/rhodecode/controllers/admin/settings.py
--- a/rhodecode/controllers/admin/settings.py
+++ b/rhodecode/controllers/admin/settings.py
@@ -195,9 +195,12 @@ class SettingsController(BaseController)
         pyramid_settings = get_current_registry().settings
         c.svn_proxy_generate_config = pyramid_settings[generate_config]
 
+        defaults = self._form_defaults()
+
+        model.create_largeobjects_dirs_if_needed(defaults['paths_root_path'])
         return htmlfill.render(
             render('admin/settings/settings.mako'),
-            defaults=self._form_defaults(),
+            defaults=defaults,
             encoding="UTF-8",
             force_defaults=False)
 
diff --git a/rhodecode/model/settings.py b/rhodecode/model/settings.py
--- a/rhodecode/model/settings.py
+++ b/rhodecode/model/settings.py
@@ -18,6 +18,7 @@
 # RhodeCode Enterprise Edition, including its added features, Support services,
 # and proprietary license terms, please see https://rhodecode.com/licenses/
 
+import os
 import hashlib
 import logging
 from collections import namedtuple
@@ -775,3 +776,27 @@ class VcsSettingsModel(object):
                 raise ValueError(
                     'The given data does not contain {} key'.format(data_key))
         return data_keys
+
+    def create_largeobjects_dirs_if_needed(self, repo_store_path):
+        """
+        This is subscribed to the `pyramid.events.ApplicationCreated` event. It
+        does a repository scan if enabled in the settings.
+        """
+
+        from rhodecode.lib.vcs.backends.hg import largefiles_store
+        from rhodecode.lib.vcs.backends.git import lfs_store
+
+        paths = [
+            largefiles_store(repo_store_path),
+            lfs_store(repo_store_path)]
+
+        for path in paths:
+            if os.path.isdir(path):
+                continue
+            if os.path.isfile(path):
+                continue
+            # not a file nor dir, we try to create it
+            try:
+                os.makedirs(path)
+            except Exception:
+                log.warning('Failed to create largefiles dir:%s', path)