diff --git a/hgext/largefiles/overrides.py b/hgext/largefiles/overrides.py
--- a/hgext/largefiles/overrides.py
+++ b/hgext/largefiles/overrides.py
@@ -169,6 +169,8 @@ def removelargefiles(ui, repo, *pats, **
         # function handle this.
         if not getattr(repo, "_isaddremove", False):
             lfutil.reporemove(repo, remove, unlink=True)
+        else:
+            lfutil.reporemove(repo, remove, unlink=False)
     finally:
         wlock.release()
 
diff --git a/hgext/largefiles/reposetup.py b/hgext/largefiles/reposetup.py
--- a/hgext/largefiles/reposetup.py
+++ b/hgext/largefiles/reposetup.py
@@ -340,8 +340,9 @@ def reposetup(ui, repo):
                                     lfdirstate.normal(lfile)
                     for lfile in lfdirstate:
                         if lfile in modifiedfiles:
-                            if not os.path.exists(
-                                    repo.wjoin(lfutil.standin(lfile))):
+                            if (not os.path.exists(repo.wjoin(
+                               lfutil.standin(lfile)))) or \
+                               (not os.path.exists(repo.wjoin(lfile))):
                                 lfdirstate.drop(lfile)
 
                     result = orig(text=text, user=user, date=date, match=match,