diff --git a/hgext/largefiles/localstore.py b/hgext/largefiles/localstore.py
--- a/hgext/largefiles/localstore.py
+++ b/hgext/largefiles/localstore.py
@@ -47,7 +47,10 @@ class localstore(basestore.basestore):
     def _verifyfiles(self, contents, filestocheck):
         failed = False
         for cset, filename, expectedhash in filestocheck:
-            storepath, exists = lfutil.findstorepath(self.remote, expectedhash)
+            storepath, exists = lfutil.findstorepath(self.repo, expectedhash)
+            if not exists:
+                storepath, exists = lfutil.findstorepath(
+                    self.remote, expectedhash)
             if not exists:
                 self.ui.warn(
                     _('changeset %s: %s references missing %s\n')
diff --git a/tests/test-largefiles-wireproto.t b/tests/test-largefiles-wireproto.t
--- a/tests/test-largefiles-wireproto.t
+++ b/tests/test-largefiles-wireproto.t
@@ -149,6 +149,14 @@ largefiles clients refuse to push largef
   $ hg commit -m "m2"
   Invoking status precommit hook
   A f2
+  $ hg verify --large
+  checking changesets
+  checking manifests
+  crosschecking files in changesets and manifests
+  checking files
+  2 files, 2 changesets, 2 total revisions
+  searching 1 changesets for largefiles
+  verified existence of 1 revisions of 1 largefiles
   $ hg serve --config extensions.largefiles=! -R ../r6 -d -p $HGPORT --pid-file ../hg.pid
   $ cat ../hg.pid >> $DAEMON_PIDS
   $ hg push http://localhost:$HGPORT
diff --git a/tests/test-largefiles.t b/tests/test-largefiles.t
--- a/tests/test-largefiles.t
+++ b/tests/test-largefiles.t
@@ -1536,8 +1536,11 @@ revert some files to an older revision
   searching 1 changesets for largefiles
   verified existence of 3 revisions of 3 largefiles
 
-- introduce missing blob in local store repo and make sure that this is caught:
+- introduce missing blob in local store repo and remote store
+and make sure that this is caught:
+
   $ mv $TESTTMP/d/.hg/largefiles/e166e74c7303192238d60af5a9c4ce9bef0b7928 .
+  $ rm .hg/largefiles/e166e74c7303192238d60af5a9c4ce9bef0b7928
   $ hg verify --large
   checking changesets
   checking manifests
@@ -1556,7 +1559,8 @@ revert some files to an older revision
   [1]
 
 - cleanup
-  $ mv e166e74c7303192238d60af5a9c4ce9bef0b7928 $TESTTMP/d/.hg/largefiles/
+  $ cp e166e74c7303192238d60af5a9c4ce9bef0b7928 $TESTTMP/d/.hg/largefiles/
+  $ mv e166e74c7303192238d60af5a9c4ce9bef0b7928 .hg/largefiles/
 
 - verifying all revisions will fail because we didn't clone all largefiles to d:
   $ echo 'T-shirt' > $TESTTMP/d/.hg/largefiles/eb7338044dc27f9bc59b8dd5a246b065ead7a9c4