diff --git a/hgext/largefiles/lfutil.py b/hgext/largefiles/lfutil.py
--- a/hgext/largefiles/lfutil.py
+++ b/hgext/largefiles/lfutil.py
@@ -204,7 +204,7 @@ def findstorepath(repo, hash):
     if instore(repo, hash):
         return (path, True)
     elif repo.shared() and instore(repo, hash, True):
-        return storepath(repo, hash, True)
+        return storepath(repo, hash, True), True
 
     return (path, False)
 
diff --git a/tests/test-largefiles-cache.t b/tests/test-largefiles-cache.t
--- a/tests/test-largefiles-cache.t
+++ b/tests/test-largefiles-cache.t
@@ -186,6 +186,10 @@ conditional above.
   src/.hg/largefiles/dirstate
   src/.hg/largefiles/e2fb5f2139d086ded2cb600d5a91a196e76bf020
 
+Verify that backwards compatibility is maintained for old storage layout
+  $ mv src/.hg/largefiles/$hash share_dst/.hg/largefiles
+  $ hg verify --quiet --lfa -R share_dst --config largefiles.usercache=
+
 Inject corruption into the largefiles store and see how update handles that:
 
   $ cd src