diff --git a/src/filetree.rs b/src/filetree.rs
index 0916d46e..af890bfb 100644
--- a/src/filetree.rs
+++ b/src/filetree.rs
@@ -348,7 +348,7 @@ pub(crate) fn apply_diff(
                 path_tmp = path.to_path_buf();
             }
             destdir
-                .remove_file(path_tmp.as_std_path())
+                .remove_file_optional(path_tmp.as_std_path())
                 .with_context(|| format!("removing {:?}", path_tmp))?;
         }
     }
@@ -691,12 +691,19 @@ mod tests {
             assert_eq!(b_btime_foo_new, b_btime_foo);
         }
         {
-            a.remove_file(testfile)?;
+            b.remove_file(testfile)?;
+            let ta = FileTree::new_from_dir(&a)?;
+            let diff = ta.relative_diff_to(&b)?;
+            assert_eq!(diff.removals.len(), 1);
+            apply_diff(&a, &b, &diff, None).context("test removed files with relative_diff")?;
+            assert_eq!(b.exists(testfile)?, false);
+        }
+        {
             a.remove_file(bar)?;
             let diff = run_diff(&b, &a)?;
             assert_eq!(diff.count(), 2);
             apply_diff(&a, &b, &diff, None).context("test removed files")?;
-            assert_eq!(b.exists(testfile)?, false);
+            assert_eq!(b.exists(testfile)?, true);
             assert_eq!(b.exists(bar)?, false);
             let diff = run_diff(&b, &a)?;
             assert_eq!(diff.count(), 0);
diff --git a/tests/e2e-update/e2e-update-in-vm.sh b/tests/e2e-update/e2e-update-in-vm.sh
index a3577533..b6bf6e53 100755
--- a/tests/e2e-update/e2e-update-in-vm.sh
+++ b/tests/e2e-update/e2e-update-in-vm.sh
@@ -89,8 +89,20 @@ rm -f /boot/bootupd-state.json
 bootupctl adopt-and-update | tee out.txt
 assert_file_has_content out.txt "Adopted and updated: BIOS: .*"
 assert_file_has_content out.txt "Adopted and updated: EFI: .*"
+bootupctl validate
 ok adopt-and-update
 
+# Verify the adoption does not fail when install files if they are missing on the disk.
+# see https://github.com/coreos/bootupd/issues/762
+rm -f /boot/bootupd-state.json
+[ -f "${tmpefimount}/EFI/fedora/test-bootupd.efi" ] && rm -f ${tmpefimount}/EFI/fedora/test-bootupd.efi
+bootupctl adopt-and-update | tee out.txt
+assert_file_has_content out.txt "Adopted and updated: BIOS: .*"
+assert_file_has_content out.txt "Adopted and updated: EFI: .*"
+if bootupctl validate 2>err.txt; then
+  fatal "unexpectedly passed validation"
+fi
+
 tap_finish
 touch /run/testtmp/success
 sync