diff --git a/pkg/vendir/directory/directory.go b/pkg/vendir/directory/directory.go
index 4477337f..bf274272 100644
--- a/pkg/vendir/directory/directory.go
+++ b/pkg/vendir/directory/directory.go
@@ -89,6 +89,11 @@ func (d *Directory) Sync(syncOpts SyncOpts) (ctlconf.LockDirectory, error) {
 		if skipFetching {
 			d.ui.PrintLinef("Skipping fetch: %s + %s (flagged as lazy, config has not changed since last sync)", d.opts.Path, contents.Path)
 			lockConfig.Contents = append(lockConfig.Contents, oldLockContents)
+			// copy previously fetched contents to staging dir
+			err = dircopy.Copy(filepath.Join(d.opts.Path, contents.Path), stagingDstPath)
+			if err != nil {
+				return lockConfig, fmt.Errorf("Lazy content missing. Run sync with --lazy=false to fix. '%s': %s", d.opts.Path, err)
+			}
 			continue
 		}
 
diff --git a/test/e2e/example_lazy_test.go b/test/e2e/example_lazy_test.go
index b3263f1f..fe969310 100644
--- a/test/e2e/example_lazy_test.go
+++ b/test/e2e/example_lazy_test.go
@@ -23,25 +23,31 @@ func TestExampleLazy(t *testing.T) {
 	// run lazy sync
 	_, err := vendir.RunWithOpts([]string{"sync", "-f=vendir-lazy.yml"}, RunOpts{Dir: path, Env: osEnv})
 	require.NoError(t, err)
+	require.DirExists(t, path+"/vendor/dir")
+
+	// rerun lazy sync for good measure
+	_, err = vendir.RunWithOpts([]string{"sync", "-f=vendir-lazy.yml"}, RunOpts{Dir: path, Env: osEnv})
+	require.NoError(t, err)
+	require.DirExists(t, path+"/vendor/dir")
 
 	// check that the lock file has config digest
 	lockConf, err := ctlconf.NewLockConfigFromFile(path + "/vendir.lock.yml")
 	require.NoError(t, err)
 	require.NotEmpty(t, lockConf.Directories[0].Contents[0].ConfigDigest, "Expected Config Digest in Lock File")
 
-	// remove some directory
-	err = os.RemoveAll(path + "/vendor/dir")
+	// remove file from synced dir
+	err = os.Remove(path + "/vendor/dir/some-file.txt")
 	require.NoError(t, err)
 
 	// resync lazily, should not sync. Removed dir has not been reinstated
 	_, err = vendir.RunWithOpts([]string{"sync", "-f=vendir-lazy.yml"}, RunOpts{Dir: path, Env: osEnv})
 	require.NoError(t, err)
-	require.NoDirExists(t, path+"/vendor/dir")
+	require.NoFileExists(t, path+"/vendor/dir/some-file.txt")
 
 	// resync with lazy override, should not affect config digest
 	_, err = vendir.RunWithOpts([]string{"sync", "--lazy=false", "-f=vendir-lazy.yml"}, RunOpts{Dir: path, Env: osEnv})
 	require.NoError(t, err)
-	require.DirExists(t, path+"/vendor/dir")
+	require.FileExists(t, path+"/vendor/dir/some-file.txt")
 
 	// content digest is kept during lazy sync override
 	lockConf, err = ctlconf.NewLockConfigFromFile(path + "/vendir.lock.yml")