diff --git a/ChangeLog b/ChangeLog
index 9101f943..0eed82b7 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,6 +1,7 @@
 2010-05-27  Milan Broz  <mbroz@redhat.com>
 	* Fix luksFormat/luksOpen reading passphrase from stdin and "-" keyfile.
 	* Add verbose log level and move unlocking message there.
+	* Remove device even if underlying device disappeared.
 
 2010-05-23  Milan Broz  <mbroz@redhat.com>
 	* Fix luksClose operation for stacked DM devices.
diff --git a/lib/libdevmapper.c b/lib/libdevmapper.c
index ef806026..c37a84ea 100644
--- a/lib/libdevmapper.c
+++ b/lib/libdevmapper.c
@@ -197,7 +197,7 @@ static char *lookup_dev(const char *dev_id)
 {
 	uint32_t major, minor;
 	dev_t dev;
-	char *result, buf[PATH_MAX + 1];
+	char *result = NULL, buf[PATH_MAX + 1];
 
 	if (sscanf(dev_id, "%" PRIu32 ":%" PRIu32, &major, &minor) != 2)
 		return NULL;
@@ -220,8 +220,8 @@ static char *lookup_dev(const char *dev_id)
 	strncpy(buf, DEVICE_DIR, PATH_MAX);
 	result = __lookup_dev(buf, dev, 0, 4);
 
-	/* If not found, return major:minor */
-	return result ?: strdup(dev_id);
+	/* If not found, return NULL */
+	return result;
 }
 
 static int _dev_read_ahead(const char *dev, uint32_t *read_ahead)
diff --git a/lib/setup.c b/lib/setup.c
index 45690b83..87a1c385 100644
--- a/lib/setup.c
+++ b/lib/setup.c
@@ -741,10 +741,8 @@ int crypt_remove_device(struct crypt_options *options)
 	int r;
 
 	r = crypt_init_by_name(&cd, options->name);
-	if (r)
-		return r;
-
-	r = crypt_deactivate(cd, options->name);
+	if (r == 0)
+		r = crypt_deactivate(cd, options->name);
 
 	crypt_free(cd);
 	return r;
@@ -759,7 +757,7 @@ int crypt_luksFormat(struct crypt_options *options)
 	char cipherMode[LUKS_CIPHERMODE_L];
 	char *password=NULL;
 	unsigned int passwordLen;
-	struct crypt_device *cd;
+	struct crypt_device *cd = NULL;
 	struct crypt_params_luks1 cp = {
 		.hash = options->hash,
 		.data_alignment = options->align_payload
@@ -1049,6 +1047,12 @@ int crypt_init_by_name(struct crypt_device **cd, const char *name)
 
 	r = dm_query_device(name, &device, NULL, NULL, NULL,
 			    NULL, NULL, NULL, NULL, NULL, NULL);
+
+	/* Underlying device disappeared but mapping still active */
+	if (r >= 0 && !device)
+		log_verbose(NULL, _("Underlying device for crypt device %s disappeared.\n"),
+			    name);
+
 	if (r >= 0)
 		r = crypt_init(cd, device);