diff --git a/TSRM/tsrm_virtual_cwd.c b/TSRM/tsrm_virtual_cwd.c
index ec729465cab..da6a380bb2a 100644
--- a/TSRM/tsrm_virtual_cwd.c
+++ b/TSRM/tsrm_virtual_cwd.c
@@ -491,6 +491,7 @@ CWD_API int virtual_file_ex(cwd_state *state, const char *path, verify_path_func
 	int use_relative_path = 0;
 #ifdef TSRM_WIN32
 	int is_unc;
+	int exists;
 #endif
 	TSRMLS_FETCH();
 
@@ -589,6 +590,7 @@ no_realpath:
 		CWD_STATE_COPY(&old_state, state);
 
 #ifdef TSRM_WIN32
+		exists = (use_realpath != CWD_EXPAND);
 		ret = 0;
 		is_unc = 0;
 		if (path_length >= 2 && path[1] == ':') {			
@@ -696,13 +698,16 @@ no_realpath:
 						ptr_length = length;
 						FindClose(hFind);
 						ret = 0;
-					} else if (use_realpath == CWD_REALPATH) {
+					} else {
 						if (is_unc) {
 							/* skip share name */
 							is_unc--;
 							ret = 0;
 						} else {
-							ret = 1;
+							exists = 0;
+							if (use_realpath == CWD_REALPATH) {
+								ret = 1;
+							}
 						}
 					}
 				}
@@ -743,7 +748,7 @@ no_realpath:
 
 	/* Store existent file in realpath cache. */
 #ifdef TSRM_WIN32
-	if (use_cache && !is_unc && (use_realpath == CWD_REALPATH)) {
+	if (use_cache && !is_unc && exists) {
 #else
 	if (use_cache && (use_realpath == CWD_REALPATH)) {
 #endif