diff --git a/lang/en/error.php b/lang/en/error.php
index 27c5d8a21ad..2c1e61e3ab4 100644
--- a/lang/en/error.php
+++ b/lang/en/error.php
@@ -506,6 +506,7 @@ $string['statsnodata'] = 'There is no available data for that combination of cou
 $string['storedfilecannotcreatefile'] = 'Can not create local file pool file, please verify permissions in dataroot and available disk space.';
 $string['storedfilecannotcreatefiledirs'] = 'Can not create local file pool directories, please verify permissions in dataroot.';
 $string['storedfilecannotread'] = 'Cannot read file. Either the file does not exist or there is a permission problem.';
+$string['storedfilecannotreadfile'] = 'Cannot read file \'{$a}\'. Either the file does not exist or there is a permission problem.';
 $string['storedfilenotcreated'] = 'Can not create file "{$a->contextid}/{$a->component}/{$a->filearea}/{$a->itemid}{$a->filepath}{$a->filename}"';
 $string['storedfileproblem'] = 'Unknown exception related to local files ({$a})';
 $string['tagdisabled'] = 'Tags are disabled!';
diff --git a/lib/filebrowser/file_info_stored.php b/lib/filebrowser/file_info_stored.php
index 8c1069b65e0..5dd21509f2f 100644
--- a/lib/filebrowser/file_info_stored.php
+++ b/lib/filebrowser/file_info_stored.php
@@ -234,7 +234,11 @@ class file_info_stored extends file_info {
      * @return array|false
      */
     public function get_imageinfo() {
-        return $this->lf->get_imageinfo();
+        $fs = get_file_storage();
+        if ($fs->content_exists($this->lf->get_contenthash())) {
+            return $this->lf->get_imageinfo();
+        }
+        return false;
     }
 
     /**
diff --git a/lib/filelib.php b/lib/filelib.php
index 1988d4744ef..2b269bb0d05 100644
--- a/lib/filelib.php
+++ b/lib/filelib.php
@@ -421,7 +421,10 @@ function file_prepare_draft_area(&$draftitemid, $contextid, $component, $fileare
                 $original->filename  = $file->get_filename();
                 $original->filepath  = $file->get_filepath();
                 $newsourcefield->original = file_storage::pack_reference($original);
-                $draftfile->set_source(serialize($newsourcefield));
+                // Check we can read the file before we update it.
+                if ($fs->content_exists($file->get_contenthash())) {
+                    $draftfile->set_source(serialize($newsourcefield));
+                }
                 // End of file manager hack
             }
         }
@@ -707,11 +710,22 @@ function file_get_drafarea_files($draftitemid, $filepath = '/') {
                 $item->url = $itemurl->out();
                 $item->icon = $OUTPUT->pix_url(file_file_icon($file, 24))->out(false);
                 $item->thumbnail = $OUTPUT->pix_url(file_file_icon($file, 90))->out(false);
-                if ($imageinfo = $file->get_imageinfo()) {
-                    $item->realthumbnail = $itemurl->out(false, array('preview' => 'thumb', 'oid' => $file->get_timemodified()));
-                    $item->realicon = $itemurl->out(false, array('preview' => 'tinyicon', 'oid' => $file->get_timemodified()));
-                    $item->image_width = $imageinfo['width'];
-                    $item->image_height = $imageinfo['height'];
+
+                // The call to $file->get_imageinfo() fails with an exception if the file can't be read on the file system.
+                // We still want to add such files to the list, so the owner can view and delete them if needed. So, we only call
+                // get_imageinfo() on files that can be read, and we also spoof the file status based on whether it was found.
+                // We'll use the same status types used by stored_file->get_status(), where 0 = OK. 1 = problem, as these will be
+                // used by the widget to display a warning about the problem files.
+                // The value of stored_file->get_status(), and the file record are unaffected by this. It's only superficially set.
+                $item->status = $fs->content_exists($file->get_contenthash()) ? 0 : 1;
+                if ($item->status == 0) {
+                    if ($imageinfo = $file->get_imageinfo()) {
+                        $item->realthumbnail = $itemurl->out(false, array('preview' => 'thumb',
+                            'oid' => $file->get_timemodified()));
+                        $item->realicon = $itemurl->out(false, array('preview' => 'tinyicon', 'oid' => $file->get_timemodified()));
+                        $item->image_width = $imageinfo['width'];
+                        $item->image_height = $imageinfo['height'];
+                    }
                 }
             }
             $list[] = $item;
diff --git a/repository/filepicker.js b/repository/filepicker.js
index 386a6abcd17..31067b7c749 100644
--- a/repository/filepicker.js
+++ b/repository/filepicker.js
@@ -426,6 +426,27 @@ YUI.add('moodle-core_filepicker', function(Y) {
             }
         }
 
+        // Notify the user if any of the files has a problem status.
+        var problemFiles = [];
+        fileslist.forEach(function(file) {
+            if (!file_is_folder(file) && file.hasOwnProperty('status') && file.status != 0) {
+                problemFiles.push(file);
+            }
+        });
+        if (problemFiles.length > 0) {
+            require(["core/notification", "core/str"], function(Notification, Str) {
+                problemFiles.forEach(function(problemFile) {
+                    Str.get_string('storedfilecannotreadfile', 'error', problemFile.fullname).then(function(string) {
+                        Notification.addNotification({
+                            message: string,
+                            type: "error"
+                        });
+                        return;
+                    }).catch(Notification.exception);
+                });
+            });
+        }
+
         // If table view, need some additional properties
         // before passing fileslist to the YUI tableview
         if (options.viewmode == 3) {