diff --git a/acceptance/tests/environment/enc_nonexistent_directory_enviornment.rb b/acceptance/tests/environment/enc_nonexistent_directory_enviornment.rb
new file mode 100644
index 000000000..f25916a8f
--- /dev/null
+++ b/acceptance/tests/environment/enc_nonexistent_directory_enviornment.rb
@@ -0,0 +1,43 @@
+test_name "Master should produce error if enc specifies a nonexistent environment"
+testdir = create_tmpdir_for_user master, 'nonexistent_env'
+
+apply_manifest_on master, <<-MANIFEST
+file {
+  [  "#{testdir}/environments", "#{testdir}/environments/production" ]:
+  ensure => directory,
+}
+
+file { "#{testdir}/environments/production/environment.conf":
+    ensure  => file,
+    content => '
+      manifest=./production.pp
+    ',
+}
+
+file { "#{testdir}/environments/production/production.pp":
+  ensure  => file,
+  content => 'notify { "In the production environment": }',
+}
+
+file { "#{testdir}/enc.rb":
+  ensure  => file,
+  mode    => '0775',
+  content => 'echo "environment: doesnotexist"',
+}
+MANIFEST
+
+master_opts = {
+  'main' => {
+    'node_terminus' => 'exec',
+    'external_nodes' => "#{testdir}/enc.rb",
+    'environmentpath' => "#{testdir}/environments",
+  }
+}
+
+with_puppet_running_on master, master_opts, testdir do
+  agents.each do |agent|
+    on agent, "puppet agent --no-daemonize --onetime --server #{master} --verbose", :acceptable_exit_codes => [0] do
+      assert_match(/Could not find a directory environment named 'doesnotexist'/, stderr, "Errors when nonexistant environment is specified")
+    end
+  end
+end