diff --git a/vpath.c b/vpath.c
index 80453578..480fcad7 100644
--- a/vpath.c
+++ b/vpath.c
@@ -434,6 +434,8 @@ selective_vpath_search (path, file, mtime_ptr)
 
 	      return 1;
 	    }
+	  else
+	    exists = 0;
 	}
     }