diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1da8dca7e..aa98b7d21 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -20,6 +20,8 @@ BUG FIXES:
     may be in the box itself. [GH-1061]
   - NFS synced folders exporting sub-directories of other exported folders now
     works properly. [GH-785]
+  - NFS shared folders properly dereference symlinks so that the real path
+    is used, avoiding mount errors [GH-1101]
 
 ## 1.2.3 (July 9, 2013)
 
diff --git a/lib/vagrant/action/builtin/nfs.rb b/lib/vagrant/action/builtin/nfs.rb
index 17db963b2..eaaf2899a 100644
--- a/lib/vagrant/action/builtin/nfs.rb
+++ b/lib/vagrant/action/builtin/nfs.rb
@@ -37,7 +37,9 @@ module Vagrant
 
             # Expand the host path, create it if we have to and
             # store away the folder.
-            hostpath = Pathname.new(opts[:hostpath]).expand_path(env[:root_path])
+            hostpath = Pathname.new(opts[:hostpath]).
+              expand_path(env[:root_path]).
+              realpath
 
             if !hostpath.directory? && opts[:create]
               # Host path doesn't exist, so let's create it.