diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3f65def79..2b87b141e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,7 @@
 
   - Improve the SSH "ready?" check. [GH-841]
   - Human friendly error if connection times out for HTTP downloads. [GH-849]
+  - Detect when the VirtualBox installation is incomplete and error. [GH-846]
 
 ## 1.0.2 (March 25, 2012)
 
diff --git a/lib/vagrant/driver/virtualbox.rb b/lib/vagrant/driver/virtualbox.rb
index 9fecddb21..8c4009284 100644
--- a/lib/vagrant/driver/virtualbox.rb
+++ b/lib/vagrant/driver/virtualbox.rb
@@ -122,6 +122,12 @@ module Vagrant
         output = execute("--version")
         if output =~ /vboxdrv kernel module is not loaded/
           raise Errors::VirtualBoxKernelModuleNotLoaded
+        # Check for installation incomplete warnings, for example:
+        # "WARNING: The character device /dev/vboxdrv does not
+        # exist. Please install the virtualbox-ose-dkms package and
+        # the appropriate headers, most likely linux-headers-generic."
+        elsif output =~ /Please install/
+          raise Errors::VirtualBoxInstallIncomplete
         end
 
         parts = output.split("_")
diff --git a/lib/vagrant/errors.rb b/lib/vagrant/errors.rb
index 1ec45c1ea..bd5b50516 100644
--- a/lib/vagrant/errors.rb
+++ b/lib/vagrant/errors.rb
@@ -388,6 +388,11 @@ module Vagrant
       error_key(:virtualbox_kernel_module_not_loaded)
     end
 
+    class VirtualBoxInstallIncomplete < VagrantError
+      status_code(79)
+      error_key(:virtualbox_install_incomplete)
+    end
+
     class VMBaseMacNotSpecified < VagrantError
       status_code(47)
       error_key(:no_base_mac, "vagrant.actions.vm.match_mac")
diff --git a/templates/locales/en.yml b/templates/locales/en.yml
index 03f8fbcd1..1d70599d0 100644
--- a/templates/locales/en.yml
+++ b/templates/locales/en.yml
@@ -184,6 +184,10 @@ en:
         VirtualBox is complaining that the kernel module is not loaded. Please
         run `VBoxManage --version` to see the error message which should contain
         instructions on how to fix this error.
+      virtualbox_install_incomplete: |-
+        VirtualBox is complaining that the installation is incomplete. Please
+        run `VBoxManage --version` to see the error message which should contain
+        instructions on how to fix this error.
       virtualbox_not_detected: |-
         Vagrant could not detect VirtualBox! Make sure VirtualBox is properly installed.
         Vagrant uses the `VBoxManage` binary that ships with VirtualBox, and requires