diff --git a/lib/vagrant/action/general/package.rb b/lib/vagrant/action/general/package.rb
index 3a2741a0f..40bbe9de8 100644
--- a/lib/vagrant/action/general/package.rb
+++ b/lib/vagrant/action/general/package.rb
@@ -25,7 +25,7 @@ module Vagrant
           @env = env
 
           return env.error!(:package_output_exists) if File.exist?(tar_path)
-          return env.error!(:package_requires_directory) if !@env["package.directory"]
+          return env.error!(:package_requires_directory) if !@env["package.directory"] || !File.directory?(@env["package.directory"])
           return if !verify_included_files
           compress
 
@@ -67,7 +67,7 @@ module Vagrant
 
         # Compress the exported file into a package
         def compress
-          @env.logger.info "Packaging VM into #{tar_path}..."
+          @env.logger.info "Compressing package to #{tar_path}..."
           File.open(tar_path, Platform.tar_file_options) do |tar|
             Archive::Tar::Minitar::Output.open(tar) do |output|
               begin
diff --git a/test/vagrant/action/general/package_test.rb b/test/vagrant/action/general/package_test.rb
index ee0344bc8..2591d3ae2 100644
--- a/test/vagrant/action/general/package_test.rb
+++ b/test/vagrant/action/general/package_test.rb
@@ -47,6 +47,7 @@ class PackageGeneralActionTest < Test::Unit::TestCase
   context "with an instance" do
     setup do
       File.stubs(:exist?).returns(false)
+      File.stubs(:directory?).returns(true)
       @instance = @klass.new(@app, @env)
 
       @env["package.directory"] = "foo"
@@ -89,6 +90,15 @@ class PackageGeneralActionTest < Test::Unit::TestCase
         assert_equal :package_requires_directory, @env.error.first
       end
 
+      should "halt the chain if directory doesn't exist" do
+        File.expects(:directory?).with(@env["package.directory"]).returns(false)
+        @app.expects(:call).never
+        @instance.call(@env)
+
+        assert @env.error?
+        assert_equal :package_requires_directory, @env.error.first
+      end
+
       should "run cleanup if environment errors" do
         seq = sequence("seq")
         @instance.expects(:verify_included_files).in_sequence(seq).returns(true)