diff --git a/Changelog.draft.rst b/Changelog.draft.rst
index 53fb381..bffe3b4 100644
--- a/Changelog.draft.rst
+++ b/Changelog.draft.rst
@@ -23,7 +23,9 @@ Changes
 Bug Fixes
 ---------
 
-
+* Selecting inexistent folders specified in folderincludes now throws
+  nice errors and continues to sync with all other folders rather than
+  exiting offlineimap with a traceback.
 
 Pending for the next major release
 ==================================
diff --git a/offlineimap/repository/IMAP.py b/offlineimap/repository/IMAP.py
index 82d9e32..7b23d8e 100644
--- a/offlineimap/repository/IMAP.py
+++ b/offlineimap/repository/IMAP.py
@@ -24,6 +24,7 @@ from threading import Event
 import re
 import types
 import os
+from sys import exc_info
 import netrc
 import errno
 
@@ -307,7 +308,12 @@ class IMAPRepository(BaseRepository):
                 for foldername in self.folderincludes:
                     try:
                         imapobj.select(foldername, readonly = 1)
-                    except ValueError:
+                    except OfflineImapError, e:
+                        # couldn't select this folderinclude, so ignore folder.
+                        if e.severity > OfflineImapError.ERROR.FOLDER:
+                            raise
+                        self.ui.error(e, exc_info()[2],
+                                      'Invalid folderinclude:')
                         continue
                     retval.append(self.getfoldertype()(self.imapserver,
                                                        foldername,