diff --git a/lib/module.js b/lib/module.js
index 72814a79f7..1db1cb4507 100644
--- a/lib/module.js
+++ b/lib/module.js
@@ -83,17 +83,6 @@ var pathFn = process.compile("(function (exports) {" + natives.path + "\n})",
 var pathModule = createInternalModule('path', pathFn);
 var path = pathModule.exports;
 
-function existsSync (path) {
-  try {
-    process.binding('fs').stat(path);
-    return true;
-  } catch (e) {
-    return false;
-  }
-}
-
-
-
 var modulePaths = [path.join(process.execPath, "..", "..", "lib", "node")];
 
 if (process.env["HOME"]) {
@@ -104,7 +93,6 @@ if (process.env["NODE_PATH"]) {
   modulePaths = process.env["NODE_PATH"].split(":").concat(modulePaths);
 }
 
-
 /* Sync unless callback given */
 function findModulePath (id, dirs, callback) {
   process.assert(dirs.constructor == Array);
@@ -154,32 +142,47 @@ function findModulePath (id, dirs, callback) {
     locations.push(path.join(dir, id, 'index' + ext));
   }
 
+  var fs = requireNative('fs');
+
   function searchLocations () {
     var location = locations.shift();
-    if (!location) {
-      return findModulePath(id, rest, callback);
+
+    if (!location && rest.length > 0) {
+      return findModulePath(id, rest);
+    } else if (location) {
+      try {
+        var stats = fs.statSync(location);
+        if (stats && !stats.isDirectory()) return location;
+      } catch(e) {}
+      return searchLocations();
+    } else {
+      return false;
     }
+  }
 
-    // if async
-    if (callback) {
-      path.exists(location, function (found) {
-        if (found) {
-          callback(location);
+  function searchLocationsAsync (cb) {
+    var location = locations.shift();
+
+    if (!location && rest.length > 0) {
+      findModulePath(id, rest, cb);
+    } else if (location) {
+      fs.stat(location, function (err, stats) {
+        if (stats && !stats.isDirectory()) {
+          cb(location);
         } else {
-          return searchLocations();
+          searchLocationsAsync(cb);
         }
       });
-
-    // if sync
     } else {
-      if (existsSync(location)) {
-        return location;
-      } else {
-        return searchLocations();
-      }
+      cb(false);
     }
   }
-  return searchLocations();
+
+  if (callback) {
+    return searchLocationsAsync(callback);
+  } else {
+    return searchLocations();
+  }
 }
 
 
diff --git a/test/fixtures/empty/.gitkeep b/test/fixtures/empty/.gitkeep
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/test/simple/test-module-loading.js b/test/simple/test-module-loading.js
index 5245e4ea0f..7405c0887f 100644
--- a/test/simple/test-module-loading.js
+++ b/test/simple/test-module-loading.js
@@ -106,6 +106,23 @@ process.assert(foo.bar.expect === foo.bar.actual);
 assert.equal(require('../fixtures/foo').foo, 'ok',
   'require module with no extension');
 
+// Should not attempt to load a directory
+try {
+  require("../fixtures/empty");
+} catch(err) {
+  assert.equal(err.message, "Cannot find module '../fixtures/empty'");
+}
+
+var asyncRequireDir = false;
+require.async("../fixtures/empty", function (err, a) {
+  assert.ok(err);
+
+  if (err) {
+    asyncRequireDir = true;
+    assert.equal(err.message, "Cannot find module '../fixtures/empty'");
+  }
+});
+
 process.addListener("exit", function () {
   assert.equal(true, a.A instanceof Function);
   assert.equal("A done", a.A());
@@ -128,5 +145,7 @@ process.addListener("exit", function () {
 
   assert.equal(true, errorThrownAsync);
 
+  assert.equal(true, asyncRequireDir);
+
   console.log("exit");
 });