diff --git a/.gitignore b/.gitignore
index 1ec6a30b7..9eee44e3b 100644
--- a/.gitignore
+++ b/.gitignore
@@ -20,6 +20,7 @@ cli-test/.rspec_status
 # Ignore data in fixtures, retain script to generate fixtures through cloning
 cli-test/spec/fixtures/*
 !cli-test/spec/fixtures/create_fixtures.sh
+cli-test/vendor/
 
 # Per-project Cargo config
 # We're currently only using this for configuring mold/sold for local
diff --git a/cli-test/spec/test_cases/rm/tests.rb b/cli-test/spec/test_cases/rm/tests.rb
index 8f50375e7..83ce8746c 100644
--- a/cli-test/spec/test_cases/rm/tests.rb
+++ b/cli-test/spec/test_cases/rm/tests.rb
@@ -56,4 +56,31 @@
     expect(File.exist?(File.join(directory_path, 'root.txt'))).to be false
     expect(File.exist?(File.join(directory_path, 'images/test/nested.txt'))).to be false
   end
+
+  it 'tests oxen rm with removed path from disk' do
+    directory_path = 'tmp/aruba/test-removed-path'
+
+    # Setup base repo
+    run_command_and_stop('mkdir test-removed-path')
+    cd 'test-removed-path'
+    run_command_and_stop('oxen init')
+
+    # Create and commit root file
+    file_path = File.join(directory_path, 'root.txt')
+    File.open(file_path, 'w') do |file|
+      file.puts 'root file'
+    end
+    run_command_and_stop('oxen add root.txt')
+    run_command_and_stop('oxen commit -m "adding root file"')
+
+    # Test removing file before running oxen rm
+    run_command_and_stop('rm root.txt')
+    run_command_and_stop('oxen rm root.txt')
+
+    # Should show files as removed in staging
+    expect(last_command_started).to have_output(/removed 1 file/)
+
+    # Files should not exist on disk
+    expect(File.exist?(File.join(directory_path, 'root.txt'))).to be false
+  end
 end
\ No newline at end of file
diff --git a/src/cli/src/cmd/add.rs b/src/cli/src/cmd/add.rs
index 5a2617494..dfb9ae081 100644
--- a/src/cli/src/cmd/add.rs
+++ b/src/cli/src/cmd/add.rs
@@ -48,18 +48,7 @@ impl RunCmd for AddCmd {
                     OxenError::basic_str(format!("Failed to get current directory: {}", e))
                 })?;
                 let joined_path = current_dir.join(p);
-                joined_path.canonicalize().map_err(|e| {
-                    log::warn!(
-                        "Failed to canonicalize path {}: {}",
-                        joined_path.display(),
-                        e
-                    );
-                    OxenError::basic_str(format!(
-                        "Failed to canonicalize path {}: {}",
-                        joined_path.display(),
-                        e
-                    ))
-                })
+                joined_path.canonicalize().or_else(|_| Ok(joined_path))
             })
             .collect::<Result<Vec<PathBuf>, OxenError>>()?;
 
diff --git a/src/cli/src/cmd/rm.rs b/src/cli/src/cmd/rm.rs
index 572761e80..a68d8fa20 100644
--- a/src/cli/src/cmd/rm.rs
+++ b/src/cli/src/cmd/rm.rs
@@ -52,18 +52,7 @@ impl RunCmd for RmCmd {
                     OxenError::basic_str(format!("Failed to get current directory: {}", e))
                 })?;
                 let joined_path = current_dir.join(p);
-                joined_path.canonicalize().map_err(|e| {
-                    log::warn!(
-                        "Failed to canonicalize path {}: {}",
-                        joined_path.display(),
-                        e
-                    );
-                    OxenError::basic_str(format!(
-                        "Failed to canonicalize path {}: {}",
-                        joined_path.display(),
-                        e
-                    ))
-                })
+                joined_path.canonicalize().or_else(|_| Ok(joined_path))
             })
             .collect::<Result<Vec<PathBuf>, OxenError>>()?;