diff --git a/HISTORY.md b/HISTORY.md
index fb09abf78..776545f5d 100644
--- a/HISTORY.md
+++ b/HISTORY.md
@@ -14,6 +14,7 @@ Bug Fixes
 ---------
 
 * PR #1196: fix runtime:server is not set by default when booting the app
+* Issue #1071: Putting a README.md in the mojits/ directory causes mojito to not load
 
 Acknowledgements
 ----------------
diff --git a/lib/app/autoload/store.server.js b/lib/app/autoload/store.server.js
index 87d1c2431..769b086c3 100644
--- a/lib/app/autoload/store.server.js
+++ b/lib/app/autoload/store.server.js
@@ -1834,6 +1834,10 @@ YUI.add('mojito-resource-store', function(Y, NAME) {
                 res;
             dir = this._libs.path.resolve(this._config.root, dir);
 
+            if (!this._libs.fs.lstatSync(dir).isDirectory()) {
+                return;
+            }
+
             if (!(this._libs.fs.existsSync || this._libs.path.existsSync)(dir)) {
                 return;
             }
diff --git a/tests/fixtures/store/mojits/README.md b/tests/fixtures/store/mojits/README.md
new file mode 100644
index 000000000..e69de29bb
diff --git a/tests/func/applications/frameworkapp/usecase/mojits/README.md b/tests/func/applications/frameworkapp/usecase/mojits/README.md
new file mode 100644
index 000000000..e69de29bb