diff --git a/src/htmlContent/extension-manager-view-item.html b/src/htmlContent/extension-manager-view-item.html
index 6e73bc068fc..da0dbca28c8 100644
--- a/src/htmlContent/extension-manager-view-item.html
+++ b/src/htmlContent/extension-manager-view-item.html
@@ -54,7 +54,7 @@
             {{/removalAllowed}}
             {{#failedToStart}}
                 {{^isMarkedForRemoval}}
-                    {{Strings.EXTENSION_ERROR}} (<a class="remove" data-extension-id="{{metadata.name}}">{{Strings.REMOVE}}</a>)
+                    {{Strings.EXTENSION_ERROR}} {{#allowRemove}}(<a class="remove" data-extension-id="{{metadata.name}}">{{Strings.REMOVE}}</a>){{/allowRemove}}
                 {{/isMarkedForRemoval}}
             {{/failedToStart}}
             {{#isMarkedForRemoval}}
diff --git a/test/spec/ExtensionManager-test.js b/test/spec/ExtensionManager-test.js
index 799b7acdeb6..0edfce4ba5d 100644
--- a/test/spec/ExtensionManager-test.js
+++ b/test/spec/ExtensionManager-test.js
@@ -920,6 +920,16 @@ define(function (require, exports, module) {
                     });
                 });
                 
+                it("should not have a 'remove' link for extensions in the dev folder that failed to load", function () {
+                    mockLoadExtensions(["dev/mock-failed-in-dev-folder"], true);
+                    setupViewWithMockData(ExtensionManagerViewModel.InstalledViewModel);
+                    runs(function () {
+                        expect(view).toHaveText("mock-failed-in-dev-folder");
+                        var $removeLink = $("a.remove[data-extension-id=mock-failed-in-dev-folder]", view.$el);
+                        expect($removeLink.length).toBe(0);
+                    });
+                });
+
                 it("should disable the Remove button for extensions in the dev folder", function () {
                     mockLoadExtensions(["dev/mock-extension-2"]);
                     setupViewWithMockData(ExtensionManagerViewModel.InstalledViewModel);