diff --git a/phpBB/docs/CHANGELOG.html b/phpBB/docs/CHANGELOG.html
index 27fcf1d530..7e806ae25c 100644
--- a/phpBB/docs/CHANGELOG.html
+++ b/phpBB/docs/CHANGELOG.html
@@ -129,6 +129,7 @@
 		<li>[Fix] Correctly load complex language variable using acp_language (Bug #45735 - Patch by leviatan21)</li>
 		<li>[Fix] Fixed reapply_sid() to correctly strip session id in certain circumstances (Bug #43125 - Patch by leviatan21)</li>
 		<li>[Fix] Correctly state why one language pack is marked with an asterisk in the ACP. (Bug #37565 - Patch by bantu)</li>
+		<li>[Fix] Correctly check if install directory is still present. (Bug #46965 - Patch by rxu)</li>
 		<li>[Change] Change the data format of the default file ACM to be more secure from tampering and have better performance.</li>
 		<li>[Change] Add index on log_time to the log table to prevent slowdown on boards with many log entries. (Bug #44665 - Patch by bantu)</li>
 		<li>[Change] Template engine now permits to a limited extent variable includes.</li>
diff --git a/phpBB/includes/acp/acp_main.php b/phpBB/includes/acp/acp_main.php
index 365290e909..5d6bd40681 100644
--- a/phpBB/includes/acp/acp_main.php
+++ b/phpBB/includes/acp/acp_main.php
@@ -499,7 +499,7 @@ class acp_main
 		}
 
 		// Warn if install is still present
-		if (file_exists($phpbb_root_path . 'install'))
+		if (file_exists($phpbb_root_path . 'install') && !is_file($phpbb_root_path . 'install'))
 		{
 			$template->assign_var('S_REMOVE_INSTALL', true);
 		}
diff --git a/phpBB/includes/session.php b/phpBB/includes/session.php
index f74a7c5acc..509e11e524 100644
--- a/phpBB/includes/session.php
+++ b/phpBB/includes/session.php
@@ -1756,7 +1756,7 @@ class user extends session
 
 		// Disable board if the install/ directory is still present
 		// For the brave development army we do not care about this, else we need to comment out this everytime we develop locally
-		if (!defined('DEBUG_EXTRA') && !defined('ADMIN_START') && !defined('IN_INSTALL') && !defined('IN_LOGIN') && file_exists($phpbb_root_path . 'install'))
+		if (!defined('DEBUG_EXTRA') && !defined('ADMIN_START') && !defined('IN_INSTALL') && !defined('IN_LOGIN') && file_exists($phpbb_root_path . 'install') && !is_file($phpbb_root_path . 'install'))
 		{
 			// Adjust the message slightly according to the permissions
 			if ($auth->acl_gets('a_', 'm_') || $auth->acl_getf_global('m_'))