diff --git a/src/iroh.rs b/src/iroh.rs
index c3f6a1a..36b2385 100644
--- a/src/iroh.rs
+++ b/src/iroh.rs
@@ -347,10 +347,11 @@ impl NodeHost {
             if node.prefix() != prefix {
                 anyhow::bail!("peer returned a Merkle node for the wrong prefix");
             }
-            let local_node = local_merkle_index
-                .node(&prefix)?
-                .ok_or_else(|| anyhow::anyhow!("local Merkle node is missing"))?;
-            if local_node.hash() == node.hash() {
+            let local_node = local_merkle_index.node(&prefix)?;
+            if local_node
+                .as_ref()
+                .is_some_and(|local| local.hash() == node.hash())
+            {
                 continue;
             }
             match node {
diff --git a/src/iroh/tests.rs b/src/iroh/tests.rs
index 9ff168f..b2b577b 100644
--- a/src/iroh/tests.rs
+++ b/src/iroh/tests.rs
@@ -109,6 +109,71 @@ async fn announces_folder_changes_to_an_authorized_peer() -> anyhow::Result<()>
     Ok(())
 }
 
+#[tokio::test]
+async fn requests_remote_merkle_children_missing_from_a_small_local_manifest() -> anyhow::Result<()>
+{
+    let source_directory = TempDir::new()?;
+    let target_directory = TempDir::new()?;
+    let source =
+        NodeHost::load_with_lan_discovery(source_directory.path(), SecretKey::generate(), false)
+            .await?;
+    let target =
+        NodeHost::load_with_lan_discovery(target_directory.path(), SecretKey::generate(), false)
+            .await?;
+    let folder_id = Uuid::new_v4();
+    let capability = "folder-capability".to_owned();
+    let remote_manifest = large_manifest(folder_id);
+    source
+        .register_folder(
+            FolderSession {
+                folder_id,
+                capability: capability.clone(),
+                active_member_ids: BTreeSet::from([target.endpoint_address().id.to_string()]),
+                roster: test_roster(folder_id, [target.endpoint_address().id.to_string()]),
+                peer_endpoints: vec![target.endpoint_address()],
+            },
+            remote_manifest.clone(),
+        )
+        .await?;
+    source.wait_until_online().await?;
+    target.wait_until_online().await?;
+
+    let received = target
+        .request_manifest_delta(
+            source.endpoint_address(),
+            folder_id,
+            capability,
+            None,
+            &crate::domain::Manifest::empty(folder_id),
+        )
+        .await?;
+
+    assert_eq!(received, remote_manifest);
+    source.shutdown().await?;
+    target.shutdown().await?;
+    Ok(())
+}
+
+fn large_manifest(folder_id: Uuid) -> crate::domain::Manifest {
+    let mut manifest = crate::domain::Manifest::empty(folder_id);
+    for number in 0..65 {
+        let path = format!("file-{number}.txt");
+        manifest.entries.insert(
+            path.clone(),
+            crate::domain::Entry {
+                path,
+                kind: crate::domain::EntryKind::File,
+                blob_hash: Some(format!("blob-{number}")),
+                size_bytes: Some(1),
+                modified_at: time::OffsetDateTime::UNIX_EPOCH,
+                clock: Default::default(),
+                author_device_id: "source".to_owned(),
+            },
+        );
+    }
+    manifest
+}
+
 #[tokio::test]
 async fn serves_multiple_isolated_folders_from_one_endpoint() -> anyhow::Result<()> {
     let source_directory = TempDir::new()?;