diff --git a/backend/local/backend_refresh.go b/backend/local/backend_refresh.go
index 1de9902d1..c8b23bd32 100644
--- a/backend/local/backend_refresh.go
+++ b/backend/local/backend_refresh.go
@@ -4,6 +4,7 @@ import (
 	"context"
 	"fmt"
 	"os"
+	"strings"
 
 	"github.com/hashicorp/errwrap"
 	"github.com/hashicorp/go-multierror"
@@ -22,24 +23,17 @@ func (b *Local) opRefresh(
 	if b.Backend == nil {
 		if _, err := os.Stat(b.StatePath); err != nil {
 			if os.IsNotExist(err) {
-				runningOp.Err = fmt.Errorf(
-					"The Terraform state file for your infrastructure does not\n"+
-						"exist. The 'refresh' command only works and only makes sense\n"+
-						"when there is existing state that Terraform is managing. Please\n"+
-						"double-check the value given below and try again. If you\n"+
-						"haven't created infrastructure with Terraform yet, use the\n"+
-						"'terraform apply' command.\n\n"+
-						"Path: %s",
-					b.StatePath)
-				return
+				err = nil
 			}
 
-			runningOp.Err = fmt.Errorf(
-				"There was an error reading the Terraform state that is needed\n"+
-					"for refreshing. The path and error are shown below.\n\n"+
-					"Path: %s\n\nError: %s",
-				b.StatePath, err)
-			return
+			if err != nil {
+				runningOp.Err = fmt.Errorf(
+					"There was an error reading the Terraform state that is needed\n"+
+						"for refreshing. The path and error are shown below.\n\n"+
+						"Path: %s\n\nError: %s",
+					b.StatePath, err)
+				return
+			}
 		}
 	}
 
@@ -74,6 +68,12 @@ func (b *Local) opRefresh(
 
 	// Set our state
 	runningOp.State = opState.State()
+	if runningOp.State.Empty() || !runningOp.State.HasResources() {
+		if b.CLI != nil {
+			b.CLI.Output(b.Colorize().Color(
+				strings.TrimSpace(refreshNoState) + "\n"))
+		}
+	}
 
 	// Perform operation and write the resulting state to the running op
 	newState, err := tfCtx.Refresh()
@@ -93,3 +93,11 @@ func (b *Local) opRefresh(
 		return
 	}
 }
+
+const refreshNoState = `
+[reset][bold][yellow]Empty or non-existent state file.[reset][yellow]
+
+Refresh will do nothing. Refresh does not error or return an erroneous
+exit status because many automation scripts use refresh, plan, then apply
+and may not have a state file yet for the first run.
+`
diff --git a/command/refresh_test.go b/command/refresh_test.go
index 2defaff45..12241e809 100644
--- a/command/refresh_test.go
+++ b/command/refresh_test.go
@@ -9,6 +9,7 @@ import (
 	"strings"
 	"testing"
 
+	"github.com/hashicorp/terraform/helper/copy"
 	"github.com/hashicorp/terraform/terraform"
 	"github.com/mitchellh/cli"
 )
@@ -59,6 +60,37 @@ func TestRefresh(t *testing.T) {
 	}
 }
 
+func TestRefresh_empty(t *testing.T) {
+	// Create a temporary working directory that is empty
+	td := tempDir(t)
+	copy.CopyDir(testFixturePath("refresh-empty"), td)
+	defer os.RemoveAll(td)
+	defer testChdir(t, td)()
+
+	p := testProvider()
+	ui := new(cli.MockUi)
+	c := &RefreshCommand{
+		Meta: Meta{
+			ContextOpts: testCtxConfig(p),
+			Ui:          ui,
+		},
+	}
+
+	p.RefreshFn = nil
+	p.RefreshReturn = &terraform.InstanceState{ID: "yes"}
+
+	args := []string{
+		td,
+	}
+	if code := c.Run(args); code != 0 {
+		t.Fatalf("bad: %d\n\n%s", code, ui.ErrorWriter.String())
+	}
+
+	if p.RefreshCalled {
+		t.Fatal("refresh should not be called")
+	}
+}
+
 func TestRefresh_lockedState(t *testing.T) {
 	state := testState()
 	statePath := testStateFile(t, state)
@@ -96,25 +128,6 @@ func TestRefresh_lockedState(t *testing.T) {
 	}
 }
 
-func TestRefresh_badState(t *testing.T) {
-	p := testProvider()
-	ui := new(cli.MockUi)
-	c := &RefreshCommand{
-		Meta: Meta{
-			ContextOpts: testCtxConfig(p),
-			Ui:          ui,
-		},
-	}
-
-	args := []string{
-		"-state", "i-should-not-exist-ever",
-		testFixturePath("refresh"),
-	}
-	if code := c.Run(args); code != 1 {
-		t.Fatalf("bad: %d\n\n%s", code, ui.ErrorWriter.String())
-	}
-}
-
 func TestRefresh_cwd(t *testing.T) {
 	cwd, err := os.Getwd()
 	if err != nil {
diff --git a/command/test-fixtures/refresh-empty/main.tf b/command/test-fixtures/refresh-empty/main.tf
new file mode 100644
index 000000000..fec56017d
--- /dev/null
+++ b/command/test-fixtures/refresh-empty/main.tf
@@ -0,0 +1 @@
+# Hello