diff --git a/src/frontends/qt4/GuiExternal.cpp b/src/frontends/qt4/GuiExternal.cpp
index 8f6d54f2bd..412f16275c 100644
--- a/src/frontends/qt4/GuiExternal.cpp
+++ b/src/frontends/qt4/GuiExternal.cpp
@@ -14,6 +14,7 @@
 
 #include "GuiExternal.h"
 
+#include "Buffer.h"
 #include "FuncRequest.h"
 #include "support/gettext.h"
 #include "Length.h"
@@ -27,7 +28,10 @@
 #include "graphics/GraphicsCacheItem.h"
 #include "graphics/GraphicsImage.h"
 
+#include "frontends/alert.h"
+
 #include "support/convert.h"
+#include "support/ExceptionMessage.h"
 #include "support/FileFilterList.h"
 #include "support/filetools.h"
 #include "support/lstrings.h"
@@ -633,8 +637,21 @@ void GuiExternal::updateTemplate()
 void GuiExternal::applyView()
 {
 	params_.filename.set(fromqstr(fileED->text()), fromqstr(bufferFilepath()));
-	params_.filename.setEmbed(embedCB->checkState() == Qt::Checked);
 
+	try {
+		Buffer & buf = buffer();
+		EmbeddedFile file(fromqstr(fileED->text()), buf.filePath());
+		file.setEmbed(embedCB->checkState() == Qt::Checked);
+		// move file around if needed, an exception may be raised.
+		file.enable(buf.embedded(), &buf, true);
+		// if things are OK..., embed params_.filename
+		params_.filename.setEmbed(file.embedded());
+	} catch (ExceptionMessage const & message) {
+		Alert::error(message.title_, message.details_);
+		// failed to embed
+		params_.filename.setEmbed(false);
+	}
+	
 	params_.settemplate(getTemplate(externalCO->currentIndex()).lyxName);
 
 	params_.draft = draftCB->isChecked();
diff --git a/src/insets/InsetExternal.cpp b/src/insets/InsetExternal.cpp
index d9d210107e..c6f1142bc9 100644
--- a/src/insets/InsetExternal.cpp
+++ b/src/insets/InsetExternal.cpp
@@ -30,12 +30,9 @@
 #include "MetricsInfo.h"
 #include "OutputParams.h"
 
-#include "frontends/alert.h"
-
 #include "graphics/PreviewLoader.h"
 
 #include "support/debug.h"
-#include "support/ExceptionMessage.h"
 #include "support/filetools.h"
 #include "support/gettext.h"
 #include "support/lstrings.h"
@@ -63,8 +60,6 @@ string defaultTemplateName;
 
 namespace lyx {
 
-namespace Alert = frontend::Alert;
-
 namespace external {
 
 TempName::TempName()
@@ -444,15 +439,6 @@ void InsetExternal::doDispatch(Cursor & cur, FuncRequest & cmd)
 	case LFUN_INSET_MODIFY: {
 		InsetExternalParams p;
 		InsetExternalMailer::string2params(to_utf8(cmd.argument()), buffer(), p);
-		if (!p.filename.empty()) {
-			try {
-				p.filename.enable(buffer().embedded(), &buffer(), true);
-			} catch (ExceptionMessage const & message) {
-				Alert::error(message.title_, message.details_);
-				// do not set parameter if an error happens
-				break;
-			}
-		}
 		setParams(p);
 		break;
 	}