diff --git a/src/insets/ChangeLog b/src/insets/ChangeLog
index ef7a08ebd5..7cbf3cfad2 100644
--- a/src/insets/ChangeLog
+++ b/src/insets/ChangeLog
@@ -1,3 +1,8 @@
+2002-03-25  Herbert Voss  <voss@lyx.org>
+
+	* insetgraphicsParams.C (Read): prevent LyX from hanging if the
+	graphics file does not exist.
+
 2002-03-25  Angus Leeming  <a.leeming@ic.ac.uk>
 
 	* insetgraphics.C (prepareFile): ensure that the file has an absolute
diff --git a/src/insets/insetgraphicsParams.C b/src/insets/insetgraphicsParams.C
index e4e77d960c..b1bfec7975 100644
--- a/src/insets/insetgraphicsParams.C
+++ b/src/insets/insetgraphicsParams.C
@@ -251,8 +251,11 @@ bool InsetGraphicsParams::Read(LyXLex & lex, string const& token)
 		draft = true;
 	} else if (token == "display") {
 		lex.next();
-		string const type = lex.getString();
-		display = displayTranslator.find(type);
+		if (IsFileReadable(filename)) {
+			string const type = lex.getString();
+			display = displayTranslator.find(type);
+		} else
+			display = NONE;
 	} else if (token == "subcaption") {
 		subcaption = true;
 	} else if (token == "subcaptionText") {