diff --git a/CHANGELOG.md b/CHANGELOG.md
index c613d9d731..f5573d024f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -63,6 +63,7 @@ BUG FIXES:
       data.
   * providers/aws: ELB works properly with dynamically changing
       count of instances.
+  * providers/aws: Terraform can handle ELBs deleted manually. [GH-304]
 
 ## 0.2.2 (September 9, 2014)
 
diff --git a/builtin/providers/aws/resource_aws_elb.go b/builtin/providers/aws/resource_aws_elb.go
index 1418b9efed..6a483e5df0 100644
--- a/builtin/providers/aws/resource_aws_elb.go
+++ b/builtin/providers/aws/resource_aws_elb.go
@@ -319,6 +319,12 @@ func resourceAwsElbRead(d *schema.ResourceData, meta interface{}) error {
 
 	describeResp, err := elbconn.DescribeLoadBalancers(describeElbOpts)
 	if err != nil {
+		if ec2err, ok := err.(*elb.Error); ok && ec2err.Code == "LoadBalancerNotFound" {
+			// The ELB is gone now, so just remove it from the state
+			d.SetId("")
+			return nil
+		}
+
 		return fmt.Errorf("Error retrieving ELB: %s", err)
 	}
 	if len(describeResp.LoadBalancers) != 1 {