diff --git a/source/java/org/alfresco/repo/virtual/ref/Reference.java b/source/java/org/alfresco/repo/virtual/ref/Reference.java
index a87a988cec..1043787f95 100644
--- a/source/java/org/alfresco/repo/virtual/ref/Reference.java
+++ b/source/java/org/alfresco/repo/virtual/ref/Reference.java
@@ -74,20 +74,23 @@ public class Reference
         if (nodeRef != null)
         {
             String id = nodeRef.getId();
-            if ((id != null) && (id.length() > 1))
+            if ((id != null) && (id.length() > 1) && (id.startsWith("" + VIRTUAL_TOKEN)))
             {
-                char zeroChar = id.charAt(0);
-                return VIRTUAL_TOKEN.equals(zeroChar);
+                char token = id.charAt(1);
+                Encoding encoding = Encodings.fromToken(token);
+                if (encoding != null)
+                {
+                    return true;
+                }
             }
             else
             {
                 if (logger.isDebugEnabled())
                 {
-                    logger.debug("NodeRef with null ID.");
+                    logger.debug("NodeRef is not a reference.");
                 }
             }
         }
-
         return false;
     }
 
@@ -107,18 +110,16 @@ public class Reference
      * @param nodeRef
      * @return the {@link Reference} object corresponding to the given
      *         {@link NodeRef}
-     * @throws ReferenceParseException if an error occurs during the reference
-     *             string parsing
-     * @throws ReferenceEncodingException if the {@link NodeRef} ID has an
-     *             invalid virtual token prefix or it uses an invalid encoding
-     *             token
+     * @throws ReferenceParseException
+     *             if an error occurs during the reference string parsing
+     * @throws ReferenceEncodingException
+     *             if the {@link NodeRef} ID has an invalid virtual token prefix
+     *             or it uses an invalid encoding token
      */
-    public static final Reference fromNodeRef(NodeRef nodeRef) throws ReferenceParseException,
-                ReferenceEncodingException
+    public static final Reference fromNodeRef(NodeRef nodeRef) throws ReferenceParseException, ReferenceEncodingException
     {
         String id = nodeRef.getId();
-        if (id.startsWith("" + VIRTUAL_TOKEN)
-            && (id.length() > 1)) // belts-and-braces
+        if (id.startsWith("" + VIRTUAL_TOKEN) && (id.length() > 1)) // belts-and-braces
         {
             char token = id.charAt(1);
             Encoding encoding = Encodings.fromToken(token);
@@ -150,7 +151,7 @@ public class Reference
 
     private static long _trace_refCount = 0;
 
-    private static final long _trace_refBatchSize = 4096*2;
+    private static final long _trace_refBatchSize = 4096 * 2;
 
     private static synchronized void _trace_avg_ref_length(long refLength)
     {
@@ -175,12 +176,14 @@ public class Reference
     /**
      * Constructor
      * 
-     * @param encoding the default {@link Encoding} of the new resource - to be
-     *            used where an encoding is required and none is specified
+     * @param encoding
+     *            the default {@link Encoding} of the new resource - to be used
+     *            where an encoding is required and none is specified
      * @param protocol
      * @param resource
-     * @param parameters resource parameters - a copy of the provided list will
-     *            be stored by this reference
+     * @param parameters
+     *            resource parameters - a copy of the provided list will be
+     *            stored by this reference
      */
     public Reference(Encoding encoding, Protocol protocol, Resource resource, List<? extends Parameter> parameters)
     {
@@ -192,10 +195,7 @@ public class Reference
 
     public Reference(Encoding encoding, Protocol protocol, Resource resource)
     {
-        this(encoding,
-             protocol,
-             resource,
-             Collections.<Parameter> emptyList());
+        this(encoding, protocol, resource, Collections.<Parameter> emptyList());
     }
 
     /**
@@ -261,8 +261,7 @@ public class Reference
      */
     public NodeRef toNodeRef(StoreRef storeRef) throws ReferenceEncodingException
     {
-        return toNodeRef(storeRef,
-                         this.encoding);
+        return toNodeRef(storeRef, this.encoding);
     }
 
     /**
@@ -278,16 +277,14 @@ public class Reference
         // TODO: move non-native encoding to encoding object itself
         if (!encoding.urlNative)
         {
-            id = new String(org.apache.commons.codec.binary.Base64.encodeBase64(id.getBytes(),
-                                                                                false));
+            id = new String(org.apache.commons.codec.binary.Base64.encodeBase64(id.getBytes(), false));
         }
         StringBuilder idBuilder = new StringBuilder();
         idBuilder.append(VIRTUAL_TOKEN);
         idBuilder.append(encoding.token);
         idBuilder.append(id);
 
-        NodeRef theNode = new NodeRef(storeRef,
-                                      idBuilder.toString());
+        NodeRef theNode = new NodeRef(storeRef, idBuilder.toString());
 
         if (logger.isTraceEnabled())
         {
@@ -310,8 +307,7 @@ public class Reference
      */
     public <R> R execute(ProtocolMethod<R> method) throws ProtocolMethodException
     {
-        return this.protocol.dispatch(method,
-                                      this);
+        return this.protocol.dispatch(method, this);
     }
 
     /**
@@ -323,13 +319,12 @@ public class Reference
      * 
      * @param mutatedNodeRef
      * @return a mutated version of this {@link Reference} corresponding to the
-     *         given mutated node or
-     *         <code>this</code> Reference if no mutations are detected
+     *         given mutated node or <code>this</code> Reference if no mutations
+     *         are detected
      */
     public Reference propagateNodeRefMutations(NodeRef mutatedNodeRef)
     {
-        return protocol.propagateNodeRefMutations(mutatedNodeRef,
-                                                  this);
+        return protocol.propagateNodeRefMutations(mutatedNodeRef, this);
     }
 
     @Override
@@ -341,8 +336,7 @@ public class Reference
         }
         catch (ReferenceEncodingException e)
         {
-            logger.error("Invalid reference",
-                         e);
+            logger.error("Invalid reference", e);
             return super.toString();
         }
     }
diff --git a/source/test-java/org/alfresco/repo/virtual/store/VirtualStoreImplTest.java b/source/test-java/org/alfresco/repo/virtual/store/VirtualStoreImplTest.java
index 089daa2edf..183be59626 100644
--- a/source/test-java/org/alfresco/repo/virtual/store/VirtualStoreImplTest.java
+++ b/source/test-java/org/alfresco/repo/virtual/store/VirtualStoreImplTest.java
@@ -236,4 +236,27 @@ public class VirtualStoreImplTest extends VirtualizationIntegrationTest
                                        false);
 
     }
+    
+    @Test
+    public void testCanExistsFolderNameV()
+    {
+        String vFile = "vfile.txt";
+
+        ChildAssociationRef vChildRef = createContent(companyHomeNodeRef, vFile);
+        assertFalse(Reference.isReference(vChildRef.getChildRef()));
+        assertTrue(nodeService.exists(vChildRef.getChildRef()));
+
+        String nFile = "nfile.txt";
+        ChildAssociationRef nfileRef = createFolder(companyHomeNodeRef, nFile);
+        assertFalse(Reference.isReference(nfileRef.getChildRef()));
+        assertTrue(nodeService.exists(nfileRef.getChildRef()));
+
+        NodeRef virtualFolder = createVirtualizedFolder(testRootFolder.getNodeRef(), VIRTUAL_FOLDER_3_NAME, TEST_TEMPLATE_4_JSON_SYS_PATH);
+
+        assertTrue(smartStore.canVirtualize(virtualFolder));
+        virtualFolder = smartStore.virtualize(virtualFolder).toNodeRef();
+        assertTrue(Reference.isReference(virtualFolder));
+        assertTrue(nodeService.exists(virtualFolder));
+
+    }
 }