diff --git a/lib/vagrant/box_collection2.rb b/lib/vagrant/box_collection2.rb
index d5ef4508d..64ab80ea4 100644
--- a/lib/vagrant/box_collection2.rb
+++ b/lib/vagrant/box_collection2.rb
@@ -24,6 +24,18 @@ module Vagrant
       box_directory = @directory.join(name, provider.to_s, "metadata.json")
       return Box2.new(name, provider, box_directory.dirname) if box_directory.file?
 
+      # Check if a V1 version of this box exists, and if so, raise an
+      # exception notifying the caller that the box exists but needs
+      # to be upgraded. We don't do the upgrade here because it can be
+      # a fairly intensive activity and don't want to immediately degrade
+      # user performance on a find.
+      #
+      # To determine if it is a V1 box we just do a simple heuristic
+      # based approach.
+      if @directory.join(name, "box.ovf").file?
+        raise Errors::BoxUpgradeRequired, :name => name
+      end
+
       # Didn't find it, return nil
       nil
     end
diff --git a/lib/vagrant/errors.rb b/lib/vagrant/errors.rb
index 4b3686310..0aae5c519 100644
--- a/lib/vagrant/errors.rb
+++ b/lib/vagrant/errors.rb
@@ -123,6 +123,10 @@ module Vagrant
       error_key(:untar_failure, "vagrant.actions.box.unpackage")
     end
 
+    class BoxUpgradeRequired < VagrantError
+      error_key(:box_upgrade_required)
+    end
+
     class BoxVerificationFailed < VagrantError
       status_code(15)
       error_key(:failed, "vagrant.actions.box.verify")
diff --git a/templates/locales/en.yml b/templates/locales/en.yml
index 152f4e7cc..4b727f9bc 100644
--- a/templates/locales/en.yml
+++ b/templates/locales/en.yml
@@ -16,6 +16,10 @@ en:
     errors:
       base_vm_not_found: The base VM with the name '%{name}' was not found.
       box_not_found: Box '%{name}' could not be found.
+      box_upgrade_required: |-
+        The box '%{name}' is still stored on disk in the Vagrant 1.0.x
+        format. This box must be upgraded in order to work properly with
+        this version of Vagrant.
       cli_invalid_options: |-
         An invalid option was specified. The help for this command
         is available below.
diff --git a/test/unit/vagrant/box_collection2_test.rb b/test/unit/vagrant/box_collection2_test.rb
index 2ee60c8a6..7404525d8 100644
--- a/test/unit/vagrant/box_collection2_test.rb
+++ b/test/unit/vagrant/box_collection2_test.rb
@@ -24,5 +24,16 @@ describe Vagrant::BoxCollection2 do
       result.should be_kind_of(box_class)
       result.name.should == "foo"
     end
+
+    it "should throw an exception if it is a v1 box" do
+      # Create a V1 box
+      box_dir = environment.boxes_dir.join("foo")
+      box_dir.mkpath
+      box_dir.join("box.ovf").open("w") { |f| f.write("") }
+
+      # Test!
+      expect { instance.find("foo", :virtualbox) }.
+        to raise_error(Vagrant::Errors::BoxUpgradeRequired)
+    end
   end
 end