diff --git a/src/Sync/MerkleTree/Client.hs b/src/Sync/MerkleTree/Client.hs
--- a/src/Sync/MerkleTree/Client.hs
+++ b/src/Sync/MerkleTree/Client.hs
@@ -95,7 +95,7 @@
            forM_ (reverse $ sort delEntries) $ \e ->
                case e of
                  FileEntry f -> liftIO $ removeFile $ toFilePath fp $ f_name f
-                 DirectoryEntry p -> liftIO $ removeDirectory $ toFilePath fp p
+                 DirectoryEntry p -> liftIO $ removeDirectoryRecursive $ toFilePath fp p
        let updateEntries =
                [ e | cs_add cs, e <- newEntries ] ++ [ e | cs_update cs, e <- changedEntries ]
        progressEntries <- liftIO $ newIORef $ length updateEntries
diff --git a/src/Sync/MerkleTree/Test.hs b/src/Sync/MerkleTree/Test.hs
--- a/src/Sync/MerkleTree/Test.hs
+++ b/src/Sync/MerkleTree/Test.hs
@@ -29,6 +29,8 @@
     , testEntry
     , testIgnoreBoring
     , testSync
+    , testDoesThrowIOError
+    , testDirsEqual
     ]
 
 testIgnoreBoring :: H.Test
@@ -78,17 +80,20 @@
                destDir = testDir </> "dest"
                data_ = show [1..(2^17)]
            createDirectory srcDir
+           forM_ [1..20] $ \i ->
+               do createDirectory $ srcDir </> (show i)
+                  forM_ [1..20] $ \j ->
+                      writeFile (srcDir </> (show i) </> ("new.txt"++show j)) data_
            createDirectory destDir
-           forM_ [1..400] $ \i -> writeFile (srcDir </> ("new.txt"++show i)) data_
            runSync $
                defaultSyncOptions
                { so_source = Just $ srcDir
                , so_destination = Just $ destDir
                , so_add = True
                }
-           dataNew1 <- readFile $ destDir </> "new.txt123"
-           dataNew2 <- readFile $ destDir </> "new.txt234"
-           dataNew3 <- readFile $ destDir </> "new.txt345"
+           dataNew1 <- readFile $ destDir </> "1" </> "new.txt19"
+           dataNew2 <- readFile $ destDir </> "17" </> "new.txt13"
+           dataNew3 <- readFile $ destDir </> "12" </> "new.txt1"
            data_ H.@=? dataNew1
            data_ H.@=? dataNew2
            data_ H.@=? dataNew3
@@ -171,15 +176,13 @@
            createDirectory srcDir
            createDirectory destDir
            writeFile (srcDir </> "new.txt") data_
-           res <- (flip catchIOError) (\_ -> return True) $
+           shouldFail $
                do runSync $ defaultSyncOptions
                         { so_source = Just $ "remote:" ++ srcDir
                         , so_destination = Just $ destDir
                         , so_remote = Just $ RemoteCmd "exit"
                         , so_add = True
                         }
-                  return False
-           True H.@=? res
 
 testOptions :: H.Test
 testOptions = H.TestLabel "testOptions" $ H.TestCase $
@@ -272,6 +275,26 @@
                          forM_ fps $ \fp ->
                              do writeFile (fp </> n) (show d)
                                 setModificationTime (fp </> n) (utcTimeFrom d)
+
+doesThrowIOError :: IO () -> IO Bool
+doesThrowIOError a = catchIOError (a >>= (return . (`seq` False))) (return .  (`seq` True))
+
+shouldFail :: IO () -> IO ()
+shouldFail action = doesThrowIOError action >>= (True H.@=?)
+
+testDoesThrowIOError :: H.Test
+testDoesThrowIOError = H.TestLabel "testDoesThrowIOError" $ H.TestCase $
+    do r1 <- doesThrowIOError $ return ()
+       False H.@=? r1
+
+testDirsEqual :: H.Test
+testDirsEqual = H.TestLabel "testDirsEqual" $ H.TestCase $
+    shouldFail $ withSystemTempDirectory "sync-mht" $ \testDir ->
+           do createDirectory $ testDir </> "a"
+              createDirectory $ testDir </> "b"
+              writeFile (testDir </> "a" </> "x") "x"
+              writeFile (testDir </> "b" </> "x") "y"
+              areDirsEqual (testDir </> "a") (testDir </> "b")
 
 areDirsEqual :: FilePath -> FilePath -> IO ()
 areDirsEqual fp1 fp2 =
diff --git a/sync-mht.cabal b/sync-mht.cabal
--- a/sync-mht.cabal
+++ b/sync-mht.cabal
@@ -8,7 +8,7 @@
 extra-doc-files: README.md
 cabal-version: >= 1.18
 build-type: Simple
-version: 0.3.6.0
+version: 0.3.7.0
 homepage: https://github.com/ekarayel/sync-mht
 bug-reports: https://github.com/ekarayel/sync-mht/issues
 package-url: https://github.com/ekarayel/sync-mht
@@ -29,7 +29,7 @@
     location: https://github.com/ekarayel/sync-mht --recursive
 source-repository this
     type: git
-    tag: 0.3.6.0
+    tag: 0.3.7.0
     location: https://github.com/ekarayel/sync-mht --recursive
 test-suite main
     type: exitcode-stdio-1.0