diff --git a/org.moreunit.mock.test/test/org/moreunit/mock/PluginResourceLoaderTest.java b/org.moreunit.mock.test/test/org/moreunit/mock/PluginResourceLoaderTest.java
new file mode 100644
index 00000000..e6ed1209
--- /dev/null
+++ b/org.moreunit.mock.test/test/org/moreunit/mock/PluginResourceLoaderTest.java
@@ -0,0 +1,72 @@
+package org.moreunit.mock;
+
+import static org.assertj.core.api.Assertions.assertThat;
+import static org.mockito.Mockito.*;
+
+import java.io.File;
+import java.lang.reflect.Field;
+import java.net.MalformedURLException;
+import java.net.URL;
+import java.util.Collection;
+import java.util.Collections;
+import java.util.Enumeration;
+import java.util.LinkedHashSet;
+import java.util.Set;
+import org.osgi.framework.Bundle;
+
+import org.eclipse.core.runtime.IPath;
+import org.junit.After;
+import org.junit.Before;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.mockito.Mock;
+import org.mockito.junit.MockitoJUnitRunner;
+import org.moreunit.core.log.Logger;
+
+@RunWith(MockitoJUnitRunner.class)
+public class PluginResourceLoaderTest {
+
+    @Mock
+    MoreUnitMockPlugin plugin;
+
+    @Mock
+    Logger logger;
+
+    @Mock
+    Bundle bundle;
+
+    @Mock
+    IPath mockStateLocation;
+
+    PluginResourceLoader loader;
+
+    @Before
+    public void setUp() throws Exception {
+        loader = new PluginResourceLoader(plugin, logger);
+        Field field = MoreUnitMockPlugin.class.getDeclaredField("plugin");
+        field.setAccessible(true);
+        field.set(null, plugin);
+    }
+
+    @After
+    public void tearDown() throws Exception {
+        Field field = MoreUnitMockPlugin.class.getDeclaredField("plugin");
+        field.setAccessible(true);
+        field.set(null, null);
+    }
+
+    @Test
+    public void testEnsureStateExists() {
+       when(plugin.getStateLocation()).thenReturn(mockStateLocation);
+       when(mockStateLocation.append("test")).thenReturn(mockStateLocation);
+
+       File mockFile = mock(File.class);
+       when(mockStateLocation.toFile()).thenReturn(mockFile);
+       when(mockFile.exists()).thenReturn(false);
+       when(mockFile.mkdirs()).thenReturn(false);
+
+       boolean result = loader.ensureStateExists("test");
+       assertThat(result).isFalse();
+       verify(logger).error(anyString());
+    }
+}
diff --git a/org.moreunit.mock/src/org/moreunit/mock/PluginResourceLoader.java b/org.moreunit.mock/src/org/moreunit/mock/PluginResourceLoader.java
index c34c353f..57c7bfad 100644
--- a/org.moreunit.mock/src/org/moreunit/mock/PluginResourceLoader.java
+++ b/org.moreunit.mock/src/org/moreunit/mock/PluginResourceLoader.java
@@ -64,9 +64,13 @@ public Collection<URL> findWorkspaceStateResources(String searchRoot, String fil
     public boolean ensureStateExists(String subPath)
     {
         IPath userTemplateDir = MoreUnitMockPlugin.getDefault().getStateLocation().append(subPath);
-        if(! userTemplateDir.toFile().exists())
+        File templateDirFile = userTemplateDir.toFile();
+        if(! templateDirFile.exists())
         {
-            userTemplateDir.toFile().mkdir();
+            if (!templateDirFile.mkdirs() && !templateDirFile.exists())
+            {
+                logger.error("Failed to create state directory: " + templateDirFile.getAbsolutePath());
+            }
             return false;
         }
         return true;