diff --git a/tools/catalog-remote.js b/tools/catalog-remote.js
index d400621332..d9fccb0288 100644
--- a/tools/catalog-remote.js
+++ b/tools/catalog-remote.js
@@ -741,6 +741,12 @@ _.extend(RemoteCatalog.prototype, {
 
     Console.debug("In remote catalog refresh");
 
+    if (process.env.METEOR_TEST_FAIL_RELEASE_DOWNLOAD === 'offline') {
+      var e = new Error;
+      e.errorType = 'DDP.ConnectionError';
+      throw e;
+    }
+
     if (self.offline)
       return false;
 
diff --git a/tools/main.js b/tools/main.js
index ad0d8d2e18..015b3e93c3 100644
--- a/tools/main.js
+++ b/tools/main.js
@@ -786,6 +786,7 @@ Fiber(function () {
   }
 
   var alreadyRefreshed = false;
+  var refreshFailed = false;
 
   if (! files.usesWarehouse()) {
     // Running from a checkout
@@ -816,7 +817,7 @@ Fiber(function () {
         // Somehow we have a catalog that doesn't have any releases on the
         // default track. Try syncing, at least.  (This is a pretty unlikely
         // error case, since you should always start with a non-empty catalog.)
-        var refreshFailed = !catalog.refreshOrWarn();
+        refreshFailed = !catalog.refreshOrWarn();
         alreadyRefreshed = true;
         releaseName = release.latestKnown();
       }
@@ -872,7 +873,7 @@ Fiber(function () {
       }
 
       // ATTEMPT 3: modern release, troposphere sync needed.
-      catalog.refreshOrWarn();
+      refreshFailed = !catalog.refreshOrWarn();
       alreadyRefreshed = true;
 
       // Try to load the release even if the refresh failed, since it might have
@@ -893,9 +894,16 @@ Fiber(function () {
         manifest = warehouse.ensureReleaseExistsAndReturnManifest(
           releaseName);
       } catch (e) {
-        // XXX handle OfflineError too?
         // Note: this is WAREHOUSE's NoSuchReleaseError, not RELEASE's
-        if (!(e instanceof warehouse.NoSuchReleaseError)) {
+        if (e instanceof warehouse.NoSuchReleaseError) {
+          // pass ...
+        } else if (e instanceof files.OfflineError) {
+          if (!refreshFailed) {
+            // Warn if we didn't already warn.
+            Console.warn("Unable to contact release server (are you offline?)");
+          }
+          refreshFailed = true;
+        } else {
           throw e;
         }
       }
@@ -910,11 +918,20 @@ Fiber(function () {
       if (releaseOverride) {
         process.stderr.write(releaseName + ": unknown release.\n");
       } else if (appDir) {
-        process.stderr.write(
+        if (refreshFailed) {
+          process.stderr.write(
+"Problem! This project says that it uses version " + releaseName + " of Meteor,\n" +
+"but you don't have that version of Meteor installed, and we were unable to\n" +
+"contact Meteor's update servers to find out about it. Please edit the\n" +
+".meteor/release file in the project and change it to a valid Meteor release,\n" +
+"or go online.\n");
+        } else {
+          process.stderr.write(
 "Problem! This project says that it uses version " + releaseName + " of Meteor,\n" +
 "but you don't have that version of Meteor installed and the Meteor update\n" +
 "servers don't have it either. Please edit the .meteor/release file in the\n" +
 "project and change it to a valid Meteor release.\n");
+        }
       } else {
         throw new Error("can't load latest release?");
       }
diff --git a/tools/tests/releases.js b/tools/tests/releases.js
index 99483321c1..e84efe779e 100644
--- a/tools/tests/releases.js
+++ b/tools/tests/releases.js
@@ -69,8 +69,8 @@ selftest.define("springboard", ['checkout', 'net'], function () {
   // code for this test. Make sure we get it to pass before merging.
   s.set('METEOR_TEST_FAIL_RELEASE_DOWNLOAD', 'offline');
   run = s.run("--release", "weird");
-  run.matchErr("Meteor weird");
-  run.matchErr("online");
+  run.matchErr("offline");
+  run.matchErr("weird: unknown release");
   run.expectExit(1);
 
   // Project asking for nonexistent release.
@@ -85,9 +85,9 @@ selftest.define("springboard", ['checkout', 'net'], function () {
     // You're offline and project asks for non-cached release.
     s.set('METEOR_TEST_FAIL_RELEASE_DOWNLOAD', 'offline');
     run = s.run();
+    run.matchErr("offline");
     run.matchErr("Meteor strange");
     run.matchErr("not installed");
-    run.matchErr("online");
     run.expectExit(1);
 
     // You create an app from a checkout, and then try to use it from an