diff --git a/server/src/analyzer.ts b/server/src/analyzer.ts
index e4229a2..ef9086a 100644
--- a/server/src/analyzer.ts
+++ b/server/src/analyzer.ts
@@ -71,16 +71,30 @@ export default class Analyzer {
    * @param uri uri to the library root
    * @param isWorkspace `true` if this is a user workspace/project, `false` if
    *     this is a library.
+   * @returns `true` if the library was loaded, `false` if it was skipped because
+   *     the path does not exist or does not contain a `package.mo`.
    */
-  public async loadLibrary(uri: LSP.URI, isWorkspace: boolean): Promise<void> {
+  public async loadLibrary(uri: LSP.URI, isWorkspace: boolean): Promise<boolean> {
     const isLibrary = (folderPath: string) =>
       fsSync.existsSync(path.join(folderPath, 'package.mo'));
 
     const libraryPath = url.fileURLToPath(uri);
+    if (!fsSync.existsSync(libraryPath)) {
+      logger.debug(
+        `Skipping ${isWorkspace ? 'workspace' : 'library'} at '${libraryPath}': path does not exist.`,
+      );
+      return false;
+    }
+
     if (!isWorkspace || isLibrary(libraryPath)) {
+      if (!isLibrary(libraryPath)) {
+        logger.debug(`Skipping library at '${libraryPath}': no 'package.mo' found.`);
+        return false;
+      }
+
       const lib = await ModelicaLibrary.load(this.#project, libraryPath, isWorkspace);
       this.#project.addLibrary(lib);
-      return;
+      return true;
     }
 
     // TODO: go deeper... something like `TreeSitterUtil.forEach` but for files
@@ -94,6 +108,8 @@ export default class Analyzer {
       const library = await ModelicaLibrary.load(this.#project, nested, isWorkspace);
       this.#project.addLibrary(library);
     }
+
+    return true;
   }
 
   /**
diff --git a/server/src/server.ts b/server/src/server.ts
index 7d3c220..b93885b 100644
--- a/server/src/server.ts
+++ b/server/src/server.ts
@@ -83,7 +83,13 @@ export class ModelicaServer {
     const analyzer = new Analyzer(parser);
     if (workspaceFolders != null) {
       for (const workspace of workspaceFolders) {
-        await analyzer.loadLibrary(workspace.uri, true);
+        try {
+          await analyzer.loadLibrary(workspace.uri, true);
+        } catch (err) {
+          logger.error(
+            `Failed to load workspace '${workspace.uri}': ${err instanceof Error ? err.message : err}`,
+          );
+        }
       }
     }
 
@@ -105,7 +111,20 @@ export class ModelicaServer {
     for (const libraryPath of configuredLibraries) {
       const libraryUri = url.pathToFileURL(path.resolve(libraryPath)).toString();
       logger.debug(`Loading configured library '${libraryPath}'`);
-      await analyzer.loadLibrary(libraryUri, false);
+      try {
+        const loaded = await analyzer.loadLibrary(libraryUri, false);
+        if (!loaded) {
+          const message =
+            `Could not load Modelica library '${libraryPath}': the path does not exist or has no ` +
+            `'package.mo'. Remove or fix this entry in the "modelica.libraries" setting to stop loading it.`;
+          logger.warn(message);
+          connection.window.showWarningMessage(message);
+        }
+      } catch (err) {
+        logger.error(
+          `Failed to load configured library '${libraryPath}': ${err instanceof Error ? err.message : err}`,
+        );
+      }
     }
 
     logger.debug('Initialized');
diff --git a/server/src/test/analyzer.test.ts b/server/src/test/analyzer.test.ts
new file mode 100644
index 0000000..e7dd9d2
--- /dev/null
+++ b/server/src/test/analyzer.test.ts
@@ -0,0 +1,65 @@
+/*
+ * This file is part of OpenModelica.
+ *
+ * Copyright (c) 1998-2024, Open Source Modelica Consortium (OSMC),
+ * c/o Linköpings universitet, Department of Computer and Information Science,
+ * SE-58183 Linköping, Sweden.
+ *
+ * All rights reserved.
+ *
+ * THIS PROGRAM IS PROVIDED UNDER THE TERMS OF AGPL VERSION 3 LICENSE OR
+ * THIS OSMC PUBLIC LICENSE (OSMC-PL) VERSION 1.8.
+ * ANY USE, REPRODUCTION OR DISTRIBUTION OF THIS PROGRAM CONSTITUTES
+ * RECIPIENT'S ACCEPTANCE OF THE OSMC PUBLIC LICENSE OR THE GNU AGPL
+ * VERSION 3, ACCORDING TO RECIPIENTS CHOICE.
+ *
+ * The OpenModelica software and the OSMC (Open Source Modelica Consortium)
+ * Public License (OSMC-PL) are obtained from OSMC, either from the above
+ * address, from the URLs:
+ * http://www.openmodelica.org or
+ * https://github.com/OpenModelica/ or
+ * http://www.ida.liu.se/projects/OpenModelica,
+ * and in the OpenModelica distribution.
+ *
+ * GNU AGPL version 3 is obtained from:
+ * https://www.gnu.org/licenses/licenses.html#GPL
+ *
+ * This program is distributed WITHOUT ANY WARRANTY; without
+ * even the implied warranty of MERCHANTABILITY or FITNESS
+ * FOR A PARTICULAR PURPOSE, EXCEPT AS EXPRESSLY SET FORTH
+ * IN THE BY RECIPIENT SELECTED SUBSIDIARY LICENSE CONDITIONS OF OSMC-PL.
+ *
+ * See the full OSMC Public License conditions for more details.
+ *
+ */
+
+import assert from 'node:assert/strict';
+import * as path from 'node:path';
+import * as url from 'node:url';
+
+import Analyzer from '../analyzer';
+import { initializeParser } from '../parser';
+
+describe('Analyzer.loadLibrary', () => {
+  let analyzer: Analyzer;
+
+  beforeEach(async () => {
+    const parser = await initializeParser();
+    analyzer = new Analyzer(parser);
+  });
+
+  // Regression test for https://github.com/OpenModelica/modelica-language-server/issues/49
+  it('skips a configured library whose path does not exist without throwing', async () => {
+    const missingPath = path.join(__dirname, 'this-library-does-not-exist');
+    const missingUri = url.pathToFileURL(missingPath).toString();
+
+    assert.equal(await analyzer.loadLibrary(missingUri, false), false);
+  });
+
+  it('skips a workspace whose path does not exist without throwing', async () => {
+    const missingPath = path.join(__dirname, 'this-workspace-does-not-exist');
+    const missingUri = url.pathToFileURL(missingPath).toString();
+
+    assert.equal(await analyzer.loadLibrary(missingUri, true), false);
+  });
+});