--- a/mail/base/content/folderDisplay.js
+++ b/mail/base/content/folderDisplay.js
@@ -912,22 +912,31 @@ FolderDisplayWidget.prototype = {
   /**
    * If our view is being destroyed and it is coming back, we want to save the
    *  current selection so we can restore it when the view comes back.
    */
   onDestroyingView: function FolderDisplayWidget_onDestroyingView(
       aFolderIsComingBack) {
     // try and persist the selection's content if we can
     if (this._active) {
-      // if a new selection is coming up, there's no point in trying to persist
-      // any selections
-      if (aFolderIsComingBack && !this._aboutToSelectMessage)
-        this._saveSelection();
-      else
-        this._clearSavedSelection();
+      // If saving the selection throws an exception, we still want continue
+      // destroying the view. Saving the selection can fail if an underlying
+      // local folder has been compacted, invalidating the message keys.
+      // See bug 536676 for more info.
+      try {
+        // If a new selection is coming up, there's no point in trying to
+        // persist any selections.
+        if (aFolderIsComingBack && !this._aboutToSelectMessage)
+          this._saveSelection();
+        else
+          this._clearSavedSelection();
+      }
+      catch (ex) {
+        logException(ex);
+      }
       gDBView = null;
     }
 
     FolderDisplayListenerManager._fireListeners("onDestroyingView",
                                                 [this, aFolderIsComingBack]);
 
     // if we have no view, no messages could be loaded.
     this._allMessagesLoaded = false;

new file mode 100644
--- /dev/null
+++ b/mail/test/mozmill/folder-display/test-savedsearch-reload-after-compact.js
@@ -0,0 +1,100 @@
+/* ***** BEGIN LICENSE BLOCK *****
+ *   Version: MPL 1.1/GPL 2.0/LGPL 2.1
+ *
+ * The contents of this file are subject to the Mozilla Public License Version
+ * 1.1 (the "License"); you may not use this file except in compliance with
+ * the License. You may obtain a copy of the License at
+ * http://www.mozilla.org/MPL/
+ *
+ * Software distributed under the License is distributed on an "AS IS" basis,
+ * WITHOUT WARRANTY OF ANY KIND, either express or implied. See the License
+ * for the specific language governing rights and limitations under the
+ * License.
+ *
+ * The Original Code is Thunderbird Mail Client.
+ *
+ * The Initial Developer of the Original Code is
+ * The Mozilla Foundation.
+ * Portions created by the Initial Developer are Copyright (C) 2010
+ * the Initial Developer. All Rights Reserved.
+ *
+ * Contributor(s):
+ *   David Bienvenu <bienvenu@mozillamessaging.com>
+ *
+ * Alternatively, the contents of this file may be used under the terms of
+ * either the GNU General Public License Version 2 or later (the "GPL"), or
+ * the GNU Lesser General Public License Version 2.1 or later (the "LGPL"),
+ * in which case the provisions of the GPL or the LGPL are applicable instead
+ * of those above. If you wish to allow use of your version of this file only
+ * under the terms of either the GPL or the LGPL, and not to allow others to
+ * use your version of this file under the terms of the MPL, indicate your
+ * decision by deleting the provisions above and replace them with the notice
+ * and other provisions required by the GPL or the LGPL. If you do not delete
+ * the provisions above, a recipient may use your version of this file under
+ * the terms of any one of the MPL, the GPL or the LGPL.
+ *
+ * ***** END LICENSE BLOCK ***** */
+
+/**
+ * Test reload of saved searches over local folders after compaction
+ * of local folders.
+ */
+
+var MODULE_NAME = 'test-vf-load-after-compact';
+
+var RELATIVE_ROOT = '../shared-modules';
+var MODULE_REQUIRES = ['folder-display-helpers', 'window-helpers'];
+
+var folderInbox, folderVirtual;
+
+function setupModule(module) {
+  let fdh = collector.getModule('folder-display-helpers');
+  fdh.installInto(module);
+  let wh = collector.getModule('window-helpers');
+  wh.installInto(module);
+}
+
+/**
+ * Add some messages to a folder, delete the first one, and create a saved 
+ * search over the inbox and the folder. Then, compact folders.
+ */
+function test_setup_virtual_folder_and_compact() {
+  otherFolder = create_folder("otherFolder");
+  let [msgSet] = make_new_sets_in_folder(otherFolder, [{count: 2}]);
+
+  /**
+   * We delete the first message in the local folder, so compaction of the
+   * folder will invalidate the key of the second message in the folder. Then,
+   * we select the second message and issue the compact. This causes saving the
+   * selection on the compaction notification to fail. We test the saved search
+   * view still gets rebuilt, such that there is a valid msg hdr at row 0.
+   */
+  be_in_folder(otherFolder);
+  let curMessage = select_click_row(0);
+  press_delete();
+
+  folderVirtual = create_virtual_folder([inboxFolder, otherFolder], {},
+                                        true, "SavedSearch");
+
+  be_in_folder(folderVirtual);
+  curMessage = select_click_row(0);
+  let urlListener = {
+    compactDone: false,
+
+    OnStartRunningUrl: function (aUrl) {
+    },
+    OnStopRunningUrl: function (aUrl, aExitCode) {
+      this.compactDone = true;
+    }
+  };
+  otherFolder.compactAll(urlListener, null, false);
+
+  mc.waitForEval("subject.compactDone == true",
+                          10000, 100, urlListener);
+
+  // Let the event queue clear.
+  mc.sleep(0);
+  // Check view is still valid
+  let msgHdr = mc.dbView.getMsgHdrAt(0);
+}
+