diff --git a/parserInternals.c b/parserInternals.c
index 6c6c82f8..be751008 100644
--- a/parserInternals.c
+++ b/parserInternals.c
@@ -180,12 +180,12 @@ xmlCtxtErrIO(xmlParserCtxtPtr ctxt, int code, const char *uri)
         return;
 
     /*
-     * Don't report a well-formedness error if an external entity could
-     * not be found. We assume that inputNr is zero for the document
-     * entity which is somewhat fragile.
+     * Only report a warning if a file could not be found. This should
+     * only be done for external entities, but the external entity loader
+     * of xsltproc can try multiple paths and assumes that ENOENT doesn't
+     * raise an error and aborts parsing.
      */
-    if ((ctxt->inputNr > 0) &&
-        ((code == XML_IO_ENOENT) ||
+    if (((code == XML_IO_ENOENT) ||
          (code == XML_IO_NETWORK_ATTEMPT) ||
          (code == XML_IO_UNKNOWN))) {
         if (ctxt->validate == 0)
diff --git a/python/tests/error.py b/python/tests/error.py
index 6c8da999..6668b729 100755
--- a/python/tests/error.py
+++ b/python/tests/error.py
@@ -10,7 +10,7 @@ import libxml2
 # Memory debug specific
 libxml2.debugMemory(1)
 
-expect='--> I/O --> error : --> failed to load "missing.xml": No such file or directory\n'
+expect='--> I/O --> warning : --> failed to load "missing.xml": No such file or directory\n'
 err=""
 def callback(ctx, str):
      global err
diff --git a/python/tests/input_callback.py b/python/tests/input_callback.py
index 35a51695..b24c5c85 100755
--- a/python/tests/input_callback.py
+++ b/python/tests/input_callback.py
@@ -90,7 +90,7 @@ run_test(desc="Loading entity without custom callback",
         docpath=startURL, catalog=None,
         exp_status="not loaded", exp_err=[
             (-1, "I/O "),
-            (-1, "error : "),
+            (-1, "warning : "),
             (-1, "failed to load \"py://strings/xml/sample.xml\": No such file or directory\n")
             ])
 
@@ -121,7 +121,7 @@ run_test(desc="Retry loading document after unregistering callback",
         docpath=startURL, catalog=catURL,
         exp_status="not loaded", exp_err=[
             (-1, "I/O "),
-            (-1, "error : "),
+            (-1, "warning : "),
             (-1, "failed to load \"py://strings/xml/sample.xml\": No such file or directory\n")
             ])
 
@@ -141,7 +141,7 @@ run_test(desc="Loading using standard i/o after unregistering all callbacks",
         docpath="tst.xml", catalog=None,
         exp_status="not loaded", exp_err=[
             (-1, "I/O "),
-            (-1, "error : "),
+            (-1, "warning : "),
             (-1, "failed to load \"tst.xml\": No such file or directory\n")
             ])
 
diff --git a/python/tests/tstLastError.py b/python/tests/tstLastError.py
index 35f5eb3d..a0799950 100755
--- a/python/tests/tstLastError.py
+++ b/python/tests/tstLastError.py
@@ -60,7 +60,7 @@ class TestCase(unittest.TestCase):
                         domain=libxml2.XML_FROM_IO,
                         code=libxml2.XML_IO_ENOENT,
                         message='failed to load "dummy.xml": No such file or directory\n',
-                        level=libxml2.XML_ERR_FATAL,
+                        level=libxml2.XML_ERR_WARNING,
                         file=None,
                         line=0)
 
diff --git a/result/XInclude/fallback.xml.err b/result/XInclude/fallback.xml.err
index fa6b9e1a..3239da07 100644
--- a/result/XInclude/fallback.xml.err
+++ b/result/XInclude/fallback.xml.err
@@ -1 +1 @@
-I/O error : failed to load "test/XInclude/docs/something.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/something.xml": No such file or directory
diff --git a/result/XInclude/fallback2.xml.err b/result/XInclude/fallback2.xml.err
index d405ac20..288ed212 100644
--- a/result/XInclude/fallback2.xml.err
+++ b/result/XInclude/fallback2.xml.err
@@ -1,2 +1,2 @@
-I/O error : failed to load "test/XInclude/docs/b.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/c.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/b.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/c.xml": No such file or directory
diff --git a/result/XInclude/fallback4.xml.err b/result/XInclude/fallback4.xml.err
index e27a7e6f..25156776 100644
--- a/result/XInclude/fallback4.xml.err
+++ b/result/XInclude/fallback4.xml.err
@@ -1 +1 @@
-I/O error : failed to load "test/XInclude/docs/c.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/c.xml": No such file or directory
diff --git a/result/XInclude/fallback5.xml.err b/result/XInclude/fallback5.xml.err
index 4ec1892d..f30bc697 100644
--- a/result/XInclude/fallback5.xml.err
+++ b/result/XInclude/fallback5.xml.err
@@ -1,16 +1,16 @@
-I/O error : failed to load "test/XInclude/docs/a01.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a02.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a03.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a04.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a05.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a06.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a07.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a08.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a09.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a10.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a11.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a12.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a13.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a14.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a15.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/a16.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a01.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a02.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a03.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a04.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a05.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a06.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a07.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a08.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a09.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a10.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a11.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a12.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a13.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a14.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a15.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/a16.xml": No such file or directory
diff --git a/result/XInclude/fallback6.xml.err b/result/XInclude/fallback6.xml.err
index d405ac20..288ed212 100644
--- a/result/XInclude/fallback6.xml.err
+++ b/result/XInclude/fallback6.xml.err
@@ -1,2 +1,2 @@
-I/O error : failed to load "test/XInclude/docs/b.xml": No such file or directory
-I/O error : failed to load "test/XInclude/docs/c.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/b.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/docs/c.xml": No such file or directory
diff --git a/result/XInclude/fallback7.xml.err b/result/XInclude/fallback7.xml.err
index 3861279f..5acd3ccc 100644
--- a/result/XInclude/fallback7.xml.err
+++ b/result/XInclude/fallback7.xml.err
@@ -1 +1 @@
-I/O error : failed to load "test/XInclude/without-reader/404.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/without-reader/404.xml": No such file or directory
diff --git a/result/XInclude/ns1.xml.err b/result/XInclude/ns1.xml.err
index ef202341..d750bc3d 100644
--- a/result/XInclude/ns1.xml.err
+++ b/result/XInclude/ns1.xml.err
@@ -1 +1 @@
-I/O error : failed to load "test/XInclude/without-reader/b.xml": No such file or directory
+I/O warning : failed to load "test/XInclude/without-reader/b.xml": No such file or directory
diff --git a/result/schemas/import1_0_0.err b/result/schemas/import1_0_0.err
index aafb6107..f780244a 100644
--- a/result/schemas/import1_0_0.err
+++ b/result/schemas/import1_0_0.err
@@ -1,4 +1,4 @@
-I/O error : failed to load "test/schemas/import1_0bc.imp": No such file or directory
+I/O warning : failed to load "test/schemas/import1_0bc.imp": No such file or directory
 ./test/schemas/import1_0.xsd:11: element import: Schemas parser warning : Element '{http://www.w3.org/2001/XMLSchema}import': Failed to locate a schema at location 'test/schemas/import1_0bc.imp'. Skipping the import.
 ./test/schemas/import1_0.xsd:16: element import: Schemas parser warning : Element '{http://www.w3.org/2001/XMLSchema}import': Skipping import of schema located at 'test/schemas/import1_0b.imp' for the namespace 'http://BAR', since this namespace was already imported with the schema located at 'test/schemas/import1_0.imp'.
 ./test/schemas/import1_0.xsd:26: element element: Schemas parser error : Element '{http://www.w3.org/2001/XMLSchema}element', attribute 'ref': The QName value '{http://BAR}bar.B' does not resolve to a(n) element declaration.