diff --git a/gnu/home/services/symlink-manager.scm b/gnu/home/services/symlink-manager.scm
index 24d21bfad3..5b85a0e581 100644
--- a/gnu/home/services/symlink-manager.scm
+++ b/gnu/home/services/symlink-manager.scm
@@ -85,6 +85,10 @@ subdirectory from XDG_CONFIG_HOME to generate a target path."
            ;; such as "config/fontconfig/fonts.conf" or "bashrc".
            (string-append home-directory "/" (preprocess-file file)))
 
+         (define (no-follow-file-exists? file)
+           "Return #t if file exists, even if it's a dangling symlink."
+           (->bool (false-if-exception (lstat file))))
+
          (define (symlink-to-store? file)
            (catch 'system-error
              (lambda ()
@@ -123,7 +127,7 @@ subdirectory from XDG_CONFIG_HOME to generate a target path."
             (const #t)
             (lambda (file stat _)                 ;leaf
               (let ((file (target-file (strip file))))
-                (when (file-exists? file)
+                (when (no-follow-file-exists? file)
                   ;; DO NOT remove the file if it is no longer a symlink to
                   ;; the store, it will be backed up later during
                   ;; create-symlinks phase.
@@ -182,7 +186,7 @@ subdirectory from XDG_CONFIG_HOME to generate a target path."
             (lambda (file stat result)            ;leaf
               (let ((source (source-file (strip file)))
                     (target (target-file (strip file))))
-                (when (file-exists? target)
+                (when (no-follow-file-exists? target)
                   (backup-file (strip file)))
                 (format #t (G_ "Symlinking ~a -> ~a...")
                         target source)
@@ -191,7 +195,7 @@ subdirectory from XDG_CONFIG_HOME to generate a target path."
             (lambda (directory stat result)       ;down
               (unless (string=? directory config-file-directory)
                 (let ((target (target-file (strip directory))))
-                  (when (and (file-exists? target)
+                  (when (and (no-follow-file-exists? target)
                              (not (file-is-directory? target)))
                     (backup-file (strip directory)))