diff --git a/xl-erasure-v1.go b/xl-erasure-v1.go
index 6b8dc3457..a70aa3365 100644
--- a/xl-erasure-v1.go
+++ b/xl-erasure-v1.go
@@ -558,25 +558,29 @@ func (xl XL) DeleteFile(volume, path string) error {
 	versions, err := listFileVersions(partsMetadata, errs)
 	// Get highest file version.
 	higherVersion := highestInt(versions)
-	// Increment to have next higher version.
-	higherVersion++
 
-	// Take last meta data to use later
-	var mdata xlMetaV1
-	onlineDisksCount := 0
+	// find online disks and meta data of higherVersion
+	var mdata *xlMetaV1
+	onlineDiskCount := 0
 	for index, metadata := range partsMetadata {
 		if errs[index] == nil {
-			mdata = metadata
-			onlineDisksCount++
+			onlineDiskCount++
+			if metadata.Stat.Version == higherVersion && mdata == nil {
+				mdata = &metadata
+			}
 		}
 	}
 
-	if onlineDisksCount < xl.writeQuorum {
+	// return error if mdata is empty or onlineDiskCount doesn't meet write quorum
+	if mdata == nil || onlineDiskCount < xl.writeQuorum {
 		return errWriteQuorum
 	}
 
+	// Increment to have next higher version.
+	higherVersion++
+
 	xlMetaV1FilePath := slashpath.Join(path, xlMetaV1File)
-	deleteMetaData := (onlineDisksCount == len(xl.storageDisks))
+	deleteMetaData := (onlineDiskCount == len(xl.storageDisks))
 
 	// Set higher version to indicate file operation
 	mdata.Stat.Version = higherVersion
@@ -585,44 +589,52 @@ func (xl XL) DeleteFile(volume, path string) error {
 	nsMutex.Lock(volume, path)
 	defer nsMutex.Unlock(volume, path)
 
-	// Loop through and delete each chunks.
+	errCount := 0
+	// Update meta data file and remove part file
 	for index, disk := range xl.storageDisks {
+		// no need to operate on failed disks
 		if errs[index] != nil {
+			errCount++
 			continue
 		}
 
-		// TODO: errors can be allowed up to len(xl.storageDisks) - xl.writeQuorum
-		// TODO: Fix: meta data will be lost if deleteMetaData is true and anyone DeleteFile failure.
+		// update meta data about delete operation
+		var metadataWriter io.WriteCloser
+		metadataWriter, err = disk.CreateFile(volume, xlMetaV1FilePath)
+		if err != nil {
+			log.WithFields(logrus.Fields{
+				"volume": volume,
+				"path":   path,
+			}).Errorf("CreateFile failed with %s", err)
 
-		if deleteMetaData {
-			err = disk.DeleteFile(volume, xlMetaV1FilePath)
-			if err != nil {
-				log.WithFields(logrus.Fields{
-					"volume": volume,
-					"path":   path,
-				}).Errorf("DeleteFile failed with %s", err)
-				return err
-			}
-		} else {
-			var metadataWriter io.WriteCloser
-			metadataWriter, err = disk.CreateFile(volume, xlMetaV1FilePath)
-			if err != nil {
-				log.WithFields(logrus.Fields{
-					"volume": volume,
-					"path":   path,
-				}).Errorf("CreateFile failed with %s", err)
-				return err
+			errCount++
+
+			// We can safely allow CreateFile errors up to len(xl.storageDisks) - xl.writeQuorum
+			// otherwise return failure.
+			if errCount <= len(xl.storageDisks)-xl.writeQuorum {
+				continue
 			}
 
-			err = mdata.Write(metadataWriter)
-			if err != nil {
-				log.WithFields(logrus.Fields{
-					"volume":    volume,
-					"path":      path,
-					"diskIndex": index,
-				}).Errorf("Writing metadata failed with %s", err)
-				return err
+			return err
+		}
+
+		err = mdata.Write(metadataWriter)
+		if err != nil {
+			log.WithFields(logrus.Fields{
+				"volume":    volume,
+				"path":      path,
+				"diskIndex": index,
+			}).Errorf("Writing metadata failed with %s", err)
+
+			errCount++
+
+			// We can safely allow CreateFile errors up to len(xl.storageDisks) - xl.writeQuorum
+			// otherwise return failure.
+			if errCount <= len(xl.storageDisks)-xl.writeQuorum {
+				continue
 			}
+
+			return err
 		}
 
 		erasureFilePart := slashpath.Join(path, fmt.Sprintf("file.%d", index))
@@ -632,9 +644,38 @@ func (xl XL) DeleteFile(volume, path string) error {
 				"volume": volume,
 				"path":   path,
 			}).Errorf("DeleteFile failed with %s", err)
+
+			errCount++
+
+			// We can safely allow CreateFile errors up to len(xl.storageDisks) - xl.writeQuorum
+			// otherwise return failure.
+			if errCount <= len(xl.storageDisks)-xl.writeQuorum {
+				continue
+			}
+
 			return err
 		}
 	}
+
+	// Remove meta data file only if deleteMetaData is true.
+	if deleteMetaData {
+		for index, disk := range xl.storageDisks {
+			// no need to operate on failed disks
+			if errs[index] != nil {
+				continue
+			}
+
+			err = disk.DeleteFile(volume, xlMetaV1FilePath)
+			if err != nil {
+				// No need to return the error as we updated the meta data file previously
+				log.WithFields(logrus.Fields{
+					"volume": volume,
+					"path":   path,
+				}).Errorf("DeleteFile failed with %s", err)
+			}
+		}
+	}
+
 	return nil
 }