diff --git a/cmd/object-common.go b/cmd/object-common.go
index df3f7d4a6..e3deffa88 100644
--- a/cmd/object-common.go
+++ b/cmd/object-common.go
@@ -183,7 +183,7 @@ func xlHouseKeeping(storageDisks []StorageAPI) error {
 
 			// Cleanup all temp entries upon start.
 			err := cleanupDir(disk, minioMetaBucket, tmpMetaPrefix)
-			if err != nil {
+			if err != nil && err != errDiskNotFound {
 				errs[index] = err
 			}
 		}(index, disk)
diff --git a/cmd/prepare-storage.go b/cmd/prepare-storage.go
index 7e998c0d2..e479e02b7 100644
--- a/cmd/prepare-storage.go
+++ b/cmd/prepare-storage.go
@@ -133,9 +133,9 @@ func prepForInit(disks []string, sErrs []error, diskCount int) InitActions {
 	// Already formatted, proceed to initialization of object layer.
 	if disksFormatted == diskCount {
 		return InitObjectLayer
-	} else if disksFormatted > quorum && disksFormatted+disksOffline == diskCount {
+	} else if disksFormatted >= quorum && disksFormatted+disksOffline == diskCount {
 		return InitObjectLayer
-	} else if disksFormatted > quorum {
+	} else if disksFormatted >= quorum {
 		// TODO: Print minioctl heal command
 		return InitObjectLayer
 	}
@@ -163,7 +163,6 @@ func retryFormattingDisks(disks []string, storageDisks []StorageAPI) ([]StorageA
 		case <-time.After(nextBackoff * time.Second):
 			// Attempt to load all `format.json`.
 			_, sErrs := loadAllFormats(storageDisks)
-
 			switch prepForInit(disks, sErrs, len(storageDisks)) {
 			case Abort:
 				err = errCorruptedFormat
diff --git a/cmd/server-main.go b/cmd/server-main.go
index d114285fe..3b9cfba46 100644
--- a/cmd/server-main.go
+++ b/cmd/server-main.go
@@ -297,12 +297,15 @@ func isDistributedSetup(disks []string) (isDist bool) {
 // Format disks before initialization object layer.
 func formatDisks(disks, ignoredDisks []string) error {
 	storageDisks, err := waitForFormattingDisks(disks, ignoredDisks)
-	for i := range storageDisks {
-		switch storage := storageDisks[i].(type) {
+	for _, storage := range storageDisks {
+		if storage == nil {
+			continue
+		}
+		switch store := storage.(type) {
 		// Closing associated TCP connections since
 		// []StorageAPI is garbage collected eventually.
 		case networkStorage:
-			storage.rpcClient.Close()
+			store.rpcClient.Close()
 		}
 	}
 	if err != nil {
@@ -310,13 +313,13 @@ func formatDisks(disks, ignoredDisks []string) error {
 	}
 	if isLocalStorage(disks[0]) {
 		// notify every one else that they can try init again.
-		for i := range storageDisks {
-			switch storage := storageDisks[i].(type) {
+		for _, storage := range storageDisks {
+			switch store := storage.(type) {
 			// Closing associated TCP connections since
 			// []StorageAPI is garage collected eventually.
 			case networkStorage:
 				var reply GenericReply
-				_ = storage.rpcClient.Call("Storage.TryInitHandler", &GenericArgs{}, &reply)
+				_ = store.rpcClient.Call("Storage.TryInitHandler", &GenericArgs{}, &reply)
 			}
 		}
 	}
diff --git a/cmd/storage-rpc-client.go b/cmd/storage-rpc-client.go
index 795c64d3a..09251d1eb 100644
--- a/cmd/storage-rpc-client.go
+++ b/cmd/storage-rpc-client.go
@@ -18,6 +18,8 @@ package cmd
 
 import (
 	"io"
+	"net"
+	"net/rpc"
 	"path"
 	"strconv"
 	"strings"
@@ -42,11 +44,19 @@ func toStorageErr(err error) error {
 	if err == nil {
 		return nil
 	}
+
+	switch err.(type) {
+	case *net.OpError:
+		return errDiskNotFound
+	}
+
 	switch err.Error() {
 	case io.EOF.Error():
 		return io.EOF
 	case io.ErrUnexpectedEOF.Error():
 		return io.ErrUnexpectedEOF
+	case rpc.ErrShutdown.Error():
+		return errDiskNotFound
 	case errUnexpected.Error():
 		return errUnexpected
 	case errDiskFull.Error():