diff --git a/dvc/output.py b/dvc/output.py
index b9122006ce..7003d4717a 100644
--- a/dvc/output.py
+++ b/dvc/output.py
@@ -965,7 +965,10 @@ def relative_update(self, inc: int = 1) -> None:
         return added, False if added else modified
 
     def remove(self, ignore_remove=False):
-        self.fs.remove(self.fs_path, recursive=True)
+        try:
+            self.fs.remove(self.fs_path, recursive=True)
+        except FileNotFoundError:
+            pass
         if self.protocol != Schemes.LOCAL:
             return
 
diff --git a/tests/func/repro/test_repro.py b/tests/func/repro/test_repro.py
index f6e460bb95..1da583db5c 100644
--- a/tests/func/repro/test_repro.py
+++ b/tests/func/repro/test_repro.py
@@ -1273,3 +1273,12 @@ def test_repro_missing_lock_info(tmp_dir, dvc, copy_script):
 
     stages = dvc.reproduce(stage.addressing)
     assert len(stages) == 1
+
+
+def test_repro_rm_recursive(tmp_dir, dvc):
+    # check that dir output recursively removes files in the dir
+    tmp_dir.gen({"dir": {"foo": "foo"}})
+    dvc.stage.add(name="dir", cmd="mkdir dir", outs=["dir"])
+    dvc.reproduce()
+    assert (tmp_dir / "dir").exists()
+    assert not (tmp_dir / "dir" / "foo").exists()