diff --git a/pkg/downloader/manager.go b/pkg/downloader/manager.go
index 0efac37bc..74948526b 100644
--- a/pkg/downloader/manager.go
+++ b/pkg/downloader/manager.go
@@ -246,6 +246,8 @@ func (m *Manager) downloadAll(deps []*chart.Dependency) error {
 	destPath := filepath.Join(m.ChartPath, "charts")
 	tmpPath := filepath.Join(m.ChartPath, "tmpcharts")
 
+	// remove tmpPath after this function returns
+	defer os.RemoveAll(tmpPath)
 	// Create 'charts' directory if it doesn't already exist.
 	if fi, err := os.Stat(destPath); err != nil {
 		if err := os.MkdirAll(destPath, 0755); err != nil {
diff --git a/pkg/downloader/manager_test.go b/pkg/downloader/manager_test.go
index 9532cca7c..5039f810f 100644
--- a/pkg/downloader/manager_test.go
+++ b/pkg/downloader/manager_test.go
@@ -17,6 +17,7 @@ package downloader
 
 import (
 	"bytes"
+	"os"
 	"path/filepath"
 	"reflect"
 	"testing"
@@ -181,6 +182,42 @@ func TestGetRepoNames(t *testing.T) {
 	}
 }
 
+func TestDownloadAll(t *testing.T) {
+	// If we run downloadAll without defer than this test will fail
+	// 1st downloadAll creates charts folder
+	// 2nd downloadAll copies existing charts to tmpcharts and fails but tmpcharts folder will be removed
+	// 3rd downloadAll again runs with another dependency
+	b := bytes.NewBuffer(nil)
+	m := &Manager{
+		Out:              b,
+		RepositoryConfig: repoConfig,
+		RepositoryCache:  repoCache,
+	}
+	// remove charts folder at the end of test
+	defer os.RemoveAll("charts")
+
+	// call downloadAll so that it will create charts directory
+	err := m.downloadAll([]*chart.Dependency{
+		{Name: "local-dep", Repository: "file://./testdata/signtest", Version: "0.1.0"},
+	})
+	if err != nil {
+		t.Fatal(err)
+	}
+	// this will copy charts directory content to tmp directory and recreates new charts
+	err = m.downloadAll([]*chart.Dependency{
+		{Name: "local-subchart", Repository: ""},
+	})
+	if err == nil {
+		t.Fatal(err)
+	}
+	err = m.downloadAll([]*chart.Dependency{
+		{Name: "local-dep", Repository: "file://./testdata/signtest", Version: "0.1.0"},
+	})
+	if err != nil {
+		t.Fatal(err)
+	}
+}
+
 func TestUpdateBeforeBuild(t *testing.T) {
 	// Set up a fake repo
 	srv, err := repotest.NewTempServerWithCleanup(t, "testdata/*.tgz*")