diff --git a/filefield_paths.module b/filefield_paths.module
index 7544d94..03b47bb 100644
--- a/filefield_paths.module
+++ b/filefield_paths.module
@@ -122,12 +122,24 @@ function filefield_paths_form_alter(&$form, $form_state, $form_id) {
           '#weight' => 10,
         );
 
+        // File exists behavior. Keep disabled if the file name option is the
+        // same as the original file, as this can result in the uploaded file
+        // itself being moved onto itself and then deleted.
+        $form['instance']['settings']['filefield_paths']['replace_existing_files'] = array(
+          '#type' => 'checkbox',
+          '#title' => t('Replace existing files'),
+          '#description' => t('If a file with the same name already exists in the destination directory, replace it.'),
+          '#weight' => 11,
+          '#default_value' => isset($settings['replace_existing_files']) ? $settings['replace_existing_files'] : FALSE,
+          '#disabled' => FALSE,
+        );
+
         // Retroactive updates.
         $form['instance']['settings']['filefield_paths']['retroactive_update'] = array(
           '#type' => 'checkbox',
           '#title' => t('Retroactive update'),
           '#description' => t('Move and rename previously uploaded files.') . '<div>' . t('<strong class="warning">Warning:</strong> This feature should only be used on developmental servers or with extreme caution.') . '</div>',
-          '#weight' => 11,
+          '#weight' => 12,
         );
 
         // Active updating.
@@ -136,7 +148,7 @@ function filefield_paths_form_alter(&$form, $form_state, $form_id) {
           '#title' => t('Active updating'),
           '#default_value' => isset($settings['active_updating']) ? $settings['active_updating'] : FALSE,
           '#description' => t('Actively move and rename previously uploaded files as required.') . '<div>' . t('<strong class="warning">Warning:</strong> This feature should only be used on developmental servers or with extreme caution.') . '</div>',
-          '#weight' => 12
+          '#weight' => 13,
         );
       }
     }
@@ -271,6 +283,12 @@ function filefield_paths_field_storage_pre_update($entity_type, $entity) {
               }
               $files[] = &$file;
             }
+          }
+
+          // Store the original entity before we modify it
+          $entity->original = $entity;
+
+          foreach ($entity->{$field['field_name']} as $langcode => $deltas) {
             // Invoke hook_filefield_paths_process_file().
             foreach (module_implements('filefield_paths_process_file') as $module) {
               if (function_exists($function = "{$module}_filefield_paths_process_file")) {
diff --git a/modules/filefield_paths.inc b/modules/filefield_paths.inc
index 55c4cad..662ba72 100644
--- a/modules/filefield_paths.inc
+++ b/modules/filefield_paths.inc
@@ -53,7 +53,7 @@ function filefield_paths_filefield_paths_field_settings($field, $instance) {
 function filefield_paths_filefield_paths_process_file($type, $entity, $field, $instance, $langcode, &$items) {
   if (isset($instance['settings']['filefield_paths'])) {
     $settings = $instance['settings']['filefield_paths'];
-    foreach ($items as &$file) {
+    foreach ($items as $delta => &$file) {
       if (filefield_paths_uri_is_local($file['uri']) && ($file['timestamp'] == REQUEST_TIME || $settings['active_updating'])) {
         $token_data = array(
           'file' => (object) $file,
@@ -74,9 +74,18 @@ function filefield_paths_filefield_paths_process_file($type, $entity, $field, $i
         $file['uri'] = "{$field['settings']['uri_scheme']}://" . ltrim(filefield_paths_process_string($settings['file_path']['value'], $token_data, $settings['file_path']['options']) . "/{$file['filename']}", '/');
 
         // Finalize file if necessary.
-        if ($file !== $old_file) {
+        if ($file['uri'] !== $old_file['uri']) {
           $dirname = drupal_dirname($file['uri']);
-          if (file_prepare_directory($dirname, FILE_CREATE_DIRECTORY) && file_move((object) $old_file, $file['uri'])) {
+          $file_exists_behavior = empty($settings['replace_existing_files']) ? FILE_EXISTS_RENAME : FILE_EXISTS_REPLACE;
+          if (file_prepare_directory($dirname, FILE_CREATE_DIRECTORY)) {
+
+            $old_file['filename'] = $file['filename'];
+            $moved_file = file_move((object) $old_file, $file['uri'], $file_exists_behavior);
+            if ($moved_file && $moved_file->fid != $file['fid']) {
+              $entity->{$instance['field_name']}[$entity->language][$delta] = (array) $moved_file;
+              file_delete((object) $old_file, TRUE);
+            }
+
             // Process regular expression.
             _filefield_paths_replace_path($old_file['uri'], $file['uri'], $entity);