diff --git a/dvc/cli.py b/dvc/cli.py
index 63eab0292..1f9281e59 100644
--- a/dvc/cli.py
+++ b/dvc/cli.py
@@ -194,10 +194,10 @@ def parse_args(argv=None):
     remove_parser = subparsers.add_parser(
                         'remove',
                         parents=[parent_parser],
-                        help='Remove data file or data directory')
+                        help='Remove outputs of DVC file.')
     remove_parser.add_argument('targets',
                         nargs='+',
-                        help='Target to remove - file or directory.')
+                        help='DVC files.')
     remove_parser.set_defaults(func=CmdRemove)
 
     # Garbage collector
diff --git a/dvc/project.py b/dvc/project.py
index 2df906b8c..9d6d486ca 100644
--- a/dvc/project.py
+++ b/dvc/project.py
@@ -91,21 +91,15 @@ class Project(object):
         stage.dump()
         return stage
 
-    def remove(self, fname):
-        stages = []
-        output = Output.loads(self, fname)
-        for out in self.outs():
-            if out.path == output.path:
-                stage = out.stage()
-                stages.append(stage)
+    def remove(self, target):
+        if not Stage.is_stage_file(target):
+            raise StageNotFoundError(target)
 
-        if len(stages) == 0:
-            raise StageNotFoundError(fname) 
+        stage = Stage.load(self, target)
+        for out in stage.outs:
+            out.remove()
 
-        for stage in stages:
-            stage.remove()
-
-        return stages
+        return stage
 
     def run(self,
             cmd=None,
diff --git a/tests/test_remove.py b/tests/test_remove.py
index 2de7fa4cb..9934ec174 100644
--- a/tests/test_remove.py
+++ b/tests/test_remove.py
@@ -12,43 +12,35 @@ from tests.basic_env import TestDvc
 class TestRemove(TestDvc):
     def test(self):
         stage = self.dvc.add(self.FOO)
-        stages_removed = self.dvc.remove(self.FOO)
+        stage_removed = self.dvc.remove(stage.path)
 
-        self.assertEqual(len(stages_removed), 1)
-        self.assertIsInstance(stages_removed[0], Stage)
-        self.assertEqual(stage.path, stages_removed[0].path)
+        self.assertIsInstance(stage_removed, Stage)
+        self.assertEqual(stage.path, stage_removed.path)
+        self.assertFalse(os.path.isfile(self.FOO))
 
 
 class TestRemoveNonExistentFile(TestDvc):
     def test(self):
         with self.assertRaises(StageNotFoundError) as cx:
-            self.dvc.remove('non_existent_file')
-
-
-class TestRemoveFileOutsideOfRepo(TestDvc):
-    def test(self):
-        with self.assertRaises(CmdOutputOutsideOfRepoError) as cx:
-            self.dvc.remove(os.path.join(os.path.dirname(self.dvc.root_dir), self.FOO))
+            self.dvc.remove('non_existent_dvc_file')
 
 
 class TestRemoveDirectory(TestDvc):
     def test(self):
         stage_add = self.dvc.add(self.DATA_DIR)
-        stages_removed = self.dvc.remove(self.DATA_DIR)
-        self.assertEqual(len(stages_removed), 1)
-        stage_removed = stages_removed[0]
+        stage_removed = self.dvc.remove(stage_add.path)
         self.assertEqual(stage_add.path, stage_removed.path)
         self.assertFalse(os.path.exists(self.DATA_DIR))
-        self.assertFalse(os.path.exists(stage_removed.path))
+        self.assertTrue(os.path.exists(stage_removed.path))
 
 
 class TestCmdRemove(TestDvc):
     def test(self):
-        self.dvc.add(self.FOO)
+        stage = self.dvc.add(self.FOO)
         ret = main(['remove',
-                    self.FOO])
+                    stage.path])
         self.assertEqual(ret, 0)
 
         ret = main(['remove',
-                    'non-existing-file'])
+                    'non-existing-dvc-file'])
         self.assertNotEqual(ret, 0)