This might occur if you try to load a non-proxied object with session.load() or you load a proxied object and later access the proxy. It may also occur when loading mapped collections which are not eagerly fetched.
This means just what it says - Hibernate expected to have a row with a certain id in the database, and did however not find it.
If you are using a nonexistant id for a load(), you will get this exception. Note that if you are using proxies, this may occur later on, when the proxy is first "broken".
If you map for example a many-to-one relationship, and the table containing the objects on the "many" side contains a foreign key to a non-existant row of the "one" side table, you will get such an exception. This will only happen if the collection is not fetched eagerly.
The hibernate session internally memorizes some state. For example it internally stores ids which it assumes are already deleted from the database. So if you make the session believe somehow an object with a certain id has been deleted, and later try to load it again, you will get this exception without Hibernate even trying to access the database. So be careful with that.