diff --git a/t/t5500-fetch-pack.sh b/t/t5500-fetch-pack.sh
index e80a2af348..e202383e4f 100755
--- a/t/t5500-fetch-pack.sh
+++ b/t/t5500-fetch-pack.sh
@@ -331,6 +331,15 @@ EOF
 	test_cmp count7.expected count7.actual
 '
 
+test_expect_success 'clone shallow with packed refs' '
+	git pack-refs --all &&
+	git clone --depth 1 --branch A "file://$(pwd)/." shallow8 &&
+	echo "in-pack: 4" > count8.expected &&
+	GIT_DIR=shallow8/.git git count-objects -v |
+		grep "^in-pack" > count8.actual &&
+	test_cmp count8.expected count8.actual
+'
+
 test_expect_success 'setup tests for the --stdin parameter' '
 	for head in C D E F
 	do
diff --git a/upload-pack.c b/upload-pack.c
index e29d5d2085..b6ec605b09 100644
--- a/upload-pack.c
+++ b/upload-pack.c
@@ -639,7 +639,7 @@ static void receive_needs(void)
 			use_include_tag = 1;
 
 		o = lookup_object(sha1_buf);
-		if (!o)
+		if (!o || !parse_object(o->sha1))
 			die("git upload-pack: not our ref %s",
 			    sha1_to_hex(sha1_buf));
 		if (!(o->flags & WANTED)) {