diff --git a/diffcore-rename.c b/diffcore-rename.c
index e2ed648176..36a98f9c49 100644
--- a/diffcore-rename.c
+++ b/diffcore-rename.c
@@ -527,6 +527,7 @@ static void update_dir_rename_counts(struct dir_rename_info *info,
 }
 
 static void initialize_dir_rename_info(struct dir_rename_info *info,
+				       struct strset *relevant_sources,
 				       struct strset *dirs_removed,
 				       struct strmap *dir_rename_count)
 {
@@ -534,7 +535,7 @@ static void initialize_dir_rename_info(struct dir_rename_info *info,
 	struct strmap_entry *entry;
 	int i;
 
-	if (!dirs_removed) {
+	if (!dirs_removed && !relevant_sources) {
 		info->setup = 0;
 		return;
 	}
@@ -549,7 +550,20 @@ static void initialize_dir_rename_info(struct dir_rename_info *info,
 	strmap_init_with_options(&info->dir_rename_guess, NULL, 0);
 
 	/* Setup info->relevant_source_dirs */
-	info->relevant_source_dirs = dirs_removed;
+	info->relevant_source_dirs = NULL;
+	if (dirs_removed || !relevant_sources) {
+		info->relevant_source_dirs = dirs_removed; /* might be NULL */
+	} else {
+		info->relevant_source_dirs = xmalloc(sizeof(struct strintmap));
+		strset_init(info->relevant_source_dirs);
+		strset_for_each_entry(relevant_sources, &iter, entry) {
+			char *dirname = get_dirname(entry->key);
+			if (!dirs_removed ||
+			    strset_contains(dirs_removed, dirname))
+				strset_add(info->relevant_source_dirs, dirname);
+			free(dirname);
+		}
+	}
 
 	/*
 	 * Loop setting up both info->idx_map, and doing setup of
@@ -627,6 +641,13 @@ static void cleanup_dir_rename_info(struct dir_rename_info *info,
 	/* dir_rename_guess */
 	strmap_clear(&info->dir_rename_guess, 1);
 
+	/* relevant_source_dirs */
+	if (info->relevant_source_dirs &&
+	    info->relevant_source_dirs != dirs_removed) {
+		strset_clear(info->relevant_source_dirs);
+		FREE_AND_NULL(info->relevant_source_dirs);
+	}
+
 	/* dir_rename_count */
 	if (!keep_dir_rename_count) {
 		partial_clear_dir_rename_count(info->dir_rename_count);
@@ -749,6 +770,7 @@ static int idx_possible_rename(char *filename, struct dir_rename_info *info)
 static int find_basename_matches(struct diff_options *options,
 				 int minimum_score,
 				 struct dir_rename_info *info,
+				 struct strset *relevant_sources,
 				 struct strset *dirs_removed)
 {
 	/*
@@ -839,6 +861,11 @@ static int find_basename_matches(struct diff_options *options,
 		intptr_t src_index;
 		intptr_t dst_index;
 
+		/* Skip irrelevant sources */
+		if (relevant_sources &&
+		    !strset_contains(relevant_sources, filename))
+			continue;
+
 		/*
 		 * If the basename is unique among remaining sources, then
 		 * src_index will equal 'i' and we can attempt to match it
@@ -991,11 +1018,12 @@ static int find_renames(struct diff_score *mx,
 	return count;
 }
 
-static void remove_unneeded_paths_from_src(int detecting_copies)
+static void remove_unneeded_paths_from_src(int detecting_copies,
+					   struct strset *interesting)
 {
 	int i, new_num_src;
 
-	if (detecting_copies)
+	if (detecting_copies && !interesting)
 		return; /* nothing to remove */
 	if (break_idx)
 		return; /* culling incompatible with break detection */
@@ -1022,12 +1050,18 @@ static void remove_unneeded_paths_from_src(int detecting_copies)
 	 *      from rename_src here.
 	 */
 	for (i = 0, new_num_src = 0; i < rename_src_nr; i++) {
+		struct diff_filespec *one = rename_src[i].p->one;
+
 		/*
 		 * renames are stored in rename_dst, so if a rename has
 		 * already been detected using this source, we can just
 		 * remove the source knowing rename_dst has its info.
 		 */
-		if (rename_src[i].p->one->rename_used)
+		if (!detecting_copies && one->rename_used)
+			continue;
+
+		/* If we don't care about the source path, skip it */
+		if (interesting && !strset_contains(interesting, one->path))
 			continue;
 
 		if (new_num_src < i)
@@ -1040,6 +1074,7 @@ static void remove_unneeded_paths_from_src(int detecting_copies)
 }
 
 void diffcore_rename_extended(struct diff_options *options,
+			      struct strset *relevant_sources,
 			      struct strset *dirs_removed,
 			      struct strmap *dir_rename_count)
 {
@@ -1060,6 +1095,8 @@ void diffcore_rename_extended(struct diff_options *options,
 	want_copies = (detect_rename == DIFF_DETECT_COPY);
 	if (dirs_removed && (break_idx || want_copies))
 		BUG("dirs_removed incompatible with break/copy detection");
+	if (break_idx && relevant_sources)
+		BUG("break detection incompatible with source specification");
 	if (!minimum_score)
 		minimum_score = DEFAULT_RENAME_SCORE;
 
@@ -1127,9 +1164,10 @@ void diffcore_rename_extended(struct diff_options *options,
 		/*
 		 * Cull sources:
 		 *   - remove ones corresponding to exact renames
+		 *   - remove ones not found in relevant_sources
 		 */
 		trace2_region_enter("diff", "cull after exact", options->repo);
-		remove_unneeded_paths_from_src(want_copies);
+		remove_unneeded_paths_from_src(want_copies, relevant_sources);
 		trace2_region_leave("diff", "cull after exact", options->repo);
 	} else {
 		/* Determine minimum score to match basenames */
@@ -1148,12 +1186,12 @@ void diffcore_rename_extended(struct diff_options *options,
 		 *   - remove ones involved in renames (found via exact match)
 		 */
 		trace2_region_enter("diff", "cull after exact", options->repo);
-		remove_unneeded_paths_from_src(want_copies);
+		remove_unneeded_paths_from_src(want_copies, NULL);
 		trace2_region_leave("diff", "cull after exact", options->repo);
 
 		/* Preparation for basename-driven matching. */
 		trace2_region_enter("diff", "dir rename setup", options->repo);
-		initialize_dir_rename_info(&info,
+		initialize_dir_rename_info(&info, relevant_sources,
 					   dirs_removed, dir_rename_count);
 		trace2_region_leave("diff", "dir rename setup", options->repo);
 
@@ -1161,15 +1199,18 @@ void diffcore_rename_extended(struct diff_options *options,
 		trace2_region_enter("diff", "basename matches", options->repo);
 		rename_count += find_basename_matches(options,
 						      min_basename_score,
-						      &info, dirs_removed);
+						      &info,
+						      relevant_sources,
+						      dirs_removed);
 		trace2_region_leave("diff", "basename matches", options->repo);
 
 		/*
 		 * Cull sources, again:
 		 *   - remove ones involved in renames (found via basenames)
+		 *   - remove ones not found in relevant_sources
 		 */
 		trace2_region_enter("diff", "cull basename", options->repo);
-		remove_unneeded_paths_from_src(want_copies);
+		remove_unneeded_paths_from_src(want_copies, relevant_sources);
 		trace2_region_leave("diff", "cull basename", options->repo);
 	}
 
@@ -1341,5 +1382,5 @@ void diffcore_rename_extended(struct diff_options *options,
 
 void diffcore_rename(struct diff_options *options)
 {
-	diffcore_rename_extended(options, NULL, NULL);
+	diffcore_rename_extended(options, NULL, NULL, NULL);
 }
diff --git a/diffcore.h b/diffcore.h
index b9a230ab7f..d76982f220 100644
--- a/diffcore.h
+++ b/diffcore.h
@@ -166,6 +166,7 @@ void partial_clear_dir_rename_count(struct strmap *dir_rename_count);
 void diffcore_break(struct repository *, int);
 void diffcore_rename(struct diff_options *);
 void diffcore_rename_extended(struct diff_options *options,
+			      struct strset *relevant_sources,
 			      struct strset *dirs_removed,
 			      struct strmap *dir_rename_count);
 void diffcore_merge_broken(void);
diff --git a/merge-ort.c b/merge-ort.c
index ba35600d4e..5e118a85ee 100644
--- a/merge-ort.c
+++ b/merge-ort.c
@@ -51,6 +51,12 @@ enum merge_side {
 	MERGE_SIDE2 = 2
 };
 
+struct traversal_callback_data {
+	unsigned long mask;
+	unsigned long dirmask;
+	struct name_entry names[3];
+};
+
 struct rename_info {
 	/*
 	 * All variables that are arrays of size 3 correspond to data tracked
@@ -88,6 +94,44 @@ struct rename_info {
 	 */
 	struct strmap dir_renames[3];
 
+	/*
+	 * relevant_sources: deleted paths for which we need rename detection
+	 *
+	 * relevant_sources is a set of deleted paths on each side of
+	 * history for which we need rename detection.  If a path is deleted
+	 * on one side of history, we need to detect if it is part of a
+	 * rename if either
+	 *    * we need to detect renames for an ancestor directory
+	 *    * the file is modified/deleted on the other side of history
+	 * If neither of those are true, we can skip rename detection for
+	 * that path.
+	 */
+	struct strset relevant_sources[3];
+
+	/*
+	 * dir_rename_mask:
+	 *   0: optimization removing unmodified potential rename source okay
+	 *   2 or 4: optimization okay, but must check for files added to dir
+	 *   7: optimization forbidden; need rename source in case of dir rename
+	 */
+	unsigned dir_rename_mask:3;
+
+	/*
+	 * callback_data_*: supporting data structures for alternate traversal
+	 *
+	 * We sometimes need to be able to traverse through all the files
+	 * in a given tree before all immediate subdirectories within that
+	 * tree.  Since traverse_trees() doesn't do that naturally, we have
+	 * a traverse_trees_wrapper() that stores any immediate
+	 * subdirectories while traversing files, then traverses the
+	 * immediate subdirectories later.  These callback_data* variables
+	 * store the information for the subdirectories so that we can do
+	 * that traversal order.
+	 */
+	struct traversal_callback_data *callback_data;
+	int callback_data_nr, callback_data_alloc;
+	char *callback_data_traverse_path;
+
 	/*
 	 * needed_limit: value needed for inexact rename detection to run
 	 *
@@ -358,6 +402,8 @@ static void clear_or_reinit_internal_opts(struct merge_options_internal *opti,
 			strmap_clear(&renames->dir_rename_count[i], 1);
 
 		strmap_func(&renames->dir_renames[i], 0);
+
+		strset_func(&renames->relevant_sources[i]);
 	}
 
 	if (!reinitialize) {
@@ -380,6 +426,12 @@ static void clear_or_reinit_internal_opts(struct merge_options_internal *opti,
 		}
 		strmap_clear(&opti->output, 0);
 	}
+
+	renames->dir_rename_mask = 0;
+
+	/* Clean out callback_data as well. */
+	FREE_AND_NULL(renames->callback_data);
+	renames->callback_data_nr = renames->callback_data_alloc = 0;
 }
 
 static int err(struct merge_options *opt, const char *err, ...)
@@ -470,6 +522,82 @@ static char *unique_path(struct strmap *existing_paths,
 
 /*** Function Grouping: functions related to collect_merge_info() ***/
 
+static int traverse_trees_wrapper_callback(int n,
+					   unsigned long mask,
+					   unsigned long dirmask,
+					   struct name_entry *names,
+					   struct traverse_info *info)
+{
+	struct merge_options *opt = info->data;
+	struct rename_info *renames = &opt->priv->renames;
+	unsigned filemask = mask & ~dirmask;
+
+	assert(n==3);
+
+	if (!renames->callback_data_traverse_path)
+		renames->callback_data_traverse_path = xstrdup(info->traverse_path);
+
+	if (filemask && filemask == renames->dir_rename_mask)
+		renames->dir_rename_mask = 0x07;
+
+	ALLOC_GROW(renames->callback_data, renames->callback_data_nr + 1,
+		   renames->callback_data_alloc);
+	renames->callback_data[renames->callback_data_nr].mask = mask;
+	renames->callback_data[renames->callback_data_nr].dirmask = dirmask;
+	COPY_ARRAY(renames->callback_data[renames->callback_data_nr].names,
+		   names, 3);
+	renames->callback_data_nr++;
+
+	return mask;
+}
+
+/*
+ * Much like traverse_trees(), BUT:
+ *   - read all the tree entries FIRST, saving them
+ *   - note that the above step provides an opportunity to compute necessary
+ *     additional details before the "real" traversal
+ *   - loop through the saved entries and call the original callback on them
+ */
+static int traverse_trees_wrapper(struct index_state *istate,
+				  int n,
+				  struct tree_desc *t,
+				  struct traverse_info *info)
+{
+	int ret, i, old_offset;
+	traverse_callback_t old_fn;
+	char *old_callback_data_traverse_path;
+	struct merge_options *opt = info->data;
+	struct rename_info *renames = &opt->priv->renames;
+
+	assert(renames->dir_rename_mask == 2 || renames->dir_rename_mask == 4);
+
+	old_callback_data_traverse_path = renames->callback_data_traverse_path;
+	old_fn = info->fn;
+	old_offset = renames->callback_data_nr;
+
+	renames->callback_data_traverse_path = NULL;
+	info->fn = traverse_trees_wrapper_callback;
+	ret = traverse_trees(istate, n, t, info);
+	if (ret < 0)
+		return ret;
+
+	info->traverse_path = renames->callback_data_traverse_path;
+	info->fn = old_fn;
+	for (i = old_offset; i < renames->callback_data_nr; ++i) {
+		info->fn(n,
+			 renames->callback_data[i].mask,
+			 renames->callback_data[i].dirmask,
+			 renames->callback_data[i].names,
+			 info);
+	}
+
+	renames->callback_data_nr = old_offset;
+	free(renames->callback_data_traverse_path);
+	renames->callback_data_traverse_path = old_callback_data_traverse_path;
+	info->traverse_path = NULL;
+	return 0;
+}
+
 static void setup_path_info(struct merge_options *opt,
 			    struct string_list_item *result,
 			    const char *current_dir_name,
@@ -533,12 +661,22 @@ static void add_pair(struct merge_options *opt,
 		     struct name_entry *names,
 		     const char *pathname,
 		     unsigned side,
-		     unsigned is_add /* if false, is_delete */)
+		     unsigned is_add /* if false, is_delete */,
+		     unsigned match_mask,
+		     unsigned dir_rename_mask)
 {
 	struct diff_filespec *one, *two;
 	struct rename_info *renames = &opt->priv->renames;
 	int names_idx = is_add ? side : 0;
 
+	if (!is_add) {
+		unsigned content_relevant = (match_mask == 0);
+		unsigned location_relevant = (dir_rename_mask == 0x07);
+
+		if (content_relevant || location_relevant)
+			strset_add(&renames->relevant_sources[side], pathname);
+	}
+
 	one = alloc_filespec(pathname);
 	two = alloc_filespec(pathname);
 	fill_filespec(is_add ? two : one,
@@ -557,6 +695,36 @@ static void collect_rename_info(struct merge_options *opt,
 	struct rename_info *renames = &opt->priv->renames;
 	unsigned side;
 
+	/*
+	 * Update dir_rename_mask (determines ignore-rename-source validity)
+	 *
+	 * dir_rename_mask helps us keep track of when directory rename
+	 * detection may be relevant.  Basically, whenver a directory is
+	 * removed on one side of history, and a file is added to that
+	 * directory on the other side of history, directory rename
+	 * detection is relevant (meaning we have to detect renames for all
+	 * files within that directory to deduce where the directory
+	 * moved).  Also, whenever a directory needs directory rename
+	 * detection, due to the "majority rules" choice for where to move
+	 * it (see t6423 testcase 1f), we also need to detect renames for
+	 * all files within subdirectories of that directory as well.
+	 *
+	 * Here we haven't looked at files within the directory yet, we are
+	 * just looking at the directory itself.  So, if we aren't yet in
+	 * a case where a parent directory needed directory rename detection
+	 * (i.e. dir_rename_mask != 0x07), and if the directory was removed
+	 * on one side of history, record the mask of the other side of
+	 * history in dir_rename_mask.
+	 */
+	if (renames->dir_rename_mask != 0x07 &&
+	    (dirmask == 3 || dirmask == 5)) {
+		/* simple sanity check */
+		assert(renames->dir_rename_mask == 0 ||
+		       renames->dir_rename_mask == (dirmask & ~1));
+		/* update dir_rename_mask; have it record mask of new side */
+		renames->dir_rename_mask = (dirmask & ~1);
+	}
+
 	/* Update dirs_removed, as needed */
 	if (dirmask == 1 || dirmask == 3 || dirmask == 5) {
 		/* absent_mask = 0x07 - dirmask; sides = absent_mask/2 */
@@ -575,11 +743,15 @@ static void collect_rename_info(struct merge_options *opt,
 
 		/* Check for deletion on side */
 		if ((filemask & 1) && !(filemask & side_mask))
-			add_pair(opt, names, fullname, side, 0 /* delete */);
+			add_pair(opt, names, fullname, side, 0 /* delete */,
+				 match_mask & filemask,
+				 renames->dir_rename_mask);
 
 		/* Check for addition on side */
 		if (!(filemask & 1) && (filemask & side_mask))
-			add_pair(opt, names, fullname, side, 1 /* add */);
+			add_pair(opt, names, fullname, side, 1 /* add */,
+				 match_mask & filemask,
+				 renames->dir_rename_mask);
 	}
 }
 
@@ -597,12 +769,14 @@ static int collect_merge_info_callback(int n,
 	 */
 	struct merge_options *opt = info->data;
 	struct merge_options_internal *opti = opt->priv;
+	struct rename_info *renames = &opt->priv->renames;
 	struct string_list_item pi;  /* Path Info */
 	struct conflict_info *ci; /* typed alias to pi.util (which is void*) */
 	struct name_entry *p;
 	size_t len;
 	char *fullpath;
 	const char *dirname = opti->current_dir_name;
+	unsigned prev_dir_rename_mask = renames->dir_rename_mask;
 	unsigned filemask = mask & ~dirmask;
 	unsigned match_mask = 0; /* will be updated below */
 	unsigned mbase_null = !(mask & 1);
@@ -743,8 +917,13 @@ static int collect_merge_info_callback(int n,
 
 		original_dir_name = opti->current_dir_name;
 		opti->current_dir_name = pi.string;
-		ret = traverse_trees(NULL, 3, t, &newinfo);
+		if (renames->dir_rename_mask == 0 ||
+		    renames->dir_rename_mask == 0x07)
+			ret = traverse_trees(NULL, 3, t, &newinfo);
+		else
+			ret = traverse_trees_wrapper(NULL, 3, t, &newinfo);
 		opti->current_dir_name = original_dir_name;
+		renames->dir_rename_mask = prev_dir_rename_mask;
 
 		for (i = MERGE_BASE; i <= MERGE_SIDE2; i++)
 			free(buf[i]);
@@ -1977,6 +2156,19 @@ static int process_renames(struct merge_options *opt,
 	return clean_merge;
 }
 
+static inline int possible_side_renames(struct rename_info *renames,
+					unsigned side_index)
+{
+	return renames->pairs[side_index].nr > 0 &&
+	       !strset_empty(&renames->relevant_sources[side_index]);
+}
+
+static inline int possible_renames(struct rename_info *renames)
+{
+	return possible_side_renames(renames, 1) ||
+	       possible_side_renames(renames, 2);
+}
+
 static void resolve_diffpair_statuses(struct diff_queue_struct *q)
 {
 	/*
@@ -2013,6 +2205,16 @@ static void detect_regular_renames(struct merge_options *opt,
 	struct diff_options diff_opts;
 	struct rename_info *renames = &opt->priv->renames;
 
+	if (!possible_side_renames(renames, side_index)) {
+		/*
+		 * No rename detection needed for this side, but we still need
+		 * to make sure 'adds' are marked correctly in case the other
+		 * side had directory renames.
+		 */
+		resolve_diffpair_statuses(&renames->pairs[side_index]);
+		return;
+	}
+
 	repo_diff_setup(opt->repo, &diff_opts);
 	diff_opts.flags.recursive = 1;
 	diff_opts.flags.rename_empty = 0;
@@ -2028,6 +2230,7 @@ static void detect_regular_renames(struct merge_options *opt,
 	diff_queued_diff = renames->pairs[side_index];
 	trace2_region_enter("diff", "diffcore_rename", opt->repo);
 	diffcore_rename_extended(&diff_opts,
+				 &renames->relevant_sources[side_index],
 				 &renames->dirs_removed[side_index],
 				 &renames->dir_rename_count[side_index]);
 	trace2_region_leave("diff", "diffcore_rename", opt->repo);
@@ -2129,6 +2332,8 @@ static int detect_and_process_renames(struct merge_options *opt,
 	int need_dir_renames, s, clean = 1;
 
 	memset(&combined, 0, sizeof(combined));
+	if (!possible_renames(renames))
+		goto cleanup;
 
 	trace2_region_enter("merge", "regular renames", opt->repo);
 	detect_regular_renames(opt, MERGE_SIDE1);
@@ -2163,6 +2368,25 @@ static int detect_and_process_renames(struct merge_options *opt,
 	clean &= process_renames(opt, &combined);
 	trace2_region_leave("merge", "process renames", opt->repo);
 
+	goto simple_cleanup; /* collect_renames() handles some of cleanup */
+
+cleanup:
+	/*
+	 * Free now unneeded filepairs, which would have been handled
+	 * in collect_renames() normally but we skipped that code.
+	 */
+	for (s = MERGE_SIDE1; s <= MERGE_SIDE2; s++) {
+		struct diff_queue_struct *side_pairs;
+		int i;
+
+		side_pairs = &renames->pairs[s];
+		for (i = 0; i < side_pairs->nr; ++i) {
+			struct diff_filepair *p = side_pairs->queue[i];
+			diff_free_filepair(p);
+		}
+	}
+
+simple_cleanup:
 	/* Free memory for renames->pairs[] and combined */
 	for (s = MERGE_SIDE1; s <= MERGE_SIDE2; s++) {
 		free(renames->pairs[s].queue);
@@ -3226,6 +3450,8 @@ static void merge_start(struct merge_options *opt, struct merge_result *result)
 					 NULL, 1);
 		strmap_init_with_options(&renames->dir_renames[i],
 					 NULL, 0);
+		strset_init_with_options(&renames->relevant_sources[i],
+					 NULL, 0);
 	}
 
 	/*
diff --git a/t/t6423-merge-rename-directories.sh b/t/t6423-merge-rename-directories.sh
index 5d3b711fe6..379aac0103 100755
--- a/t/t6423-merge-rename-directories.sh
+++ b/t/t6423-merge-rename-directories.sh
@@ -4895,6 +4895,77 @@ test_expect_merge_algorithm failure success '12f: Trivial directory resolve, cac
 	)
 '
 
+# Testcase 12g, Testcase with two kinds of "relevant" renames
+#   Commit O: somefile_O, subdir/{a_O,b_O}
+#   Commit A: somefile_A, subdir/{a_O,b_O,c_A}
+#   Commit B: newfile_B,  newdir/{a_B,b_B}
+#   Expected: newfile_{merged}, newdir/{a_B,b_B,c_A}
+
+test_setup_12g () {
+	test_create_repo 12g &&
+	(
+		cd 12g &&
+
+		mkdir -p subdir &&
+		test_write_lines upon a time there was a >somefile &&
+		test_write_lines 1 2 3 4 5 6 7 8 9 10 >subdir/a &&
+		test_write_lines one two three four five six >subdir/b &&
+		git add . &&
+		test_tick &&
+		git commit -m "O" &&
+
+		git branch O &&
+		git branch A &&
+		git branch B &&
+
+		git switch A &&
+		test_write_lines once upon a time there was a >somefile &&
+		> subdir/c &&
+		git add somefile subdir/c &&
+		test_tick &&
+		git commit -m "A" &&
+
+		git checkout B &&
+		git mv somefile newfile &&
+		git mv subdir newdir &&
+		echo repo >>newfile &&
+		test_write_lines 1 2 3 4 5 6 7 8 9 10 11 >newdir/a &&
+		test_write_lines one two three four five six seven >newdir/b &&
+		git add newfile newdir &&
+		test_tick &&
+		git commit -m "B"
+	)
+}
+
+test_expect_success '12g: Testcase with two kinds of "relevant" renames' '
+	test_setup_12g &&
+	(
+		cd 12g &&
+
+		git checkout A^0 &&
+
+		git -c merge.directoryRenames=true merge -s recursive B^0 &&
+
+		test_write_lines once upon a time there was a repo >expect &&
+		test_cmp expect newfile &&
+
+		git ls-files -s >out &&
+		test_line_count = 4 out &&
+
+		git rev-parse >actual \
+			HEAD:newdir/a  HEAD:newdir/b   HEAD:newdir/c &&
+		git rev-parse >expect \
+			B:newdir/a     B:newdir/b      A:subdir/c &&
+		test_cmp expect actual &&
+
+		test_must_fail git rev-parse HEAD:subdir/a &&
+		test_must_fail git rev-parse HEAD:subdir/b &&
+		test_must_fail git rev-parse HEAD:subdir/c &&
+		test_path_is_missing subdir/ &&
+		test_path_is_file newdir/c
+	)
+'
+
 ###########################################################################
 # SECTION 13: Checking informational and conflict messages
 #