diff --git a/builtin/apply.c b/builtin/apply.c
index 27fb6e20ab..ad0b87510b 100644
--- a/builtin/apply.c
+++ b/builtin/apply.c
@@ -4224,7 +4224,7 @@ static void create_one_file(struct apply_state *state,
 	die_errno(_("unable to write file '%s' mode %o"), path, mode);
 }
 
-static void add_conflicted_stages_file(struct apply_state *state,
+static int add_conflicted_stages_file(struct apply_state *state,
 				       struct patch *patch)
 {
 	int stage, namelen;
@@ -4232,7 +4232,7 @@ static void add_conflicted_stages_file(struct apply_state *state,
 	struct cache_entry *ce;
 
 	if (!state->update_index)
-		return;
+		return 0;
 	namelen = strlen(patch->new_name);
 	ce_size = cache_entry_size(namelen);
 	mode = patch->new_mode ? patch->new_mode : (S_IFREG | 0644);
@@ -4247,9 +4247,14 @@ static void add_conflicted_stages_file(struct apply_state *state,
 		ce->ce_flags = create_ce_flags(stage);
 		ce->ce_namelen = namelen;
 		hashcpy(ce->sha1, patch->threeway_stage[stage - 1].hash);
-		if (add_cache_entry(ce, ADD_CACHE_OK_TO_ADD) < 0)
-			die(_("unable to add cache entry for %s"), patch->new_name);
+		if (add_cache_entry(ce, ADD_CACHE_OK_TO_ADD) < 0) {
+			free(ce);
+			return error(_("unable to add cache entry for %s"),
+				     patch->new_name);
+		}
 	}
+
+	return 0;
 }
 
 static void create_file(struct apply_state *state, struct patch *patch)
@@ -4263,9 +4268,10 @@ static void create_file(struct apply_state *state, struct patch *patch)
 		mode = S_IFREG | 0644;
 	create_one_file(state, path, mode, buf, size);
 
-	if (patch->conflicted_threeway)
-		add_conflicted_stages_file(state, patch);
-	else
+	if (patch->conflicted_threeway) {
+		if (add_conflicted_stages_file(state, patch))
+			exit(128);
+	} else
 		add_index_file(state, path, mode, buf, size);
 }