diff --git a/merge-recursive.c b/merge-recursive.c
index 85b4e58478..d00b274381 100644
--- a/merge-recursive.c
+++ b/merge-recursive.c
@@ -1901,8 +1901,9 @@ static int process_entry(struct merge_options *o,
 			oid = b_oid;
 			conf = _("directory/file");
 		}
-		if (dir_in_way(path, !o->call_depth,
-			       S_ISGITLINK(a_mode))) {
+		if (dir_in_way(path,
+			       !o->call_depth && !S_ISGITLINK(a_mode),
+			       0)) {
 			char *new_path = unique_path(o, path, add_branch);
 			clean_merge = 0;
 			output(o, 1, _("CONFLICT (%s): There is a directory with name %s in %s. "
diff --git a/t/t3512-cherry-pick-submodule.sh b/t/t3512-cherry-pick-submodule.sh
index 6863b7bb6f..ce48c4fcca 100755
--- a/t/t3512-cherry-pick-submodule.sh
+++ b/t/t3512-cherry-pick-submodule.sh
@@ -10,4 +10,40 @@ KNOWN_FAILURE_NOFF_MERGE_DOESNT_CREATE_EMPTY_SUBMODULE_DIR=1
 KNOWN_FAILURE_NOFF_MERGE_ATTEMPTS_TO_MERGE_REMOVED_SUBMODULE_FILES=1
 test_submodule_switch "git cherry-pick"
 
+test_expect_success 'unrelated submodule/file conflict is ignored' '
+	test_create_repo sub &&
+
+	touch sub/file &&
+	git -C sub add file &&
+	git -C sub commit -m "add a file in a submodule" &&
+
+	test_create_repo a_repo &&
+	(
+		cd a_repo &&
+		>a_file &&
+		git add a_file &&
+		git commit -m "add a file" &&
+
+		git branch test &&
+		git checkout test &&
+
+		mkdir sub &&
+		>sub/content &&
+		git add sub/content &&
+		git commit -m "add a regular folder with name sub" &&
+
+		echo "123" >a_file &&
+		git add a_file &&
+		git commit -m "modify a file" &&
+
+		git checkout master &&
+
+		git submodule add ../sub sub &&
+		git submodule update sub &&
+		git commit -m "add a submodule info folder with name sub" &&
+
+		git cherry-pick test
+	)
+'
+
 test_done