diff --git a/repository.c b/repository.c
index 34610c5a33e013..dddee32258f848 100644
--- a/repository.c
+++ b/repository.c
@@ -301,6 +301,13 @@ int repo_read_index(struct repository *repo)
 	if (repo->settings.command_requires_full_index)
 		ensure_full_index(repo->index);
 
+	/*
+	 * If sparse checkouts are in use, check whether paths with the
+	 * SKIP_WORKTREE attribute are missing from the worktree; if not,
+	 * clear that attribute for that path.
+	 */
+	clear_skip_worktree_from_present_files(repo->index);
+
 	return res;
 }
 
diff --git a/sparse-index.c b/sparse-index.c
index a1d505d50e98cf..b82648b10ee66e 100644
--- a/sparse-index.c
+++ b/sparse-index.c
@@ -341,6 +341,27 @@ void ensure_correct_sparsity(struct index_state *istate)
 		ensure_full_index(istate);
 }
 
+void clear_skip_worktree_from_present_files(struct index_state *istate)
+{
+	int i;
+	if (!core_apply_sparse_checkout)
+		return;
+
+restart:
+	for (i = 0; i < istate->cache_nr; i++) {
+		struct cache_entry *ce = istate->cache[i];
+		struct stat st;
+
+		if (ce_skip_worktree(ce) && !lstat(ce->name, &st)) {
+			if (S_ISSPARSEDIR(ce->ce_mode)) {
+				ensure_full_index(istate);
+				goto restart;
+			}
+			ce->ce_flags &= ~CE_SKIP_WORKTREE;
+		}
+	}
+}
+
 /*
  * This static global helps avoid infinite recursion between
  * expand_to_path() and index_file_exists().
diff --git a/sparse-index.h b/sparse-index.h
index 656bd835b25e06..633d4fb7e318af 100644
--- a/sparse-index.h
+++ b/sparse-index.h
@@ -5,6 +5,7 @@ struct index_state;
 #define SPARSE_INDEX_MEMORY_ONLY (1 << 0)
 int convert_to_sparse(struct index_state *istate, int flags);
 void ensure_correct_sparsity(struct index_state *istate);
+void clear_skip_worktree_from_present_files(struct index_state *istate);
 
 /*
  * Some places in the codebase expect to search for a specific path.
diff --git a/t/t1011-read-tree-sparse-checkout.sh b/t/t1011-read-tree-sparse-checkout.sh
index 4ed0885bf2fa3d..dd957be1b78c56 100755
--- a/t/t1011-read-tree-sparse-checkout.sh
+++ b/t/t1011-read-tree-sparse-checkout.sh
@@ -212,7 +212,7 @@ test_expect_success 'read-tree updates worktree, dirty case' '
 	echo sub/added >.git/info/sparse-checkout &&
 	git checkout -f top &&
 	echo dirty >init.t &&
-	read_tree_u_must_succeed -m -u HEAD^ &&
+	read_tree_u_must_fail -m -u HEAD^ &&
 	grep -q dirty init.t &&
 	rm init.t
 '
diff --git a/t/t1092-sparse-checkout-compatibility.sh b/t/t1092-sparse-checkout-compatibility.sh
index f3a059e5af557a..2c44c00db25fec 100755
--- a/t/t1092-sparse-checkout-compatibility.sh
+++ b/t/t1092-sparse-checkout-compatibility.sh
@@ -367,7 +367,7 @@ test_expect_success 'status/add: outside sparse cone' '
 	write_script edit-contents <<-\EOF &&
 	echo text >>$1
 	EOF
-	run_on_sparse ../edit-contents folder1/a &&
+	run_on_all ../edit-contents folder1/a &&
 	run_on_all ../edit-contents folder1/new &&
 
 	test_sparse_match git status --porcelain=v2 &&
@@ -376,8 +376,8 @@ test_expect_success 'status/add: outside sparse cone' '
 	test_sparse_match test_must_fail git add folder1/a &&
 	grep "Disable or modify the sparsity rules" sparse-checkout-err &&
 	test_sparse_unstaged folder1/a &&
-	test_sparse_match test_must_fail git add --refresh folder1/a &&
-	grep "Disable or modify the sparsity rules" sparse-checkout-err &&
+	test_all_match git add --refresh folder1/a &&
+	test_must_be_empty sparse-checkout-err &&
 	test_sparse_unstaged folder1/a &&
 	test_sparse_match test_must_fail git add folder1/new &&
 	grep "Disable or modify the sparsity rules" sparse-checkout-err &&
@@ -643,11 +643,11 @@ test_expect_success 'update-index modify outside sparse definition' '
 	run_on_sparse cp ../initial-repo/folder1/a folder1/a &&
 	run_on_all ../edit-contents folder1/a &&
 
-	# If file has skip-worktree enabled, update-index does not modify the
-	# index entry
-	test_sparse_match git update-index folder1/a &&
-	test_sparse_match git status --porcelain=v2 &&
-	test_must_be_empty sparse-checkout-out &&
+	# If file has skip-worktree enabled, but the file is present, it is
+	# treated the same as if skip-worktree is disabled
+	test_all_match git status --porcelain=v2 &&
+	test_all_match git update-index folder1/a &&
+	test_all_match git status --porcelain=v2 &&
 
 	# When skip-worktree is disabled (even on files outside sparse cone), file
 	# is updated in the index
diff --git a/t/t3705-add-sparse-checkout.sh b/t/t3705-add-sparse-checkout.sh
index 81f3384eeed4bb..95609046c61d37 100755
--- a/t/t3705-add-sparse-checkout.sh
+++ b/t/t3705-add-sparse-checkout.sh
@@ -19,6 +19,7 @@ setup_sparse_entry () {
 	fi &&
 	git add sparse_entry &&
 	git update-index --skip-worktree sparse_entry &&
+	git config core.sparseCheckout false &&
 	git commit --allow-empty -m "ensure sparse_entry exists at HEAD" &&
 	SPARSE_ENTRY_BLOB=$(git rev-parse :sparse_entry)
 }
@@ -126,6 +127,7 @@ test_expect_success 'git add --chmod does not update sparse entries' '
 '
 
 test_expect_success 'git add --renormalize does not update sparse entries' '
+	test_when_finished rm .gitattributes &&
 	test_config core.autocrlf false &&
 	setup_sparse_entry "LINEONE\r\nLINETWO\r\n" &&
 	echo "sparse_entry text=auto" >.gitattributes &&
diff --git a/t/t6428-merge-conflicts-sparse.sh b/t/t6428-merge-conflicts-sparse.sh
index 7e8bf497f821da..142c9aaabc5309 100755
--- a/t/t6428-merge-conflicts-sparse.sh
+++ b/t/t6428-merge-conflicts-sparse.sh
@@ -112,7 +112,7 @@ test_expect_success 'conflicting entries written to worktree even if sparse' '
 	)
 '
 
-test_expect_merge_algorithm failure success 'present-despite-SKIP_WORKTREE handled reasonably' '
+test_expect_success 'present-despite-SKIP_WORKTREE handled reasonably' '
 	test_setup_numerals in_the_way &&
 	(
 		cd numerals_in_the_way &&
@@ -132,26 +132,13 @@ test_expect_merge_algorithm failure success 'present-despite-SKIP_WORKTREE handl
 
 		test_must_fail git merge -s recursive B^0 &&
 
-		git ls-files -t >index_files &&
-		test_cmp expected-index index_files &&
+		test_path_is_missing .git/MERGE_HEAD &&
 
-		test_path_is_file README &&
 		test_path_is_file numerals &&
 
-		test_cmp expected-merge numerals &&
-
-		# There should still be a file with "foobar" in it
-		grep foobar * &&
-
-		# 5 other files:
-		#   * expected-merge
-		#   * expected-index
-		#   * index_files
-		#   * others
-		#   * whatever name was given to the numerals file that had
-		#     "foobar" in it
-		git ls-files -o >others &&
-		test_line_count = 5 others
+		# numerals should still have "foobar" in it
+		echo foobar >expect &&
+		test_cmp expect numerals
 	)
 '
 
diff --git a/t/t7012-skip-worktree-writing.sh b/t/t7012-skip-worktree-writing.sh
index a1080b94e388ae..cb9f1a6981eb5f 100755
--- a/t/t7012-skip-worktree-writing.sh
+++ b/t/t7012-skip-worktree-writing.sh
@@ -171,50 +171,20 @@ test_expect_success 'stash restore in sparse checkout' '
 
 		# Put a file in the working directory in the way
 		echo in the way >modified &&
-		git stash apply &&
+		test_must_fail git stash apply 2>error&&
 
-		# Ensure stash vivifies modifies paths...
-		cat >expect <<-EOF &&
-		H addme
-		H modified
-		H removeme
-		H subdir/A
-		S untouched
-		EOF
-		git ls-files -t >actual &&
-		test_cmp expect actual &&
+		grep "changes.*would be overwritten by merge" error &&
 
-		# ...and that the paths show up in status as changed...
-		cat >expect <<-EOF &&
-		A  addme
-		 M modified
-		 D removeme
-		 M subdir/A
-		?? actual
-		?? expect
-		?? modified.stash.XXXXXX
-		EOF
-		git status --porcelain | \
-			sed -e s/stash......./stash.XXXXXX/ >actual &&
-		test_cmp expect actual &&
+		echo in the way >expect &&
+		test_cmp expect modified &&
+		git diff --quiet HEAD ":!modified" &&
 
 		# ...and that working directory reflects the files correctly
-		test_path_is_file    addme &&
+		test_path_is_missing addme &&
 		test_path_is_file    modified &&
 		test_path_is_missing removeme &&
 		test_path_is_file    subdir/A &&
-		test_path_is_missing untouched &&
-
-		# ...including that we have the expected "modified" file...
-		cat >expect <<-EOF &&
-		modified
-		tweaked
-		EOF
-		test_cmp expect modified &&
-
-		# ...and that the other "modified" file is still present...
-		echo in the way >expect &&
-		test_cmp expect modified.stash.*
+		test_path_is_missing untouched
 	)
 '
 
diff --git a/t/t7817-grep-sparse-checkout.sh b/t/t7817-grep-sparse-checkout.sh
index 590b99bbb6f7bb..eb595645657fad 100755
--- a/t/t7817-grep-sparse-checkout.sh
+++ b/t/t7817-grep-sparse-checkout.sh
@@ -83,10 +83,13 @@ test_expect_success 'setup' '
 
 # The test below covers a special case: the sparsity patterns exclude '/b' and
 # sparse checkout is enabled, but the path exists in the working tree (e.g.
-# manually created after `git sparse-checkout init`). git grep should skip it.
+# manually created after `git sparse-checkout init`).  Although b is marked
+# as SKIP_WORKTREE, git grep should notice it IS present in the worktree and
+# report it.
 test_expect_success 'working tree grep honors sparse checkout' '
 	cat >expect <<-EOF &&
 	a:text
+	b:new-text
 	EOF
 	test_when_finished "rm -f b" &&
 	echo "new-text" >b &&
@@ -126,12 +129,16 @@ test_expect_success 'grep --cached searches entries with the SKIP_WORKTREE bit'
 '
 
 # Note that sub2/ is present in the worktree but it is excluded by the sparsity
-# patterns, so grep should not recurse into it.
+# patterns.  We also explicitly mark it as SKIP_WORKTREE in case it got cleared
+# by previous git commands.  Thus sub2 starts as SKIP_WORKTREE but since it is
+# present in the working tree, grep should recurse into it.
 test_expect_success 'grep --recurse-submodules honors sparse checkout in submodule' '
 	cat >expect <<-EOF &&
 	a:text
 	sub/B/b:text
+	sub2/a:text
 	EOF
+	git update-index --skip-worktree sub2 &&
 	git grep --recurse-submodules "text" >actual &&
 	test_cmp expect actual
 '