diff --git a/sequencer.c b/sequencer.c
index e528225e787f4e..24a62d5aa5d333 100644
--- a/sequencer.c
+++ b/sequencer.c
@@ -3708,10 +3708,11 @@ static const char *reflog_message(struct replay_opts *opts,
 {
 	va_list ap;
 	static struct strbuf buf = STRBUF_INIT;
+	char *reflog_action = getenv(GIT_REFLOG_ACTION);
 
 	va_start(ap, fmt);
 	strbuf_reset(&buf);
-	strbuf_addstr(&buf, action_name(opts));
+	strbuf_addstr(&buf, reflog_action ? reflog_action : action_name(opts));
 	if (sub_action)
 		strbuf_addf(&buf, " (%s)", sub_action);
 	if (fmt) {
@@ -3799,8 +3800,11 @@ static int pick_commits(struct repository *r,
 			struct replay_opts *opts)
 {
 	int res = 0, reschedule = 0;
+	char *prev_reflog_action;
 
+	/* Note that 0 for 3rd parameter of setenv means set only if not set */
 	setenv(GIT_REFLOG_ACTION, action_name(opts), 0);
+	prev_reflog_action = xstrdup(getenv(GIT_REFLOG_ACTION));
 	if (opts->allow_ff)
 		assert(!(opts->signoff || opts->no_commit ||
 				opts->record_origin || opts->edit));
@@ -3845,12 +3849,14 @@ static int pick_commits(struct repository *r,
 		}
 		if (item->command <= TODO_SQUASH) {
 			if (is_rebase_i(opts))
-				setenv("GIT_REFLOG_ACTION", reflog_message(opts,
+				setenv(GIT_REFLOG_ACTION, reflog_message(opts,
 					command_to_string(item->command), NULL),
 					1);
 			res = do_pick_commit(r, item->command, item->commit,
 					     opts, is_final_fixup(todo_list),
 					     &check_todo);
+			if (is_rebase_i(opts))
+				setenv(GIT_REFLOG_ACTION, prev_reflog_action, 1);
 			if (is_rebase_i(opts) && res < 0) {
 				/* Reschedule */
 				advise(_(rescheduled_advice),
diff --git a/t/t3406-rebase-message.sh b/t/t3406-rebase-message.sh
index 61b76f3301982d..927a4f4a4e4a2d 100755
--- a/t/t3406-rebase-message.sh
+++ b/t/t3406-rebase-message.sh
@@ -89,22 +89,22 @@ test_expect_success 'GIT_REFLOG_ACTION' '
 	git checkout -b reflog-topic start &&
 	test_commit reflog-to-rebase &&
 
-	git rebase --apply reflog-onto &&
+	git rebase reflog-onto &&
 	git log -g --format=%gs -3 >actual &&
 	cat >expect <<-\EOF &&
-	rebase finished: returning to refs/heads/reflog-topic
-	rebase: reflog-to-rebase
-	rebase: checkout reflog-onto
+	rebase (finish): returning to refs/heads/reflog-topic
+	rebase (pick): reflog-to-rebase
+	rebase (start): checkout reflog-onto
 	EOF
 	test_cmp expect actual &&
 
 	git checkout -b reflog-prefix reflog-to-rebase &&
-	GIT_REFLOG_ACTION=change-the-reflog git rebase --apply reflog-onto &&
+	GIT_REFLOG_ACTION=change-the-reflog git rebase reflog-onto &&
 	git log -g --format=%gs -3 >actual &&
 	cat >expect <<-\EOF &&
-	rebase finished: returning to refs/heads/reflog-prefix
-	change-the-reflog: reflog-to-rebase
-	change-the-reflog: checkout reflog-onto
+	change-the-reflog (finish): returning to refs/heads/reflog-prefix
+	change-the-reflog (pick): reflog-to-rebase
+	change-the-reflog (start): checkout reflog-onto
 	EOF
 	test_cmp expect actual
 '