diff --git a/dir.c b/dir.c
index a42cc2aa8ce150..357f9593c41e97 100644
--- a/dir.c
+++ b/dir.c
@@ -1990,6 +1990,15 @@ static enum path_treatment read_directory_recursive(struct dir_struct *dir,
 	struct untracked_cache_dir *untracked, int check_only,
 	int stop_at_first_file, const struct pathspec *pathspec)
 {
+	/*
+	 * WARNING WARNING WARNING:
+	 *
+	 * Any updates to the traversal logic here may need corresponding
+	 * updates in treat_leading_path().  See the commit message for the
+	 * commit adding this warning as well as the commit preceding it
+	 * for details.
+	 */
+
 	struct cached_dir cdir;
 	enum path_treatment state, subdir_state, dir_state = path_none;
 	struct strbuf path = STRBUF_INIT;
@@ -2101,6 +2110,15 @@ static int treat_leading_path(struct dir_struct *dir,
 			      const char *path, int len,
 			      const struct pathspec *pathspec)
 {
+	/*
+	 * WARNING WARNING WARNING:
+	 *
+	 * Any updates to the traversal logic here may need corresponding
+	 * updates in treat_leading_path().  See the commit message for the
+	 * commit adding this warning as well as the commit preceding it
+	 * for details.
+	 */
+
 	struct strbuf sb = STRBUF_INIT;
 	int prevlen, baselen;
 	const char *cp;
@@ -2166,6 +2184,18 @@ static int treat_leading_path(struct dir_struct *dir,
 		de->d_name[baselen-prevlen] = '\0';
 		state = treat_path(dir, NULL, &cdir, istate, &sb, prevlen,
 				    pathspec);
+		if (state == path_untracked &&
+		    get_dtype(cdir.de, istate, sb.buf, sb.len) == DT_DIR &&
+		    (dir->flags & DIR_SHOW_IGNORED_TOO ||
+		     do_match_pathspec(istate, pathspec, sb.buf, sb.len,
+				       baselen, NULL, DO_MATCH_LEADING_PATHSPEC) == MATCHED_RECURSIVELY_LEADING_PATHSPEC)) {
+			add_path_to_appropriate_result_list(dir, NULL, &cdir,
+							    istate,
+							    &sb, baselen,
+							    pathspec, state);
+			state = path_recurse;
+		}
+
 		if (state != path_recurse)
 			break; /* do not recurse into it */
 		if (len <= baselen)
diff --git a/t/t3011-common-prefixes-and-directory-traversal.sh b/t/t3011-common-prefixes-and-directory-traversal.sh
index 098fddc75b0fe1..3da5b2b6e795ec 100755
--- a/t/t3011-common-prefixes-and-directory-traversal.sh
+++ b/t/t3011-common-prefixes-and-directory-traversal.sh
@@ -195,7 +195,7 @@ test_expect_success 'git ls-files -o consistent between one or two dirs' '
 
 # ls-files doesn't have a way to request showing both untracked and ignored
 # files at the same time, so use `git status --ignored`
-test_expect_failure 'git status --ignored shows same files under dir with or without pathspec' '
+test_expect_success 'git status --ignored shows same files under dir with or without pathspec' '
 	cat <<-EOF >expect &&
 	?? an_untracked_dir/
 	!! an_untracked_dir/ignored
diff --git a/t/t7061-wtstatus-ignore.sh b/t/t7061-wtstatus-ignore.sh
index 84366050dabbbf..e4cf5484f97a57 100755
--- a/t/t7061-wtstatus-ignore.sh
+++ b/t/t7061-wtstatus-ignore.sh
@@ -47,7 +47,7 @@ cat >expected <<\EOF
 !! untracked/ignored
 EOF
 
-test_expect_failure 'status of untracked directory with --ignored works with or without prefix' '
+test_expect_success 'status of untracked directory with --ignored works with or without prefix' '
 	git status --porcelain --ignored >tmp &&
 	grep untracked/ tmp >actual &&
 	rm tmp &&