diff --git a/__tests__/integration-git.js b/__tests__/integration-git.js
new file mode 100644
index 0000000000..fb4856d75c
--- /dev/null
+++ b/__tests__/integration-git.js
@@ -0,0 +1,164 @@
+/* @flow */
+
+import path from 'path';
+
+import GitServer from 'node-git-server';
+import getPort from 'get-port';
+import rimraf from 'rimraf';
+import execa from 'execa';
+import mkdirp from 'mkdirp';
+import makeTemp from './_temp.js';
+import * as fs from '../src/util/fs.js';
+import {promisify} from '../src/util/promise.js';
+
+const createDir = promisify(mkdirp);
+const remove = promisify(rimraf);
+
+describe('while adding git packages', () => {
+  const gitServerDirName = 'server';
+  const gitClientDirName = 'client';
+  const gitRepoOwner = 'john-doe';
+  const gitRepoName = 'foo';
+  let tempDir;
+  let gitServer;
+  let gitServerUrl;
+  let gitClientDir;
+
+  beforeAll(async () => {
+    tempDir = await makeTemp();
+    const gitServerDir = path.join(tempDir, gitServerDirName);
+    gitClientDir = path.join(tempDir, gitClientDirName);
+    await createDir(gitClientDir);
+    await createDir(gitServerDir);
+    const port = await getPort();
+    const gitServerResult = createGitServer(gitServerDir);
+    await gitServerResult.listen(port);
+    gitServer = gitServerResult.gitServer;
+    gitServerUrl = `http://localhost:${port}`;
+    await prepareRepo(gitServerUrl, gitRepoOwner, gitRepoName, gitClientDir);
+  });
+
+  afterAll(async () => {
+    if (gitServer) {
+      gitServer.close();
+    }
+    if (tempDir) {
+      await remove(tempDir);
+    }
+  });
+
+  test('yarn add should fetch tags for cached git repo', async () => {
+    const consumer = await createConsumer();
+    const firstVersion = '1.0.0';
+    const secondVersion = '2.0.0';
+
+    await createRepoFiles(gitRepoName, firstVersion, gitClientDir);
+    await consumer.add(`${gitServerUrl}/${gitRepoOwner}/${gitRepoName}.git#v${firstVersion}`);
+
+    await createRepoFiles(gitRepoName, secondVersion, gitClientDir);
+    await consumer.add(`${gitServerUrl}/${gitRepoOwner}/${gitRepoName}.git#v${secondVersion}`);
+
+    await consumer.clean();
+  });
+});
+
+function createGitServer(dir: string): {gitServer: GitServer, listen: Promise} {
+  const gitServer = new GitServer(dir);
+
+  gitServer.on('push', push => {
+    push.accept();
+  });
+
+  gitServer.on('tag', tag => {
+    tag.accept();
+  });
+
+  gitServer.on('fetch', fetch => {
+    fetch.accept();
+  });
+
+  gitServer.on('info', info => {
+    info.accept();
+  });
+
+  gitServer.on('head', info => {
+    info.accept();
+  });
+
+  const listen = (port: number) =>
+    new Promise((resolve, reject) => {
+      gitServer.listen(port, err => {
+        if (err) {
+          return reject(err);
+        }
+        return resolve();
+      });
+    });
+
+  return {gitServer, listen};
+}
+
+async function prepareRepo(
+  gitRemote: string,
+  gitRepoOwner: string,
+  gitRepoName: string,
+  gitClientDir: string,
+): Promise {
+  await execa('git', ['clone', `${gitRemote}/${gitRepoOwner}/${gitRepoName}`], {
+    cwd: gitClientDir,
+  });
+}
+
+async function createRepoFiles(name: string, version: string, gitClientDir: string): Promise {
+  const repoDir = path.join(gitClientDir, name);
+
+  const indexJSContent = `module.exports = '${version}';\n`;
+  const indexJSPath = path.join(repoDir, 'index.js');
+  await fs.writeFile(indexJSPath, indexJSContent);
+
+  const pkgContent = JSON.stringify({name, version, license: 'MIT'});
+  const pkgPath = path.join(repoDir, 'package.json');
+  await fs.writeFile(pkgPath, pkgContent);
+
+  await execa('git', ['add', '.'], {
+    cwd: repoDir,
+  });
+  await execa('git', ['commit', '-m', '"Init"'], {
+    cwd: repoDir,
+  });
+  const tagName = `v${version}`;
+  await execa('git', ['tag', tagName], {
+    cwd: repoDir,
+  });
+  await execa('git', ['push', 'origin', 'master'], {
+    cwd: repoDir,
+  });
+  await execa('git', ['push', 'origin', tagName], {
+    cwd: repoDir,
+  });
+}
+
+async function createConsumer(): Promise {
+  const cwd = await makeTemp();
+  const cacheFolder = path.join(cwd, 'cache');
+  const command = path.resolve(__dirname, '../bin/yarn');
+  const options = {cwd};
+
+  await fs.writeFile(
+    path.join(cwd, 'package.json'),
+    JSON.stringify({
+      name: 'test',
+      license: 'MIT',
+    }),
+  );
+
+  return {
+    add: async (pattern, yarnArgs: Array<string> = []) => {
+      const args = ['--cache-folder', cacheFolder, ...yarnArgs];
+      await execa(command, ['add', pattern].concat(args), options);
+    },
+    clean: async () => {
+      await remove(cwd);
+    },
+  };
+}
diff --git a/package.json b/package.json
index 136c4da4f7..9c0f9fc7b2 100644
--- a/package.json
+++ b/package.json
@@ -81,6 +81,7 @@
     "execa": "^0.10.0",
     "fancy-log": "^1.3.2",
     "flow-bin": "^0.66.0",
+    "get-port": "^4.0.0",
     "git-release-notes": "^3.0.0",
     "gulp": "^4.0.0",
     "gulp-babel": "^7.0.0",
@@ -92,6 +93,7 @@
     "jsinspect": "^0.12.6",
     "minimatch": "^3.0.4",
     "mock-stdin": "^0.3.0",
+    "node-git-server": "^0.4.3",
     "prettier": "^1.5.2",
     "temp": "^0.8.3",
     "webpack": "^2.1.0-beta.25",
diff --git a/yarn.lock b/yarn.lock
index 43e772b204..8afe77f837 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -3212,6 +3212,11 @@ get-caller-file@^1.0.1:
   resolved "https://registry.yarnpkg.com/get-caller-file/-/get-caller-file-1.0.3.tgz#f978fa4c90d1dfe7ff2d6beda2a515e713bdcf4a"
   integrity sha512-3t6rVToeoZfYSGd8YoLFR2DJkiQrIiUrGcjvFX2mDw3bn6k2OtwHN0TNCLbBO+w8qTvimhDkv+LSscbJY1vE6w==
 
+get-port@^4.0.0:
+  version "4.0.0"
+  resolved "https://registry.yarnpkg.com/get-port/-/get-port-4.0.0.tgz#373c85960138ee20027c070e3cb08019fea29816"
+  integrity sha512-Yy3yNI2oShgbaWg4cmPhWjkZfktEvpKI09aDX4PZzNtlU9obuYrX7x2mumQsrNxlF+Ls7OtMQW/u+X4s896bOQ==
+
 get-stdin@^4.0.1:
   version "4.0.1"
   resolved "https://registry.yarnpkg.com/get-stdin/-/get-stdin-4.0.1.tgz#b968c6b0a04384324902e8bf1a5df32579a450fe"
@@ -5284,6 +5289,13 @@ node-fetch@1.6.3:
     encoding "^0.1.11"
     is-stream "^1.0.1"
 
+node-git-server@^0.4.3:
+  version "0.4.3"
+  resolved "https://registry.yarnpkg.com/node-git-server/-/node-git-server-0.4.3.tgz#02aa7231e7766a609392a77ca31d7c4ede9fd04e"
+  integrity sha512-Q+Z8ef4Tw4ZP738iDr9ofPNq4M0fDdQ6/73Ak8SZRCtSsiXXHBgaja8BD/+krUYH7Df0QicsuLyT/mTmElRu7A==
+  dependencies:
+    through "^2.3.8"
+
 node-int64@^0.4.0:
   version "0.4.0"
   resolved "https://registry.yarnpkg.com/node-int64/-/node-int64-0.4.0.tgz#87a9065cdb355d3182d8f94ce11188b825c68a3b"
@@ -7087,7 +7099,7 @@ through2@2.X, through2@^2.0.0, through2@^2.0.1, through2@^2.0.3, through2@~2.0.0
     readable-stream "^2.1.5"
     xtend "~4.0.1"
 
-through@^2.3.6:
+through@^2.3.6, through@^2.3.8:
   version "2.3.8"
   resolved "https://registry.yarnpkg.com/through/-/through-2.3.8.tgz#0dd4c9ffaabc357960b1b724115d7e0e86a2e1f5"
   integrity sha1-DdTJ/6q8NXlgsbckEV1+Doai4fU=