thodg/libgit2

diff --git a/src/stash.c b/src/stash.c
index 22f756e..caffd0c 100644
--- a/src/stash.c
+++ b/src/stash.c
@@ -232,7 +232,8 @@ static int build_untracked_tree(
 	}
 
 	if (flags & GIT_STASH_INCLUDE_IGNORED) {
-		opts.flags |= GIT_DIFF_INCLUDE_IGNORED;
+		opts.flags |= GIT_DIFF_INCLUDE_IGNORED |
+			GIT_DIFF_RECURSE_IGNORED_DIRS;
 		data.include_ignored = true;
 	}
 
@@ -447,10 +448,11 @@ static int ensure_there_are_changes_to_stash(
 
 	if (include_untracked_files)
 		opts.flags |= GIT_STATUS_OPT_INCLUDE_UNTRACKED |
-		GIT_STATUS_OPT_RECURSE_UNTRACKED_DIRS;
+			GIT_STATUS_OPT_RECURSE_UNTRACKED_DIRS;
 
 	if (include_ignored_files)
-		opts.flags |= GIT_STATUS_OPT_INCLUDE_IGNORED;
+		opts.flags |= GIT_STATUS_OPT_INCLUDE_IGNORED |
+			GIT_STATUS_OPT_RECURSE_IGNORED_DIRS;
 
 	error = git_status_foreach_ext(repo, &opts, is_dirty_cb, NULL);
 
diff --git a/tests/stash/save.c b/tests/stash/save.c
index 3b301bf..7873d20 100644
--- a/tests/stash/save.c
+++ b/tests/stash/save.c
@@ -368,6 +368,23 @@ void test_stash_save__including_untracked_without_any_untracked_file_creates_an_
 	assert_object_oid("stash^3^{tree}", EMPTY_TREE, GIT_OBJ_TREE);
 }
 
+void test_stash_save__ignored_directory(void)
+{
+	cl_git_pass(mkdir("stash/ignored_directory", 0777));
+	cl_git_pass(mkdir("stash/ignored_directory/sub", 0777));
+	cl_git_mkfile("stash/ignored_directory/sub/some_file", "stuff");
+
+	assert_status(repo, "ignored_directory/sub/some_file", GIT_STATUS_WT_NEW);
+	cl_git_pass(git_ignore_add_rule(repo, "ignored_directory/"));
+	assert_status(repo, "ignored_directory/sub/some_file", GIT_STATUS_IGNORED);
+
+	cl_git_pass(git_stash_save(&stash_tip_oid, repo, signature, NULL, GIT_STASH_INCLUDE_UNTRACKED | GIT_STASH_INCLUDE_IGNORED));
+
+	cl_assert(!git_path_exists("stash/ignored_directory/sub/some_file"));
+	cl_assert(!git_path_exists("stash/ignored_directory/sub"));
+	cl_assert(!git_path_exists("stash/ignored_directory"));
+}
+
 void test_stash_save__skip_submodules(void)
 {
 	git_repository *untracked_repo;