thodg/libgit2

diff --git a/src/checkout.c b/src/checkout.c
index 50da83a..e642c97 100644
--- a/src/checkout.c
+++ b/src/checkout.c
@@ -435,6 +435,7 @@ static int checkout_action_with_wd_dir(
 	int *action,
 	checkout_data *data,
 	const git_diff_delta *delta,
+	git_iterator *workdir,
 	const git_index_entry *wd)
 {
 	*action = CHECKOUT_ACTION__NONE;
@@ -451,7 +452,9 @@ static int checkout_action_with_wd_dir(
 		if (delta->old_file.mode == GIT_FILEMODE_COMMIT)
 			/* expected submodule (and maybe found one) */;
 		else if (delta->new_file.mode != GIT_FILEMODE_TREE)
-			*action = CHECKOUT_ACTION_IF(FORCE, REMOVE_AND_UPDATE, CONFLICT);
+			*action = git_iterator_current_is_ignored(workdir) ?
+				CHECKOUT_ACTION_IF(DONT_OVERWRITE_IGNORED, CONFLICT, REMOVE_AND_UPDATE) :
+				CHECKOUT_ACTION_IF(FORCE, REMOVE_AND_UPDATE, CONFLICT);
 		break;
 	case GIT_DELTA_DELETED: /* case 11 (and 27 for dir) */
 		if (delta->old_file.mode != GIT_FILEMODE_TREE)
@@ -573,7 +576,7 @@ static int checkout_action(
 				}
 			}
 
-			return checkout_action_with_wd_dir(action, data, delta, wd);
+			return checkout_action_with_wd_dir(action, data, delta, workdir, wd);
 		}
 
 		/* case 6 - wd is after delta */
diff --git a/tests/checkout/tree.c b/tests/checkout/tree.c
index 10a44b6..06aa6a5 100644
--- a/tests/checkout/tree.c
+++ b/tests/checkout/tree.c
@@ -235,7 +235,7 @@ void test_checkout_tree__can_remove_ignored(void)
 	cl_assert(!git_path_isfile("testrepo/ignored_file"));
 }
 
-static int checkout_tree_with_blob_ignored_in_workdir(int strategy)
+static int checkout_tree_with_blob_ignored_in_workdir(int strategy, bool isdir)
 {
 	git_oid oid;
 	git_object *obj = NULL;
@@ -268,16 +268,27 @@ static int checkout_tree_with_blob_ignored_in_workdir(int strategy)
 
 	opts.checkout_strategy = strategy;
 
-	cl_must_pass(p_mkdir("testrepo/ab", 0777));
-	cl_git_mkfile("testrepo/ab/4.txt", "as you wish");
+	if (isdir) {
+		cl_must_pass(p_mkdir("testrepo/ab", 0777));
+		cl_must_pass(p_mkdir("testrepo/ab/4.txt", 0777));
+
+		cl_git_mkfile("testrepo/ab/4.txt/file1.txt", "as you wish");
+		cl_git_mkfile("testrepo/ab/4.txt/file2.txt", "foo bar foo");
+		cl_git_mkfile("testrepo/ab/4.txt/file3.txt", "inky blinky pinky clyde");
+
+		cl_assert(git_path_isdir("testrepo/ab/4.txt"));
+	} else {
+		cl_must_pass(p_mkdir("testrepo/ab", 0777));
+		cl_git_mkfile("testrepo/ab/4.txt", "as you wish");
+
+		cl_assert(git_path_isfile("testrepo/ab/4.txt"));
+	}
 
 	cl_git_pass(git_ignore_add_rule(g_repo, "ab/4.txt\n"));
 
 	cl_git_pass(git_ignore_path_is_ignored(&ignored, g_repo, "ab/4.txt"));
 	cl_assert_equal_i(1, ignored);
 
-	cl_assert(git_path_isfile("testrepo/ab/4.txt"));
-
 	cl_git_pass(git_reference_name_to_id(&oid, g_repo, "refs/heads/subtrees"));
 	cl_git_pass(git_object_lookup(&obj, g_repo, &oid, GIT_OBJ_ANY));
 
@@ -293,14 +304,14 @@ void test_checkout_tree__conflict_on_ignored_when_not_overwriting(void)
 	int error;
 
 	cl_git_fail(error = checkout_tree_with_blob_ignored_in_workdir(
-		GIT_CHECKOUT_SAFE | GIT_CHECKOUT_DONT_OVERWRITE_IGNORED));
+		GIT_CHECKOUT_SAFE | GIT_CHECKOUT_DONT_OVERWRITE_IGNORED, false));
 
 	cl_assert_equal_i(GIT_EMERGECONFLICT, error);
 }
 
 void test_checkout_tree__can_overwrite_ignored_by_default(void)
 {
-	cl_git_pass(checkout_tree_with_blob_ignored_in_workdir(GIT_CHECKOUT_SAFE));
+	cl_git_pass(checkout_tree_with_blob_ignored_in_workdir(GIT_CHECKOUT_SAFE, false));
 
 	cl_git_pass(git_repository_set_head(g_repo, "refs/heads/subtrees"));
 
@@ -309,6 +320,28 @@ void test_checkout_tree__can_overwrite_ignored_by_default(void)
 	assert_on_branch(g_repo, "subtrees");
 }
 
+void test_checkout_tree__conflict_on_ignored_folder_when_not_overwriting(void)
+{
+	int error;
+
+	cl_git_fail(error = checkout_tree_with_blob_ignored_in_workdir(
+		GIT_CHECKOUT_SAFE | GIT_CHECKOUT_DONT_OVERWRITE_IGNORED, true));
+
+	cl_assert_equal_i(GIT_EMERGECONFLICT, error);
+}
+
+void test_checkout_tree__can_overwrite_ignored_folder_by_default(void)
+{
+	cl_git_pass(checkout_tree_with_blob_ignored_in_workdir(GIT_CHECKOUT_SAFE, true));
+
+	cl_git_pass(git_repository_set_head(g_repo, "refs/heads/subtrees"));
+
+	cl_assert(git_path_isfile("testrepo/ab/4.txt"));
+
+	assert_on_branch(g_repo, "subtrees");
+
+}
+
 void test_checkout_tree__can_update_only(void)
 {
 	git_checkout_opts opts = GIT_CHECKOUT_OPTS_INIT;