diff --git a/crates/git/src/repository.rs b/crates/git/src/repository.rs
index d67086d20e2ea3e5b38b1fdb4c0bcb52dc9b4126..e868fb22343fd43d88c5432f11e7bf1f6e6ab728 100644
--- a/crates/git/src/repository.rs
+++ b/crates/git/src/repository.rs
@@ -943,6 +943,7 @@ impl RealGitRepository {
             self.any_git_binary_path.clone(),
             self.working_directory()
                 .with_context(|| "Can't run git commands without a working directory")?,
+            self.path(),
             self.executor.clone(),
             self.is_trusted(),
         ))
@@ -997,6 +998,7 @@ pub async fn get_git_committer(cx: &AsyncApp) -> GitCommitter {
     let git = GitBinary::new(
         git_binary_path.unwrap_or(PathBuf::from("git")),
         paths::home_dir().clone(),
+        paths::home_dir().join(".git"),
         cx.background_executor().clone(),
         true,
     );
@@ -2154,6 +2156,7 @@ impl GitRepository for RealGitRepository {
         cx: AsyncApp,
     ) -> BoxFuture<'_, Result<RemoteCommandOutput>> {
         let working_directory = self.working_directory();
+        let git_directory = self.path();
         let executor = cx.background_executor().clone();
         let git_binary_path = self.system_git_binary_path.clone();
         let is_trusted = self.is_trusted();
@@ -2165,6 +2168,7 @@ impl GitRepository for RealGitRepository {
             let git = GitBinary::new(
                 git_binary_path,
                 working_directory,
+                git_directory,
                 executor.clone(),
                 is_trusted,
             );
@@ -2196,6 +2200,7 @@ impl GitRepository for RealGitRepository {
         cx: AsyncApp,
     ) -> BoxFuture<'_, Result<RemoteCommandOutput>> {
         let working_directory = self.working_directory();
+        let git_directory = self.path();
         let executor = cx.background_executor().clone();
         let git_binary_path = self.system_git_binary_path.clone();
         let is_trusted = self.is_trusted();
@@ -2207,6 +2212,7 @@ impl GitRepository for RealGitRepository {
             let git = GitBinary::new(
                 git_binary_path,
                 working_directory,
+                git_directory,
                 executor.clone(),
                 is_trusted,
             );
@@ -2236,6 +2242,7 @@ impl GitRepository for RealGitRepository {
         cx: AsyncApp,
     ) -> BoxFuture<'_, Result<RemoteCommandOutput>> {
         let working_directory = self.working_directory();
+        let git_directory = self.path();
         let remote_name = format!("{}", fetch_options);
         let git_binary_path = self.system_git_binary_path.clone();
         let executor = cx.background_executor().clone();
@@ -2248,6 +2255,7 @@ impl GitRepository for RealGitRepository {
             let git = GitBinary::new(
                 git_binary_path,
                 working_directory,
+                git_directory,
                 executor.clone(),
                 is_trusted,
             );
@@ -2900,6 +2908,7 @@ async fn exclude_files(git: &GitBinary) -> Result<GitExcludeOverride> {
 pub(crate) struct GitBinary {
     git_binary_path: PathBuf,
     working_directory: PathBuf,
+    git_directory: PathBuf,
     executor: BackgroundExecutor,
     index_file_path: Option<PathBuf>,
     envs: HashMap<String, String>,
@@ -2910,12 +2919,14 @@ impl GitBinary {
     pub(crate) fn new(
         git_binary_path: PathBuf,
         working_directory: PathBuf,
+        git_directory: PathBuf,
         executor: BackgroundExecutor,
         is_trusted: bool,
     ) -> Self {
         Self {
             git_binary_path,
             working_directory,
+            git_directory,
             executor,
             index_file_path: None,
             envs: HashMap::default(),
@@ -2961,12 +2972,9 @@ impl GitBinary {
 
         // Copy the default index file so that Git doesn't have to rebuild the
         // whole index from scratch. This might fail if this is an empty repository.
-        smol::fs::copy(
-            self.working_directory.join(".git").join("index"),
-            &index_file_path,
-        )
-        .await
-        .ok();
+        smol::fs::copy(self.git_directory.join("index"), &index_file_path)
+            .await
+            .ok();
 
         self.index_file_path = Some(index_file_path.clone());
         let result = f(self).await;
@@ -2980,19 +2988,13 @@ impl GitBinary {
     }
 
     pub async fn with_exclude_overrides(&self) -> Result<GitExcludeOverride> {
-        let path = self
-            .working_directory
-            .join(".git")
-            .join("info")
-            .join("exclude");
+        let path = self.git_directory.join("info").join("exclude");
 
         GitExcludeOverride::new(path).await
     }
 
     fn path_for_index_id(&self, id: Uuid) -> PathBuf {
-        self.working_directory
-            .join(".git")
-            .join(format!("index-{}.tmp", id))
+        self.git_directory.join(format!("index-{}.tmp", id))
     }
 
     pub async fn run<S>(&self, args: &[S]) -> Result<String>
@@ -3317,6 +3319,7 @@ mod tests {
         let git = GitBinary::new(
             PathBuf::from("git"),
             dir.path().to_path_buf(),
+            dir.path().join(".git"),
             cx.executor(),
             false,
         );
@@ -3330,6 +3333,7 @@ mod tests {
         let git = GitBinary::new(
             PathBuf::from("git"),
             dir.path().to_path_buf(),
+            dir.path().join(".git"),
             cx.executor(),
             false,
         );
@@ -3349,6 +3353,7 @@ mod tests {
         let git = GitBinary::new(
             PathBuf::from("git"),
             dir.path().to_path_buf(),
+            dir.path().join(".git"),
             cx.executor(),
             false,
         );
@@ -3374,6 +3379,7 @@ mod tests {
         let git = GitBinary::new(
             PathBuf::from("git"),
             dir.path().to_path_buf(),
+            dir.path().join(".git"),
             cx.executor(),
             true,
         );
@@ -3392,6 +3398,7 @@ mod tests {
         let git = GitBinary::new(
             PathBuf::from("git"),
             dir.path().to_path_buf(),
+            dir.path().join(".git"),
             cx.executor(),
             true,
         );
@@ -3406,6 +3413,27 @@ mod tests {
         );
     }
 
+    #[gpui::test]
+    async fn test_path_for_index_id_uses_real_git_directory(cx: &mut TestAppContext) {
+        cx.executor().allow_parking();
+        let working_directory = PathBuf::from("/code/worktree");
+        let git_directory = PathBuf::from("/code/repo/.git/modules/worktree");
+        let git = GitBinary::new(
+            PathBuf::from("git"),
+            working_directory,
+            git_directory.clone(),
+            cx.executor(),
+            false,
+        );
+
+        let path = git.path_for_index_id(Uuid::nil());
+
+        assert_eq!(
+            path,
+            git_directory.join(format!("index-{}.tmp", Uuid::nil()))
+        );
+    }
+
     #[gpui::test]
     async fn test_checkpoint_basic(cx: &mut TestAppContext) {
         disable_git_global_config();
@@ -4090,13 +4118,20 @@ mod tests {
         /// Force a Git garbage collection on the repository.
         fn gc(&self) -> BoxFuture<'_, Result<()>> {
             let working_directory = self.working_directory();
+            let git_directory = self.path();
             let git_binary_path = self.any_git_binary_path.clone();
             let executor = self.executor.clone();
             self.executor
                 .spawn(async move {
                     let git_binary_path = git_binary_path.clone();
                     let working_directory = working_directory?;
-                    let git = GitBinary::new(git_binary_path, working_directory, executor, true);
+                    let git = GitBinary::new(
+                        git_binary_path,
+                        working_directory,
+                        git_directory,
+                        executor,
+                        true,
+                    );
                     git.run(&["gc", "--prune"]).await?;
                     Ok(())
                 })