diff --git a/crates/worktree/src/worktree.rs b/crates/worktree/src/worktree.rs
index 437dbcd451795ff0fdb88ed00b0d9e2e6c4be158..d848271976da0d66b70f4d96b52ebb5acc4f23c9 100644
--- a/crates/worktree/src/worktree.rs
+++ b/crates/worktree/src/worktree.rs
@@ -2665,10 +2665,21 @@ impl Snapshot {
 
     /// Get the repository whose work directory contains the given path.
     pub fn repository_for_path(&self, path: &Path) -> Option<&RepositoryEntry> {
-        self.repositories
-            .iter()
-            .filter(|repo| repo.work_directory.directory_contains(path))
-            .last()
+        let mut cursor = self.repositories.cursor::<PathProgress>(&());
+        let mut repository = None;
+
+        // Git repositories may contain other git repositories. As a side effect of
+        // lexicographic sorting by path, deeper repositories will be after higher repositories
+        // So, let's loop through every matching repository until we can't find any more to find
+        // the deepest repository that could contain this path.
+        while cursor.seek_forward(&PathTarget::Contains(path), Bias::Left, &())
+            && cursor.item().is_some()
+        {
+            repository = cursor.item();
+            cursor.next(&());
+        }
+
+        repository
     }
 
     /// Given an ordered iterator of entries, returns an iterator of those entries,
@@ -5954,6 +5965,7 @@ impl<'a> Iterator for Traversal<'a> {
 enum PathTarget<'a> {
     Path(&'a Path),
     Successor(&'a Path),
+    Contains(&'a Path),
 }
 
 impl<'a> PathTarget<'a> {
@@ -5967,6 +5979,13 @@ impl<'a> PathTarget<'a> {
                     Ordering::Equal
                 }
             }
+            PathTarget::Contains(path) => {
+                if path.starts_with(other) {
+                    Ordering::Equal
+                } else {
+                    Ordering::Greater
+                }
+            }
         }
     }
 }