diff --git a/pkg/commands/git_commands/file_loader.go b/pkg/commands/git_commands/file_loader.go
index 747572b38..7ec13836f 100644
--- a/pkg/commands/git_commands/file_loader.go
+++ b/pkg/commands/git_commands/file_loader.go
@@ -73,8 +73,16 @@ func (self *FileLoader) GetStatusFiles(opts GetStatusFileOptions) []*models.File
 			continue
 		}
 
+		// git status reports a directory that it doesn't descend into with a
+		// trailing slash. This is the case for a nested repository, and for
+		// any untracked directory if status.showUntrackedFiles is "normal". We
+		// take the slash off so that the file tree shows the directory as a
+		// single entry; it would otherwise split the path into a directory and
+		// a file without a name.
+		path := strings.TrimSuffix(status.Path, "/")
+
 		file := &models.File{
-			Path:          status.Path,
+			Path:          path,
 			PreviousPath:  status.PreviousPath,
 			DisplayString: status.StatusString,
 		}
diff --git a/pkg/commands/git_commands/file_loader_test.go b/pkg/commands/git_commands/file_loader_test.go
index 23602ff9e..ad8882715 100644
--- a/pkg/commands/git_commands/file_loader_test.go
+++ b/pkg/commands/git_commands/file_loader_test.go
@@ -188,6 +188,26 @@ func TestFileGetStatusFiles(t *testing.T) {
 				},
 			},
 		},
+		{
+			testName:            "Directory that git doesn't descend into",
+			similarityThreshold: 50,
+			runner: oscommands.NewFakeRunner(t).
+				ExpectGitArgs([]string{"status", "--untracked-files=yes", "--porcelain", "-z", "--find-renames=50%"}, "?? dir/nested/", nil),
+			expectedFiles: []*models.File{
+				{
+					Path:                    "dir/nested",
+					HasStagedChanges:        false,
+					HasUnstagedChanges:      true,
+					Tracked:                 false,
+					Added:                   true,
+					Deleted:                 false,
+					HasMergeConflicts:       false,
+					HasInlineMergeConflicts: false,
+					DisplayString:           "?? dir/nested/",
+					ShortStatus:             "??",
+				},
+			},
+		},
 		{
 			testName:            "Renamed files",
 			similarityThreshold: 50,
diff --git a/pkg/gui/controllers/helpers/refresh_helper.go b/pkg/gui/controllers/helpers/refresh_helper.go
index 826d12400..0cbde1f70 100644
--- a/pkg/gui/controllers/helpers/refresh_helper.go
+++ b/pkg/gui/controllers/helpers/refresh_helper.go
@@ -1467,9 +1467,7 @@ func (self *RefreshHelper) refreshStateFiles(captured capturedFilesState, env re
 }
 
 // markWorktreeFiles marks the files that are linked worktrees of this repo, so
-// that the files view can render them as such. `git status` reports a worktree
-// as an untracked directory, i.e. with a trailing slash, which we take off:
-// keeping it would build a directory node with a nameless file inside it.
+// that the files view can render them as such.
 //
 // It must run on the UI thread, as it works on the model. Both models it needs
 // are written by refreshes of their own, so it is called after either of them
@@ -1487,12 +1485,6 @@ func markWorktreeFiles(files []*models.File, worktrees []*models.Worktree, workt
 			file.IsWorktree = isWorktree
 			changed = true
 		}
-		if isWorktree {
-			if trimmed := strings.TrimSuffix(file.Path, "/"); trimmed != file.Path {
-				file.Path = trimmed
-				changed = true
-			}
-		}
 	}
 
 	return changed
diff --git a/pkg/gui/controllers/helpers/refresh_helper_test.go b/pkg/gui/controllers/helpers/refresh_helper_test.go
index 5e58c56a3..1ef4b581a 100644
--- a/pkg/gui/controllers/helpers/refresh_helper_test.go
+++ b/pkg/gui/controllers/helpers/refresh_helper_test.go
@@ -309,12 +309,12 @@ func TestMarkWorktreeFiles(t *testing.T) {
 		{Path: filepath.Join("/", "path", "to", "worktree3")},
 	}
 
-	t.Run("marks the files that are worktrees, and takes their slash off", func(t *testing.T) {
+	t.Run("marks the files that are worktrees", func(t *testing.T) {
 		files := []*models.File{
 			{Path: "file"},
-			{Path: "worktree1/"},
-			{Path: "dir/worktree2/"},
-			{Path: "dir/"},
+			{Path: "worktree1"},
+			{Path: "dir/worktree2"},
+			{Path: "dir"},
 		}
 
 		assert.True(t, markWorktreeFiles(files, worktrees, worktreePath))
@@ -322,12 +322,12 @@ func TestMarkWorktreeFiles(t *testing.T) {
 			{Path: "file"},
 			{Path: "worktree1", IsWorktree: true},
 			{Path: "dir/worktree2", IsWorktree: true},
-			{Path: "dir/"},
+			{Path: "dir"},
 		}, files)
 	})
 
 	t.Run("reports no change when there is nothing to mark", func(t *testing.T) {
-		files := []*models.File{{Path: "file"}, {Path: "dir/"}}
+		files := []*models.File{{Path: "file"}, {Path: "dir"}}
 
 		assert.False(t, markWorktreeFiles(files, worktrees, worktreePath))
 	})
diff --git a/pkg/integration/tests/submodule/discard_removed_submodule.go b/pkg/integration/tests/submodule/discard_removed_submodule.go
index 514f01900..b417a9953 100644
--- a/pkg/integration/tests/submodule/discard_removed_submodule.go
+++ b/pkg/integration/tests/submodule/discard_removed_submodule.go
@@ -26,12 +26,8 @@ var DiscardRemovedSubmodule = NewIntegrationTest(NewIntegrationTestArgs{
 		t.Views().Files().
 			IsFocused().
 			Lines(
-				/* EXPECTED:
 				Equals("▼ modules").IsSelected(),
 				Equals("  ?? sub"),
-				ACTUAL: */
-				Equals("▼ modules/sub").IsSelected(),
-				Equals("  ?? "),
 			).
 			Press(keys.Universal.Remove).
 			Tap(func() {
@@ -40,15 +36,7 @@ var DiscardRemovedSubmodule = NewIntegrationTest(NewIntegrationTestArgs{
 					Select(Contains("Discard all changes")).
 					Confirm()
 			}).
-			/* EXPECTED:
 			IsFocused().
-			ACTUAL: */
-			Tap(func() {
-				t.ExpectPopup().Alert().
-					Title(Equals("Error")).
-					Content(Equals("open modules/sub: no such file or directory")).
-					Confirm()
-			}).
 			IsEmpty()
 
 		t.FileSystem().PathNotPresent("modules/sub")