diff --git a/src/attr_file.c b/src/attr_file.c
index 8997946b9..eed39661f 100644
--- a/src/attr_file.c
+++ b/src/attr_file.c
@@ -394,6 +394,7 @@ bool git_attr_fnmatch__match(
 
 	if ((match->flags & GIT_ATTR_FNMATCH_DIRECTORY) && !path->is_dir) {
 		int matchval;
+		char *matchpath;
 
 		/* for attribute checks or root ignore checks, fail match */
 		if (!(match->flags & GIT_ATTR_FNMATCH_IGNORE) ||
@@ -403,7 +404,13 @@ bool git_attr_fnmatch__match(
 		/* for ignore checks, use container of current item for check */
 		path->basename[-1] = '\0';
 		flags |= FNM_LEADING_DIR;
-		matchval = p_fnmatch(match->pattern, path->path, flags);
+
+		if (match->containing_dir)
+			matchpath = path->basename;
+		else
+			matchpath = path->path;
+
+		matchval = p_fnmatch(match->pattern, matchpath, flags);
 		path->basename[-1] = '/';
 		return (matchval != FNM_NOMATCH);
 	}
diff --git a/tests/attr/ignore.c b/tests/attr/ignore.c
index b187db01c..aa5b87098 100644
--- a/tests/attr/ignore.c
+++ b/tests/attr/ignore.c
@@ -146,6 +146,24 @@ void test_attr_ignore__skip_gitignore_directory(void)
 	assert_is_ignored(true, "NewFolder/NewFolder/File.txt");
 }
 
+void test_attr_ignore__subdirectory_gitignore(void)
+{
+	p_unlink("attr/.gitignore");
+	cl_assert(!git_path_exists("attr/.gitignore"));
+	cl_git_mkfile(
+		"attr/.gitignore",
+		"file1\n");
+	p_mkdir("attr/dir", 0777);
+	cl_git_mkfile(
+		"attr/dir/.gitignore",
+		"file2/\n");
+
+	assert_is_ignored(true, "file1");
+	assert_is_ignored(true, "dir/file1");
+	assert_is_ignored(true, "dir/file2");  /* in ignored dir */
+	assert_is_ignored(false, "dir/file3");
+}
+
 void test_attr_ignore__expand_tilde_to_homedir(void)
 {
 	git_config *cfg;