diff --git a/package.json b/package.json
index d466f7920..cad9c051e 100644
--- a/package.json
+++ b/package.json
@@ -28,7 +28,7 @@
     "fs-plus": "^2.8.0",
     "fstream": "0.1.24",
     "fuzzaldrin": "^2.1",
-    "git-utils": "^4.1.0",
+    "git-utils": "^4.1.2",
     "grim": "1.5.0",
     "jasmine-json": "~0.0",
     "jasmine-tagged": "^1.1.4",
diff --git a/spec/git-spec.coffee b/spec/git-spec.coffee
index cda2afaa8..e6b5d4df6 100644
--- a/spec/git-spec.coffee
+++ b/spec/git-spec.coffee
@@ -205,7 +205,7 @@ describe "GitRepository", ->
       expect(repo.isStatusModified(repo.getDirectoryStatus(directoryPath))).toBe true
 
   describe ".refreshStatus()", ->
-    [newPath, modifiedPath, cleanPath, originalModifiedPathText] = []
+    [newPath, modifiedPath, cleanPath, originalModifiedPathText, workingDirectory] = []
 
     beforeEach ->
       workingDirectory = copyRepository()
@@ -231,6 +231,34 @@ describe "GitRepository", ->
         expect(repo.isStatusNew(repo.getCachedPathStatus(newPath))).toBeTruthy()
         expect(repo.isStatusModified(repo.getCachedPathStatus(modifiedPath))).toBeTruthy()
 
+    it 'caches the proper statuses when a subdir is open', ->
+      subDir = path.join(workingDirectory, 'dir')
+      fs.mkdirSync(subDir)
+
+      filePath = path.join(subDir, 'b.txt')
+      fs.writeFileSync(filePath, '')
+
+      atom.project.setPaths([subDir])
+
+      waitsForPromise ->
+        atom.workspace.open('b.txt')
+
+      statusHandler = null
+      runs ->
+        repo = atom.project.getRepositories()[0]
+
+        statusHandler = jasmine.createSpy('statusHandler')
+        repo.onDidChangeStatuses statusHandler
+        repo.refreshStatus()
+
+      waitsFor ->
+        statusHandler.callCount > 0
+
+      runs ->
+        status = repo.getCachedPathStatus(filePath)
+        expect(repo.isStatusModified(status)).toBe false
+        expect(repo.isStatusNew(status)).toBe false
+
   describe "buffer events", ->
     [editor] = []
 
diff --git a/src/git-repository.coffee b/src/git-repository.coffee
index 2fdcd790a..44b86a433 100644
--- a/src/git-repository.coffee
+++ b/src/git-repository.coffee
@@ -485,6 +485,7 @@ class GitRepository
       relativeProjectPaths = @project?.getPaths()
         .map (path) => @relativize(path)
         .filter (path) -> path.length > 0
+        .map (path) -> path + '/**'
 
       @statusTask?.terminate()
       @statusTask = Task.once @handlerPath, @getPath(), relativeProjectPaths, ({statuses, upstream, branch, submodules}) =>