diff --git a/attr.c b/attr.c
index 8d778f1d26..129399310a 100644
--- a/attr.c
+++ b/attr.c
@@ -336,13 +336,70 @@ static struct attr_stack *read_attr_from_file(const char *path, int macro_ok)
 	return res;
 }
 
+static void *read_index_data(const char *path)
+{
+	int pos, len;
+	unsigned long sz;
+	enum object_type type;
+	void *data;
+
+	len = strlen(path);
+	pos = cache_name_pos(path, len);
+	if (pos < 0) {
+		/*
+		 * We might be in the middle of a merge, in which
+		 * case we would read stage #2 (ours).
+		 */
+		int i;
+		for (i = -pos - 1;
+		     (pos < 0 && i < active_nr &&
+		      !strcmp(active_cache[i]->name, path));
+		     i++)
+			if (ce_stage(active_cache[i]) == 2)
+				pos = i;
+	}
+	if (pos < 0)
+		return NULL;
+	data = read_sha1_file(active_cache[pos]->sha1, &type, &sz);
+	if (!data || type != OBJ_BLOB) {
+		free(data);
+		return NULL;
+	}
+	return data;
+}
+
 static struct attr_stack *read_attr(const char *path, int macro_ok)
 {
 	struct attr_stack *res;
+	char *buf, *sp;
+	int lineno = 0;
 
 	res = read_attr_from_file(path, macro_ok);
-	if (!res)
-		res = xcalloc(1, sizeof(*res));
+	if (res)
+		return res;
+
+	res = xcalloc(1, sizeof(*res));
+
+	/*
+	 * There is no checked out .gitattributes file there, but
+	 * we might have it in the index.  We allow operation in a
+	 * sparsely checked out work tree, so read from it.
+	 */
+	buf = read_index_data(path);
+	if (!buf)
+		return res;
+
+	for (sp = buf; *sp; ) {
+		char *ep;
+		int more;
+		for (ep = sp; *ep && *ep != '\n'; ep++)
+			;
+		more = (*ep == '\n');
+		*ep = '\0';
+		handle_attr_line(res, sp, path, ++lineno, macro_ok);
+		sp = ep + more;
+	}
+	free(buf);
 	return res;
 }
 
diff --git a/entry.c b/entry.c
index 0625112339..fc3a506ece 100644
--- a/entry.c
+++ b/entry.c
@@ -112,6 +112,16 @@ static int write_entry(struct cache_entry *ce, char *path, const struct checkout
 		if (!new)
 			return error("git-checkout-index: unable to read sha1 file of %s (%s)",
 				path, sha1_to_hex(ce->sha1));
+
+		/*
+		 * Convert from git internal format to working tree format
+		 */
+		buf = convert_to_working_tree(ce->name, new, &size);
+		if (buf) {
+			free(new);
+			new = buf;
+		}
+
 		if (to_tempfile) {
 			strcpy(path, ".merge_file_XXXXXX");
 			fd = mkstemp(path);
@@ -123,15 +133,6 @@ static int write_entry(struct cache_entry *ce, char *path, const struct checkout
 				path, strerror(errno));
 		}
 
-		/*
-		 * Convert from git internal format to working tree format
-		 */
-		buf = convert_to_working_tree(ce->name, new, &size);
-		if (buf) {
-			free(new);
-			new = buf;
-		}
-
 		wrote = write_in_full(fd, new, size);
 		close(fd);
 		free(new);
diff --git a/t/t0020-crlf.sh b/t/t0020-crlf.sh
index fe1dfd08a0..0807d9f01a 100755
--- a/t/t0020-crlf.sh
+++ b/t/t0020-crlf.sh
@@ -290,4 +290,85 @@ test_expect_success '.gitattributes says two and three are text' '
 	fi
 '
 
+test_expect_success 'in-tree .gitattributes (1)' '
+
+	echo "one -crlf" >>.gitattributes &&
+	git add .gitattributes &&
+	git commit -m "Add .gitattributes" &&
+
+	rm -rf tmp one dir .gitattributes patch.file three &&
+	git read-tree --reset -u HEAD &&
+
+	if remove_cr one >/dev/null
+	then
+		echo "Eh? one should not have CRLF"
+		false
+	else
+		: happy
+	fi &&
+	remove_cr three >/dev/null || {
+		echo "Eh? three should still have CRLF"
+		false
+	}
+'
+
+test_expect_success 'in-tree .gitattributes (2)' '
+
+	rm -rf tmp one dir .gitattributes patch.file three &&
+	git read-tree --reset HEAD &&
+	git checkout-index -f -q -u -a &&
+
+	if remove_cr one >/dev/null
+	then
+		echo "Eh? one should not have CRLF"
+		false
+	else
+		: happy
+	fi &&
+	remove_cr three >/dev/null || {
+		echo "Eh? three should still have CRLF"
+		false
+	}
+'
+
+test_expect_success 'in-tree .gitattributes (3)' '
+
+	rm -rf tmp one dir .gitattributes patch.file three &&
+	git read-tree --reset HEAD &&
+	git checkout-index -u .gitattributes &&
+	git checkout-index -u one dir/two three &&
+
+	if remove_cr one >/dev/null
+	then
+		echo "Eh? one should not have CRLF"
+		false
+	else
+		: happy
+	fi &&
+	remove_cr three >/dev/null || {
+		echo "Eh? three should still have CRLF"
+		false
+	}
+'
+
+test_expect_success 'in-tree .gitattributes (4)' '
+
+	rm -rf tmp one dir .gitattributes patch.file three &&
+	git read-tree --reset HEAD &&
+	git checkout-index -u one dir/two three &&
+	git checkout-index -u .gitattributes &&
+
+	if remove_cr one >/dev/null
+	then
+		echo "Eh? one should not have CRLF"
+		false
+	else
+		: happy
+	fi &&
+	remove_cr three >/dev/null || {
+		echo "Eh? three should still have CRLF"
+		false
+	}
+'
+
 test_done