diff --git a/merge-ort.c b/merge-ort.c
index 1531b4c94c..805f7c4139 100644
--- a/merge-ort.c
+++ b/merge-ort.c
@@ -4060,11 +4060,18 @@ static int record_conflicted_index_entries(struct merge_options *opt)
 
 	/*
 	 * We are in a conflicted state. These conflicts might be inside
-	 * sparse-directory entries, so expand the index preemptively.
-	 * Also, we set original_cache_nr below, but that might change if
+	 * sparse-directory entries, so check if any entries are outside
+	 * of the sparse-checkout cone preemptively.
+	 *
+	 * We set original_cache_nr below, but that might change if
 	 * index_name_pos() calls ask for paths within sparse directories.
 	 */
-	ensure_full_index(index);
+	strmap_for_each_entry(&opt->priv->conflicted, &iter, e) {
+		if (!path_in_sparse_checkout(e->key, index)) {
+			ensure_full_index(index);
+			break;
+		}
+	}
 
 	/* If any entries have skip_worktree set, we'll have to check 'em out */
 	state.force = 1;
diff --git a/t/t1092-sparse-checkout-compatibility.sh b/t/t1092-sparse-checkout-compatibility.sh
index 3b331a6bfe..36964f52f2 100755
--- a/t/t1092-sparse-checkout-compatibility.sh
+++ b/t/t1092-sparse-checkout-compatibility.sh
@@ -617,8 +617,17 @@ test_expect_success 'sparse-index is expanded and converted back' '
 ensure_not_expanded () {
 	rm -f trace2.txt &&
 	echo >>sparse-index/untracked.txt &&
-	GIT_TRACE2_EVENT="$(pwd)/trace2.txt" GIT_TRACE2_EVENT_NESTING=10 \
-		git -C sparse-index "$@" &&
+
+	if test "$1" = "!"
+	then
+		shift &&
+		test_must_fail env \
+			GIT_TRACE2_EVENT="$(pwd)/trace2.txt" GIT_TRACE2_EVENT_NESTING=10 \
+			git -C sparse-index "$@" || return 1
+	else
+		GIT_TRACE2_EVENT="$(pwd)/trace2.txt" GIT_TRACE2_EVENT_NESTING=10 \
+			git -C sparse-index "$@" || return 1
+	fi &&
 	test_region ! index ensure_full_index trace2.txt
 }
 
@@ -658,6 +667,23 @@ test_expect_success 'sparse-index is not expanded' '
 	)
 '
 
+test_expect_success 'sparse-index is not expanded: merge conflict in cone' '
+	init_repos &&
+
+	for side in right left
+	do
+		git -C sparse-index checkout -b expand-$side base &&
+		echo $side >sparse-index/deep/a &&
+		git -C sparse-index commit -a -m "$side" || return 1
+	done &&
+
+	(
+		sane_unset GIT_TEST_MERGE_ALGORITHM &&
+		git -C sparse-index config pull.twohead ort &&
+		ensure_not_expanded ! merge -m merged expand-right
+	)
+'
+
 # NEEDSWORK: a sparse-checkout behaves differently from a full checkout
 # in this scenario, but it shouldn't.
 test_expect_success 'reset mixed and checkout orphan' '