diff --git a/apply.c b/apply.c
index 5dd634ceaf..ee6c406c7a 100644
--- a/apply.c
+++ b/apply.c
@@ -4090,12 +4090,12 @@ static int build_fake_ancestor(struct apply_state *state, struct patch *list)
 			return error(_("sha1 information is lacking or useless "
 				       "(%s)."), name);
 
-		ce = make_cache_entry(patch->old_mode, &oid, name, 0, 0);
+		ce = make_cache_entry(&result, patch->old_mode, &oid, name, 0, 0);
 		if (!ce)
 			return error(_("make_cache_entry failed for path '%s'"),
 				     name);
 		if (add_index_entry(&result, ce, ADD_CACHE_OK_TO_ADD)) {
-			free(ce);
+			discard_cache_entry(ce);
 			return error(_("could not add %s to temporary index"),
 				     name);
 		}
@@ -4263,12 +4263,11 @@ static int add_index_file(struct apply_state *state,
 	struct stat st;
 	struct cache_entry *ce;
 	int namelen = strlen(path);
-	unsigned ce_size = cache_entry_size(namelen);
 
 	if (!state->update_index)
 		return 0;
 
-	ce = xcalloc(1, ce_size);
+	ce = make_empty_cache_entry(&the_index, namelen);
 	memcpy(ce->name, path, namelen);
 	ce->ce_mode = create_ce_mode(mode);
 	ce->ce_flags = create_ce_flags(0);
@@ -4278,13 +4277,13 @@ static int add_index_file(struct apply_state *state,
 
 		if (!skip_prefix(buf, "Subproject commit ", &s) ||
 		    get_oid_hex(s, &ce->oid)) {
-			free(ce);
-		       return error(_("corrupt patch for submodule %s"), path);
+			discard_cache_entry(ce);
+			return error(_("corrupt patch for submodule %s"), path);
 		}
 	} else {
 		if (!state->cached) {
 			if (lstat(path, &st) < 0) {
-				free(ce);
+				discard_cache_entry(ce);
 				return error_errno(_("unable to stat newly "
 						     "created file '%s'"),
 						   path);
@@ -4292,13 +4291,13 @@ static int add_index_file(struct apply_state *state,
 			fill_stat_cache_info(ce, &st);
 		}
 		if (write_object_file(buf, size, blob_type, &ce->oid) < 0) {
-			free(ce);
+			discard_cache_entry(ce);
 			return error(_("unable to create backing store "
 				       "for newly created file %s"), path);
 		}
 	}
 	if (add_cache_entry(ce, ADD_CACHE_OK_TO_ADD) < 0) {
-		free(ce);
+		discard_cache_entry(ce);
 		return error(_("unable to add cache entry for %s"), path);
 	}
 
@@ -4422,27 +4421,26 @@ static int add_conflicted_stages_file(struct apply_state *state,
 				       struct patch *patch)
 {
 	int stage, namelen;
-	unsigned ce_size, mode;
+	unsigned mode;
 	struct cache_entry *ce;
 
 	if (!state->update_index)
 		return 0;
 	namelen = strlen(patch->new_name);
-	ce_size = cache_entry_size(namelen);
 	mode = patch->new_mode ? patch->new_mode : (S_IFREG | 0644);
 
 	remove_file_from_cache(patch->new_name);
 	for (stage = 1; stage < 4; stage++) {
 		if (is_null_oid(&patch->threeway_stage[stage - 1]))
 			continue;
-		ce = xcalloc(1, ce_size);
+		ce = make_empty_cache_entry(&the_index, namelen);
 		memcpy(ce->name, patch->new_name, namelen);
 		ce->ce_mode = create_ce_mode(mode);
 		ce->ce_flags = create_ce_flags(stage);
 		ce->ce_namelen = namelen;
 		oidcpy(&ce->oid, &patch->threeway_stage[stage - 1]);
 		if (add_cache_entry(ce, ADD_CACHE_OK_TO_ADD) < 0) {
-			free(ce);
+			discard_cache_entry(ce);
 			return error(_("unable to add cache entry for %s"),
 				     patch->new_name);
 		}
diff --git a/blame.c b/blame.c
index 14d0e0b575..4c6668d0e1 100644
--- a/blame.c
+++ b/blame.c
@@ -154,7 +154,7 @@ static struct commit *fake_working_tree_commit(struct diff_options *opt,
 	struct strbuf buf = STRBUF_INIT;
 	const char *ident;
 	time_t now;
-	int size, len;
+	int len;
 	struct cache_entry *ce;
 	unsigned mode;
 	struct strbuf msg = STRBUF_INIT;
@@ -252,8 +252,7 @@ static struct commit *fake_working_tree_commit(struct diff_options *opt,
 			/* Let's not bother reading from HEAD tree */
 			mode = S_IFREG | 0644;
 	}
-	size = cache_entry_size(len);
-	ce = xcalloc(1, size);
+	ce = make_empty_cache_entry(&the_index, len);
 	oidcpy(&ce->oid, &origin->blob_oid);
 	memcpy(ce->name, path, len);
 	ce->ce_flags = create_ce_flags(0);
diff --git a/builtin/checkout.c b/builtin/checkout.c
index 548bf40f25..56d1e1a28d 100644
--- a/builtin/checkout.c
+++ b/builtin/checkout.c
@@ -77,7 +77,7 @@ static int update_some(const struct object_id *oid, struct strbuf *base,
 		return READ_TREE_RECURSIVE;
 
 	len = base->len + strlen(pathname);
-	ce = xcalloc(1, cache_entry_size(len));
+	ce = make_empty_cache_entry(&the_index, len);
 	oidcpy(&ce->oid, oid);
 	memcpy(ce->name, base->buf, base->len);
 	memcpy(ce->name + base->len, pathname, len - base->len);
@@ -96,7 +96,7 @@ static int update_some(const struct object_id *oid, struct strbuf *base,
 		if (ce->ce_mode == old->ce_mode &&
 		    !oidcmp(&ce->oid, &old->oid)) {
 			old->ce_flags |= CE_UPDATE;
-			free(ce);
+			discard_cache_entry(ce);
 			return 0;
 		}
 	}
@@ -230,11 +230,11 @@ static int checkout_merged(int pos, const struct checkout *state)
 	if (write_object_file(result_buf.ptr, result_buf.size, blob_type, &oid))
 		die(_("Unable to add merge result for '%s'"), path);
 	free(result_buf.ptr);
-	ce = make_cache_entry(mode, &oid, path, 2, 0);
+	ce = make_transient_cache_entry(mode, &oid, path, 2);
 	if (!ce)
 		die(_("make_cache_entry failed for path '%s'"), path);
 	status = checkout_entry(ce, state, NULL);
-	free(ce);
+	discard_cache_entry(ce);
 	return status;
 }
 
diff --git a/builtin/difftool.c b/builtin/difftool.c
index 873a06f0d9..4593f0c2cd 100644
--- a/builtin/difftool.c
+++ b/builtin/difftool.c
@@ -321,10 +321,10 @@ static int checkout_path(unsigned mode, struct object_id *oid,
 	struct cache_entry *ce;
 	int ret;
 
-	ce = make_cache_entry(mode, oid, path, 0, 0);
+	ce = make_transient_cache_entry(mode, oid, path, 0);
 	ret = checkout_entry(ce, state, NULL);
 
-	free(ce);
+	discard_cache_entry(ce);
 	return ret;
 }
 
@@ -488,7 +488,7 @@ static int run_dir_diff(const char *extcmd, int symlinks, const char *prefix,
 				 * index.
 				 */
 				struct cache_entry *ce2 =
-					make_cache_entry(rmode, &roid,
+					make_cache_entry(&wtindex, rmode, &roid,
 							 dst_path, 0, 0);
 
 				add_index_entry(&wtindex, ce2,
diff --git a/builtin/reset.c b/builtin/reset.c
index 00109b041f..c3f0cfa1e8 100644
--- a/builtin/reset.c
+++ b/builtin/reset.c
@@ -134,7 +134,7 @@ static void update_index_from_diff(struct diff_queue_struct *q,
 			continue;
 		}
 
-		ce = make_cache_entry(one->mode, &one->oid, one->path,
+		ce = make_cache_entry(&the_index, one->mode, &one->oid, one->path,
 				      0, 0);
 		if (!ce)
 			die(_("make_cache_entry failed for path '%s'"),
diff --git a/builtin/update-index.c b/builtin/update-index.c
index a8709a26ec..ea2f2a476c 100644
--- a/builtin/update-index.c
+++ b/builtin/update-index.c
@@ -268,15 +268,14 @@ static int process_lstat_error(const char *path, int err)
 
 static int add_one_path(const struct cache_entry *old, const char *path, int len, struct stat *st)
 {
-	int option, size;
+	int option;
 	struct cache_entry *ce;
 
 	/* Was the old index entry already up-to-date? */
 	if (old && !ce_stage(old) && !ce_match_stat(old, st, 0))
 		return 0;
 
-	size = cache_entry_size(len);
-	ce = xcalloc(1, size);
+	ce = make_empty_cache_entry(&the_index, len);
 	memcpy(ce->name, path, len);
 	ce->ce_flags = create_ce_flags(0);
 	ce->ce_namelen = len;
@@ -285,13 +284,13 @@ static int add_one_path(const struct cache_entry *old, const char *path, int len
 
 	if (index_path(&ce->oid, path, st,
 		       info_only ? 0 : HASH_WRITE_OBJECT)) {
-		free(ce);
+		discard_cache_entry(ce);
 		return -1;
 	}
 	option = allow_add ? ADD_CACHE_OK_TO_ADD : 0;
 	option |= allow_replace ? ADD_CACHE_OK_TO_REPLACE : 0;
 	if (add_cache_entry(ce, option)) {
-		free(ce);
+		discard_cache_entry(ce);
 		return error("%s: cannot add to the index - missing --add option?", path);
 	}
 	return 0;
@@ -402,15 +401,14 @@ static int process_path(const char *path, struct stat *st, int stat_errno)
 static int add_cacheinfo(unsigned int mode, const struct object_id *oid,
 			 const char *path, int stage)
 {
-	int size, len, option;
+	int len, option;
 	struct cache_entry *ce;
 
 	if (!verify_path(path, mode))
 		return error("Invalid path '%s'", path);
 
 	len = strlen(path);
-	size = cache_entry_size(len);
-	ce = xcalloc(1, size);
+	ce = make_empty_cache_entry(&the_index, len);
 
 	oidcpy(&ce->oid, oid);
 	memcpy(ce->name, path, len);
@@ -599,7 +597,6 @@ static struct cache_entry *read_one_ent(const char *which,
 {
 	unsigned mode;
 	struct object_id oid;
-	int size;
 	struct cache_entry *ce;
 
 	if (get_tree_entry(ent, path, &oid, &mode)) {
@@ -612,8 +609,7 @@ static struct cache_entry *read_one_ent(const char *which,
 			error("%s: not a blob in %s branch.", path, which);
 		return NULL;
 	}
-	size = cache_entry_size(namelen);
-	ce = xcalloc(1, size);
+	ce = make_empty_cache_entry(&the_index, namelen);
 
 	oidcpy(&ce->oid, &oid);
 	memcpy(ce->name, path, namelen);
@@ -690,8 +686,8 @@ static int unresolve_one(const char *path)
 	error("%s: cannot add their version to the index.", path);
 	ret = -1;
  free_return:
-	free(ce_2);
-	free(ce_3);
+	discard_cache_entry(ce_2);
+	discard_cache_entry(ce_3);
 	return ret;
 }
 
@@ -758,7 +754,7 @@ static int do_reupdate(int ac, const char **av,
 					   ce->name, ce_namelen(ce), 0);
 		if (old && ce->ce_mode == old->ce_mode &&
 		    !oidcmp(&ce->oid, &old->oid)) {
-			free(old);
+			discard_cache_entry(old);
 			continue; /* unchanged */
 		}
 		/* Be careful.  The working tree may not have the
@@ -769,7 +765,7 @@ static int do_reupdate(int ac, const char **av,
 		path = xstrdup(ce->name);
 		update_one(path);
 		free(path);
-		free(old);
+		discard_cache_entry(old);
 		if (save_nr != active_nr)
 			goto redo;
 	}
diff --git a/cache.h b/cache.h
index 7953d52caa..5aadaebaeb 100644
--- a/cache.h
+++ b/cache.h
@@ -339,6 +339,40 @@ extern void remove_name_hash(struct index_state *istate, struct cache_entry *ce)
 extern void free_name_hash(struct index_state *istate);
 
 
+/* Cache entry creation and cleanup */
+
+/*
+ * Create cache_entry intended for use in the specified index. Caller
+ * is responsible for discarding the cache_entry with
+ * `discard_cache_entry`.
+ */
+struct cache_entry *make_cache_entry(struct index_state *istate,
+				     unsigned int mode,
+				     const struct object_id *oid,
+				     const char *path,
+				     int stage,
+				     unsigned int refresh_options);
+
+struct cache_entry *make_empty_cache_entry(struct index_state *istate,
+					   size_t name_len);
+
+/*
+ * Create a cache_entry that is not intended to be added to an index.
+ * Caller is responsible for discarding the cache_entry
+ * with `discard_cache_entry`.
+ */
+struct cache_entry *make_transient_cache_entry(unsigned int mode,
+					       const struct object_id *oid,
+					       const char *path,
+					       int stage);
+
+struct cache_entry *make_empty_transient_cache_entry(size_t name_len);
+
+/*
+ * Discard cache entry.
+ */
+void discard_cache_entry(struct cache_entry *ce);
+
 #ifndef NO_THE_INDEX_COMPATIBILITY_MACROS
 #define active_cache (the_index.cache)
 #define active_nr (the_index.cache_nr)
@@ -698,12 +732,6 @@ extern int remove_file_from_index(struct index_state *, const char *path);
 extern int add_to_index(struct index_state *, const char *path, struct stat *, int flags);
 extern int add_file_to_index(struct index_state *, const char *path, int flags);
 
-extern struct cache_entry *make_cache_entry(unsigned int mode,
-					    const struct object_id *oid,
-					    const char *path,
-					    int stage,
-					    unsigned int refresh_options);
-
 extern int chmod_index_entry(struct index_state *, struct cache_entry *ce, char flip);
 extern int ce_same_name(const struct cache_entry *a, const struct cache_entry *b);
 extern void set_object_name_for_intent_to_add_entry(struct cache_entry *ce);
diff --git a/merge-recursive.c b/merge-recursive.c
index 8b30cc7e35..a580cff886 100644
--- a/merge-recursive.c
+++ b/merge-recursive.c
@@ -315,7 +315,7 @@ static int add_cacheinfo(struct merge_options *o,
 	struct cache_entry *ce;
 	int ret;
 
-	ce = make_cache_entry(mode, oid ? oid : &null_oid, path, stage, 0);
+	ce = make_cache_entry(&the_index, mode, oid ? oid : &null_oid, path, stage, 0);
 	if (!ce)
 		return err(o, _("add_cacheinfo failed for path '%s'; merge aborting."), path);
 
diff --git a/read-cache.c b/read-cache.c
index c12664c789..41e4d0e67a 100644
--- a/read-cache.c
+++ b/read-cache.c
@@ -61,7 +61,7 @@ static void replace_index_entry(struct index_state *istate, int nr, struct cache
 
 	replace_index_entry_in_base(istate, old, ce);
 	remove_name_hash(istate, old);
-	free(old);
+	discard_cache_entry(old);
 	ce->ce_flags &= ~CE_HASHED;
 	set_index_entry(istate, nr, ce);
 	ce->ce_flags |= CE_UPDATE_IN_BASE;
@@ -74,7 +74,7 @@ void rename_index_entry_at(struct index_state *istate, int nr, const char *new_n
 	struct cache_entry *old_entry = istate->cache[nr], *new_entry;
 	int namelen = strlen(new_name);
 
-	new_entry = xmalloc(cache_entry_size(namelen));
+	new_entry = make_empty_cache_entry(istate, namelen);
 	copy_cache_entry(new_entry, old_entry);
 	new_entry->ce_flags &= ~CE_HASHED;
 	new_entry->ce_namelen = namelen;
@@ -623,7 +623,7 @@ static struct cache_entry *create_alias_ce(struct index_state *istate,
 
 	/* Ok, create the new entry using the name of the existing alias */
 	len = ce_namelen(alias);
-	new_entry = xcalloc(1, cache_entry_size(len));
+	new_entry = make_empty_cache_entry(istate, len);
 	memcpy(new_entry->name, alias->name, len);
 	copy_cache_entry(new_entry, ce);
 	save_or_free_index_entry(istate, ce);
@@ -640,7 +640,7 @@ void set_object_name_for_intent_to_add_entry(struct cache_entry *ce)
 
 int add_to_index(struct index_state *istate, const char *path, struct stat *st, int flags)
 {
-	int size, namelen, was_same;
+	int namelen, was_same;
 	mode_t st_mode = st->st_mode;
 	struct cache_entry *ce, *alias = NULL;
 	unsigned ce_option = CE_MATCH_IGNORE_VALID|CE_MATCH_IGNORE_SKIP_WORKTREE|CE_MATCH_RACY_IS_DIRTY;
@@ -662,8 +662,7 @@ int add_to_index(struct index_state *istate, const char *path, struct stat *st,
 		while (namelen && path[namelen-1] == '/')
 			namelen--;
 	}
-	size = cache_entry_size(namelen);
-	ce = xcalloc(1, size);
+	ce = make_empty_cache_entry(istate, namelen);
 	memcpy(ce->name, path, namelen);
 	ce->ce_namelen = namelen;
 	if (!intent_only)
@@ -704,13 +703,13 @@ int add_to_index(struct index_state *istate, const char *path, struct stat *st,
 				ce_mark_uptodate(alias);
 			alias->ce_flags |= CE_ADDED;
 
-			free(ce);
+			discard_cache_entry(ce);
 			return 0;
 		}
 	}
 	if (!intent_only) {
 		if (index_path(&ce->oid, path, st, newflags)) {
-			free(ce);
+			discard_cache_entry(ce);
 			return error("unable to index file %s", path);
 		}
 	} else
@@ -727,9 +726,9 @@ int add_to_index(struct index_state *istate, const char *path, struct stat *st,
 		    ce->ce_mode == alias->ce_mode);
 
 	if (pretend)
-		free(ce);
+		discard_cache_entry(ce);
 	else if (add_index_entry(istate, ce, add_option)) {
-		free(ce);
+		discard_cache_entry(ce);
 		return error("unable to add %s to index", path);
 	}
 	if (verbose && !was_same)
@@ -745,14 +744,25 @@ int add_file_to_index(struct index_state *istate, const char *path, int flags)
 	return add_to_index(istate, path, &st, flags);
 }
 
-struct cache_entry *make_cache_entry(unsigned int mode,
+struct cache_entry *make_empty_cache_entry(struct index_state *istate, size_t len)
+{
+	return xcalloc(1, cache_entry_size(len));
+}
+
+struct cache_entry *make_empty_transient_cache_entry(size_t len)
+{
+	return xcalloc(1, cache_entry_size(len));
+}
+
+struct cache_entry *make_cache_entry(struct index_state *istate,
+				     unsigned int mode,
 				     const struct object_id *oid,
 				     const char *path,
 				     int stage,
 				     unsigned int refresh_options)
 {
-	int size, len;
 	struct cache_entry *ce, *ret;
+	int len;
 
 	if (!verify_path(path, mode)) {
 		error("Invalid path '%s'", path);
@@ -760,8 +770,7 @@ struct cache_entry *make_cache_entry(unsigned int mode,
 	}
 
 	len = strlen(path);
-	size = cache_entry_size(len);
-	ce = xcalloc(1, size);
+	ce = make_empty_cache_entry(istate, len);
 
 	oidcpy(&ce->oid, oid);
 	memcpy(ce->name, path, len);
@@ -771,10 +780,33 @@ struct cache_entry *make_cache_entry(unsigned int mode,
 
 	ret = refresh_cache_entry(&the_index, ce, refresh_options);
 	if (ret != ce)
-		free(ce);
+		discard_cache_entry(ce);
 	return ret;
 }
 
+struct cache_entry *make_transient_cache_entry(unsigned int mode, const struct object_id *oid,
+					       const char *path, int stage)
+{
+	struct cache_entry *ce;
+	int len;
+
+	if (!verify_path(path, mode)) {
+		error("Invalid path '%s'", path);
+		return NULL;
+	}
+
+	len = strlen(path);
+	ce = make_empty_transient_cache_entry(len);
+
+	oidcpy(&ce->oid, oid);
+	memcpy(ce->name, path, len);
+	ce->ce_flags = create_ce_flags(stage);
+	ce->ce_namelen = len;
+	ce->ce_mode = create_ce_mode(mode);
+
+	return ce;
+}
+
 /*
  * Chmod an index entry with either +x or -x.
  *
@@ -1270,7 +1302,7 @@ static struct cache_entry *refresh_cache_ent(struct index_state *istate,
 {
 	struct stat st;
 	struct cache_entry *updated;
-	int changed, size;
+	int changed;
 	int refresh = options & CE_MATCH_REFRESH;
 	int ignore_valid = options & CE_MATCH_IGNORE_VALID;
 	int ignore_skip_worktree = options & CE_MATCH_IGNORE_SKIP_WORKTREE;
@@ -1350,8 +1382,7 @@ static struct cache_entry *refresh_cache_ent(struct index_state *istate,
 		return NULL;
 	}
 
-	size = ce_size(ce);
-	updated = xmalloc(size);
+	updated = make_empty_cache_entry(istate, ce_namelen(ce));
 	copy_cache_entry(updated, ce);
 	memcpy(updated->name, ce->name, ce->ce_namelen + 1);
 	fill_stat_cache_info(updated, &st);
@@ -1637,12 +1668,13 @@ int read_index(struct index_state *istate)
 	return read_index_from(istate, get_index_file(), get_git_dir());
 }
 
-static struct cache_entry *cache_entry_from_ondisk(struct ondisk_cache_entry *ondisk,
+static struct cache_entry *cache_entry_from_ondisk(struct index_state *istate,
+						   struct ondisk_cache_entry *ondisk,
 						   unsigned int flags,
 						   const char *name,
 						   size_t len)
 {
-	struct cache_entry *ce = xmalloc(cache_entry_size(len));
+	struct cache_entry *ce = make_empty_cache_entry(istate, len);
 
 	ce->ce_stat_data.sd_ctime.sec = get_be32(&ondisk->ctime.sec);
 	ce->ce_stat_data.sd_mtime.sec = get_be32(&ondisk->mtime.sec);
@@ -1684,7 +1716,8 @@ static unsigned long expand_name_field(struct strbuf *name, const char *cp_)
 	return (const char *)ep + 1 - cp_;
 }
 
-static struct cache_entry *create_from_disk(struct ondisk_cache_entry *ondisk,
+static struct cache_entry *create_from_disk(struct index_state *istate,
+					    struct ondisk_cache_entry *ondisk,
 					    unsigned long *ent_size,
 					    struct strbuf *previous_name)
 {
@@ -1715,13 +1748,13 @@ static struct cache_entry *create_from_disk(struct ondisk_cache_entry *ondisk,
 		/* v3 and earlier */
 		if (len == CE_NAMEMASK)
 			len = strlen(name);
-		ce = cache_entry_from_ondisk(ondisk, flags, name, len);
+		ce = cache_entry_from_ondisk(istate, ondisk, flags, name, len);
 
 		*ent_size = ondisk_ce_size(ce);
 	} else {
 		unsigned long consumed;
 		consumed = expand_name_field(previous_name, name);
-		ce = cache_entry_from_ondisk(ondisk, flags,
+		ce = cache_entry_from_ondisk(istate, ondisk, flags,
 					     previous_name->buf,
 					     previous_name->len);
 
@@ -1853,7 +1886,7 @@ int do_read_index(struct index_state *istate, const char *path, int must_exist)
 		unsigned long consumed;
 
 		disk_ce = (struct ondisk_cache_entry *)((char *)mmap + src_offset);
-		ce = create_from_disk(disk_ce, &consumed, previous_name);
+		ce = create_from_disk(istate, disk_ce, &consumed, previous_name);
 		set_index_entry(istate, i, ce);
 
 		src_offset += consumed;
@@ -1959,7 +1992,7 @@ int discard_index(struct index_state *istate)
 		    istate->cache[i]->index <= istate->split_index->base->cache_nr &&
 		    istate->cache[i] == istate->split_index->base->cache[istate->cache[i]->index - 1])
 			continue;
-		free(istate->cache[i]);
+		discard_cache_entry(istate->cache[i]);
 	}
 	resolve_undo_clear_index(istate);
 	istate->cache_nr = 0;
@@ -2649,14 +2682,13 @@ int read_index_unmerged(struct index_state *istate)
 	for (i = 0; i < istate->cache_nr; i++) {
 		struct cache_entry *ce = istate->cache[i];
 		struct cache_entry *new_ce;
-		int size, len;
+		int len;
 
 		if (!ce_stage(ce))
 			continue;
 		unmerged = 1;
 		len = ce_namelen(ce);
-		size = cache_entry_size(len);
-		new_ce = xcalloc(1, size);
+		new_ce = make_empty_cache_entry(istate, len);
 		memcpy(new_ce->name, ce->name, len);
 		new_ce->ce_flags = create_ce_flags(0) | CE_CONFLICTED;
 		new_ce->ce_namelen = len;
@@ -2765,3 +2797,8 @@ void move_index_extensions(struct index_state *dst, struct index_state *src)
 	dst->untracked = src->untracked;
 	src->untracked = NULL;
 }
+
+void discard_cache_entry(struct cache_entry *ce)
+{
+	free(ce);
+}
diff --git a/resolve-undo.c b/resolve-undo.c
index 4d4e5cb6bf..c30ae5cf49 100644
--- a/resolve-undo.c
+++ b/resolve-undo.c
@@ -146,7 +146,9 @@ int unmerge_index_entry_at(struct index_state *istate, int pos)
 		struct cache_entry *nce;
 		if (!ru->mode[i])
 			continue;
-		nce = make_cache_entry(ru->mode[i], &ru->oid[i],
+		nce = make_cache_entry(istate,
+				       ru->mode[i],
+				       &ru->oid[i],
 				       name, i + 1, 0);
 		if (matched)
 			nce->ce_flags |= CE_MATCHED;
diff --git a/split-index.c b/split-index.c
index 660c75f31f..317900db8b 100644
--- a/split-index.c
+++ b/split-index.c
@@ -123,7 +123,7 @@ static void replace_entry(size_t pos, void *data)
 	src->ce_flags |= CE_UPDATE_IN_BASE;
 	src->ce_namelen = dst->ce_namelen;
 	copy_cache_entry(dst, src);
-	free(src);
+	discard_cache_entry(src);
 	si->nr_replacements++;
 }
 
@@ -224,7 +224,7 @@ void prepare_to_write_split_index(struct index_state *istate)
 			base->ce_flags = base_flags;
 			if (ret)
 				ce->ce_flags |= CE_UPDATE_IN_BASE;
-			free(base);
+			discard_cache_entry(base);
 			si->base->cache[ce->index - 1] = ce;
 		}
 		for (i = 0; i < si->base->cache_nr; i++) {
@@ -301,7 +301,7 @@ void save_or_free_index_entry(struct index_state *istate, struct cache_entry *ce
 	    ce == istate->split_index->base->cache[ce->index - 1])
 		ce->ce_flags |= CE_REMOVE;
 	else
-		free(ce);
+		discard_cache_entry(ce);
 }
 
 void replace_index_entry_in_base(struct index_state *istate,
@@ -314,7 +314,7 @@ void replace_index_entry_in_base(struct index_state *istate,
 	    old_entry->index <= istate->split_index->base->cache_nr) {
 		new_entry->index = old_entry->index;
 		if (old_entry != istate->split_index->base->cache[new_entry->index - 1])
-			free(istate->split_index->base->cache[new_entry->index - 1]);
+			discard_cache_entry(istate->split_index->base->cache[new_entry->index - 1]);
 		istate->split_index->base->cache[new_entry->index - 1] = new_entry;
 	}
 }
diff --git a/tree.c b/tree.c
index 244eb5e665..5111ce8376 100644
--- a/tree.c
+++ b/tree.c
@@ -16,15 +16,13 @@ static int read_one_entry_opt(struct index_state *istate,
 			      unsigned mode, int stage, int opt)
 {
 	int len;
-	unsigned int size;
 	struct cache_entry *ce;
 
 	if (S_ISDIR(mode))
 		return READ_TREE_RECURSIVE;
 
 	len = strlen(pathname);
-	size = cache_entry_size(baselen + len);
-	ce = xcalloc(1, size);
+	ce = make_empty_cache_entry(istate, baselen + len);
 
 	ce->ce_mode = create_ce_mode(mode);
 	ce->ce_flags = create_ce_flags(stage);
diff --git a/unpack-trees.c b/unpack-trees.c
index 3a85a02a77..33cba550b0 100644
--- a/unpack-trees.c
+++ b/unpack-trees.c
@@ -203,10 +203,10 @@ static int do_add_entry(struct unpack_trees_options *o, struct cache_entry *ce,
 			       ADD_CACHE_OK_TO_ADD | ADD_CACHE_OK_TO_REPLACE);
 }
 
-static struct cache_entry *dup_entry(const struct cache_entry *ce)
+static struct cache_entry *dup_entry(const struct cache_entry *ce, struct index_state *istate)
 {
 	unsigned int size = ce_size(ce);
-	struct cache_entry *new_entry = xmalloc(size);
+	struct cache_entry *new_entry = make_empty_cache_entry(istate, ce_namelen(ce));
 
 	memcpy(new_entry, ce, size);
 	return new_entry;
@@ -216,7 +216,7 @@ static void add_entry(struct unpack_trees_options *o,
 		      const struct cache_entry *ce,
 		      unsigned int set, unsigned int clear)
 {
-	do_add_entry(o, dup_entry(ce), set, clear);
+	do_add_entry(o, dup_entry(ce, &o->result), set, clear);
 }
 
 /*
@@ -797,10 +797,17 @@ static int ce_in_traverse_path(const struct cache_entry *ce,
 	return (info->pathlen < ce_namelen(ce));
 }
 
-static struct cache_entry *create_ce_entry(const struct traverse_info *info, const struct name_entry *n, int stage)
+static struct cache_entry *create_ce_entry(const struct traverse_info *info,
+	const struct name_entry *n,
+	int stage,
+	struct index_state *istate,
+	int is_transient)
 {
 	int len = traverse_path_len(info, n);
-	struct cache_entry *ce = xcalloc(1, cache_entry_size(len));
+	struct cache_entry *ce =
+		is_transient ?
+		make_empty_transient_cache_entry(len) :
+		make_empty_cache_entry(istate, len);
 
 	ce->ce_mode = create_ce_mode(n->mode);
 	ce->ce_flags = create_ce_flags(stage);
@@ -846,7 +853,15 @@ static int unpack_nondirectories(int n, unsigned long mask,
 			stage = 3;
 		else
 			stage = 2;
-		src[i + o->merge] = create_ce_entry(info, names + i, stage);
+
+		/*
+		 * If the merge bit is set, then the cache entries are
+		 * discarded in the following block.  In this case,
+		 * construct "transient" cache_entries, as they are
+		 * not stored in the index.  otherwise construct the
+		 * cache entry from the index aware logic.
+		 */
+		src[i + o->merge] = create_ce_entry(info, names + i, stage, &o->result, o->merge);
 	}
 
 	if (o->merge) {
@@ -855,7 +870,7 @@ static int unpack_nondirectories(int n, unsigned long mask,
 		for (i = 0; i < n; i++) {
 			struct cache_entry *ce = src[i + o->merge];
 			if (ce != o->df_conflict_entry)
-				free(ce);
+				discard_cache_entry(ce);
 		}
 		return rc;
 	}
@@ -1787,7 +1802,7 @@ static int merged_entry(const struct cache_entry *ce,
 			struct unpack_trees_options *o)
 {
 	int update = CE_UPDATE;
-	struct cache_entry *merge = dup_entry(ce);
+	struct cache_entry *merge = dup_entry(ce, &o->result);
 
 	if (!old) {
 		/*
@@ -1807,7 +1822,7 @@ static int merged_entry(const struct cache_entry *ce,
 
 		if (verify_absent(merge,
 				  ERROR_WOULD_LOSE_UNTRACKED_OVERWRITTEN, o)) {
-			free(merge);
+			discard_cache_entry(merge);
 			return -1;
 		}
 		invalidate_ce_path(merge, o);
@@ -1833,7 +1848,7 @@ static int merged_entry(const struct cache_entry *ce,
 			update = 0;
 		} else {
 			if (verify_uptodate(old, o)) {
-				free(merge);
+				discard_cache_entry(merge);
 				return -1;
 			}
 			/* Migrate old flags over */