diff --git a/combine-diff.c b/combine-diff.c
index 24ca7e2334..4e043060f0 100644
--- a/combine-diff.c
+++ b/combine-diff.c
@@ -12,6 +12,16 @@
 #include "sha1-array.h"
 #include "revision.h"
 
+static int compare_paths(const struct combine_diff_path *one,
+			  const struct diff_filespec *two)
+{
+	if (!S_ISDIR(one->mode) && !S_ISDIR(two->mode))
+		return strcmp(one->path, two->path);
+
+	return base_name_compare(one->path, strlen(one->path), one->mode,
+				 two->path, strlen(two->path), two->mode);
+}
+
 static struct combine_diff_path *intersect_paths(struct combine_diff_path *curr, int n, int num_parent)
 {
 	struct diff_queue_struct *q = &diff_queued_diff;
@@ -52,7 +62,7 @@ static struct combine_diff_path *intersect_paths(struct combine_diff_path *curr,
 	i = 0;
 	while ((p = *tail) != NULL) {
 		cmp = ((i >= q->nr)
-		       ? -1 : strcmp(p->path, q->queue[i]->two->path));
+		       ? -1 : compare_paths(p, q->queue[i]->two));
 
 		if (cmp < 0) {
 			/* p->path not in q->queue[]; drop it */
diff --git a/t/t4038-diff-combined.sh b/t/t4038-diff-combined.sh
index 1019d7b35f..c5eacb80f6 100755
--- a/t/t4038-diff-combined.sh
+++ b/t/t4038-diff-combined.sh
@@ -401,4 +401,38 @@ test_expect_success 'combine diff missing delete bug' '
 	compare_diff_patch expected actual
 '
 
+test_expect_success 'combine diff gets tree sorting right' '
+	# create a directory and a file that sort differently in trees
+	# versus byte-wise (implied "/" sorts after ".")
+	git checkout -f master &&
+	mkdir foo &&
+	echo base >foo/one &&
+	echo base >foo/two &&
+	echo base >foo.ext &&
+	git add foo foo.ext &&
+	git commit -m base &&
+
+	# one side modifies a file in the directory, along with the root
+	# file...
+	echo master >foo/one &&
+	echo master >foo.ext &&
+	git commit -a -m master &&
+
+	# the other side modifies the other file in the directory
+	git checkout -b other HEAD^ &&
+	echo other >foo/two &&
+	git commit -a -m other &&
+
+	# And now we merge. The files in the subdirectory will resolve cleanly,
+	# meaning that a combined diff will not find them interesting. But it
+	# will find the tree itself interesting, because it had to be merged.
+	git checkout master &&
+	git merge other &&
+
+	printf "MM\tfoo\n" >expect &&
+	git diff-tree -c --name-status -t HEAD >actual.tmp &&
+	sed 1d <actual.tmp >actual &&
+	test_cmp expect actual
+'
+
 test_done