diff --git a/gix-status/tests/fixtures/generated-archives/status_many.tar b/gix-status/tests/fixtures/generated-archives/status_many.tar
index 8e656859d8e..3798ad8560d 100644
Binary files a/gix-status/tests/fixtures/generated-archives/status_many.tar and b/gix-status/tests/fixtures/generated-archives/status_many.tar differ
diff --git a/gix-status/tests/fixtures/status_many.sh b/gix-status/tests/fixtures/status_many.sh
index 9a11f3f4f8d..563a075ba6e 100755
--- a/gix-status/tests/fixtures/status_many.sh
+++ b/gix-status/tests/fixtures/status_many.sh
@@ -39,3 +39,10 @@ cp -R changed-and-untracked changed-and-untracked-and-renamed
   echo change >> content-with-rewrite
 
 )
+
+cp -R changed-and-untracked replace-dir-with-file
+(cd replace-dir-with-file
+  rm untracked
+  rm -Rf dir/
+  touch dir
+)
diff --git a/gix-status/tests/status/index_as_worktree.rs b/gix-status/tests/status/index_as_worktree.rs
index 27a3a272c0b..fe686212b97 100644
--- a/gix-status/tests/status/index_as_worktree.rs
+++ b/gix-status/tests/status/index_as_worktree.rs
@@ -243,6 +243,27 @@ fn removed() {
     );
 }
 
+#[test]
+fn replace_dir_with_file() {
+    let out = fixture_filtered_detailed(
+        "status_many",
+        "replace-dir-with-file",
+        &[],
+        &[(BStr::new(b"dir/content"), 0, status_removed())],
+        |_| {},
+        false,
+    );
+    assert_eq!(
+        out,
+        Outcome {
+            entries_to_process: 4,
+            entries_processed: 4,
+            symlink_metadata_calls: 4,
+            ..Default::default()
+        }
+    );
+}
+
 #[test]
 fn subomdule_nochange() {
     assert_eq!(