diff --git a/merge-recursive.c b/merge-recursive.c
index 34e3167caf..d97cbf7d16 100644
--- a/merge-recursive.c
+++ b/merge-recursive.c
@@ -1028,9 +1028,20 @@ static struct merge_file_info merge_file(struct diff_filespec *o,
 		if (!sha_eq(a->sha1, o->sha1) && !sha_eq(b->sha1, o->sha1))
 			result.merge = 1;
 
-		result.mode = a->mode == o->mode ? b->mode: a->mode;
+		/*
+		 * Merge modes
+		 */
+		if (a->mode == b->mode || a->mode == o->mode)
+			result.mode = b->mode;
+		else {
+			result.mode = a->mode;
+			if (b->mode != o->mode) {
+				result.clean = 0;
+				result.merge = 1;
+			}
+		}
 
-		if (sha_eq(a->sha1, o->sha1))
+		if (sha_eq(a->sha1, b->sha1) || sha_eq(a->sha1, o->sha1))
 			hashcpy(result.sha, b->sha1);
 		else if (sha_eq(b->sha1, o->sha1))
 			hashcpy(result.sha, a->sha1);
diff --git a/t/t6031-merge-recursive.sh b/t/t6031-merge-recursive.sh
new file mode 100755
index 0000000000..5bb6b93780
--- /dev/null
+++ b/t/t6031-merge-recursive.sh
@@ -0,0 +1,49 @@
+#!/bin/sh
+
+test_description='merge-recursive: handle file mode'
+. ./test-lib.sh
+
+test_expect_success 'mode change in one branch: keep changed version' '
+	: >file1 &&
+	git add file1 &&
+	git commit -m initial &&
+	git checkout -b a1 master &&
+	: >dummy &&
+	git add dummy &&
+	git commit -m a &&
+	git checkout -b b1 master &&
+	chmod +x file1 &&
+	git add file1 &&
+	git commit -m b1 &&
+	git checkout a1 &&
+	git merge-recursive master -- a1 b1 &&
+	test -x file1
+'
+
+test_expect_success 'mode change in both branches: expect conflict' '
+	git reset --hard HEAD &&
+	git checkout -b a2 master &&
+	: >file2 &&
+	H=$(git hash-object file2) &&
+	chmod +x file2 &&
+	git add file2 &&
+	git commit -m a2 &&
+	git checkout -b b2 master &&
+	: >file2 &&
+	git add file2 &&
+	git commit -m b2 &&
+	git checkout a2 &&
+	(
+		git merge-recursive master -- a2 b2
+		test $? = 1
+	) &&
+	git ls-files -u >actual &&
+	(
+		echo "100755 $H 2	file2"
+		echo "100644 $H 3	file2"
+	) >expect &&
+	diff -u actual expect &&
+	test -x file2
+'
+
+test_done