diff --git a/contrib/completion/git-completion.bash b/contrib/completion/git-completion.bash
index af5ad52bb1..19f60931b0 100644
--- a/contrib/completion/git-completion.bash
+++ b/contrib/completion/git-completion.bash
@@ -346,7 +346,11 @@ __git_refs ()
 	local list_refs_from=path remote="${1-}"
 	local format refs pfx
 
-	if [ -n "$remote" ]; then
+	if [ -z "$remote" ]; then
+		if [ -z "$dir" ]; then
+			return
+		fi
+	else
 		if __git_is_configured_remote "$remote"; then
 			# configured remote takes precedence over a
 			# local directory with the same name
@@ -360,7 +364,7 @@ __git_refs ()
 		fi
 	fi
 
-	if [ "$list_refs_from" = path ] && [ -d "$dir" ]; then
+	if [ "$list_refs_from" = path ]; then
 		case "$cur" in
 		refs|refs/*)
 			format="refname"
diff --git a/t/t9902-completion.sh b/t/t9902-completion.sh
index a201b52129..5b4defaa5c 100755
--- a/t/t9902-completion.sh
+++ b/t/t9902-completion.sh
@@ -599,7 +599,7 @@ test_expect_success '__git_refs - non-existing URL remote - full refs' '
 	test_must_be_empty "$actual"
 '
 
-test_expect_failure '__git_refs - not in a git repository' '
+test_expect_success '__git_refs - not in a git repository' '
 	(
 		GIT_CEILING_DIRECTORIES="$ROOT" &&
 		export GIT_CEILING_DIRECTORIES &&