diff --git a/dir.c b/dir.c
index 2087d23b6b..e98760c72d 100644
--- a/dir.c
+++ b/dir.c
@@ -1172,23 +1172,27 @@ int is_empty_dir(const char *path)
 	return ret;
 }
 
-int remove_dir_recursively(struct strbuf *path, int flag)
+static int remove_dir_recurse(struct strbuf *path, int flag, int *kept_up)
 {
 	DIR *dir;
 	struct dirent *e;
-	int ret = 0, original_len = path->len, len;
+	int ret = 0, original_len = path->len, len, kept_down = 0;
 	int only_empty = (flag & REMOVE_DIR_EMPTY_ONLY);
 	int keep_toplevel = (flag & REMOVE_DIR_KEEP_TOPLEVEL);
 	unsigned char submodule_head[20];
 
 	if ((flag & REMOVE_DIR_KEEP_NESTED_GIT) &&
-	    !resolve_gitlink_ref(path->buf, "HEAD", submodule_head))
+	    !resolve_gitlink_ref(path->buf, "HEAD", submodule_head)) {
 		/* Do not descend and nuke a nested git work tree. */
+		if (kept_up)
+			*kept_up = 1;
 		return 0;
+	}
 
-	flag &= ~(REMOVE_DIR_KEEP_TOPLEVEL|REMOVE_DIR_KEEP_NESTED_GIT);
+	flag &= ~REMOVE_DIR_KEEP_TOPLEVEL;
 	dir = opendir(path->buf);
 	if (!dir) {
+		/* an empty dir could be removed even if it is unreadble */
 		if (!keep_toplevel)
 			return rmdir(path->buf);
 		else
@@ -1208,7 +1212,7 @@ int remove_dir_recursively(struct strbuf *path, int flag)
 		if (lstat(path->buf, &st))
 			; /* fall thru */
 		else if (S_ISDIR(st.st_mode)) {
-			if (!remove_dir_recursively(path, flag))
+			if (!remove_dir_recurse(path, flag, &kept_down))
 				continue; /* happy */
 		} else if (!only_empty && !unlink(path->buf))
 			continue; /* happy, too */
@@ -1220,11 +1224,22 @@ int remove_dir_recursively(struct strbuf *path, int flag)
 	closedir(dir);
 
 	strbuf_setlen(path, original_len);
-	if (!ret && !keep_toplevel)
+	if (!ret && !keep_toplevel && !kept_down)
 		ret = rmdir(path->buf);
+	else if (kept_up)
+		/*
+		 * report the uplevel that it is not an error that we
+		 * did not rmdir() our directory.
+		 */
+		*kept_up = !ret;
 	return ret;
 }
 
+int remove_dir_recursively(struct strbuf *path, int flag)
+{
+	return remove_dir_recurse(path, flag, NULL);
+}
+
 void setup_standard_excludes(struct dir_struct *dir)
 {
 	const char *path;
diff --git a/t/t7300-clean.sh b/t/t7300-clean.sh
index 800b5368a5..ccfb54de7a 100755
--- a/t/t7300-clean.sh
+++ b/t/t7300-clean.sh
@@ -399,8 +399,8 @@ test_expect_success SANITY 'removal failure' '
 '
 
 test_expect_success 'nested git work tree' '
-	rm -fr foo bar &&
-	mkdir foo bar &&
+	rm -fr foo bar baz &&
+	mkdir -p foo bar baz/boo &&
 	(
 		cd foo &&
 		git init &&
@@ -412,15 +412,24 @@ test_expect_success 'nested git work tree' '
 		cd bar &&
 		>goodbye.people
 	) &&
+	(
+		cd baz/boo &&
+		git init &&
+		>deeper.world
+		git add . &&
+		git commit -a -m deeply.nested
+	) &&
 	git clean -f -d &&
 	test -f foo/.git/index &&
 	test -f foo/hello.world &&
+	test -f baz/boo/.git/index &&
+	test -f baz/boo/deeper.world &&
 	! test -d bar
 '
 
 test_expect_success 'force removal of nested git work tree' '
-	rm -fr foo bar &&
-	mkdir foo bar &&
+	rm -fr foo bar baz &&
+	mkdir -p foo bar baz/boo &&
 	(
 		cd foo &&
 		git init &&
@@ -432,9 +441,17 @@ test_expect_success 'force removal of nested git work tree' '
 		cd bar &&
 		>goodbye.people
 	) &&
+	(
+		cd baz/boo &&
+		git init &&
+		>deeper.world
+		git add . &&
+		git commit -a -m deeply.nested
+	) &&
 	git clean -f -f -d &&
 	! test -d foo &&
-	! test -d bar
+	! test -d bar &&
+	! test -d baz
 '
 
 test_expect_success 'git clean -e' '