diff --git a/t/t1092-sparse-checkout-compatibility.sh b/t/t1092-sparse-checkout-compatibility.sh
index dcd7061fb3..236ab53028 100755
--- a/t/t1092-sparse-checkout-compatibility.sh
+++ b/t/t1092-sparse-checkout-compatibility.sh
@@ -340,7 +340,7 @@ test_expect_success 'deep changes during checkout' '
 	test_all_match git checkout base
 '
 
-test_expect_failure 'add outside sparse cone' '
+test_expect_success 'add outside sparse cone' '
 	init_repos &&
 
 	run_on_sparse mkdir folder1 &&
@@ -382,7 +382,7 @@ test_expect_success 'commit including unstaged changes' '
 	test_all_match git status --porcelain=v2
 '
 
-test_expect_failure 'status/add: outside sparse cone' '
+test_expect_success 'status/add: outside sparse cone' '
 	init_repos &&
 
 	# folder1 is at HEAD, but outside the sparse cone
@@ -593,7 +593,7 @@ test_expect_success 'checkout and reset (keep)' '
 	test_all_match test_must_fail git reset --keep deepest
 '
 
-test_expect_failure 'reset with pathspecs inside sparse definition' '
+test_expect_success 'reset with pathspecs inside sparse definition' '
 	init_repos &&
 
 	write_script edit-contents <<-\EOF &&
diff --git a/unpack-trees.c b/unpack-trees.c
index 2763a029a1..b82c1a9705 100644
--- a/unpack-trees.c
+++ b/unpack-trees.c
@@ -595,13 +595,6 @@ static void mark_ce_used(struct cache_entry *ce, struct unpack_trees_options *o)
 {
 	ce->ce_flags |= CE_UNPACKED;
 
-	/*
-	 * If this is a sparse directory, don't advance cache_bottom.
-	 * That will be advanced later using the cache-tree data.
-	 */
-	if (S_ISSPARSEDIR(ce->ce_mode))
-		return;
-
 	if (o->cache_bottom < o->src_index->cache_nr &&
 	    o->src_index->cache[o->cache_bottom] == ce) {
 		int bottom = o->cache_bottom;
@@ -1478,7 +1471,14 @@ static int unpack_callback(int n, unsigned long mask, unsigned long dirmask, str
 			 * it does not do any look-ahead, so this is safe.
 			 */
 			if (matches) {
-				o->cache_bottom += matches;
+				/*
+				 * Only increment the cache_bottom if the
+				 * directory isn't a sparse directory index
+				 * entry (if it is, it was already incremented)
+				 * in 'mark_ce_used()'
+				 */
+				if (!src[0] || !S_ISSPARSEDIR(src[0]->ce_mode))
+					o->cache_bottom += matches;
 				return mask;
 			}
 		}