diff --git a/git-stash.sh b/git-stash.sh
index de13dd1812..d9cd42d4b3 100755
--- a/git-stash.sh
+++ b/git-stash.sh
@@ -6,6 +6,7 @@ USAGE='[ | list | show | apply | clear]'
 SUBDIRECTORY_OK=Yes
 . git-sh-setup
 require_work_tree
+cd_to_toplevel
 
 TMP="$GIT_DIR/.git-stash.$$"
 trap 'rm -f "$TMP-*"' 0
diff --git a/t/t3903-stash.sh b/t/t3903-stash.sh
index 392ac1c5c5..9a9a250d2c 100755
--- a/t/t3903-stash.sh
+++ b/t/t3903-stash.sh
@@ -66,4 +66,11 @@ test_expect_success 'apply stashed changes (including index)' '
 	test 1 = $(git show HEAD:file)
 '
 
+test_expect_success 'unstashing in a subdirectory' '
+	git reset --hard HEAD &&
+	mkdir subdir &&
+	cd subdir &&
+	git stash apply
+'
+
 test_done