diff --git a/ignore/src/overrides.rs b/ignore/src/overrides.rs
index c53a50f72..c737b04e4 100644
--- a/ignore/src/overrides.rs
+++ b/ignore/src/overrides.rs
@@ -79,8 +79,9 @@ impl Override {
     ///
     /// If there are no overrides, then this always returns `Match::None`.
     ///
-    /// If there is at least one whitelist override, then this never returns
-    /// `Match::None`, since non-matches are interpreted as ignored.
+    /// If there is at least one whitelist override and `is_dir` is false, then
+    /// this never returns `Match::None`, since non-matches are interpreted as
+    /// ignored.
     ///
     /// The given path is matched to the globs relative to the path given
     /// when building the override matcher. Specifically, before matching
@@ -97,7 +98,7 @@ impl Override {
             return Match::None;
         }
         let mat = self.0.matched(path, is_dir).invert();
-        if mat.is_none() && self.num_whitelists() > 0 {
+        if mat.is_none() && self.num_whitelists() > 0 && !is_dir {
             return Match::Ignore(Glob::unmatched());
         }
         mat.map(move |giglob| Glob(GlobInner::Matched(giglob)))
@@ -166,7 +167,7 @@ mod tests {
         assert!(ov.matched("a.foo", false).is_whitelist());
         assert!(ov.matched("a.foo", true).is_whitelist());
         assert!(ov.matched("a.rs", false).is_ignore());
-        assert!(ov.matched("a.rs", true).is_ignore());
+        assert!(ov.matched("a.rs", true).is_none());
         assert!(ov.matched("a.bar", false).is_ignore());
         assert!(ov.matched("a.bar", true).is_ignore());
     }
@@ -199,4 +200,18 @@ mod tests {
         assert!(ov.matched("baz/a", false).is_whitelist());
         assert!(ov.matched("baz/a/b", false).is_whitelist());
     }
+
+    #[test]
+    fn allow_directories() {
+        // This tests that directories are NOT ignored when they are unmatched.
+        let ov = ov(&["*.rs"]);
+        assert!(ov.matched("foo.rs", false).is_whitelist());
+        assert!(ov.matched("foo.c", false).is_ignore());
+        assert!(ov.matched("foo", false).is_ignore());
+        assert!(ov.matched("foo", true).is_none());
+        assert!(ov.matched("src/foo.rs", false).is_whitelist());
+        assert!(ov.matched("src/foo.c", false).is_ignore());
+        assert!(ov.matched("src/foo", false).is_ignore());
+        assert!(ov.matched("src/foo", true).is_none());
+    }
 }
diff --git a/tests/tests.rs b/tests/tests.rs
index 795c09963..65962c74a 100644
--- a/tests/tests.rs
+++ b/tests/tests.rs
@@ -865,6 +865,16 @@ clean!(regression_184, "test", ".", |wd: WorkDir, mut cmd: Command| {
     assert_eq!(lines, "baz:test\n");
 });
 
+// See: https://github.com/BurntSushi/ripgrep/issues/206
+clean!(regression_206, "test", ".", |wd: WorkDir, mut cmd: Command| {
+    wd.create_dir("foo");
+    wd.create("foo/bar.txt", "test");
+    cmd.arg("-g").arg("*.txt");
+
+    let lines: String = wd.stdout(&mut cmd);
+    assert_eq!(lines, format!("{}:test\n", path("foo/bar.txt")));
+});
+
 // See: https://github.com/BurntSushi/ripgrep/issues/20
 sherlock!(feature_20_no_filename, "Sherlock", ".",
 |wd: WorkDir, mut cmd: Command| {