diff --git a/builtin/commit.c b/builtin/commit.c
index bebd376efd467c..e7237e86ef8b89 100644
--- a/builtin/commit.c
+++ b/builtin/commit.c
@@ -1354,6 +1354,7 @@ static int git_status_config(const char *k, const char *v, void *cb)
 int cmd_status(int argc, const char **argv, const char *prefix)
 {
 	static int no_lock_index = 0;
+	static int show_ignored_directory = 0;
 	static struct wt_status s;
 	int fd;
 	struct object_id oid;
@@ -1385,6 +1386,10 @@ int cmd_status(int argc, const char **argv, const char *prefix)
 		  N_("ignore changes to submodules, optional when: all, dirty, untracked. (Default: all)"),
 		  PARSE_OPT_OPTARG, NULL, (intptr_t)"all" },
 		OPT_COLUMN(0, "column", &s.colopts, N_("list untracked files in columns")),
+		OPT_BOOL(0, "show-ignored-directory", &show_ignored_directory,
+			N_("(DEPRECATED: use --ignore=matching instead) Only "
+			   "show directories that match an ignore pattern "
+			   "name.")),
 		OPT_BOOL(0, "no-lock-index", &no_lock_index,
 			 N_("(DEPRECATED: use `git --no-optional-locks status` "
 			    "instead) Do not lock the index")),
@@ -1407,6 +1412,12 @@ int cmd_status(int argc, const char **argv, const char *prefix)
 		setenv(GIT_OPTIONAL_LOCKS_ENVIRONMENT, "false", 1);
 	}
 
+	if (show_ignored_directory) {
+		warning("--show-ignored-directory was deprecated, use "
+			"--ignored=matching instead");
+		ignored_arg = "matching";
+	}
+
 	handle_untracked_files_arg(&s);
 	handle_ignored_arg(&s);
 
diff --git a/t/t7520-status-show-ignored-directory.sh b/t/t7520-status-show-ignored-directory.sh
new file mode 100755
index 00000000000000..af29f8bb4fab72
--- /dev/null
+++ b/t/t7520-status-show-ignored-directory.sh
@@ -0,0 +1,151 @@
+#!/bin/sh
+#
+#
+
+test_description='git status collapse ignored'
+
+. ./test-lib.sh
+
+
+cat >.gitignore <<\EOF
+*.ign
+ignored_dir/
+!*.unignore
+EOF
+
+# commit initial ignore file
+test_expect_success 'setup initial commit and ignore file' '
+	git add . &&
+	test_tick &&
+	git commit -m "Initial commit"
+'
+
+cat >expect <<\EOF
+? err
+? expect
+? output
+! dir/ignored/ignored_1.ign
+! dir/ignored/ignored_2.ign
+! ignored/ignored_1.ign
+! ignored/ignored_2.ign
+EOF
+
+# Test status behavior on folder with ignored files
+test_expect_success 'setup folder with ignored files' '
+	mkdir -p ignored dir/ignored &&
+	touch ignored/ignored_1.ign ignored/ignored_2.ign \
+		dir/ignored/ignored_1.ign dir/ignored/ignored_2.ign
+'
+
+test_expect_success 'Verify behavior of status on folders with ignored files' '
+	test_when_finished "git clean -fdx" &&
+	git status --porcelain=v2 --ignored --untracked-files=all --show-ignored-directory >output 2>err &&
+	test_i18ncmp expect output &&
+	grep "deprecated.*use --ignored=matching instead" err
+'
+
+# Test status bahavior on folder with tracked and ignored files
+cat >expect <<\EOF
+? expect
+? output
+! dir/tracked_ignored/ignored_1.ign
+! dir/tracked_ignored/ignored_2.ign
+! tracked_ignored/ignored_1.ign
+! tracked_ignored/ignored_2.ign
+EOF
+
+test_expect_success 'setup folder with tracked & ignored files' '
+	mkdir -p tracked_ignored dir/tracked_ignored &&
+	touch tracked_ignored/tracked_1 tracked_ignored/tracked_2 \
+		tracked_ignored/ignored_1.ign tracked_ignored/ignored_2.ign \
+		dir/tracked_ignored/tracked_1 dir/tracked_ignored/tracked_2 \
+		dir/tracked_ignored/ignored_1.ign dir/tracked_ignored/ignored_2.ign &&
+
+	git add tracked_ignored/tracked_1 tracked_ignored/tracked_2 \
+		dir/tracked_ignored/tracked_1 dir/tracked_ignored/tracked_2 &&
+	test_tick &&
+	git commit -m "commit tracked files"
+'
+
+test_expect_success 'Verify status on folder with tracked & ignored files' '
+	test_when_finished "git clean -fdx && git reset HEAD~1 --hard" &&
+	git status --porcelain=v2 --ignored --untracked-files=all --show-ignored-directory >output &&
+	test_i18ncmp expect output
+'
+
+
+# Test status behavior on folder with untracked and ignored files
+cat >expect <<\EOF
+? dir/untracked_ignored/untracked_1
+? dir/untracked_ignored/untracked_2
+? expect
+? output
+? untracked_ignored/untracked_1
+? untracked_ignored/untracked_2
+! dir/untracked_ignored/ignored_1.ign
+! dir/untracked_ignored/ignored_2.ign
+! untracked_ignored/ignored_1.ign
+! untracked_ignored/ignored_2.ign
+EOF
+
+test_expect_success 'setup folder with tracked & ignored files' '
+	mkdir -p untracked_ignored dir/untracked_ignored &&
+	touch untracked_ignored/untracked_1 untracked_ignored/untracked_2 \
+		untracked_ignored/ignored_1.ign untracked_ignored/ignored_2.ign \
+		dir/untracked_ignored/untracked_1 dir/untracked_ignored/untracked_2 \
+		dir/untracked_ignored/ignored_1.ign dir/untracked_ignored/ignored_2.ign
+'
+
+test_expect_success 'Verify status on folder with tracked & ignored files' '
+	test_when_finished "git clean -fdx" &&
+	git status --porcelain=v2 --ignored --untracked-files=all --show-ignored-directory >output &&
+	test_i18ncmp expect output
+'
+
+# Test status behavior on ignored folder
+cat >expect <<\EOF
+? expect
+? output
+! ignored_dir/
+EOF
+
+test_expect_success 'setup folder with tracked & ignored files' '
+	mkdir ignored_dir &&
+	touch ignored_dir/ignored_1 ignored_dir/ignored_2 \
+		ignored_dir/ignored_1.ign ignored_dir/ignored_2.ign
+'
+
+test_expect_success 'Verify status on folder with tracked & ignored files' '
+	test_when_finished "git clean -fdx" &&
+	git status --porcelain=v2 --ignored --untracked-files=all --show-ignored-directory >output &&
+	test_i18ncmp expect output
+'
+
+# Test status behavior on ignored folder with tracked file
+cat >expect <<\EOF
+? expect
+? output
+! ignored_dir/ignored_1
+! ignored_dir/ignored_1.ign
+! ignored_dir/ignored_2
+! ignored_dir/ignored_2.ign
+EOF
+
+test_expect_success 'setup folder with tracked & ignored files' '
+	mkdir ignored_dir &&
+	touch ignored_dir/ignored_1 ignored_dir/ignored_2 \
+		ignored_dir/ignored_1.ign ignored_dir/ignored_2.ign \
+		ignored_dir/tracked &&
+	git add -f ignored_dir/tracked &&
+	test_tick &&
+	git commit -m "Force add file in ignored directory"
+'
+
+test_expect_success 'Verify status on folder with tracked & ignored files' '
+	test_when_finished "git clean -fdx && git reset HEAD~1 --hard" &&
+	git status --porcelain=v2 --ignored --untracked-files=all --show-ignored-directory >output &&
+	test_i18ncmp expect output
+'
+
+test_done
+