diff --git a/builtin/blame.c b/builtin/blame.c
index 641523ff9af693..af3d81e2bd464a 100644
--- a/builtin/blame.c
+++ b/builtin/blame.c
@@ -902,6 +902,9 @@ int cmd_blame(int argc, const char **argv, const char *prefix)
 	long anchor;
 	const int hexsz = the_hash_algo->hexsz;
 
+	prepare_repo_settings(the_repository);
+	the_repository->settings.command_requires_full_index = 0;
+
 	setup_default_color_by_age();
 	git_config(git_blame_config, &output_option);
 	repo_init_revisions(the_repository, &revs, NULL);
diff --git a/t/perf/p2000-sparse-operations.sh b/t/perf/p2000-sparse-operations.sh
index bff93f16e93d2e..9ac76a049b8f6b 100755
--- a/t/perf/p2000-sparse-operations.sh
+++ b/t/perf/p2000-sparse-operations.sh
@@ -115,5 +115,7 @@ test_perf_on_all git reset --hard
 test_perf_on_all git reset -- does-not-exist
 test_perf_on_all git diff
 test_perf_on_all git diff --staged
+test_perf_on_all git blame $SPARSE_CONE/a
+test_perf_on_all git blame $SPARSE_CONE/f3/a
 
 test_done
diff --git a/t/t1092-sparse-checkout-compatibility.sh b/t/t1092-sparse-checkout-compatibility.sh
index 1070bff1a83ea2..c765832dc50bc7 100755
--- a/t/t1092-sparse-checkout-compatibility.sh
+++ b/t/t1092-sparse-checkout-compatibility.sh
@@ -485,15 +485,16 @@ test_expect_success 'blame with pathspec inside sparse definition' '
 	test_all_match git blame deep/deeper1/deepest/a
 '
 
-# TODO: blame currently does not support blaming files outside of the
-# sparse definition. It complains that the file doesn't exist locally.
-test_expect_failure 'blame with pathspec outside sparse definition' '
+# By design blame does not support blaming files outside of the sparse
+# definition, so we verify this scenario.
+test_expect_success 'blame with pathspec outside sparse definition' '
 	init_repos &&
 
-	test_all_match git blame folder1/a &&
-	test_all_match git blame folder2/a &&
-	test_all_match git blame deep/deeper2/a &&
-	test_all_match git blame deep/deeper2/deepest/a
+	test_sparse_match git sparse-checkout set &&
+	test_sparse_match test_must_fail git blame folder1/a &&
+	test_sparse_match test_must_fail git blame folder2/a &&
+	test_sparse_match test_must_fail git blame deep/deeper2/a &&
+	test_sparse_match test_must_fail git blame deep/deeper2/deepest/a
 '
 
 test_expect_success 'checkout and reset (mixed)' '
@@ -871,6 +872,15 @@ test_expect_success 'sparse-index is not expanded: merge conflict in cone' '
 	)
 '
 
+test_expect_success 'sparse index is not expanded: blame' '
+	init_repos &&
+
+	ensure_not_expanded blame a &&
+	ensure_not_expanded blame deep/a &&
+	ensure_not_expanded blame deep/deeper1/a &&
+	ensure_not_expanded blame deep/deeper1/deepest/a
+'
+
 # NEEDSWORK: a sparse-checkout behaves differently from a full checkout
 # in this scenario, but it shouldn't.
 test_expect_success 'reset mixed and checkout orphan' '