diff --git a/repo/fsrepo/fsrepo.go b/repo/fsrepo/fsrepo.go
index 0eaa8049ca6..9d86c07e888 100644
--- a/repo/fsrepo/fsrepo.go
+++ b/repo/fsrepo/fsrepo.go
@@ -637,6 +637,12 @@ func (r *FSRepo) GetStorageUsage() (uint64, error) {
 		return 0, err
 	}
 
+	pth, err = filepath.EvalSymlinks(pth)
+	if err != nil {
+		log.Debugf("filepath.EvalSymlinks error: %s", err)
+		return 0, err
+	}
+
 	var du uint64
 	err = filepath.Walk(pth, func(p string, f os.FileInfo, err error) error {
 		if err != nil {
diff --git a/test/sharness/t0088-repo-stat-symlink.sh b/test/sharness/t0088-repo-stat-symlink.sh
new file mode 100755
index 00000000000..a5ab95925cf
--- /dev/null
+++ b/test/sharness/t0088-repo-stat-symlink.sh
@@ -0,0 +1,27 @@
+#!/bin/sh
+#
+# Copyright (c) 2017 John Reed
+# MIT Licensed; see the LICENSE file in this repository.
+#
+
+test_description="Test 'ipfs repo stat' where IPFS_PATH is a symbolic link"
+
+. lib/test-lib.sh
+
+test_expect_success "create symbolic link for IPFS_PATH" '
+  mkdir sym_link_target &&
+  ln -s sym_link_target .ipfs
+'
+
+test_init_ipfs
+
+# compare RepoSize when getting it directly vs via symbolic link
+test_expect_success "'ipfs repo stat' RepoSize is correct with sym link" '
+  export IPFS_PATH="sym_link_target" &&
+  reposize_direct=$(ipfs repo stat | grep RepoSize | awk '\''{ print $2 }'\'') &&
+  export IPFS_PATH=".ipfs" &&
+  reposize_symlink=$(ipfs repo stat | grep RepoSize | awk '\''{ print $2 }'\'') &&
+  test $reposize_symlink -ge $reposize_direct
+'
+
+test_done