diff --git a/t/t1092-virtualfilesystem.sh b/t/t1092-virtualfilesystem.sh
index bc5449ae4745b8..2379bca25a6426 100755
--- a/t/t1092-virtualfilesystem.sh
+++ b/t/t1092-virtualfilesystem.sh
@@ -348,4 +348,23 @@ test_expect_success 'on folder renamed' '
 	test_cmp expected actual
 '
 
+test_expect_success 'folder with same prefix as file' '
+	clean_repo &&
+	touch dir1.sln &&
+	write_script .git/hooks/virtualfilesystem <<-\EOF &&
+		printf "dir1/\0"
+		printf "dir1.sln\0"
+	EOF
+	git add dir1.sln &&
+	git ls-files -v > actual &&
+	cat > expected <<-\EOF &&
+		H dir1.sln
+		H dir1/file1.txt
+		H dir1/file2.txt
+		S dir2/file1.txt
+		S dir2/file2.txt
+	EOF
+	test_cmp expected actual
+'
+
 test_done
diff --git a/virtualfilesystem.c b/virtualfilesystem.c
index d70f10c310fa99..424680b4374530 100644
--- a/virtualfilesystem.c
+++ b/virtualfilesystem.c
@@ -273,7 +273,7 @@ void apply_virtualfilesystem(struct index_state *istate)
 			if (buf[i - 1] == '/') {
 				if (ignore_case)
 					adjust_dirname_case(istate, entry);
-				pos = index_name_pos(istate, entry, len - 1);
+				pos = index_name_pos(istate, entry, len);
 				if (pos < 0) {
 					pos = -pos - 1;
 					while (pos < istate->cache_nr && !fspathncmp(istate->cache[pos]->name, entry, len)) {