diff --git a/Cargo.toml b/Cargo.toml
index db75cebdd8b..95c2222b772 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -27,7 +27,7 @@ failure = "0.1.2"
 filetime = "0.2"
 flate2 = "1.0"
 fs2 = "0.4"
-git2 = "0.7.3"
+git2 = "0.7.5"
 git2-curl = "0.8.1"
 glob = "0.2.11"
 hex = "0.3"
diff --git a/src/cargo/ops/cargo_package.rs b/src/cargo/ops/cargo_package.rs
index c9850bfc223..822b519d7ca 100644
--- a/src/cargo/ops/cargo_package.rs
+++ b/src/cargo/ops/cargo_package.rs
@@ -59,7 +59,7 @@ pub fn package(ws: &Workspace, opts: &PackageOpts) -> CargoResult<Option<FileLoc
     }
 
     if !opts.allow_dirty {
-        check_not_dirty(pkg, &src)?;
+        check_not_dirty(pkg, &src, &config)?;
     }
 
     let filename = format!("{}-{}.crate", pkg.name(), pkg.version());
@@ -152,26 +152,36 @@ fn verify_dependencies(pkg: &Package) -> CargoResult<()> {
     Ok(())
 }
 
-fn check_not_dirty(p: &Package, src: &PathSource) -> CargoResult<()> {
+fn check_not_dirty(p: &Package, src: &PathSource, config: &Config) -> CargoResult<()> {
     if let Ok(repo) = git2::Repository::discover(p.root()) {
         if let Some(workdir) = repo.workdir() {
-            debug!(
-                "found a git repo at {:?}, checking if index present",
-                workdir
-            );
+            debug!("found a git repo at {:?}", workdir);
             let path = p.manifest_path();
             let path = path.strip_prefix(workdir).unwrap_or(path);
             if let Ok(status) = repo.status_file(path) {
                 if (status & git2::Status::IGNORED).is_empty() {
-                    debug!("Cargo.toml found in repo, checking if dirty");
+                    debug!(
+                        "found (git) Cargo.toml at {:?} in workdir {:?}",
+                        path, workdir
+                    );
                     return git(p, src, &repo);
                 }
             }
+            config.shell().verbose(|shell| {
+                shell.warn(format!(
+                    "No (git) Cargo.toml found at `{}` in workdir `{}`",
+                    path.display(), workdir.display()
+                ))
+            })?;
         }
+    } else {
+        config.shell().verbose(|shell| {
+            shell.warn(format!("No (git) VCS found for `{}`", p.root().display()))
+        })?;
     }
 
-    // No VCS recognized, we don't know if the directory is dirty or not, so we
-    // have to assume that it's clean.
+    // No VCS with a checked in Cargo.toml found. so we don't know if the
+    // directory is dirty or not, so we have to assume that it's clean.
     return Ok(());
 
     fn git(p: &Package, src: &PathSource, repo: &git2::Repository) -> CargoResult<()> {
diff --git a/tests/testsuite/package.rs b/tests/testsuite/package.rs
index bbf2d1ad23b..e52c0747176 100644
--- a/tests/testsuite/package.rs
+++ b/tests/testsuite/package.rs
@@ -326,6 +326,7 @@ fn exclude() {
             "\
 [WARNING] manifest has no description[..]
 See http://doc.crates.io/manifest.html#package-metadata for more info.
+[WARNING] No (git) Cargo.toml found at `[..]` in workdir `[..]`
 [PACKAGING] foo v0.0.1 ([..])
 [WARNING] [..] file `dir_root_1/some_dir/file` WILL be excluded [..]
 See [..]
@@ -415,6 +416,7 @@ fn include() {
             "\
 [WARNING] manifest has no description[..]
 See http://doc.crates.io/manifest.html#package-metadata for more info.
+[WARNING] No (git) Cargo.toml found at `[..]` in workdir `[..]`
 [PACKAGING] foo v0.0.1 ([..])
 [ARCHIVING] [..]
 [ARCHIVING] [..]