diff --git a/crates/ide-core/src/ignored.rs b/crates/ide-core/src/ignored.rs
index fb6c20a3..efda11ac 100644
--- a/crates/ide-core/src/ignored.rs
+++ b/crates/ide-core/src/ignored.rs
@@ -2,6 +2,18 @@
 //! treats as nonexistent — hidden from the project view and navigation, never
 //! indexed or searched, never offered as unversioned changes.
 
+use std::path::Path;
+
+/// Whether `dir` lies in a Git (or jj) working tree: it or an ancestor holds `.git` / `.jj`.
+///
+/// Walkers pass it to `ignore::WalkBuilder::require_git`: inside a repository, `.gitignore`
+/// rules then stop at a nested repository's root as in git, so an outer repository's
+/// `.gitignore` does not hide a project that is its own repository. A folder outside any
+/// repository still honours its `.gitignore`.
+pub fn inside_git_repo(dir: &Path) -> bool {
+    dir.ancestors().any(|d| d.join(".git").exists() || d.join(".jj").exists())
+}
+
 /// IDEA's default list, plus `.jj` and the Windows shell files.
 pub const DEFAULT_IGNORED_NAMES: &[&str] = &[
     "*.pyc",
@@ -103,4 +115,15 @@ mod tests {
         assert!(m.is_ignored_path("pkg/__pycache__/mod.cpython-312.pyc"));
         assert!(!m.is_ignored_path("src/main.rs"));
     }
+
+    #[test]
+    fn finds_the_repository_at_or_above_a_directory() {
+        let dir = tempfile::tempdir().unwrap();
+        let sub = dir.path().join("a/b");
+        std::fs::create_dir_all(&sub).unwrap();
+        assert!(!inside_git_repo(&sub));
+        std::fs::create_dir(dir.path().join("a/.git")).unwrap();
+        assert!(inside_git_repo(&sub));
+        assert!(inside_git_repo(&dir.path().join("a")));
+    }
 }
diff --git a/crates/ide-index/src/filter.rs b/crates/ide-index/src/filter.rs
index b826df87..0a612b31 100644
--- a/crates/ide-index/src/filter.rs
+++ b/crates/ide-index/src/filter.rs
@@ -215,7 +215,7 @@ impl PathFilter {
             .git_ignore(true)
             .git_global(true)
             .git_exclude(true)
-            .require_git(false)
+            .require_git(ide_core::ignored::inside_git_repo(dir))
             .follow_links(false)
             .filter_entry(move |e| {
                 let name = e.file_name().to_string_lossy();
@@ -311,6 +311,25 @@ mod tests {
         assert!(!filter.is_excluded(&root.join("src/new.rs"), false));
     }
 
+    #[test]
+    fn a_nested_repository_is_not_hidden_by_the_outer_repositorys_gitignore() {
+        let dir = tempfile::tempdir().unwrap();
+        let base = dunce::canonicalize(dir.path()).unwrap();
+        for f in ["projects/nested/src/a.rs", "projects/nested/out/x.rs"] {
+            touch(&base, f);
+        }
+        std::fs::create_dir(base.join(".git")).unwrap();
+        std::fs::create_dir(base.join("projects/nested/.git")).unwrap();
+        std::fs::write(base.join("projects/.gitignore"), "*\n!.gitignore\n").unwrap();
+        std::fs::write(base.join("projects/nested/.gitignore"), "out/\n").unwrap();
+        let root = base.join("projects/nested");
+        let filter = PathFilter::new(&root, &vec![].into(), &[]);
+        let mut found: Vec<String> =
+            filter.walk(&root, &AtomicBool::new(false)).iter().filter_map(|f| filter.rel(&f.path)).collect();
+        found.sort();
+        assert_eq!(found, [".gitignore", "src/a.rs"]);
+    }
+
     #[test]
     fn extra_content_roots_are_walked_and_prefixed() {
         let dir = tempfile::tempdir().unwrap();
diff --git a/crates/ide-search/src/engine.rs b/crates/ide-search/src/engine.rs
index 802595b0..ccb3e356 100644
--- a/crates/ide-search/src/engine.rs
+++ b/crates/ide-search/src/engine.rs
@@ -155,7 +155,7 @@ pub(crate) fn run(req: Request<'_>) -> IdeResult<SearchSummary> {
             .git_global(true)
             .git_exclude(true)
             .parents(true)
-            .require_git(false)
+            .require_git(ide_core::ignored::inside_git_repo(first))
             .follow_links(false)
             .threads(std::thread::available_parallelism().map_or(4, |n| n.get()).min(12))
             .filter_entry(|e| e.file_name() != ".git");
diff --git a/crates/ide-search/src/files.rs b/crates/ide-search/src/files.rs
index ba85acfc..bada8830 100644
--- a/crates/ide-search/src/files.rs
+++ b/crates/ide-search/src/files.rs
@@ -54,7 +54,7 @@ pub fn scope_files(
             .git_global(true)
             .git_exclude(true)
             .parents(true)
-            .require_git(false)
+            .require_git(ide_core::ignored::inside_git_repo(first))
             .follow_links(false)
             .threads(std::thread::available_parallelism().map_or(4, |n| n.get()).min(12))
             .filter_entry(|e| e.file_name() != ".git");
diff --git a/crates/ide-search/tests/search.rs b/crates/ide-search/tests/search.rs
index 412fe9b1..bd0f7d09 100644
--- a/crates/ide-search/tests/search.rs
+++ b/crates/ide-search/tests/search.rs
@@ -643,3 +643,26 @@ fn archives_are_skipped() {
     let (views, _) = run(p.path(), &query("needle"));
     assert_eq!(paths(&views), ["src/a.txt"]);
 }
+
+#[test]
+fn a_nested_repository_is_not_hidden_by_the_outer_repositorys_gitignore() {
+    // parent/.git, parent/projects/.gitignore ignores everything, parent/projects/nested is its own repository.
+    let p = project(&[
+        ("projects/.gitignore", b"*\n!.gitignore\n"),
+        ("projects/nested/search-test.txt", b"somesss\n"),
+        ("projects/nested/.gitignore", b"*.log\n"),
+        ("projects/nested/debug.log", b"somesss\n"),
+    ]);
+    std::fs::create_dir(p.path().join(".git")).unwrap();
+    std::fs::create_dir(p.path().join("projects/nested/.git")).unwrap();
+    let (views, _) = run(&p.path().join("projects/nested"), &query("somesss"));
+    assert_eq!(paths(&views), ["search-test.txt"], "the nested repository's own .gitignore still applies");
+}
+
+#[test]
+fn a_project_inside_a_repository_keeps_the_repositorys_gitignore() {
+    let p = project(&[(".gitignore", b"build/\n"), ("app/build/out.txt", b"hit\n"), ("app/src/a.txt", b"hit\n")]);
+    std::fs::create_dir(p.path().join(".git")).unwrap();
+    let (views, _) = run(&p.path().join("app"), &query("hit"));
+    assert_eq!(paths(&views), ["src/a.txt"]);
+}
diff --git a/crates/ide-vfs/src/lib.rs b/crates/ide-vfs/src/lib.rs
index 6ac24e21..c8059984 100644
--- a/crates/ide-vfs/src/lib.rs
+++ b/crates/ide-vfs/src/lib.rs
@@ -274,13 +274,14 @@ pub fn copy(from: &Path, to: &Path) -> IdeResult<()> {
 /// honouring .gitignore, .ignore and `excludes`. Shared by index and search.
 ///
 /// Hidden files are included; `.git` is always skipped. `.gitignore` applies
-/// even outside a git repository. Symlinks to files are visited, symlinked
+/// even outside a git repository; inside one, a nested repository's root is a
+/// boundary for the outer repository's rules. Symlinks to files are visited, symlinked
 /// directories are not followed.
 pub fn walk_files(root: &Path, excludes: &[String], visit: impl Fn(&Path) + Send + Sync) {
     let excludes = Arc::new(ExcludeMatcher::new(excludes));
     let base = root.to_path_buf();
     let mut builder = ignore::WalkBuilder::new(root);
-    builder.hidden(false).require_git(false).follow_links(false);
+    builder.hidden(false).require_git(ide_core::ignored::inside_git_repo(root)).follow_links(false);
     builder.filter_entry(move |entry| {
         if entry.depth() > 0 && entry.file_name() == ".git" {
             return false;