diff --git a/dir.c b/dir.c
index ac69954230..20ebe4cba2 100644
--- a/dir.c
+++ b/dir.c
@@ -3918,6 +3918,26 @@ void untracked_cache_invalidate_path(struct index_state *istate,
 				 path, strlen(path));
 }
 
+void untracked_cache_invalidate_trimmed_path(struct index_state *istate,
+					     const char *path,
+					     int safe_path)
+{
+	size_t len = strlen(path);
+
+	if (!len)
+		BUG("untracked_cache_invalidate_trimmed_path given zero length path");
+
+	if (path[len - 1] != '/') {
+		untracked_cache_invalidate_path(istate, path, safe_path);
+	} else {
+		struct strbuf tmp = STRBUF_INIT;
+
+		strbuf_add(&tmp, path, len - 1);
+		untracked_cache_invalidate_path(istate, tmp.buf, safe_path);
+		strbuf_release(&tmp);
+	}
+}
+
 void untracked_cache_remove_from_index(struct index_state *istate,
 				       const char *path)
 {
diff --git a/dir.h b/dir.h
index 98aa85fcc0..45a7b9ec5f 100644
--- a/dir.h
+++ b/dir.h
@@ -576,6 +576,13 @@ int cmp_dir_entry(const void *p1, const void *p2);
 int check_dir_entry_contains(const struct dir_entry *out, const struct dir_entry *in);
 
 void untracked_cache_invalidate_path(struct index_state *, const char *, int safe_path);
+/*
+ * Invalidate the untracked-cache for this path, but first strip
+ * off a trailing slash, if present.
+ */
+void untracked_cache_invalidate_trimmed_path(struct index_state *,
+					     const char *path,
+					     int safe_path);
 void untracked_cache_remove_from_index(struct index_state *, const char *);
 void untracked_cache_add_to_index(struct index_state *, const char *);
 
diff --git a/fsmonitor.c b/fsmonitor.c
index f670c50937..2b17d60bbb 100644
--- a/fsmonitor.c
+++ b/fsmonitor.c
@@ -5,6 +5,7 @@
 #include "ewah/ewok.h"
 #include "fsmonitor.h"
 #include "fsmonitor-ipc.h"
+#include "name-hash.h"
 #include "run-command.h"
 #include "strbuf.h"
 #include "trace2.h"
@@ -183,79 +184,282 @@ static int query_fsmonitor_hook(struct repository *r,
 	return result;
 }
 
+/*
+ * Invalidate the FSM bit on this CE.  This is like mark_fsmonitor_invalid()
+ * but we've already handled the untracked-cache, so let's not repeat that
+ * work.  This also lets us have a different trace message so that we can
+ * see everything that was done as part of the refresh-callback.
+ */
+static void invalidate_ce_fsm(struct cache_entry *ce)
+{
+	if (ce->ce_flags & CE_FSMONITOR_VALID) {
+		trace_printf_key(&trace_fsmonitor,
+				 "fsmonitor_refresh_callback INV: '%s'",
+				 ce->name);
+		ce->ce_flags &= ~CE_FSMONITOR_VALID;
+	}
+}
+
+static size_t handle_path_with_trailing_slash(
+	struct index_state *istate, const char *name, int pos);
+
+/*
+ * Use the name-hash to do a case-insensitive cache-entry lookup with
+ * the pathname and invalidate the cache-entry.
+ *
+ * Returns the number of cache-entries that we invalidated.
+ */
+static size_t handle_using_name_hash_icase(
+	struct index_state *istate, const char *name)
+{
+	struct cache_entry *ce = NULL;
+
+	ce = index_file_exists(istate, name, strlen(name), 1);
+	if (!ce)
+		return 0;
+
+	/*
+	 * A case-insensitive search in the name-hash using the
+	 * observed pathname found a cache-entry, so the observed path
+	 * is case-incorrect.  Invalidate the cache-entry and use the
+	 * correct spelling from the cache-entry to invalidate the
+	 * untracked-cache.  Since we now have sparse-directories in
+	 * the index, the observed pathname may represent a regular
+	 * file or a sparse-index directory.
+	 *
+	 * Note that we should not have seen FSEvents for a
+	 * sparse-index directory, but we handle it just in case.
+	 *
+	 * Either way, we know that there are not any cache-entries for
+	 * children inside the cone of the directory, so we don't need to
+	 * do the usual scan.
+	 */
+	trace_printf_key(&trace_fsmonitor,
+			 "fsmonitor_refresh_callback MAP: '%s' '%s'",
+			 name, ce->name);
+
+	/*
+	 * NEEDSWORK: We used the name-hash to find the correct
+	 * case-spelling of the pathname in the cache-entry[], so
+	 * technically this is a tracked file or a sparse-directory.
+	 * It should not have any entries in the untracked-cache, so
+	 * we should not need to use the case-corrected spelling to
+	 * invalidate the the untracked-cache.  So we may not need to
+	 * do this.  For now, I'm going to be conservative and always
+	 * do it; we can revisit this later.
+	 */
+	untracked_cache_invalidate_trimmed_path(istate, ce->name, 0);
+
+	invalidate_ce_fsm(ce);
+	return 1;
+}
+
+/*
+ * Use the dir-name-hash to find the correct-case spelling of the
+ * directory.  Use the canonical spelling to invalidate all of the
+ * cache-entries within the matching cone.
+ *
+ * Returns the number of cache-entries that we invalidated.
+ */
+static size_t handle_using_dir_name_hash_icase(
+	struct index_state *istate, const char *name)
+{
+	struct strbuf canonical_path = STRBUF_INIT;
+	int pos;
+	size_t len = strlen(name);
+	size_t nr_in_cone;
+
+	if (name[len - 1] == '/')
+		len--;
+
+	if (!index_dir_find(istate, name, len, &canonical_path))
+		return 0; /* name is untracked */
+
+	if (!memcmp(name, canonical_path.buf, canonical_path.len)) {
+		strbuf_release(&canonical_path);
+		/*
+		 * NEEDSWORK: Our caller already tried an exact match
+		 * and failed to find one.  They called us to do an
+		 * ICASE match, so we should never get an exact match,
+		 * so we could promote this to a BUG() here if we
+		 * wanted to.  It doesn't hurt anything to just return
+		 * 0 and go on because we should never get here.  Or we
+		 * could just get rid of the memcmp() and this "if"
+		 * clause completely.
+		 */
+		BUG("handle_using_dir_name_hash_icase(%s) did not exact match",
+		    name);
+	}
+
+	trace_printf_key(&trace_fsmonitor,
+			 "fsmonitor_refresh_callback MAP: '%s' '%s'",
+			 name, canonical_path.buf);
+
+	/*
+	 * The dir-name-hash only tells us the corrected spelling of
+	 * the prefix.  We have to use this canonical path to do a
+	 * lookup in the cache-entry array so that we repeat the
+	 * original search using the case-corrected spelling.
+	 */
+	strbuf_addch(&canonical_path, '/');
+	pos = index_name_pos(istate, canonical_path.buf,
+			     canonical_path.len);
+	nr_in_cone = handle_path_with_trailing_slash(
+		istate, canonical_path.buf, pos);
+	strbuf_release(&canonical_path);
+	return nr_in_cone;
+}
+
+/*
+ * The daemon sent an observed pathname without a trailing slash.
+ * (This is the normal case.)  We do not know if it is a tracked or
+ * untracked file, a sparse-directory, or a populated directory (on a
+ * platform such as Windows where FSEvents are not qualified).
+ *
+ * The pathname contains the observed case reported by the FS. We
+ * do not know it is case-correct or -incorrect.
+ *
+ * Assume it is case-correct and try an exact match.
+ *
+ * Return the number of cache-entries that we invalidated.
+ */
+static size_t handle_path_without_trailing_slash(
+	struct index_state *istate, const char *name, int pos)
+{
+	/*
+	 * Mark the untracked cache dirty for this path (regardless of
+	 * whether or not we find an exact match for it in the index).
+	 * Since the path is unqualified (no trailing slash hint in the
+	 * FSEvent), it may refer to a file or directory. So we should
+	 * not assume one or the other and should always let the untracked
+	 * cache decide what needs to invalidated.
+	 */
+	untracked_cache_invalidate_trimmed_path(istate, name, 0);
+
+	if (pos >= 0) {
+		/*
+		 * An exact match on a tracked file. We assume that we
+		 * do not need to scan forward for a sparse-directory
+		 * cache-entry with the same pathname, nor for a cone
+		 * at that directory. (That is, assume no D/F conflicts.)
+		 */
+		invalidate_ce_fsm(istate->cache[pos]);
+		return 1;
+	} else {
+		size_t nr_in_cone;
+		struct strbuf work_path = STRBUF_INIT;
+
+		/*
+		 * The negative "pos" gives us the suggested insertion
+		 * point for the pathname (without the trailing slash).
+		 * We need to see if there is a directory with that
+		 * prefix, but there can be lots of pathnames between
+		 * "foo" and "foo/" like "foo-" or "foo-bar", so we
+		 * don't want to do our own scan.
+		 */
+		strbuf_add(&work_path, name, strlen(name));
+		strbuf_addch(&work_path, '/');
+		pos = index_name_pos(istate, work_path.buf, work_path.len);
+		nr_in_cone = handle_path_with_trailing_slash(
+			istate, work_path.buf, pos);
+		strbuf_release(&work_path);
+		return nr_in_cone;
+	}
+}
+
+/*
+ * The daemon can decorate directory events, such as a move or rename,
+ * by adding a trailing slash to the observed name.  Use this to
+ * explicitly invalidate the entire cone under that directory.
+ *
+ * The daemon can only reliably do that if the OS FSEvent contains
+ * sufficient information in the event.
+ *
+ * macOS FSEvents have enough information.
+ *
+ * Other platforms may or may not be able to do it (and it might
+ * depend on the type of event (for example, a daemon could lstat() an
+ * observed pathname after a rename, but not after a delete)).
+ *
+ * If we find an exact match in the index for a path with a trailing
+ * slash, it means that we matched a sparse-index directory in a
+ * cone-mode sparse-checkout (since that's the only time we have
+ * directories in the index).  We should never see this in practice
+ * (because sparse directories should not be present and therefore
+ * not generating FS events).  Either way, we can treat them in the
+ * same way and just invalidate the cache-entry and the untracked
+ * cache (and in this case, the forward cache-entry scan won't find
+ * anything and it doesn't hurt to let it run).
+ *
+ * Return the number of cache-entries that we invalidated.  We will
+ * use this later to determine if we need to attempt a second
+ * case-insensitive search on case-insensitive file systems.  That is,
+ * if the search using the observed-case in the FSEvent yields any
+ * results, we assume the prefix is case-correct.  If there are no
+ * matches, we still don't know if the observed path is simply
+ * untracked or case-incorrect.
+ */
+static size_t handle_path_with_trailing_slash(
+	struct index_state *istate, const char *name, int pos)
+{
+	int i;
+	size_t nr_in_cone = 0;
+
+	/*
+	 * Mark the untracked cache dirty for this directory path
+	 * (regardless of whether or not we find an exact match for it
+	 * in the index or find it to be proper prefix of one or more
+	 * files in the index), since the FSEvent is hinting that
+	 * there may be changes on or within the directory.
+	 */
+	untracked_cache_invalidate_trimmed_path(istate, name, 0);
+
+	if (pos < 0)
+		pos = -pos - 1;
+
+	/* Mark all entries for the folder invalid */
+	for (i = pos; i < istate->cache_nr; i++) {
+		if (!starts_with(istate->cache[i]->name, name))
+			break;
+		invalidate_ce_fsm(istate->cache[i]);
+		nr_in_cone++;
+	}
+
+	return nr_in_cone;
+}
+
 static void fsmonitor_refresh_callback(struct index_state *istate, char *name)
 {
-	int i, len = strlen(name);
+	int len = strlen(name);
 	int pos = index_name_pos(istate, name, len);
+	size_t nr_in_cone;
 
 	trace_printf_key(&trace_fsmonitor,
 			 "fsmonitor_refresh_callback '%s' (pos %d)",
 			 name, pos);
 
-	if (name[len - 1] == '/') {
-		/*
-		 * The daemon can decorate directory events, such as
-		 * moves or renames, with a trailing slash if the OS
-		 * FS Event contains sufficient information, such as
-		 * MacOS.
-		 *
-		 * Use this to invalidate the entire cone under that
-		 * directory.
-		 *
-		 * We do not expect an exact match because the index
-		 * does not normally contain directory entries, so we
-		 * start at the insertion point and scan.
-		 */
-		if (pos < 0)
-			pos = -pos - 1;
-
-		/* Mark all entries for the folder invalid */
-		for (i = pos; i < istate->cache_nr; i++) {
-			if (!starts_with(istate->cache[i]->name, name))
-				break;
-			istate->cache[i]->ce_flags &= ~CE_FSMONITOR_VALID;
-		}
-
-		/*
-		 * We need to remove the traling "/" from the path
-		 * for the untracked cache.
-		 */
-		name[len - 1] = '\0';
-	} else if (pos >= 0) {
-		/*
-		 * We have an exact match for this path and can just
-		 * invalidate it.
-		 */
-		istate->cache[pos]->ce_flags &= ~CE_FSMONITOR_VALID;
-	} else {
-		/*
-		 * The path is not a tracked file -or- it is a
-		 * directory event on a platform that cannot
-		 * distinguish between file and directory events in
-		 * the event handler, such as Windows.
-		 *
-		 * Scan as if it is a directory and invalidate the
-		 * cone under it.  (But remember to ignore items
-		 * between "name" and "name/", such as "name-" and
-		 * "name.".
-		 */
-		pos = -pos - 1;
-
-		for (i = pos; i < istate->cache_nr; i++) {
-			if (!starts_with(istate->cache[i]->name, name))
-				break;
-			if ((unsigned char)istate->cache[i]->name[len] > '/')
-				break;
-			if (istate->cache[i]->name[len] == '/')
-				istate->cache[i]->ce_flags &= ~CE_FSMONITOR_VALID;
-		}
-	}
+	if (name[len - 1] == '/')
+		nr_in_cone = handle_path_with_trailing_slash(istate, name, pos);
+	else
+		nr_in_cone = handle_path_without_trailing_slash(istate, name, pos);
 
 	/*
-	 * Mark the untracked cache dirty even if it wasn't found in the index
-	 * as it could be a new untracked file.
+	 * If we did not find an exact match for this pathname or any
+	 * cache-entries with this directory prefix and we're on a
+	 * case-insensitive file system, try again using the name-hash
+	 * and dir-name-hash.
 	 */
-	untracked_cache_invalidate_path(istate, name, 0);
+	if (!nr_in_cone && ignore_case) {
+		nr_in_cone = handle_using_name_hash_icase(istate, name);
+		if (!nr_in_cone)
+			nr_in_cone = handle_using_dir_name_hash_icase(
+				istate, name);
+	}
+
+	if (nr_in_cone)
+		trace_printf_key(&trace_fsmonitor,
+				 "fsmonitor_refresh_callback CNT: %d",
+				 (int)nr_in_cone);
 }
 
 /*
diff --git a/name-hash.c b/name-hash.c
index 251f036eef..3a58ce03d9 100644
--- a/name-hash.c
+++ b/name-hash.c
@@ -685,13 +685,20 @@ static int same_name(const struct cache_entry *ce, const char *name, int namelen
 	return slow_same_name(name, namelen, ce->name, len);
 }
 
-int index_dir_exists(struct index_state *istate, const char *name, int namelen)
+int index_dir_find(struct index_state *istate, const char *name, int namelen,
+		   struct strbuf *canonical_path)
 {
 	struct dir_entry *dir;
 
 	lazy_init_name_hash(istate);
 	expand_to_path(istate, name, namelen, 0);
 	dir = find_dir_entry(istate, name, namelen);
+
+	if (canonical_path && dir && dir->nr) {
+		strbuf_reset(canonical_path);
+		strbuf_add(canonical_path, dir->name, dir->namelen);
+	}
+
 	return dir && dir->nr;
 }
 
diff --git a/name-hash.h b/name-hash.h
index b1b4b0fb33..0cbfc42863 100644
--- a/name-hash.h
+++ b/name-hash.h
@@ -4,7 +4,12 @@
 struct cache_entry;
 struct index_state;
 
-int index_dir_exists(struct index_state *istate, const char *name, int namelen);
+
+int index_dir_find(struct index_state *istate, const char *name, int namelen,
+		   struct strbuf *canonical_path);
+
+#define index_dir_exists(i, n, l) index_dir_find((i), (n), (l), NULL)
+
 void adjust_dirname_case(struct index_state *istate, char *name);
 struct cache_entry *index_file_exists(struct index_state *istate, const char *name, int namelen, int igncase);
 
diff --git a/t/t7527-builtin-fsmonitor.sh b/t/t7527-builtin-fsmonitor.sh
index 363f9dc0e4..730f3c7f81 100755
--- a/t/t7527-builtin-fsmonitor.sh
+++ b/t/t7527-builtin-fsmonitor.sh
@@ -1037,4 +1037,227 @@ test_expect_success 'split-index and FSMonitor work well together' '
 	)
 '
 
+# The FSMonitor daemon reports the OBSERVED pathname of modified files
+# and thus contains the OBSERVED spelling on case-insensitive file
+# systems.  The daemon does not (and should not) load the .git/index
+# file and therefore does not know the expected case-spelling.  Since
+# it is possible for the user to create files/subdirectories with the
+# incorrect case, a modified file event for a tracked will not have
+# the EXPECTED case. This can cause `index_name_pos()` to incorrectly
+# report that the file is untracked. This causes the client to fail to
+# mark the file as possibly dirty (keeping the CE_FSMONITOR_VALID bit
+# set) so that `git status` will avoid inspecting it and thus not
+# present in the status output.
+#
+# The setup is a little contrived.
+#
+test_expect_success CASE_INSENSITIVE_FS 'fsmonitor subdir case wrong on disk' '
+	test_when_finished "stop_daemon_delete_repo subdir_case_wrong" &&
+
+	git init subdir_case_wrong &&
+	(
+		cd subdir_case_wrong &&
+		echo x >AAA &&
+		echo x >BBB &&
+
+		mkdir dir1 &&
+		echo x >dir1/file1 &&
+		mkdir dir1/dir2 &&
+		echo x >dir1/dir2/file2 &&
+		mkdir dir1/dir2/dir3 &&
+		echo x >dir1/dir2/dir3/file3 &&
+
+		echo x >yyy &&
+		echo x >zzz &&
+		git add . &&
+		git commit -m "data" &&
+
+		# This will cause "dir1/" and everything under it
+		# to be deleted.
+		git sparse-checkout set --cone --sparse-index &&
+
+		# Create dir2 with the wrong case and then let Git
+		# repopulate dir3 -- it will not correct the spelling
+		# of dir2.
+		mkdir dir1 &&
+		mkdir dir1/DIR2 &&
+		git sparse-checkout add dir1/dir2/dir3
+	) &&
+
+	start_daemon -C subdir_case_wrong --tf "$PWD/subdir_case_wrong.trace" &&
+
+	# Enable FSMonitor in the client. Run enough commands for
+	# the .git/index to sync up with the daemon with everything
+	# marked clean.
+	git -C subdir_case_wrong config core.fsmonitor true &&
+	git -C subdir_case_wrong update-index --fsmonitor &&
+	git -C subdir_case_wrong status &&
+
+	# Make some files dirty so that FSMonitor gets FSEvents for
+	# each of them.
+	echo xx >>subdir_case_wrong/AAA &&
+	echo xx >>subdir_case_wrong/dir1/DIR2/dir3/file3 &&
+	echo xx >>subdir_case_wrong/zzz &&
+
+	GIT_TRACE_FSMONITOR="$PWD/subdir_case_wrong.log" \
+		git -C subdir_case_wrong --no-optional-locks status --short \
+			>"$PWD/subdir_case_wrong.out" &&
+
+	# "git status" should have gotten file events for each of
+	# the 3 files.
+	#
+	# "dir2" should be in the observed case on disk.
+	grep "fsmonitor_refresh_callback" \
+		<"$PWD/subdir_case_wrong.log" \
+		>"$PWD/subdir_case_wrong.log1" &&
+
+	grep -q "AAA.*pos 0" "$PWD/subdir_case_wrong.log1" &&
+	grep -q "zzz.*pos 6" "$PWD/subdir_case_wrong.log1" &&
+
+	grep -q "dir1/DIR2/dir3/file3.*pos -3" "$PWD/subdir_case_wrong.log1" &&
+
+	# Verify that we get a mapping event to correct the case.
+	grep -q "MAP:.*dir1/DIR2/dir3/file3.*dir1/dir2/dir3/file3" \
+		"$PWD/subdir_case_wrong.log1" &&
+
+	# The refresh-callbacks should have caused "git status" to clear
+	# the CE_FSMONITOR_VALID bit on each of those files and caused
+	# the worktree scan to visit them and mark them as modified.
+	grep -q " M AAA" "$PWD/subdir_case_wrong.out" &&
+	grep -q " M zzz" "$PWD/subdir_case_wrong.out" &&
+	grep -q " M dir1/dir2/dir3/file3" "$PWD/subdir_case_wrong.out"
+'
+
+test_expect_success CASE_INSENSITIVE_FS 'fsmonitor file case wrong on disk' '
+	test_when_finished "stop_daemon_delete_repo file_case_wrong" &&
+
+	git init file_case_wrong &&
+	(
+		cd file_case_wrong &&
+		echo x >AAA &&
+		echo x >BBB &&
+
+		mkdir dir1 &&
+		mkdir dir1/dir2 &&
+		mkdir dir1/dir2/dir3 &&
+		echo x >dir1/dir2/dir3/FILE-3-B &&
+		echo x >dir1/dir2/dir3/XXXX-3-X &&
+		echo x >dir1/dir2/dir3/file-3-a &&
+		echo x >dir1/dir2/dir3/yyyy-3-y &&
+		mkdir dir1/dir2/dir4 &&
+		echo x >dir1/dir2/dir4/FILE-4-A &&
+		echo x >dir1/dir2/dir4/XXXX-4-X &&
+		echo x >dir1/dir2/dir4/file-4-b &&
+		echo x >dir1/dir2/dir4/yyyy-4-y &&
+
+		echo x >yyy &&
+		echo x >zzz &&
+		git add . &&
+		git commit -m "data"
+	) &&
+
+	start_daemon -C file_case_wrong --tf "$PWD/file_case_wrong.trace" &&
+
+	# Enable FSMonitor in the client. Run enough commands for
+	# the .git/index to sync up with the daemon with everything
+	# marked clean.
+	git -C file_case_wrong config core.fsmonitor true &&
+	git -C file_case_wrong update-index --fsmonitor &&
+	git -C file_case_wrong status &&
+
+	# Make some files dirty so that FSMonitor gets FSEvents for
+	# each of them.
+	echo xx >>file_case_wrong/AAA &&
+	echo xx >>file_case_wrong/zzz &&
+
+	# Rename some files so that FSMonitor sees a create and delete
+	# FSEvent for each.  (A simple "mv foo FOO" is not portable
+	# between macOS and Windows. It works on both platforms, but makes
+	# the test messy, since (1) one platform updates "ctime" on the
+	# moved file and one does not and (2) it causes a directory event
+	# on one platform and not on the other which causes additional
+	# scanning during "git status" which causes a "H" vs "h" discrepancy
+	# in "git ls-files -f".)  So old-school it and move it out of the
+	# way and copy it to the case-incorrect name so that we get fresh
+	# "ctime" and "mtime" values.
+
+	mv file_case_wrong/dir1/dir2/dir3/file-3-a file_case_wrong/dir1/dir2/dir3/ORIG &&
+	cp file_case_wrong/dir1/dir2/dir3/ORIG     file_case_wrong/dir1/dir2/dir3/FILE-3-A &&
+	rm file_case_wrong/dir1/dir2/dir3/ORIG &&
+	mv file_case_wrong/dir1/dir2/dir4/FILE-4-A file_case_wrong/dir1/dir2/dir4/ORIG &&
+	cp file_case_wrong/dir1/dir2/dir4/ORIG     file_case_wrong/dir1/dir2/dir4/file-4-a &&
+	rm file_case_wrong/dir1/dir2/dir4/ORIG &&
+
+	# Run status enough times to fully sync.
+	#
+	# The first instance should get the create and delete FSEvents
+	# for each pair.  Status should update the index with a new FSM
+	# token (so the next invocation will not see data for these
+	# events).
+
+	GIT_TRACE_FSMONITOR="$PWD/file_case_wrong-try1.log" \
+		git -C file_case_wrong status --short \
+			>"$PWD/file_case_wrong-try1.out" &&
+	grep -q "fsmonitor_refresh_callback.*FILE-3-A.*pos -3" "$PWD/file_case_wrong-try1.log" &&
+	grep -q "fsmonitor_refresh_callback.*file-3-a.*pos 4"  "$PWD/file_case_wrong-try1.log" &&
+	grep -q "fsmonitor_refresh_callback.*FILE-4-A.*pos 6"  "$PWD/file_case_wrong-try1.log" &&
+	grep -q "fsmonitor_refresh_callback.*file-4-a.*pos -9" "$PWD/file_case_wrong-try1.log" &&
+
+	# FSM refresh will have invalidated the FSM bit and cause a regular
+	# (real) scan of these tracked files, so they should have "H" status.
+	# (We will not see a "h" status until the next refresh (on the next
+	# command).)
+
+	git -C file_case_wrong ls-files -f >"$PWD/file_case_wrong-lsf1.out" &&
+	grep -q "H dir1/dir2/dir3/file-3-a" "$PWD/file_case_wrong-lsf1.out" &&
+	grep -q "H dir1/dir2/dir4/FILE-4-A" "$PWD/file_case_wrong-lsf1.out" &&
+
+
+	# Try the status again. We assume that the above status command
+	# advanced the token so that the next one will not see those events.
+
+	GIT_TRACE_FSMONITOR="$PWD/file_case_wrong-try2.log" \
+		git -C file_case_wrong status --short \
+			>"$PWD/file_case_wrong-try2.out" &&
+	! grep -q "fsmonitor_refresh_callback.*FILE-3-A.*pos" "$PWD/file_case_wrong-try2.log" &&
+	! grep -q "fsmonitor_refresh_callback.*file-3-a.*pos" "$PWD/file_case_wrong-try2.log" &&
+	! grep -q "fsmonitor_refresh_callback.*FILE-4-A.*pos" "$PWD/file_case_wrong-try2.log" &&
+	! grep -q "fsmonitor_refresh_callback.*file-4-a.*pos" "$PWD/file_case_wrong-try2.log" &&
+
+	# FSM refresh saw nothing, so it will mark all files as valid,
+	# so they should now have "h" status.
+
+	git -C file_case_wrong ls-files -f >"$PWD/file_case_wrong-lsf2.out" &&
+	grep -q "h dir1/dir2/dir3/file-3-a" "$PWD/file_case_wrong-lsf2.out" &&
+	grep -q "h dir1/dir2/dir4/FILE-4-A" "$PWD/file_case_wrong-lsf2.out" &&
+
+
+	# We now have files with clean content, but with case-incorrect
+	# file names.  Modify them to see if status properly reports
+	# them.
+
+	echo xx >>file_case_wrong/dir1/dir2/dir3/FILE-3-A &&
+	echo xx >>file_case_wrong/dir1/dir2/dir4/file-4-a &&
+
+	GIT_TRACE_FSMONITOR="$PWD/file_case_wrong-try3.log" \
+		git -C file_case_wrong --no-optional-locks status --short \
+			>"$PWD/file_case_wrong-try3.out" &&
+
+	# Verify that we get a mapping event to correct the case.
+	grep -q "fsmonitor_refresh_callback MAP:.*dir1/dir2/dir3/FILE-3-A.*dir1/dir2/dir3/file-3-a" \
+		"$PWD/file_case_wrong-try3.log" &&
+	grep -q "fsmonitor_refresh_callback MAP:.*dir1/dir2/dir4/file-4-a.*dir1/dir2/dir4/FILE-4-A" \
+		"$PWD/file_case_wrong-try3.log" &&
+
+	# FSEvents are in observed case.
+	grep -q "fsmonitor_refresh_callback.*FILE-3-A.*pos -3" "$PWD/file_case_wrong-try3.log" &&
+	grep -q "fsmonitor_refresh_callback.*file-4-a.*pos -9" "$PWD/file_case_wrong-try3.log" &&
+
+	# The refresh-callbacks should have caused "git status" to clear
+	# the CE_FSMONITOR_VALID bit on each of those files and caused
+	# the worktree scan to visit them and mark them as modified.
+	grep -q " M dir1/dir2/dir3/file-3-a" "$PWD/file_case_wrong-try3.out" &&
+	grep -q " M dir1/dir2/dir4/FILE-4-A" "$PWD/file_case_wrong-try3.out"
+'
+
 test_done