/*
  * A "string_list_each_func_t" function that canonicalizes an entry
  * from GIT_CEILING_DIRECTORIES using real_path_if_valid(), or
- * discards it if unusable.
+ * discards it if unusable.  The presence of an empty entry in
+ * GIT_CEILING_DIRECTORIES turns off canonicalization for all
+ * subsequent entries.
  */
 static int canonicalize_ceiling_entry(struct string_list_item *item,
-                                     void *unused)
+                                     void *cb_data)
 {
+       int *empty_entry_found = cb_data;
        char *ceil = item->string;
-       const char *real_path;
 
-       if (!*ceil || !is_absolute_path(ceil))
+       if (!*ceil) {
+               *empty_entry_found = 1;
                return 0;
-       real_path = real_path_if_valid(ceil);
-       if (!real_path)
+       } else if (!is_absolute_path(ceil)) {
                return 0;
-       free(item->string);
-       item->string = xstrdup(real_path);
-       return 1;
+       } else if (*empty_entry_found) {
+               /* Keep entry but do not canonicalize it */
+               return 1;
+       } else {
+               const char *real_path = real_path_if_valid(ceil);
+               if (!real_path)
+                       return 0;
+               free(item->string);
+               item->string = xstrdup(real_path);
+               return 1;
+       }
 }
 
 /*
                return setup_explicit_git_dir(gitdirenv, cwd, len, nongit_ok);
 
        if (env_ceiling_dirs) {
+               int empty_entry_found = 0;
+
                string_list_split(&ceiling_dirs, env_ceiling_dirs, PATH_SEP, -1);
                filter_string_list(&ceiling_dirs, 0,
-                                  canonicalize_ceiling_entry, NULL);
+                                  canonicalize_ceiling_entry, &empty_entry_found);
                ceil_offset = longest_ancestor_length(cwd, &ceiling_dirs);
                string_list_clear(&ceiling_dirs, 0);
        }