;
        m = xcalloc(1, i);
 
-       if (with_tree)
-               overlay_tree_on_cache(with_tree, prefix);
+       if (with_tree) {
+               char *max_prefix = pathspec_prefix(pattern);
+               overlay_tree_on_cache(with_tree, max_prefix ? max_prefix : prefix);
+               free(max_prefix);
+       }
 
        for (i = 0; i < active_nr; i++) {
                struct cache_entry *ce = active_cache[i];
        if (argc == 2 && !strcmp(argv[1], "-h"))
                usage_with_options(builtin_status_usage, builtin_status_options);
 
-       if (null_termination && status_format == STATUS_FORMAT_LONG)
-               status_format = STATUS_FORMAT_PORCELAIN;
-
        wt_status_prepare(&s);
        gitmodules_config();
        git_config(git_status_config, &s);
        argc = parse_options(argc, argv, prefix,
                             builtin_status_options,
                             builtin_status_usage, 0);
+
+       if (null_termination && status_format == STATUS_FORMAT_LONG)
+               status_format = STATUS_FORMAT_PORCELAIN;
+
        handle_untracked_files_arg(&s);
        if (show_ignored_in_status)
                s.show_ignored_files = 1;