if (PATH_MAX - 40 < strlen(gitdirenv))
                        die("'$%s' too big", GIT_DIR_ENVIRONMENT);
                if (is_git_directory(gitdirenv)) {
+                       static char buffer[1024 + 1];
+                       const char *retval;
+
                        if (!work_tree_env)
                                return set_work_tree(gitdirenv);
-                       return NULL;
+                       retval = get_relative_cwd(buffer, sizeof(buffer) - 1,
+                                       get_git_work_tree());
+                       if (!retval || !*retval)
+                               return NULL;
+                       set_git_dir(make_absolute_path(gitdirenv));
+                       if (chdir(work_tree_env) < 0)
+                               die ("Could not chdir to %s", work_tree_env);
+                       strcat(buffer, "/");
+                       return retval;
                }
                if (nongit_ok) {
                        *nongit_ok = 1;
 
         test sub/dir/tracked = "$(git ls-files)")
 '
 
+test_expect_success '_gently() groks relative GIT_DIR & GIT_WORK_TREE' '
+       cd repo.git/work/sub/dir &&
+       GIT_DIR=../../.. GIT_WORK_TREE=../.. GIT_PAGER= \
+               git diff --exit-code tracked &&
+       echo changed > tracked &&
+       ! GIT_DIR=../../.. GIT_WORK_TREE=../.. GIT_PAGER= \
+               git diff --exit-code tracked
+'
+
 test_done