diff --git a/org.eclipse.jgit.test/tst/org/eclipse/jgit/lib/IndexDiffTest.java b/org.eclipse.jgit.test/tst/org/eclipse/jgit/lib/IndexDiffTest.java
index 80c779ddf..77f123854 100644
--- a/org.eclipse.jgit.test/tst/org/eclipse/jgit/lib/IndexDiffTest.java
+++ b/org.eclipse.jgit.test/tst/org/eclipse/jgit/lib/IndexDiffTest.java
@@ -176,15 +176,90 @@ public void testConflicting() throws Exception {
 		IndexDiff diff = new IndexDiff(db, Constants.HEAD, iterator);
 		diff.diff();
 
-		assertEquals("[a, b]",
+		assertEquals("[b]",
 				new TreeSet<String>(diff.getChanged()).toString());
-		assertEquals("[a]", diff.getAdded().toString());
+		assertEquals("[]", diff.getAdded().toString());
 		assertEquals("[]", diff.getRemoved().toString());
-		assertEquals("[a]", diff.getMissing().toString());
-		assertEquals("[a]", diff.getModified().toString());
+		assertEquals("[]", diff.getMissing().toString());
+		assertEquals("[]", diff.getModified().toString());
 		assertEquals("[a]", diff.getConflicting().toString());
 	}
 
+	@Test
+	public void testConflictingDeletedAndModified() throws Exception {
+		Git git = new Git(db);
+
+		writeTrashFile("a", "1\na\n3\n");
+		writeTrashFile("b", "1\nb\n3\n");
+		git.add().addFilepattern("a").addFilepattern("b").call();
+		RevCommit initialCommit = git.commit().setMessage("initial").call();
+
+		// create side branch and delete "a"
+		createBranch(initialCommit, "refs/heads/side");
+		checkoutBranch("refs/heads/side");
+		git.rm().addFilepattern("a").call();
+		RevCommit secondCommit = git.commit().setMessage("side").call();
+
+		// update a on master to generate conflict
+		checkoutBranch("refs/heads/master");
+		writeTrashFile("a", "1\na(main)\n3\n");
+		git.add().addFilepattern("a").call();
+		git.commit().setMessage("main").call();
+
+		// merge side with master
+		MergeResult result = git.merge().include(secondCommit.getId())
+				.setStrategy(MergeStrategy.RESOLVE).call();
+		assertEquals(MergeStatus.CONFLICTING, result.getMergeStatus());
+
+		FileTreeIterator iterator = new FileTreeIterator(db);
+		IndexDiff diff = new IndexDiff(db, Constants.HEAD, iterator);
+		diff.diff();
+
+		assertEquals("[]", new TreeSet<String>(diff.getChanged()).toString());
+		assertEquals("[]", diff.getAdded().toString());
+		assertEquals("[]", diff.getRemoved().toString());
+		assertEquals("[]", diff.getMissing().toString());
+		assertEquals("[]", diff.getModified().toString());
+		assertEquals("[a]", diff.getConflicting().toString());
+	}
+
+	@Test
+	public void testConflictingFromMultipleCreations() throws Exception {
+		Git git = new Git(db);
+
+		writeTrashFile("a", "1\na\n3\n");
+		git.add().addFilepattern("a").call();
+		RevCommit initialCommit = git.commit().setMessage("initial").call();
+
+		createBranch(initialCommit, "refs/heads/side");
+		checkoutBranch("refs/heads/side");
+
+		writeTrashFile("b", "1\nb(side)\n3\n");
+		git.add().addFilepattern("b").call();
+		RevCommit secondCommit = git.commit().setMessage("side").call();
+
+		checkoutBranch("refs/heads/master");
+
+		writeTrashFile("b", "1\nb(main)\n3\n");
+		git.add().addFilepattern("b").call();
+		git.commit().setMessage("main").call();
+
+		MergeResult result = git.merge().include(secondCommit.getId())
+				.setStrategy(MergeStrategy.RESOLVE).call();
+		assertEquals(MergeStatus.CONFLICTING, result.getMergeStatus());
+
+		FileTreeIterator iterator = new FileTreeIterator(db);
+		IndexDiff diff = new IndexDiff(db, Constants.HEAD, iterator);
+		diff.diff();
+
+		assertEquals("[]", new TreeSet<String>(diff.getChanged()).toString());
+		assertEquals("[]", diff.getAdded().toString());
+		assertEquals("[]", diff.getRemoved().toString());
+		assertEquals("[]", diff.getMissing().toString());
+		assertEquals("[]", diff.getModified().toString());
+		assertEquals("[b]", diff.getConflicting().toString());
+	}
+
 	@Test
 	public void testUnchangedSimple() throws IOException {
 		GitIndex index = new GitIndex(db);
diff --git a/org.eclipse.jgit/src/org/eclipse/jgit/lib/IndexDiff.java b/org.eclipse.jgit/src/org/eclipse/jgit/lib/IndexDiff.java
index b2c05ae5f..0b23b23bd 100644
--- a/org.eclipse.jgit/src/org/eclipse/jgit/lib/IndexDiff.java
+++ b/org.eclipse.jgit/src/org/eclipse/jgit/lib/IndexDiff.java
@@ -286,6 +286,15 @@ public boolean diff(final ProgressMonitor monitor, int estWorkTreeSize,
 			WorkingTreeIterator workingTreeIterator = treeWalk.getTree(WORKDIR,
 					WorkingTreeIterator.class);
 
+			if (dirCacheIterator != null) {
+				final DirCacheEntry dirCacheEntry = dirCacheIterator
+						.getDirCacheEntry();
+				if (dirCacheEntry != null && dirCacheEntry.getStage() > 0) {
+					conflicts.add(treeWalk.getPathString());
+					continue;
+				}
+			}
+
 			if (treeIterator != null) {
 				if (dirCacheIterator != null) {
 					if (!treeIterator.idEqual(dirCacheIterator)
@@ -324,12 +333,6 @@ public boolean diff(final ProgressMonitor monitor, int estWorkTreeSize,
 						modified.add(treeWalk.getPathString());
 					}
 				}
-
-				final DirCacheEntry dirCacheEntry = dirCacheIterator
-						.getDirCacheEntry();
-				if (dirCacheEntry != null && dirCacheEntry.getStage() > 0) {
-					conflicts.add(treeWalk.getPathString());
-				}
 			}
 		}