diff --git a/builtin/stash.c b/builtin/stash.c
index 6b4eb5c258..1ef2017c59 100644
--- a/builtin/stash.c
+++ b/builtin/stash.c
@@ -561,18 +561,19 @@ static int do_apply_stash(const char *prefix, struct stash_info *info,
 		if (index)
 			fprintf_ln(stderr, _("Index was not unstashed."));
 
-		return ret;
+		goto restore_untracked;
 	}
 
 	if (has_index) {
 		if (reset_tree(&index_tree, 0, 0))
-			return -1;
+			ret = -1;
 	} else {
 		unstage_changes_unless_new(&c_tree);
 	}
 
+restore_untracked:
 	if (info->has_u && restore_untracked(&info->u_tree))
-		return error(_("could not restore untracked files from stash"));
+		ret = error(_("could not restore untracked files from stash"));
 
 	if (!quiet) {
 		struct child_process cp = CHILD_PROCESS_INIT;
@@ -592,7 +593,7 @@ static int do_apply_stash(const char *prefix, struct stash_info *info,
 		run_command(&cp);
 	}
 
-	return 0;
+	return ret;
 }
 
 static int apply_stash(int argc, const char **argv, const char *prefix)
diff --git a/t/t3903-stash.sh b/t/t3903-stash.sh
index b17c52d880..686747e55a 100755
--- a/t/t3903-stash.sh
+++ b/t/t3903-stash.sh
@@ -1395,4 +1395,28 @@ test_expect_success 'git stash can pop directory -> file saved changes' '
 	)
 '
 
+test_expect_success 'restore untracked files even when we hit conflicts' '
+	git init restore_untracked_after_conflict &&
+	(
+		cd restore_untracked_after_conflict &&
+
+		echo hi >a &&
+		echo there >b &&
+		git add . &&
+		git commit -m first &&
+		echo hello >a &&
+		echo something >c &&
+
+		git stash push --include-untracked &&
+
+		echo conflict >a &&
+		git add a &&
+		git commit -m second &&
+
+		test_must_fail git stash pop &&
+
+		test_path_is_file c
+	)
+'
+
 test_done