diff --git a/dir.c b/dir.c
index 86bf6e9311..5415374105 100644
--- a/dir.c
+++ b/dir.c
@@ -37,7 +37,12 @@ enum path_treatment {
 struct cached_dir {
 	DIR *fdir;
 	struct untracked_cache_dir *untracked;
+	int nr_files;
+	int nr_dirs;
+
 	struct dirent *de;
+	const char *file;
+	struct untracked_cache_dir *ucd;
 };
 
 static enum path_treatment read_directory_recursive(struct dir_struct *dir,
@@ -607,6 +612,14 @@ static void invalidate_gitignore(struct untracked_cache *uc,
 	do_invalidate_gitignore(dir);
 }
 
+static void invalidate_directory(struct untracked_cache *uc,
+				 struct untracked_cache_dir *dir)
+{
+	uc->dir_invalidated++;
+	dir->valid = 0;
+	dir->untracked_nr = 0;
+}
+
 /*
  * Given a file with name "fname", read it (either from disk, or from
  * the index if "check_index" is non-zero), parse it and store the
@@ -1425,6 +1438,39 @@ static enum path_treatment treat_one_path(struct dir_struct *dir,
 	}
 }
 
+static enum path_treatment treat_path_fast(struct dir_struct *dir,
+					   struct untracked_cache_dir *untracked,
+					   struct cached_dir *cdir,
+					   struct strbuf *path,
+					   int baselen,
+					   const struct path_simplify *simplify)
+{
+	strbuf_setlen(path, baselen);
+	if (!cdir->ucd) {
+		strbuf_addstr(path, cdir->file);
+		return path_untracked;
+	}
+	strbuf_addstr(path, cdir->ucd->name);
+	/* treat_one_path() does this before it calls treat_directory() */
+	if (path->buf[path->len - 1] != '/')
+		strbuf_addch(path, '/');
+	if (cdir->ucd->check_only)
+		/*
+		 * check_only is set as a result of treat_directory() getting
+		 * to its bottom. Verify again the same set of directories
+		 * with check_only set.
+		 */
+		return read_directory_recursive(dir, path->buf, path->len,
+						cdir->ucd, 1, simplify);
+	/*
+	 * We get path_recurse in the first run when
+	 * directory_exists_in_index() returns index_nonexistent. We
+	 * are sure that new changes in the index does not impact the
+	 * outcome. Return now.
+	 */
+	return path_recurse;
+}
+
 static enum path_treatment treat_path(struct dir_struct *dir,
 				      struct untracked_cache_dir *untracked,
 				      struct cached_dir *cdir,
@@ -1435,6 +1481,9 @@ static enum path_treatment treat_path(struct dir_struct *dir,
 	int dtype;
 	struct dirent *de = cdir->de;
 
+	if (!de)
+		return treat_path_fast(dir, untracked, cdir, path,
+				       baselen, simplify);
 	if (is_dot_or_dotdot(de->d_name) || !strcmp(de->d_name, ".git"))
 		return path_none;
 	strbuf_setlen(path, baselen);
@@ -1455,6 +1504,52 @@ static void add_untracked(struct untracked_cache_dir *dir, const char *name)
 	dir->untracked[dir->untracked_nr++] = xstrdup(name);
 }
 
+static int valid_cached_dir(struct dir_struct *dir,
+			    struct untracked_cache_dir *untracked,
+			    struct strbuf *path,
+			    int check_only)
+{
+	struct stat st;
+
+	if (!untracked)
+		return 0;
+
+	if (stat(path->len ? path->buf : ".", &st)) {
+		invalidate_directory(dir->untracked, untracked);
+		memset(&untracked->stat_data, 0, sizeof(untracked->stat_data));
+		return 0;
+	}
+	if (!untracked->valid ||
+	    match_stat_data(&untracked->stat_data, &st)) {
+		if (untracked->valid)
+			invalidate_directory(dir->untracked, untracked);
+		fill_stat_data(&untracked->stat_data, &st);
+		return 0;
+	}
+
+	if (untracked->check_only != !!check_only) {
+		invalidate_directory(dir->untracked, untracked);
+		return 0;
+	}
+
+	/*
+	 * prep_exclude will be called eventually on this directory,
+	 * but it's called much later in last_exclude_matching(). We
+	 * need it now to determine the validity of the cache for this
+	 * path. The next calls will be nearly no-op, the way
+	 * prep_exclude() is designed.
+	 */
+	if (path->len && path->buf[path->len - 1] != '/') {
+		strbuf_addch(path, '/');
+		prep_exclude(dir, path->buf, path->len);
+		strbuf_setlen(path, path->len - 1);
+	} else
+		prep_exclude(dir, path->buf, path->len);
+
+	/* hopefully prep_exclude() haven't invalidated this entry... */
+	return untracked->valid;
+}
+
 static int open_cached_dir(struct cached_dir *cdir,
 			   struct dir_struct *dir,
 			   struct untracked_cache_dir *untracked,
@@ -1463,7 +1558,11 @@ static int open_cached_dir(struct cached_dir *cdir,
 {
 	memset(cdir, 0, sizeof(*cdir));
 	cdir->untracked = untracked;
+	if (valid_cached_dir(dir, untracked, path, check_only))
+		return 0;
 	cdir->fdir = opendir(path->len ? path->buf : ".");
+	if (dir->untracked)
+		dir->untracked->dir_opened++;
 	if (!cdir->fdir)
 		return -1;
 	return 0;
@@ -1477,6 +1576,18 @@ static int read_cached_dir(struct cached_dir *cdir)
 			return -1;
 		return 0;
 	}
+	while (cdir->nr_dirs < cdir->untracked->dirs_nr) {
+		struct untracked_cache_dir *d = cdir->untracked->dirs[cdir->nr_dirs];
+		cdir->ucd = d;
+		cdir->nr_dirs++;
+		return 0;
+	}
+	cdir->ucd = NULL;
+	if (cdir->nr_files < cdir->untracked->untracked_nr) {
+		struct untracked_cache_dir *d = cdir->untracked;
+		cdir->file = d->untracked[cdir->nr_files++];
+		return 0;
+	}
 	return -1;
 }
 
@@ -1484,6 +1595,12 @@ static void close_cached_dir(struct cached_dir *cdir)
 {
 	if (cdir->fdir)
 		closedir(cdir->fdir);
+	/*
+	 * We have gone through this directory and found no untracked
+	 * entries. Mark it valid.
+	 */
+	if (cdir->untracked)
+		cdir->untracked->valid = 1;
 }
 
 /*
@@ -1537,7 +1654,7 @@ static enum path_treatment read_directory_recursive(struct dir_struct *dir,
 		if (check_only) {
 			/* abort early if maximum state has been reached */
 			if (dir_state == path_untracked) {
-				if (untracked)
+				if (cdir.fdir)
 					add_untracked(untracked, path.buf + baselen);
 				break;
 			}
@@ -1561,7 +1678,7 @@ static enum path_treatment read_directory_recursive(struct dir_struct *dir,
 			if (dir->flags & DIR_SHOW_IGNORED)
 				break;
 			dir_add_name(dir, path.buf, path.len);
-			if (untracked)
+			if (cdir.fdir)
 				add_untracked(untracked, path.buf + baselen);
 			break;
 
diff --git a/dir.h b/dir.h
index 1d7a9585fe..ff3d99bcb0 100644
--- a/dir.h
+++ b/dir.h
@@ -135,6 +135,8 @@ struct untracked_cache {
 	/* Statistics */
 	int dir_created;
 	int gitignore_invalidated;
+	int dir_invalidated;
+	int dir_opened;
 };
 
 struct dir_struct {