diff --git a/builtin/update-ref.c b/builtin/update-ref.c
index 3d79a46b03..160c7ac1d3 100644
--- a/builtin/update-ref.c
+++ b/builtin/update-ref.c
@@ -408,9 +408,16 @@ int cmd_update_ref(int argc, const char **argv, const char *prefix)
 			die("%s: not a valid SHA1", value);
 	}
 
-	hashclr(oldsha1); /* all-zero hash in case oldval is the empty string */
-	if (oldval && *oldval && get_sha1(oldval, oldsha1))
-		die("%s: not a valid old SHA1", oldval);
+	if (oldval) {
+		if (!*oldval)
+			/*
+			 * The empty string implies that the reference
+			 * must not already exist:
+			 */
+			hashclr(oldsha1);
+		else if (get_sha1(oldval, oldsha1))
+			die("%s: not a valid old SHA1", oldval);
+	}
 
 	if (no_deref)
 		flags = REF_NODEREF;