diff --git a/org.eclipse.jgit.test/tst/org/eclipse/jgit/api/StashApplyCommandTest.java b/org.eclipse.jgit.test/tst/org/eclipse/jgit/api/StashApplyCommandTest.java
index ce235a722..862711571 100644
--- a/org.eclipse.jgit.test/tst/org/eclipse/jgit/api/StashApplyCommandTest.java
+++ b/org.eclipse.jgit.test/tst/org/eclipse/jgit/api/StashApplyCommandTest.java
@@ -736,4 +736,21 @@ public class StashApplyCommandTest extends RepositoryTestCase {
 		}
 		assertEquals("working-directory", read(path));
 	}
+
+	@Test
+	public void untrackedAndTrackedChanges() throws Exception {
+		writeTrashFile(PATH, "changed");
+		String path = "untracked.txt";
+		writeTrashFile(path, "untracked");
+		git.stashCreate().setIncludeUntracked(true).call();
+		assertTrue(PATH + " should exist", check(PATH));
+		assertEquals(PATH + " should have been reset", "content", read(PATH));
+		assertFalse(path + " should not exist", check(path));
+		git.stashApply().setStashRef("stash@{0}").call();
+		assertTrue(PATH + " should exist", check(PATH));
+		assertEquals(PATH + " should have new content", "changed", read(PATH));
+		assertTrue(path + " should exist", check(path));
+		assertEquals(path + " should have new content", "untracked",
+				read(path));
+	}
 }
diff --git a/org.eclipse.jgit/src/org/eclipse/jgit/api/StashApplyCommand.java b/org.eclipse.jgit/src/org/eclipse/jgit/api/StashApplyCommand.java
index b8ee1ec0b..fc8bb874f 100644
--- a/org.eclipse.jgit/src/org/eclipse/jgit/api/StashApplyCommand.java
+++ b/org.eclipse.jgit/src/org/eclipse/jgit/api/StashApplyCommand.java
@@ -232,19 +232,19 @@ public class StashApplyCommand extends GitCommand<ObjectId> {
 					untrackedMerger.setBase(null);
 					boolean ok = untrackedMerger.merge(headCommit,
 							untrackedCommit);
-					if (ok)
+					if (ok) {
 						try {
 							RevTree untrackedTree = revWalk
-									.parseTree(untrackedMerger
-											.getResultTreeId());
+									.parseTree(untrackedCommit);
 							resetUntracked(untrackedTree);
 						} catch (CheckoutConflictException e) {
 							throw new StashApplyFailureException(
-									JGitText.get().stashApplyConflict);
+									JGitText.get().stashApplyConflict, e);
 						}
-					else
+					} else {
 						throw new StashApplyFailureException(
 								JGitText.get().stashApplyConflict);
+					}
 				}
 			} else {
 				throw new StashApplyFailureException(