diff --git a/org.eclipse.jgit.test/tst/org/eclipse/jgit/ignore/IgnoreMatcherTest.java b/org.eclipse.jgit.test/tst/org/eclipse/jgit/ignore/IgnoreMatcherTest.java
index ce2508a3e..7e771dc99 100644
--- a/org.eclipse.jgit.test/tst/org/eclipse/jgit/ignore/IgnoreMatcherTest.java
+++ b/org.eclipse.jgit.test/tst/org/eclipse/jgit/ignore/IgnoreMatcherTest.java
@@ -242,11 +242,21 @@ public class IgnoreMatcherTest {
 
 		//Test matches for name-only, applies to file name or folder name
 		pattern = "src";
+		assertMatched(pattern, "/src");
+		assertMatched(pattern, "/src/");
 		assertMatched(pattern, "/src/a.c");
 		assertMatched(pattern, "/src/new/a.c");
 		assertMatched(pattern, "/new/src/a.c");
 		assertMatched(pattern, "/file/src");
+
+		//Test matches for name-only, applies only to folder names
+		pattern = "src/";
 		assertMatched(pattern, "/src/");
+		assertMatched(pattern, "/src/a.c");
+		assertMatched(pattern, "/src/new/a.c");
+		assertMatched(pattern, "/new/src/a.c");
+		assertNotMatched(pattern, "/src");
+		assertNotMatched(pattern, "/file/src");
 
 		//Test matches for name-only, applies to file name or folder name
 		//With a small wildcard
diff --git a/org.eclipse.jgit/src/org/eclipse/jgit/ignore/IgnoreRule.java b/org.eclipse.jgit/src/org/eclipse/jgit/ignore/IgnoreRule.java
index b43b1118a..3c7fdc60d 100644
--- a/org.eclipse.jgit/src/org/eclipse/jgit/ignore/IgnoreRule.java
+++ b/org.eclipse.jgit/src/org/eclipse/jgit/ignore/IgnoreRule.java
@@ -91,9 +91,9 @@ public class IgnoreRule {
 			endIndex --;
 			dirOnly = true;
 		}
-		boolean hasSlash = pattern.contains("/");
 
 		pattern = pattern.substring(startIndex, endIndex);
+		boolean hasSlash = pattern.contains("/");
 
 		if (!hasSlash)
 			nameOnly = true;
@@ -188,8 +188,11 @@ public class IgnoreRule {
 
 			if (nameOnly) {
 				//Iterate through each sub-name
-				for (String folderName : target.split("/")) {
-					if (folderName.equals(pattern))
+				final String[] segments = target.split("/");
+				for (int idx = 0; idx < segments.length; idx++) {
+					final String segmentName = segments[idx];
+					if (segmentName.equals(pattern) &&
+							doesMatchDirectoryExpectations(isDirectory, idx, segments.length))
 						return true;
 				}
 			}
@@ -199,23 +202,29 @@ public class IgnoreRule {
 			if (matcher.isMatch())
 				return true;
 
+			final String[] segments = target.split("/");
 			if (nameOnly) {
-				for (String folderName : target.split("/")) {
+				for (int idx = 0; idx < segments.length; idx++) {
+					final String segmentName = segments[idx];
 					//Iterate through each sub-directory
 					matcher.reset();
-					matcher.append(folderName);
-					if (matcher.isMatch())
+					matcher.append(segmentName);
+					if (matcher.isMatch() &&
+							doesMatchDirectoryExpectations(isDirectory, idx, segments.length))
 						return true;
 				}
 			} else {
 				//TODO: This is the slowest operation
 				//This matches e.g. "/src/ne?" to "/src/new/file.c"
 				matcher.reset();
-				for (String folderName : target.split("/")) {
-					if (folderName.length() > 0)
-						matcher.append("/" + folderName);
+				for (int idx = 0; idx < segments.length; idx++) {
+					final String segmentName = segments[idx];
+					if (segmentName.length() > 0) {
+						matcher.append("/" + segmentName);
+					}
 
-					if (matcher.isMatch())
+					if (matcher.isMatch() &&
+							doesMatchDirectoryExpectations(isDirectory, idx, segments.length))
 						return true;
 				}
 			}
@@ -235,4 +244,14 @@ public class IgnoreRule {
 	public boolean getResult() {
 		return !negation;
 	}
+
+	private boolean doesMatchDirectoryExpectations(boolean isDirectory, int segmentIdx, int segmentLength) {
+		// The segment we are checking is a directory, expectations are met.
+		if (segmentIdx < segmentLength - 1) {
+			return true;
+		}
+
+		// We are checking the last part of the segment for which isDirectory has to be considered.
+		return !dirOnly || isDirectory;
+	}
 }
\ No newline at end of file