diff --git a/git-reset.sh b/git-reset.sh
index 6cb073cb16..0ee3e3e154 100755
--- a/git-reset.sh
+++ b/git-reset.sh
@@ -6,6 +6,7 @@ USAGE='[--mixed | --soft | --hard]  [<commit-ish>]'
 tmp=${GIT_DIR}/reset.$$
 trap 'rm -f $tmp-*' 0 1 2 3 15
 
+update=
 reset_type=--mixed
 case "$1" in
 --mixed | --soft | --hard)
@@ -23,24 +24,7 @@ rev=$(git-rev-parse --verify $rev^0) || exit
 # behind before a hard reset, so that we can remove them.
 if test "$reset_type" = "--hard"
 then
-	{
-		git-ls-files --stage -z
-		git-rev-parse --verify HEAD 2>/dev/null &&
-		git-ls-tree -r -z HEAD
-	} | perl -e '
-	    use strict;
-	    my %seen;
-	    $/ = "\0";
-	    while (<>) {
-		chomp;
-		my ($info, $path) = split(/\t/, $_);
-		next if ($info =~ / tree /);
-		if (!$seen{$path}) {
-			$seen{$path} = 1;
-			print "$path\0";
-		}
-	    }
-	' >$tmp-exists
+	update=-u
 fi
 
 # Soft reset does not touch the index file nor the working tree
@@ -54,7 +38,7 @@ then
 		die "Cannot do a soft reset in the middle of a merge."
 	fi
 else
-	git-read-tree --reset "$rev" || exit
+	git-read-tree --reset $update "$rev" || exit
 fi
 
 # Any resets update HEAD to the head being switched to.
@@ -68,33 +52,7 @@ git-update-ref HEAD "$rev"
 
 case "$reset_type" in
 --hard )
-	# Hard reset matches the working tree to that of the tree
-	# being switched to.
-	git-checkout-index -f -u -q -a
-	git-ls-files --cached -z |
-	perl -e '
-		use strict;
-		my (%keep, $fh);
-		$/ = "\0";
-		while (<STDIN>) {
-			chomp;
-			$keep{$_} = 1;
-		}
-		open $fh, "<", $ARGV[0]
-			or die "cannot open $ARGV[0]";
-		while (<$fh>) {
-			chomp;
-			if (! exists $keep{$_}) {
-				# it is ok if this fails -- it may already
-				# have been culled by checkout-index.
-				unlink $_;
-				while (s|/[^/]*$||) {
-					rmdir($_) or last;
-				}
-			}
-		}
-	' $tmp-exists
-	;;
+	;; # Nothing else to do
 --soft )
 	;; # Nothing else to do
 --mixed )
diff --git a/read-tree.c b/read-tree.c
index e926e4c880..e16e91b173 100644
--- a/read-tree.c
+++ b/read-tree.c
@@ -12,6 +12,7 @@
 #include <sys/time.h>
 #include <signal.h>
 
+static int reset = 0;
 static int merge = 0;
 static int update = 0;
 static int index_only = 0;
@@ -416,6 +417,10 @@ static void verify_uptodate(struct cache_entry *ce)
 			return;
 		errno = 0;
 	}
+	if (reset) {
+		ce->ce_flags |= htons(CE_UPDATE);
+		return;
+	}
 	if (errno == ENOENT)
 		return;
 	die("Entry '%s' not uptodate. Cannot merge.", ce->name);
@@ -684,8 +689,14 @@ static int oneway_merge(struct cache_entry **src)
 			     merge_size);
 
 	if (!a)
-		return 0;
+		return deleted_entry(old, NULL);
 	if (old && same(old, a)) {
+		if (reset) {
+			struct stat st;
+			if (lstat(old->name, &st) ||
+			    ce_match_stat(old, &st, 1))
+				old->ce_flags |= htons(CE_UPDATE);
+		}
 		return keep_entry(old);
 	}
 	return merged_entry(a, NULL);
@@ -719,7 +730,7 @@ static struct cache_file cache_file;
 
 int main(int argc, char **argv)
 {
-	int i, newfd, reset, stage = 0;
+	int i, newfd, stage = 0;
 	unsigned char sha1[20];
 	merge_fn_t fn = NULL;