diff --git a/builtin-ls-files.c b/builtin-ls-files.c
index 2c95ca6105..c5c0407b0b 100644
--- a/builtin-ls-files.c
+++ b/builtin-ls-files.c
@@ -170,10 +170,6 @@ static void show_files(struct dir_struct *dir, const char *prefix)
 	if (show_cached | show_stage) {
 		for (i = 0; i < active_nr; i++) {
 			struct cache_entry *ce = active_cache[i];
-			int dtype = ce_to_dtype(ce);
-			if (excluded(dir, ce->name, &dtype) !=
-					!!(dir->flags & DIR_SHOW_IGNORED))
-				continue;
 			if (show_unmerged && !ce_stage(ce))
 				continue;
 			if (ce->ce_flags & CE_UPDATE)
@@ -186,10 +182,6 @@ static void show_files(struct dir_struct *dir, const char *prefix)
 			struct cache_entry *ce = active_cache[i];
 			struct stat st;
 			int err;
-			int dtype = ce_to_dtype(ce);
-			if (excluded(dir, ce->name, &dtype) !=
-					!!(dir->flags & DIR_SHOW_IGNORED))
-				continue;
 			if (ce->ce_flags & CE_UPDATE)
 				continue;
 			err = lstat(ce->name, &st);
diff --git a/t/t3003-ls-files-exclude.sh b/t/t3003-ls-files-exclude.sh
new file mode 100755
index 0000000000..fc1e379321
--- /dev/null
+++ b/t/t3003-ls-files-exclude.sh
@@ -0,0 +1,32 @@
+#!/bin/sh
+
+test_description='ls-files --exclude does not affect index files'
+. ./test-lib.sh
+
+test_expect_success 'create repo with file' '
+	echo content >file &&
+	git add file &&
+	git commit -m file &&
+	echo modification >file
+'
+
+check_output() {
+test_expect_success "ls-files output contains file ($1)" "
+	echo '$2' >expect &&
+	git ls-files --exclude-standard --$1 >output &&
+	test_cmp expect output
+"
+}
+
+check_all_output() {
+	check_output 'cached' 'file'
+	check_output 'modified' 'file'
+}
+
+check_all_output
+test_expect_success 'add file to gitignore' '
+	echo file >.gitignore
+'
+check_all_output
+
+test_done