diff --git a/builtin/blame.c b/builtin/blame.c
index f9ee3f8c68..7fafeac408 100644
--- a/builtin/blame.c
+++ b/builtin/blame.c
@@ -939,6 +939,9 @@ parse_done:
 	revs.diffopt.flags.follow_renames = 0;
 	argc = parse_options_end(&ctx);
 
+	prepare_repo_settings(the_repository);
+	the_repository->settings.command_requires_full_index = 0;
+
 	if (incremental || (output_option & OUTPUT_PORCELAIN)) {
 		if (show_progress > 0)
 			die(_("--progress can't be used with --incremental or porcelain formats"));
diff --git a/builtin/diff.c b/builtin/diff.c
index dd8ce688ba..fa4683377e 100644
--- a/builtin/diff.c
+++ b/builtin/diff.c
@@ -437,6 +437,11 @@ int cmd_diff(int argc, const char **argv, const char *prefix)
 
 	prefix = setup_git_directory_gently(&nongit);
 
+	if (!nongit) {
+		prepare_repo_settings(the_repository);
+		the_repository->settings.command_requires_full_index = 0;
+	}
+
 	if (!no_index) {
 		/*
 		 * Treat git diff with at least one path outside of the
diff --git a/commit-graph.c b/commit-graph.c
index 2706683acf..265c010122 100644
--- a/commit-graph.c
+++ b/commit-graph.c
@@ -632,10 +632,13 @@ static int prepare_commit_graph(struct repository *r)
 	struct object_directory *odb;
 
 	/*
+	 * Early return if there is no git dir or if the commit graph is
+	 * disabled.
+	 *
 	 * This must come before the "already attempted?" check below, because
 	 * we want to disable even an already-loaded graph file.
 	 */
-	if (r->commit_graph_disabled)
+	if (!r->gitdir || r->commit_graph_disabled)
 		return 0;
 
 	if (r->objects->commit_graph_attempted)
diff --git a/git.c b/git.c
index 5ff21be21f..7edafd8ecf 100644
--- a/git.c
+++ b/git.c
@@ -421,27 +421,30 @@ static int run_builtin(struct cmd_struct *p, int argc, const char **argv)
 	int status, help;
 	struct stat st;
 	const char *prefix;
+	int run_setup = (p->option & (RUN_SETUP | RUN_SETUP_GENTLY));
 
-	prefix = NULL;
 	help = argc == 2 && !strcmp(argv[1], "-h");
-	if (!help) {
-		if (p->option & RUN_SETUP)
-			prefix = setup_git_directory();
-		else if (p->option & RUN_SETUP_GENTLY) {
-			int nongit_ok;
-			prefix = setup_git_directory_gently(&nongit_ok);
-		}
-		precompose_argv_prefix(argc, argv, NULL);
-		if (use_pager == -1 && p->option & (RUN_SETUP | RUN_SETUP_GENTLY) &&
-		    !(p->option & DELAY_PAGER_CONFIG))
-			use_pager = check_pager_config(p->cmd);
-		if (use_pager == -1 && p->option & USE_PAGER)
-			use_pager = 1;
+	if (help && (run_setup & RUN_SETUP))
+		/* demote to GENTLY to allow 'git cmd -h' outside repo */
+		run_setup = RUN_SETUP_GENTLY;
 
-		if ((p->option & (RUN_SETUP | RUN_SETUP_GENTLY)) &&
-		    startup_info->have_repository) /* get_git_dir() may set up repo, avoid that */
-			trace_repo_setup(prefix);
+	if (run_setup & RUN_SETUP) {
+		prefix = setup_git_directory();
+	} else if (run_setup & RUN_SETUP_GENTLY) {
+		int nongit_ok;
+		prefix = setup_git_directory_gently(&nongit_ok);
+	} else {
+		prefix = NULL;
 	}
+	precompose_argv_prefix(argc, argv, NULL);
+	if (use_pager == -1 && run_setup &&
+		!(p->option & DELAY_PAGER_CONFIG))
+		use_pager = check_pager_config(p->cmd);
+	if (use_pager == -1 && p->option & USE_PAGER)
+		use_pager = 1;
+	if (run_setup && startup_info->have_repository)
+		/* get_git_dir() may set up repo, avoid that */
+		trace_repo_setup(prefix);
 	commit_pager_choice();
 
 	if (!help && get_super_prefix()) {
diff --git a/repo-settings.c b/repo-settings.c
index b93e91a212..00ca5571a1 100644
--- a/repo-settings.c
+++ b/repo-settings.c
@@ -17,6 +17,9 @@ void prepare_repo_settings(struct repository *r)
 	char *strval;
 	int manyfiles;
 
+	if (!r->gitdir)
+		BUG("Cannot add settings for uninitialized repository");
+
 	if (r->settings.initialized++)
 		return;
 
diff --git a/t/perf/p2000-sparse-operations.sh b/t/perf/p2000-sparse-operations.sh
index bfd332120c..cb777c74a2 100755
--- a/t/perf/p2000-sparse-operations.sh
+++ b/t/perf/p2000-sparse-operations.sh
@@ -113,5 +113,9 @@ test_perf_on_all git checkout -f -
 test_perf_on_all git reset
 test_perf_on_all git reset --hard
 test_perf_on_all git reset -- does-not-exist
+test_perf_on_all git diff
+test_perf_on_all git diff --cached
+test_perf_on_all git blame $SPARSE_CONE/a
+test_perf_on_all git blame $SPARSE_CONE/f3/a
 
 test_done
diff --git a/t/t1092-sparse-checkout-compatibility.sh b/t/t1092-sparse-checkout-compatibility.sh
index f8270943aa..49f70a6569 100755
--- a/t/t1092-sparse-checkout-compatibility.sh
+++ b/t/t1092-sparse-checkout-compatibility.sh
@@ -415,7 +415,7 @@ test_expect_success 'checkout and reset --hard' '
 	test_all_match git reset --hard update-folder2
 '
 
-test_expect_success 'diff --staged' '
+test_expect_success 'diff --cached' '
 	init_repos &&
 
 	write_script edit-contents <<-\EOF &&
@@ -424,10 +424,10 @@ test_expect_success 'diff --staged' '
 	run_on_all ../edit-contents &&
 
 	test_all_match git diff &&
-	test_all_match git diff --staged &&
+	test_all_match git diff --cached &&
 	test_all_match git add README.md &&
 	test_all_match git diff &&
-	test_all_match git diff --staged
+	test_all_match git diff --cached
 '
 
 # NEEDSWORK: sparse-checkout behaves differently from full-checkout when
@@ -444,8 +444,8 @@ test_expect_success 'diff with renames and conflicts' '
 		test_all_match git checkout rename-base &&
 		test_all_match git checkout $branch -- . &&
 		test_all_match git status --porcelain=v2 &&
-		test_all_match git diff --staged --no-renames &&
-		test_all_match git diff --staged --find-renames || return 1
+		test_all_match git diff --cached --no-renames &&
+		test_all_match git diff --cached --find-renames || return 1
 	done
 '
 
@@ -464,8 +464,8 @@ test_expect_success 'diff with directory/file conflicts' '
 		test_all_match git checkout $branch &&
 		test_all_match git checkout rename-base -- . &&
 		test_all_match git status --porcelain=v2 &&
-		test_all_match git diff --staged --no-renames &&
-		test_all_match git diff --staged --find-renames || return 1
+		test_all_match git diff --cached --no-renames &&
+		test_all_match git diff --cached --find-renames || return 1
 	done
 '
 
@@ -486,21 +486,36 @@ test_expect_success 'log with pathspec outside sparse definition' '
 test_expect_success 'blame with pathspec inside sparse definition' '
 	init_repos &&
 
-	test_all_match git blame a &&
-	test_all_match git blame deep/a &&
-	test_all_match git blame deep/deeper1/a &&
-	test_all_match git blame deep/deeper1/deepest/a
+	for file in a \
+			deep/a \
+			deep/deeper1/a \
+			deep/deeper1/deepest/a
+	do
+		test_all_match git blame $file
+	done
 '
 
-# TODO: blame currently does not support blaming files outside of the
-# sparse definition. It complains that the file doesn't exist locally.
-test_expect_failure 'blame with pathspec outside sparse definition' '
+# Without a revision specified, blame will error if passed any file that
+# is not present in the working directory (even if the file is tracked).
+# Here we just verify that this is also true with sparse checkouts.
+test_expect_success 'blame with pathspec outside sparse definition' '
 	init_repos &&
+	test_sparse_match git sparse-checkout set &&
 
-	test_all_match git blame folder1/a &&
-	test_all_match git blame folder2/a &&
-	test_all_match git blame deep/deeper2/a &&
-	test_all_match git blame deep/deeper2/deepest/a
+	for file in a \
+			deep/a \
+			deep/deeper1/a \
+			deep/deeper1/deepest/a
+	do
+		test_sparse_match test_must_fail git blame $file &&
+		cat >expect <<-EOF &&
+		fatal: Cannot lstat '"'"'$file'"'"': No such file or directory
+		EOF
+		# We compare sparse-checkout-err and sparse-index-err in
+		# `test_sparse_match`. Given we know they are the same, we
+		# only check the content of sparse-index-err here.
+		test_cmp expect sparse-index-err
+	done
 '
 
 test_expect_success 'checkout and reset (mixed)' '
@@ -936,6 +951,64 @@ test_expect_success 'sparse-index is not expanded: merge conflict in cone' '
 	)
 '
 
+test_expect_success 'sparse index is not expanded: diff' '
+	init_repos &&
+
+	write_script edit-contents <<-\EOF &&
+	echo text >>$1
+	EOF
+
+	# Add file within cone
+	test_sparse_match git sparse-checkout set deep &&
+	run_on_all ../edit-contents deep/testfile &&
+	test_all_match git add deep/testfile &&
+	run_on_all ../edit-contents deep/testfile &&
+
+	test_all_match git diff &&
+	test_all_match git diff --cached &&
+	ensure_not_expanded diff &&
+	ensure_not_expanded diff --cached &&
+
+	# Add file outside cone
+	test_all_match git reset --hard &&
+	run_on_all mkdir newdirectory &&
+	run_on_all ../edit-contents newdirectory/testfile &&
+	test_sparse_match git sparse-checkout set newdirectory &&
+	test_all_match git add newdirectory/testfile &&
+	run_on_all ../edit-contents newdirectory/testfile &&
+	test_sparse_match git sparse-checkout set &&
+
+	test_all_match git diff &&
+	test_all_match git diff --cached &&
+	ensure_not_expanded diff &&
+	ensure_not_expanded diff --cached &&
+
+	# Merge conflict outside cone
+	# The sparse checkout will report a warning that is not in the
+	# full checkout, so we use `run_on_all` instead of
+	# `test_all_match`
+	run_on_all git reset --hard &&
+	test_all_match git checkout merge-left &&
+	test_all_match test_must_fail git merge merge-right &&
+
+	test_all_match git diff &&
+	test_all_match git diff --cached &&
+	ensure_not_expanded diff &&
+	ensure_not_expanded diff --cached
+'
+
+test_expect_success 'sparse index is not expanded: blame' '
+	init_repos &&
+
+	for file in a \
+			deep/a \
+			deep/deeper1/a \
+			deep/deeper1/deepest/a
+	do
+		ensure_not_expanded blame $file
+	done
+'
+
 # NEEDSWORK: a sparse-checkout behaves differently from a full checkout
 # in this scenario, but it shouldn't.
 test_expect_success 'reset mixed and checkout orphan' '