diff --git a/git-clone.sh b/git-clone.sh
index 3998c55cef..bf54a11508 100755
--- a/git-clone.sh
+++ b/git-clone.sh
@@ -312,7 +312,7 @@ yes,yes)
 		fi
 		;;
 	*)
-		cd "$D" && case "$upload_pack" in
+		case "$upload_pack" in
 		'') git-fetch-pack --all -k $quiet "$repo" ;;
 		*) git-fetch-pack --all -k $quiet "$upload_pack" "$repo" ;;
 		esac >"$GIT_DIR/CLONE_HEAD" || {
diff --git a/t/t5600-clone-fail-cleanup.sh b/t/t5600-clone-fail-cleanup.sh
index 0c6a363be9..041be04f5c 100755
--- a/t/t5600-clone-fail-cleanup.sh
+++ b/t/t5600-clone-fail-cleanup.sh
@@ -25,6 +25,12 @@ test_create_repo foo
 # clone doesn't like it if there is no HEAD. Is that a bug?
 (cd foo && touch file && git add file && git commit -m 'add file' >/dev/null 2>&1)
 
+# source repository given to git-clone should be relative to the
+# current path not to the target dir
+test_expect_failure \
+    'clone of non-existent (relative to $PWD) source should fail' \
+    'git-clone ../foo baz'
+
 test_expect_success \
     'clone should work now that source exists' \
     'git-clone foo bar'