diff --git a/merge-recursive.c b/merge-recursive.c
index 10dca5644b..9657adc4df 100644
--- a/merge-recursive.c
+++ b/merge-recursive.c
@@ -998,10 +998,13 @@ static int update_file_flags(struct merge_options *opt,
 		free(buf);
 	}
 update_index:
-	if (!ret && update_cache)
-		if (add_cacheinfo(opt, contents, path, 0, update_wd,
+	if (!ret && update_cache) {
+		int refresh = (!opt->priv->call_depth &&
+			       contents->mode != S_IFGITLINK);
+		if (add_cacheinfo(opt, contents, path, 0, refresh,
 				  ADD_CACHE_OK_TO_ADD))
 			return -1;
+	}
 	return ret;
 }
 
diff --git a/t/t3433-rebase-across-mode-change.sh b/t/t3433-rebase-across-mode-change.sh
index f11fc35c3e..05df964670 100755
--- a/t/t3433-rebase-across-mode-change.sh
+++ b/t/t3433-rebase-across-mode-change.sh
@@ -33,7 +33,7 @@ test_expect_success 'rebase changes with the apply backend' '
 	git rebase side1
 '
 
-test_expect_failure 'rebase changes with the merge backend' '
+test_expect_success 'rebase changes with the merge backend' '
 	test_when_finished "git rebase --abort || true" &&
 	git checkout -b merge-backend side2 &&
 	git rebase -m side1