diff --git a/crates/project/src/project.rs b/crates/project/src/project.rs
index dc783f1818..54fdb269be 100644
--- a/crates/project/src/project.rs
+++ b/crates/project/src/project.rs
@@ -4673,13 +4673,18 @@ impl Project {
                     None => return,
                 };
 
+                let relative_repo = match path.strip_prefix(repo.content_path) {
+                    Ok(relative_repo) => relative_repo.to_owned(),
+                    Err(_) => return,
+                };
+
                 let shared_remote_id = self.shared_remote_id();
                 let client = self.client.clone();
 
                 cx.spawn(|_, mut cx| async move {
                     let diff_base = cx
                         .background()
-                        .spawn(async move { repo.repo.lock().load_index(&path) })
+                        .spawn(async move { repo.repo.lock().load_index(&relative_repo) })
                         .await;
 
                     let buffer_id = buffer.update(&mut cx, |buffer, cx| {
diff --git a/crates/project/src/worktree.rs b/crates/project/src/worktree.rs
index 6880ec4ff1..5348f9785f 100644
--- a/crates/project/src/worktree.rs
+++ b/crates/project/src/worktree.rs
@@ -667,13 +667,15 @@ impl LocalWorktree {
         cx.spawn(|this, mut cx| async move {
             let text = fs.load(&abs_path).await?;
 
-            let diff_base = if let Some(repo) = snapshot.repo_for(&abs_path) {
-                cx.background()
-                    .spawn({
-                        let path = path.clone();
-                        async move { repo.repo.lock().load_index(&path) }
-                    })
-                    .await
+            let diff_base = if let Some(repo) = snapshot.repo_for(&path) {
+                if let Ok(repo_relative) = path.strip_prefix(repo.content_path) {
+                    let repo_relative = repo_relative.to_owned();
+                    cx.background()
+                        .spawn(async move { repo.repo.lock().load_index(&repo_relative) })
+                        .await
+                } else {
+                    None
+                }
             } else {
                 None
             };