diff --git a/functions/vcs.zsh b/functions/vcs.zsh
index 321a1502..6c9bd055 100755
--- a/functions/vcs.zsh
+++ b/functions/vcs.zsh
@@ -8,10 +8,28 @@
 
 set_default POWERLEVEL9K_VCS_SHOW_SUBMODULE_DIRTY false
 function +vi-git-untracked() {
+    [[ -z "${vcs_comm[gitdir]}" || "${vcs_comm[gitdir]}" == "." ]] && return
+    # If we are in a .git folder, do not check for untracked files.
+    [[ "${PWD:A}" =~ "\.git/" ]] && return
+
+    # If we are in a repos root folder, vcs_comm[gitdir] yields ".git".
+    # Inside the .git dir itself (and not a subdir of it) the variable
+    # yields ".". In any other case (either a subdirectory of .git or
+    # the repo itself), the value of vcs_comm[gitdir] is the absolute
+    # path to the .git directory.
+    # Therefore we can step up a directory, if we are inside the .git
+    # folder. And in any other case, use the parent directory of the
+    # gitdir.
+    local repoDir="."
+    # Getting the parent dir of the current dir "." is still ".", so
+    # is is safe to do this always.
+    [[ "${vcs_comm[gitdir]}" != ".git" ]] && repoDir="${vcs_comm[gitdir]:A:h}"
+    [[ "${vcs_comm[gitdir]}" == "." ]] && repoDir="${PWD:A:h}"
+
     if [[ "$POWERLEVEL9K_VCS_SHOW_SUBMODULE_DIRTY" == "true" && "$(command git submodule foreach --quiet --recursive 'command git ls-files --others --exclude-standard')" != "" ]]; then
         hook_com[unstaged]+=" $(print_icon 'VCS_UNTRACKED_ICON')"
         VCS_WORKDIR_HALF_DIRTY=true
-    elif [[ "$(command git ls-files --others --exclude-standard)" != "" ]]; then
+    elif [[ "$(command git ls-files --others --exclude-standard "${repoDir}")" != "" ]]; then
         hook_com[unstaged]+=" $(print_icon 'VCS_UNTRACKED_ICON')"
         VCS_WORKDIR_HALF_DIRTY=true
     else
@@ -96,11 +114,9 @@ function +vi-git-tagname() {
 # Show count of stashed changes
 # Port from https://github.com/whiteinge/dotfiles/blob/5dfd08d30f7f2749cfc60bc55564c6ea239624d9/.zsh_shouse_prompt#L268
 function +vi-git-stash() {
-  local -a stashes
-
-  if [[ -s "${vcs_comm[gitdir]}/refs/stash" ]] ; then
-    stashes=$(command git stash list 2>/dev/null | wc -l)
-    hook_com[misc]+=" $(print_icon 'VCS_STASH_ICON')${stashes// /}"
+  if [[ -s "${vcs_comm[gitdir]}/logs/refs/stash" ]] ; then
+    local -a stashes=( "${(@f)"$(<${vcs_comm[gitdir]}/logs/refs/stash)"}" )
+    hook_com[misc]+=" $(print_icon 'VCS_STASH_ICON')${#stashes}"
   fi
 }
 
diff --git a/test/segments/vcs-git.spec b/test/segments/vcs-git.spec
index fed1df19..17a277fb 100755
--- a/test/segments/vcs-git.spec
+++ b/test/segments/vcs-git.spec
@@ -473,4 +473,21 @@ function testDetectingUntrackedFilesInNestedSubmodulesWork() {
   assertEquals "%K{002} %F{000} master ? %k%F{002}%f " "$(build_left_prompt)"
 }
 
-source shunit2/shunit2
\ No newline at end of file
+function testDetectingUntrackedFilesInCleanSubdirectoryWorks() {
+  local -a POWERLEVEL9K_LEFT_PROMPT_ELEMENTS
+  POWERLEVEL9K_LEFT_PROMPT_ELEMENTS=(vcs)
+  local POWERLEVEL9K_VCS_SHOW_SUBMODULE_DIRTY="true"
+  unset POWERLEVEL9K_VCS_UNTRACKED_BACKGROUND
+   mkdir clean-folder
+  touch clean-folder/file.txt
+   mkdir dirty-folder
+  touch dirty-folder/file.txt
+   git add . 2>/dev/null
+  git commit -m "Initial commit" >/dev/null
+   touch dirty-folder/new-file.txt
+  cd clean-folder
+   source ${P9K_HOME}/powerlevel9k.zsh-theme
+   assertEquals "%K{002} %F{000} master ? %k%F{002}%f " "$(build_left_prompt)"
+}
+
+source shunit2/shunit2