diff --git a/src/libstore/unix/build/local-derivation-goal.cc b/src/libstore/unix/build/local-derivation-goal.cc
index 06a2f85be84..ceb0b353927 100644
--- a/src/libstore/unix/build/local-derivation-goal.cc
+++ b/src/libstore/unix/build/local-derivation-goal.cc
@@ -2565,7 +2565,7 @@ SingleDrvOutputs LocalDerivationGoal::registerOutputs()
                 case FileIngestionMethod::Git: {
                     return git::dumpHash(
                         outputHash.hashAlgo,
-                        {getFSSourceAccessor(), CanonPath(tmpDir + "/tmp")}).hash;
+                        {getFSSourceAccessor(), CanonPath(actualPath)}).hash;
                 }
                 }
                 assert(false);
diff --git a/tests/functional/fixed.nix b/tests/functional/fixed.nix
index a920a21671f..9f1ef3b61fe 100644
--- a/tests/functional/fixed.nix
+++ b/tests/functional/fixed.nix
@@ -66,4 +66,7 @@ rec {
 
   # Can use "nar" instead of "recursive" now.
   nar-not-recursive = f2 "foo" ./fixed.builder2.sh "nar" "md5" "3670af73070fa14077ad74e0f5ea4e42";
+
+  # Experimental feature
+  git = f2 "foo" ./fixed.builder2.sh "git" "sha1" "cd44baf36915d5dec8374232ea7e2057f3b4494e";
 }
diff --git a/tests/functional/git-hashing/fixed.sh b/tests/functional/git-hashing/fixed.sh
new file mode 100644
index 00000000000..1962472a876
--- /dev/null
+++ b/tests/functional/git-hashing/fixed.sh
@@ -0,0 +1,6 @@
+source common.sh
+
+# Store layer needs bugfix
+requireDaemonNewerThan "2.27pre20250122"
+
+nix-build ../fixed.nix -A git --no-out-link
diff --git a/tests/functional/git-hashing/meson.build b/tests/functional/git-hashing/meson.build
index 470c53fc5bb..d6a782cdccf 100644
--- a/tests/functional/git-hashing/meson.build
+++ b/tests/functional/git-hashing/meson.build
@@ -3,6 +3,7 @@ suites += {
   'deps': [],
   'tests': [
     'simple.sh',
+    'fixed.sh',
   ],
   'workdir': meson.current_source_dir(),
 }