diff --git a/hgext/largefiles/overrides.py b/hgext/largefiles/overrides.py
index 0848be1f1aad3eb8e8c5cace140616cd7b70ada8_aGdleHQvbGFyZ2VmaWxlcy9vdmVycmlkZXMucHk=..24877c50aadacd6ec1909d44b03c6f4922ac611d_aGdleHQvbGFyZ2VmaWxlcy9vdmVycmlkZXMucHk= 100644
--- a/hgext/largefiles/overrides.py
+++ b/hgext/largefiles/overrides.py
@@ -333,7 +333,7 @@
 # largefiles. This makes the merge proceed and we can then handle this
 # case further in the overridden manifestmerge function below.
 def overridecheckunknownfile(origfn, repo, wctx, mctx, f):
-    if lfutil.standin(f) in wctx:
+    if lfutil.standin(repo.dirstate.normalize(f)) in wctx:
         return False
     return origfn(repo, wctx, mctx, f)
 
diff --git a/tests/test-casefolding.t b/tests/test-casefolding.t
index 0848be1f1aad3eb8e8c5cace140616cd7b70ada8_dGVzdHMvdGVzdC1jYXNlZm9sZGluZy50..24877c50aadacd6ec1909d44b03c6f4922ac611d_dGVzdHMvdGVzdC1jYXNlZm9sZGluZy50 100644
--- a/tests/test-casefolding.t
+++ b/tests/test-casefolding.t
@@ -128,6 +128,8 @@
   $ hg update -q -C 0
   $ hg status -A
   C a
+  $ hg update -q -C 3
+  $ hg update -q 0
 
   $ cd ..