diff --git a/worktree.go b/worktree.go
index 2a498e1f4..3a47849db 100644
--- a/worktree.go
+++ b/worktree.go
@@ -309,13 +309,20 @@ func (w *Worktree) ResetSparsely(opts *ResetOptions, dirs []string) error {
 		return err
 	}
 
+	var removedFiles []string
 	if opts.Mode == MixedReset || opts.Mode == MergeReset || opts.Mode == HardReset {
-		if err := w.resetIndex(t, dirs, opts.Files); err != nil {
+		if removedFiles, err = w.resetIndex(t, dirs, opts.Files); err != nil {
 			return err
 		}
 	}
 
-	if opts.Mode == MergeReset || opts.Mode == HardReset {
+	if opts.Mode == MergeReset && len(removedFiles) > 0 {
+		if err := w.resetWorktree(t, removedFiles); err != nil {
+			return err
+		}
+	}
+
+	if opts.Mode == HardReset {
 		if err := w.resetWorktree(t, opts.Files); err != nil {
 			return err
 		}
@@ -369,23 +376,24 @@ func (w *Worktree) Reset(opts *ResetOptions) error {
 	return w.ResetSparsely(opts, nil)
 }
 
-func (w *Worktree) resetIndex(t *object.Tree, dirs []string, files []string) error {
+func (w *Worktree) resetIndex(t *object.Tree, dirs []string, files []string) ([]string, error) {
 	idx, err := w.r.Storer.Index()
 	if err != nil {
-		return err
+		return nil, err
 	}
 
 	b := newIndexBuilder(idx)
 
 	changes, err := w.diffTreeWithStaging(t, true)
 	if err != nil {
-		return err
+		return nil, err
 	}
 
+	var removedFiles []string
 	for _, ch := range changes {
 		a, err := ch.Action()
 		if err != nil {
-			return err
+			return nil, err
 		}
 
 		var name string
@@ -396,7 +404,7 @@ func (w *Worktree) resetIndex(t *object.Tree, dirs []string, files []string) err
 			name = ch.To.String()
 			e, err = t.FindEntry(name)
 			if err != nil {
-				return err
+				return nil, err
 			}
 		case merkletrie.Delete:
 			name = ch.From.String()
@@ -410,6 +418,7 @@ func (w *Worktree) resetIndex(t *object.Tree, dirs []string, files []string) err
 		}
 
 		b.Remove(name)
+		removedFiles = append(removedFiles, name)
 		if e == nil {
 			continue
 		}
@@ -428,7 +437,7 @@ func (w *Worktree) resetIndex(t *object.Tree, dirs []string, files []string) err
 		idx.SkipUnless(dirs)
 	}
 
-	return w.r.Storer.SetIndex(idx)
+	return removedFiles, w.r.Storer.SetIndex(idx)
 }
 
 func inFiles(files []string, v string) bool {
diff --git a/worktree_test.go b/worktree_test.go
index c550205c1..b85f4d8c3 100644
--- a/worktree_test.go
+++ b/worktree_test.go
@@ -764,6 +764,39 @@ func (s *WorktreeSuite) TestCheckoutBranch() {
 	s.True(status.IsClean())
 }
 
+func (s *WorktreeSuite) TestCheckoutBranchUntracked() {
+	w := &Worktree{
+		r:          s.Repository,
+		Filesystem: memfs.New(),
+	}
+
+	uf, err := w.Filesystem.Create("untracked_file")
+	s.NoError(err)
+	_, err = uf.Write([]byte("don't delete me"))
+	s.NoError(err)
+
+	err = w.Checkout(&CheckoutOptions{
+		Branch: "refs/heads/branch",
+	})
+	s.NoError(err)
+
+	head, err := w.r.Head()
+	s.NoError(err)
+	s.Equal("refs/heads/branch", head.Name().String())
+
+	status, err := w.Status()
+	s.NoError(err)
+	// The untracked file should still be there, so it's not clean
+	s.False(status.IsClean())
+	s.True(status.IsUntracked("untracked_file"))
+	err = w.Filesystem.Remove("untracked_file")
+	s.NoError(err)
+	status, err = w.Status()
+	s.NoError(err)
+	// After deleting the untracked file it should now be clean
+	s.True(status.IsClean())
+}
+
 func (s *WorktreeSuite) TestCheckoutCreateWithHash() {
 	w := &Worktree{
 		r:          s.Repository,
@@ -1130,15 +1163,28 @@ func (s *WorktreeSuite) TestResetWithUntracked() {
 	err := w.Checkout(&CheckoutOptions{})
 	s.NoError(err)
 
-	err = util.WriteFile(fs, "foo", nil, 0o755)
+	err = util.WriteFile(fs, "foo", []byte("bar"), 0o755)
 	s.NoError(err)
 
 	err = w.Reset(&ResetOptions{Mode: MergeReset, Commit: commit})
 	s.NoError(err)
 
+	contents, err := util.ReadFile(fs, "foo")
+	s.NoError(err)
+	s.Equal("bar", string(contents))
+
 	status, err := w.Status()
 	s.NoError(err)
-	s.True(status.IsClean())
+	for file, st := range status {
+		if file == "foo" {
+			s.Equal(Untracked, st.Worktree)
+			s.Equal(Untracked, st.Staging)
+			continue
+		}
+		if st.Worktree != Unmodified || st.Staging != Unmodified {
+			s.Failf("file %s not unmodified", file)
+		}
+	}
 }
 
 func (s *WorktreeSuite) TestResetSoft() {