diff --git a/asyncgit/src/sync/reset.rs b/asyncgit/src/sync/reset.rs
index 876de398..bc008ec7 100644
--- a/asyncgit/src/sync/reset.rs
+++ b/asyncgit/src/sync/reset.rs
@@ -1,7 +1,7 @@
 use super::utils::repo;
-use git2::{build::CheckoutBuilder, ObjectType};
+use git2::{build::CheckoutBuilder, ObjectType, Status};
 use scopetime::scope_time;
-use std::path::Path;
+use std::{fs, path::Path};
 
 ///
 pub fn reset_stage(repo_path: &str, path: &Path) -> bool {
@@ -30,25 +30,48 @@ pub fn reset_workdir(repo_path: &str, path: &Path) -> bool {
 
     let repo = repo(repo_path);
 
-    let mut checkout_opts = CheckoutBuilder::new();
-    checkout_opts
-        .remove_untracked(true)
-        .force()
-        .update_index(false)
-        .path(&path);
+    // Note: early out for removing untracked files, due to bug in checkout_head code:
+    // see https://github.com/libgit2/libgit2/issues/5089
+    if let Ok(status) = repo.status_file(&path) {
+        dbg!(status);
 
-    //first reset working dir file
-    repo.checkout_head(Some(&mut checkout_opts)).unwrap();
+        let removed_file_wd = if status == Status::WT_NEW
+            || (status == Status::WT_MODIFIED | Status::INDEX_NEW)
+        {
+            fs::remove_file(Path::new(repo_path).join(path)).is_ok()
+        } else {
+            false
+        };
 
-    let mut checkout_opts = CheckoutBuilder::new();
-    checkout_opts
-        .update_index(true) // windows: needs this to be true WTF?!
-        .path(&path);
+        if status == Status::WT_NEW {
+            return removed_file_wd;
+        }
 
-    // now reset staged changes back to working dir
-    repo.checkout_index(None, Some(&mut checkout_opts)).unwrap();
+        if status != Status::WT_MODIFIED | Status::INDEX_NEW {
+            let mut checkout_opts = CheckoutBuilder::new();
+            checkout_opts
+                .remove_untracked(true)
+                .force()
+                .update_index(false)
+                .path(&path);
 
-    true
+            //first reset working dir file
+            repo.checkout_head(Some(&mut checkout_opts)).unwrap();
+        }
+
+        let mut checkout_opts = CheckoutBuilder::new();
+        checkout_opts
+            .update_index(true) // windows: needs this to be true WTF?!
+            .allow_conflicts(true)
+            .path(&path);
+
+        // now reset staged changes back to working dir
+        repo.checkout_index(None, Some(&mut checkout_opts)).unwrap();
+
+        true
+    } else {
+        false
+    }
 }
 
 #[cfg(test)]
@@ -59,7 +82,11 @@ mod tests {
         tests::{debug_cmd_print, repo_init},
         utils::stage_add,
     };
-    use std::{fs::File, io::Write, path::Path};
+    use std::{
+        fs::{self, File},
+        io::Write,
+        path::Path,
+    };
 
     static HUNK_A: &str = r"
 1   start
@@ -138,4 +165,36 @@ mod tests {
             0
         );
     }
+
+    #[test]
+    fn test_reset_untracked_in_subdir() {
+        let (_td, repo) = repo_init();
+        let root = repo.path().parent().unwrap();
+        let repo_path = root.as_os_str().to_str().unwrap();
+
+        {
+            fs::create_dir(&root.join("foo")).unwrap();
+            File::create(&root.join("foo/bar.txt"))
+                .unwrap()
+                .write_all(b"test\nfoo")
+                .unwrap();
+        }
+
+        debug_cmd_print(repo_path, "git status");
+
+        assert_eq!(
+            get_status(repo_path, StatusType::WorkingDir).len(),
+            1
+        );
+
+        let res = reset_workdir(repo_path, Path::new("foo/bar.txt"));
+        assert_eq!(res, true);
+
+        debug_cmd_print(repo_path, "git status");
+
+        assert_eq!(
+            get_status(repo_path, StatusType::WorkingDir).len(),
+            0
+        );
+    }
 }