diff --git a/crates/ide-vcs/src/status.rs b/crates/ide-vcs/src/status.rs
index f87ccdf5..9a21ba09 100644
--- a/crates/ide-vcs/src/status.rs
+++ b/crates/ide-vcs/src/status.rs
@@ -105,6 +105,10 @@ pub(crate) fn status(r: &Repo) -> IdeResult<Vec<FileStatus>> {
     Ok(map
         .into_iter()
         .filter(|(_, e)| e.staged.is_some() || e.unstaged.is_some())
+        // Ignored names mean "the IDE treats these as nonexistent": hide their tracked
+        // changes too, not just untracked hits above. Conflicts stay visible so merges
+        // cannot stall on a file the user cannot see.
+        .filter(|(rel, _)| conflicts.contains(rel) || !ignored.is_ignored_path(rel))
         .map(|(rel, mut e)| {
             if conflicts.contains(&rel) {
                 e.staged = None;
diff --git a/crates/ide-vcs/tests/repo.rs b/crates/ide-vcs/tests/repo.rs
index 6b97eead..a2e97b41 100644
--- a/crates/ide-vcs/tests/repo.rs
+++ b/crates/ide-vcs/tests/repo.rs
@@ -175,6 +175,9 @@ fn status_matrix() {
     fx.write("staged_del.txt", "a\n");
     fx.write("rename_me.txt", "some longer content\nthat is stable\nfor rename detection\n");
     fx.write("both.txt", "a\n");
+    // A committed file the IDE ignores keeps its history but drops out of the change list.
+    fx.write("tracked.pyc", "a\n");
+    fx.git(&["add", "-f", "tracked.pyc"]);
     fx.commit_all("base");
 
     fx.write("modified.txt", "b\n");
@@ -195,6 +198,10 @@ fn status_matrix() {
     fx.write(".DS_Store", "junk");
     fx.write("dir/.DS_Store", "junk");
     fx.write("pkg/__pycache__/m.pyc", "junk");
+    fx.write("tracked.pyc", "b\n");
+    // Contents differ from `staged_del.txt` so rename detection cannot pair them.
+    fx.write("staged_ignored.pyc", "cached\nbytecode\n");
+    fx.git(&["add", "-f", "staged_ignored.pyc"]);
 
     let repo = fx.repo();
     repo.set_ignored_names(ide_core::settings::Settings::default().ignored_names());
@@ -217,6 +224,10 @@ fn status_matrix() {
     assert_eq!(status_of(&st, "renamed.txt").renamed_from.as_deref(), Some("rename_me.txt"));
     assert!(!st.iter().any(|s| s.rel_path == "rename_me.txt"), "rename source listed: {st:#?}");
     assert!(!st.iter().any(|s| s.rel_path.contains("debug.log") || s.rel_path.contains("build")));
+    assert!(
+        !st.iter().any(|s| s.rel_path.contains("tracked.pyc") || s.rel_path.contains("staged_ignored.pyc")),
+        "{st:#?}"
+    );
     assert!(!st.iter().any(|s| s.rel_path.contains(".DS_Store") || s.rel_path.contains("pkg")), "{st:#?}");
     // Sorted by path.
     let paths: Vec<_> = st.iter().map(|s| s.rel_path.clone()).collect();