diff --git a/client/client_test.go b/client/client_test.go
index 51836291a..e4b66d892 100644
--- a/client/client_test.go
+++ b/client/client_test.go
@@ -80,11 +80,12 @@ func testLocalSymlinkEscape(t *testing.T, sb integration.Sandbox) {
 	require.NoError(t, err)
 	defer c.Close()
 
-	test := []byte(`set -x
+	test := []byte(`set -ex
 [[ -L /mount/foo ]]
 [[ -L /mount/sub/bar ]]
 [[ -L /mount/bax ]]
 [[ -f /mount/bay ]]
+[[ -f /mount/sub/sub2/file ]]
 [[ ! -f /mount/baz ]]
 [[ ! -f /mount/etc/passwd ]]
 [[ ! -f /mount/etc/group ]]
@@ -102,6 +103,9 @@ func testLocalSymlinkEscape(t *testing.T, sb integration.Sandbox) {
 		fstest.Symlink("bay", "bax"),
 		// target for symlink (not requested)
 		fstest.CreateFile("bay", []byte{}, 0600),
+		// file with many subdirs
+		fstest.CreateDir("sub/sub2", 0700),
+		fstest.CreateFile("sub/sub2/file", []byte{}, 0600),
 		// unused file that shouldn't be included
 		fstest.CreateFile("baz", []byte{}, 0600),
 		fstest.CreateFile("test.sh", test, 0700),
@@ -110,7 +114,7 @@ func testLocalSymlinkEscape(t *testing.T, sb integration.Sandbox) {
 	defer os.RemoveAll(dir)
 
 	local := llb.Local("mylocal", llb.FollowPaths([]string{
-		"test.sh", "foo", "sub/bar", "bax",
+		"test.sh", "foo", "sub/bar", "bax", "sub/sub2/file",
 	}))
 
 	st := llb.Image("busybox:latest").
diff --git a/vendor.conf b/vendor.conf
index ee1375da2..e4068737a 100644
--- a/vendor.conf
+++ b/vendor.conf
@@ -39,7 +39,7 @@ golang.org/x/time f51c12702a4d776e4c1fa9b0fabab841babae631
 github.com/docker/docker 71cd53e4a197b303c6ba086bd584ffd67a884281
 github.com/pkg/profile 5b67d428864e92711fcbd2f8629456121a56d91f
 
-github.com/tonistiigi/fsutil 8839685ae8c3c8bd67d0ce28e9b3157b23c1c7a5
+github.com/tonistiigi/fsutil 8abad97ee3969cdf5e9c367f46adba2c212b3ddb
 github.com/hashicorp/go-immutable-radix 826af9ccf0feeee615d546d69b11f8e98da8c8f1 git://github.com/tonistiigi/go-immutable-radix.git
 github.com/hashicorp/golang-lru a0d98a5f288019575c6d1f4bb1573fef2d1fcdc4
 github.com/mitchellh/hashstructure 2bca23e0e452137f789efbc8610126fd8b94f73b
diff --git a/vendor/github.com/tonistiigi/fsutil/walker.go b/vendor/github.com/tonistiigi/fsutil/walker.go
index 3a44172db..aa5099145 100644
--- a/vendor/github.com/tonistiigi/fsutil/walker.go
+++ b/vendor/github.com/tonistiigi/fsutil/walker.go
@@ -107,6 +107,9 @@ func Walk(ctx context.Context, p string, opt *WalkOpt, fn filepath.WalkFunc) err
 						}
 					}
 					if !matched {
+						if fi.IsDir() {
+							return filepath.SkipDir
+						}
 						return nil
 					}
 					if !partial && fi.IsDir() {
@@ -236,7 +239,7 @@ func trimUntilIndex(str, sep string, count int) string {
 		s = s[idx+len(sep):]
 		i += idx + len(sep)
 		c++
-		if c >= count {
+		if c > count {
 			return str[:i-len(sep)]
 		}
 	}