diff --git a/extensions/git/src/api/api1.ts b/extensions/git/src/api/api1.ts
index 79eaf1ca4ca43..0a44f6810d29b 100644
--- a/extensions/git/src/api/api1.ts
+++ b/extensions/git/src/api/api1.ts
@@ -545,6 +545,7 @@ function getStatus(status: Status): string {
 		case Status.INTENT_TO_ADD: return 'INTENT_TO_ADD';
 		case Status.INTENT_TO_RENAME: return 'INTENT_TO_RENAME';
 		case Status.TYPE_CHANGED: return 'TYPE_CHANGED';
+		case Status.INDEX_TYPE_CHANGED: return 'INDEX_TYPE_CHANGED';
 		case Status.ADDED_BY_US: return 'ADDED_BY_US';
 		case Status.ADDED_BY_THEM: return 'ADDED_BY_THEM';
 		case Status.DELETED_BY_US: return 'DELETED_BY_US';
diff --git a/extensions/git/src/api/git.constants.ts b/extensions/git/src/api/git.constants.ts
index 5847e21d5d0da..209718e81bd4a 100644
--- a/extensions/git/src/api/git.constants.ts
+++ b/extensions/git/src/api/git.constants.ts
@@ -44,6 +44,8 @@ export const Status = Object.freeze({
 	BOTH_ADDED: 16,
 	BOTH_DELETED: 17,
 	BOTH_MODIFIED: 18,
+
+	INDEX_TYPE_CHANGED: 19,
 }) satisfies typeof git.Status;
 
 export const GitErrorCodes = Object.freeze({
diff --git a/extensions/git/src/api/git.d.ts b/extensions/git/src/api/git.d.ts
index 03a06a7794bb7..7b5f905cccc9a 100644
--- a/extensions/git/src/api/git.d.ts
+++ b/extensions/git/src/api/git.d.ts
@@ -105,7 +105,9 @@ export const enum Status {
 	DELETED_BY_THEM,
 	BOTH_ADDED,
 	BOTH_DELETED,
-	BOTH_MODIFIED
+	BOTH_MODIFIED,
+
+	INDEX_TYPE_CHANGED
 }
 
 export interface Change {
diff --git a/extensions/git/src/repository.ts b/extensions/git/src/repository.ts
index ec27cbd57fee4..3c23b6b38d5c6 100644
--- a/extensions/git/src/repository.ts
+++ b/extensions/git/src/repository.ts
@@ -70,6 +70,7 @@ export class Resource implements SourceControlResourceState {
 			case Status.INTENT_TO_RENAME:
 				return 'R';
 			case Status.TYPE_CHANGED:
+			case Status.INDEX_TYPE_CHANGED:
 				return 'T';
 			case Status.UNTRACKED:
 				return 'U';
@@ -104,6 +105,7 @@ export class Resource implements SourceControlResourceState {
 			case Status.INTENT_TO_ADD: return l10n.t('Intent to Add');
 			case Status.INTENT_TO_RENAME: return l10n.t('Intent to Rename');
 			case Status.TYPE_CHANGED: return l10n.t('Type Changed');
+			case Status.INDEX_TYPE_CHANGED: return l10n.t('Index Type Changed');
 			case Status.BOTH_DELETED: return l10n.t('Conflict: Both Deleted');
 			case Status.ADDED_BY_US: return l10n.t('Conflict: Added By Us');
 			case Status.DELETED_BY_THEM: return l10n.t('Conflict: Deleted By Them');
@@ -118,6 +120,7 @@ export class Resource implements SourceControlResourceState {
 	static getStatusColor(type: Status): ThemeColor {
 		switch (type) {
 			case Status.INDEX_MODIFIED:
+			case Status.INDEX_TYPE_CHANGED:
 				return new ThemeColor('gitDecoration.stageModifiedResourceForeground');
 			case Status.MODIFIED:
 			case Status.TYPE_CHANGED:
@@ -230,6 +233,7 @@ export class Resource implements SourceControlResourceState {
 			case Status.INTENT_TO_ADD: return Resource.Icons[theme].Added;
 			case Status.INTENT_TO_RENAME: return Resource.Icons[theme].Renamed;
 			case Status.TYPE_CHANGED: return Resource.Icons[theme].TypeChanged;
+			case Status.INDEX_TYPE_CHANGED: return Resource.Icons[theme].TypeChanged;
 			case Status.BOTH_DELETED: return Resource.Icons[theme].Conflict;
 			case Status.ADDED_BY_US: return Resource.Icons[theme].Conflict;
 			case Status.DELETED_BY_THEM: return Resource.Icons[theme].Conflict;
@@ -289,6 +293,7 @@ export class Resource implements SourceControlResourceState {
 			case Status.MODIFIED:
 			case Status.INDEX_COPIED:
 			case Status.TYPE_CHANGED:
+			case Status.INDEX_TYPE_CHANGED:
 				return 2;
 			case Status.IGNORED:
 				return 3;
@@ -593,6 +598,7 @@ class ResourceCommandResolver {
 			case Status.INDEX_RENAMED:
 			case Status.INTENT_TO_RENAME:
 			case Status.TYPE_CHANGED:
+			case Status.INDEX_TYPE_CHANGED:
 				return { original: toGitUri(resource.original, 'HEAD') };
 
 			case Status.MODIFIED:
@@ -611,6 +617,7 @@ class ResourceCommandResolver {
 			case Status.INDEX_ADDED:
 			case Status.INDEX_COPIED:
 			case Status.INDEX_RENAMED:
+			case Status.INDEX_TYPE_CHANGED:
 				return { modified: toGitUri(resource.resourceUri, '') };
 
 			case Status.INDEX_DELETED:
@@ -653,6 +660,7 @@ class ResourceCommandResolver {
 			case Status.INDEX_MODIFIED:
 			case Status.INDEX_RENAMED:
 			case Status.INDEX_ADDED:
+			case Status.INDEX_TYPE_CHANGED:
 				return l10n.t('{0} (Index)', basename);
 
 			case Status.MODIFIED:
@@ -3074,6 +3082,7 @@ export class Repository implements Disposable {
 				case 'D': indexGroup.push(new Resource(this.resourceCommandResolver, ResourceGroupType.Index, uri, Status.INDEX_DELETED, useIcons, undefined, this.kind)); break;
 				case 'R': indexGroup.push(new Resource(this.resourceCommandResolver, ResourceGroupType.Index, uri, Status.INDEX_RENAMED, useIcons, renameUri, this.kind)); break;
 				case 'C': indexGroup.push(new Resource(this.resourceCommandResolver, ResourceGroupType.Index, uri, Status.INDEX_COPIED, useIcons, renameUri, this.kind)); break;
+				case 'T': indexGroup.push(new Resource(this.resourceCommandResolver, ResourceGroupType.Index, uri, Status.INDEX_TYPE_CHANGED, useIcons, undefined, this.kind)); break;
 			}
 
 			switch (raw.y) {
diff --git a/extensions/git/src/test/smoke.test.ts b/extensions/git/src/test/smoke.test.ts
index c2870a2631ee3..946307ed99e0f 100644
--- a/extensions/git/src/test/smoke.test.ts
+++ b/extensions/git/src/test/smoke.test.ts
@@ -147,6 +147,36 @@ suite('git smoke test', function () {
 		assert.strictEqual(repository.state.indexChanges.length, 0);
 	});
 
+	test('reflects type changes', async function () {
+		if (process.platform === 'win32') {
+			this.skip(); // symlinks require elevated privileges on Windows
+		}
+
+		const link = file('link');
+		fs.symlinkSync('newfile.txt', link);
+		cp.execSync('git add link', { cwd });
+		cp.execSync('git commit -m "add symlink"', { cwd });
+
+		// Replace the symlink with a regular file
+		fs.unlinkSync(link);
+		fs.writeFileSync(link, 'no longer a symlink', 'utf8');
+		await repository.status();
+
+		assert.strictEqual(repository.state.workingTreeChanges.length, 1);
+		assert.strictEqual(repository.state.workingTreeChanges[0].uri.path, uri('link').path);
+		assert.strictEqual(repository.state.workingTreeChanges[0].status, Status.TYPE_CHANGED);
+
+		await repository.add([link]);
+
+		assert.strictEqual(repository.state.indexChanges.length, 1);
+		assert.strictEqual(repository.state.indexChanges[0].uri.path, uri('link').path);
+		assert.strictEqual(repository.state.indexChanges[0].status, Status.INDEX_TYPE_CHANGED);
+
+		await repository.commit('replace symlink with file');
+		assert.strictEqual(repository.state.workingTreeChanges.length, 0);
+		assert.strictEqual(repository.state.indexChanges.length, 0);
+	});
+
 	test('rename/delete conflict', async function () {
 		await commands.executeCommand('workbench.view.scm');
 
diff --git a/extensions/github/src/typings/git.constants.ts b/extensions/github/src/typings/git.constants.ts
index e39a3fb03b327..562b93248a7a4 100644
--- a/extensions/github/src/typings/git.constants.ts
+++ b/extensions/github/src/typings/git.constants.ts
@@ -44,6 +44,8 @@ export const Status = Object.freeze({
 	BOTH_ADDED: 16,
 	BOTH_DELETED: 17,
 	BOTH_MODIFIED: 18,
+
+	INDEX_TYPE_CHANGED: 19,
 }) satisfies typeof git.Status;
 
 export const GitErrorCodes = Object.freeze({
diff --git a/extensions/github/src/typings/git.d.ts b/extensions/github/src/typings/git.d.ts
index e600b767c7cd1..e82d12951e8fe 100644
--- a/extensions/github/src/typings/git.d.ts
+++ b/extensions/github/src/typings/git.d.ts
@@ -87,7 +87,9 @@ export const enum Status {
 	DELETED_BY_THEM,
 	BOTH_ADDED,
 	BOTH_DELETED,
-	BOTH_MODIFIED
+	BOTH_MODIFIED,
+
+	INDEX_TYPE_CHANGED
 }
 
 export interface Change {