diff --git a/changelog.md b/changelog.md
index b48292ba56..5db8239aac 100644
--- a/changelog.md
+++ b/changelog.md
@@ -5,6 +5,7 @@
 ### Fixes
 
 - [#3867](https://github.com/ignite/cli/pull/3867) Fix genesis export for ibc modules.
+- [#3869](https://github.com/ignite/cli/pull/3869) Fix .git in parent dir
 
 ## [`v28.1.0`](https://github.com/ignite/cli/releases/tag/v28.1.0)
 
diff --git a/ignite/pkg/repoversion/repoversion.go b/ignite/pkg/repoversion/repoversion.go
index c5b31a2c14..4428a5d41b 100644
--- a/ignite/pkg/repoversion/repoversion.go
+++ b/ignite/pkg/repoversion/repoversion.go
@@ -15,7 +15,7 @@ type Version struct {
 }
 
 func Determine(path string) (v Version, err error) {
-	repo, err := git.PlainOpen(path)
+	repo, err := git.PlainOpenWithOptions(path, &git.PlainOpenOptions{DetectDotGit: true})
 	if err != nil {
 		return Version{}, err
 	}