diff --git a/lib/src/merged_tree.rs b/lib/src/merged_tree.rs
index d03b0f8848..1d2c30184b 100644
--- a/lib/src/merged_tree.rs
+++ b/lib/src/merged_tree.rs
@@ -537,12 +537,10 @@ fn merge_tree_values(
     if let Some(trees) = values.to_tree_merge(store, path)? {
         // If all sides are trees or missing, merge the trees recursively, treating
         // missing trees as empty.
+        let empty_tree_id = store.empty_tree_id();
         let merged_tree = merge_trees(&trees)?;
-        if merged_tree.as_resolved().map(|tree| tree.id()) == Some(store.empty_tree_id()) {
-            Ok(Merge::absent())
-        } else {
-            Ok(merged_tree.map(|tree| Some(TreeValue::Tree(tree.id().clone()))))
-        }
+        Ok(merged_tree
+            .map(|tree| (tree.id() != empty_tree_id).then(|| TreeValue::Tree(tree.id().clone()))))
     } else {
         // Try to resolve file conflicts by merging the file contents. Treats missing
         // files as empty.
diff --git a/lib/tests/test_merged_tree.rs b/lib/tests/test_merged_tree.rs
index d6e9f2aff0..fe5c619a37 100644
--- a/lib/tests/test_merged_tree.rs
+++ b/lib/tests/test_merged_tree.rs
@@ -490,6 +490,24 @@ fn test_resolve_with_conflict() {
     )
 }
 
+#[test]
+fn test_resolve_with_conflict_containing_empty_subtree() {
+    let test_repo = TestRepo::init();
+    let repo = &test_repo.repo;
+
+    // Since "dir" in side2 is absent, the root tree should be empty as well.
+    // If it were added to the root tree, side2.id() would differ.
+    let conflict_path = RepoPath::from_internal_string("dir/file_conflict");
+    let base1 = create_single_tree(repo, &[(conflict_path, "base1")]);
+    let side1 = create_single_tree(repo, &[(conflict_path, "side1")]);
+    let side2 = create_single_tree(repo, &[]);
+
+    let original_tree = Merge::from_removes_adds(vec![base1], vec![side1, side2]);
+    let tree = MergedTree::new(original_tree.clone());
+    let resolved_tree = tree.resolve().unwrap();
+    assert_eq!(resolved_tree, original_tree);
+}
+
 #[test]
 fn test_conflict_iterator() {
     let test_repo = TestRepo::init();