diff --git a/mercurial/ui.py b/mercurial/ui.py
--- a/mercurial/ui.py
+++ b/mercurial/ui.py
@@ -66,6 +66,8 @@
 update.check = noconflict
 # Show conflicts information in `hg status`
 status.verbose = True
+# Collapse entire directories that contain only unknown files
+status.terse = u
 
 [diff]
 git = 1
diff --git a/tests/test-status.t b/tests/test-status.t
--- a/tests/test-status.t
+++ b/tests/test-status.t
@@ -109,11 +109,8 @@
 
 tweaking defaults works
   $ hg status --cwd a --config ui.tweakdefaults=yes
-  ? 1/in_a_1
-  ? in_a
-  ? ../b/1/in_b_1
-  ? ../b/2/in_b_2
-  ? ../b/in_b
+  ? .
+  ? ../b/
   ? ../in_root
   $ HGPLAIN=1 hg status --cwd a --config ui.tweakdefaults=yes
   ? a/1/in_a_1 (glob)
@@ -123,11 +120,8 @@
   ? b/in_b (glob)
   ? in_root
   $ HGPLAINEXCEPT=tweakdefaults hg status --cwd a --config ui.tweakdefaults=yes
-  ? 1/in_a_1 (glob)
-  ? in_a
-  ? ../b/1/in_b_1 (glob)
-  ? ../b/2/in_b_2 (glob)
-  ? ../b/in_b (glob)
+  ? .
+  ? ../b/
   ? ../in_root (glob)
 
 relative paths can be requested
@@ -157,11 +151,8 @@
   > status.relative = False
   > EOF
   $ hg status --cwd a --config ui.tweakdefaults=yes
-  ? a/1/in_a_1
-  ? a/in_a
-  ? b/1/in_b_1
-  ? b/2/in_b_2
-  ? b/in_b
+  ? a/
+  ? b/
   ? in_root
 
   $ cd ..