diff --git a/hgext/narrow/narrowtemplates.py b/hgext/narrow/narrowtemplates.py
--- a/hgext/narrow/narrowtemplates.py
+++ b/hgext/narrow/narrowtemplates.py
@@ -37,7 +37,7 @@
     repo = context.resource(mapping, 'repo')
     ctx = context.resource(mapping, 'ctx')
     m = repo.narrowmatch()
-    if not m.always():
+    if ctx.files() and not m.always():
         if not any(m(f) for f in ctx.files()):
             return 'outsidenarrow'
     return ''
diff --git a/tests/test-narrow.t b/tests/test-narrow.t
--- a/tests/test-narrow.t
+++ b/tests/test-narrow.t
@@ -281,6 +281,10 @@
   marked working directory as branch foo
   (branches are permanent and global, did you want a bookmark?)
   $ hg ci -m empty
+  $ hg log -T "{rev}: {desc} {outsidenarrow}\n"
+  2: empty 
+  1: add d5/f outsidenarrow
+  0: add d0/f outsidenarrow
   $ hg pull -q
 Can widen the empty clone
   $ hg tracked --addinclude d0