diff --git a/hgext3rd/sparse.py b/hgext3rd/sparse.py
--- a/hgext3rd/sparse.py
+++ b/hgext3rd/sparse.py
@@ -988,6 +988,11 @@
     def prefix(self):
         return False
 
+    def visitdir(self, dir):
+        if any(True for path in self._includes if path.startswith(dir)):
+            return True
+        return self._matcher.visitdir(dir)
+
     def hash(self):
         sha1 = hashlib.sha1()
         sha1.update(_hashmatcher(self._matcher))
@@ -1021,6 +1026,12 @@
     def prefix(self):
         return False
 
+    def visitdir(self, dir):
+        for match in self._matchers:
+            if match.visitdir(dir):
+                return True
+        return False
+
     def hash(self):
         sha1 = hashlib.sha1()
         for m in self._matchers:
@@ -1046,6 +1057,9 @@
     def anypats(self):
         return True
 
+    def visitdir(self, dir):
+        return True
+
     def hash(self):
         sha1 = hashlib.sha1()
         sha1.update('negate')
diff --git a/tests/test-treemanifest.t b/tests/test-treemanifest.t
--- a/tests/test-treemanifest.t
+++ b/tests/test-treemanifest.t
@@ -134,3 +134,16 @@
   
   Node          Delta Base    Delta Length
   8289b85c6a30  000000000000  92
+
+Test treemanifest with sparse enabled
+  $ cat >> .hg/hgrc <<EOF
+  > [extensions]
+  > sparse = $TESTDIR/../hgext3rd/sparse.py
+  > reset = $TESTDIR/../hgext3rd/reset.py
+  > EOF
+  $ hg sparse -I subdir
+  $ hg reset '.^'
+  resetting without an active bookmark
+  saved backup bundle to $TESTTMP/client/.hg/strip-backup/27a577922312-3ad85b1a-backup.hg (glob)
+  $ hg status
+  M subdir/y