diff --git a/compat/fsmonitor/fsm-settings-win32.c b/compat/fsmonitor/fsm-settings-win32.c
index 7fce32a3c5..ee78bba38e 100644
--- a/compat/fsmonitor/fsm-settings-win32.c
+++ b/compat/fsmonitor/fsm-settings-win32.c
@@ -3,7 +3,33 @@
 #include "repository.h"
 #include "fsmonitor-settings.h"
 
-enum fsmonitor_reason fsm_os__incompatible(struct repository *r)
+/*
+ * VFS for Git is incompatible with FSMonitor.
+ *
+ * Granted, core Git does not know anything about VFS for Git and we
+ * shouldn't make assumptions about a downstream feature, but users
+ * can install both versions.  And this can lead to incorrect results
+ * from core Git commands.  So, without bringing in any of the VFS for
+ * Git code, do a simple config test for a published config setting.
+ * (We do not look at the various *_TEST_* environment variables.)
+ */
+static enum fsmonitor_reason check_vfs4git(struct repository *r)
 {
+	const char *const_str;
+
+	if (!repo_config_get_value(r, "core.virtualfilesystem", &const_str))
+		return FSMONITOR_REASON_VFS4GIT;
+
+	return FSMONITOR_REASON_OK;
+}
+
+enum fsmonitor_reason fsm_os__incompatible(struct repository *r)
+{
+	enum fsmonitor_reason reason;
+
+	reason = check_vfs4git(r);
+	if (reason != FSMONITOR_REASON_OK)
+		return reason;
+
 	return FSMONITOR_REASON_OK;
 }
diff --git a/fsmonitor-settings.c b/fsmonitor-settings.c
index 8ff55f8c3f..1efb6e17a2 100644
--- a/fsmonitor-settings.c
+++ b/fsmonitor-settings.c
@@ -179,6 +179,11 @@ int fsm_settings__error_if_incompatible(struct repository *r)
 		error(_("bare repository '%s' is incompatible with fsmonitor"),
 		      xgetcwd());
 		return 1;
+
+	case FSMONITOR_REASON_VFS4GIT:
+		error(_("virtual repository '%s' is incompatible with fsmonitor"),
+		      r->worktree);
+		return 1;
 	}
 
 	BUG("Unhandled case in fsm_settings__error_if_incompatible: '%d'",
diff --git a/fsmonitor-settings.h b/fsmonitor-settings.h
index 4b35f051fb..6361fcbf6b 100644
--- a/fsmonitor-settings.h
+++ b/fsmonitor-settings.h
@@ -16,6 +16,7 @@ enum fsmonitor_mode {
 enum fsmonitor_reason {
 	FSMONITOR_REASON_OK = 0, /* no incompatibility or when disbled */
 	FSMONITOR_REASON_BARE,
+	FSMONITOR_REASON_VFS4GIT, /* VFS for Git virtualization */
 };
 
 void fsm_settings__set_ipc(struct repository *r);
diff --git a/t/t7519-status-fsmonitor.sh b/t/t7519-status-fsmonitor.sh
index 844e482d3c..8348e3ae7d 100755
--- a/t/t7519-status-fsmonitor.sh
+++ b/t/t7519-status-fsmonitor.sh
@@ -78,6 +78,15 @@ test_expect_success FSMONITOR_DAEMON 'run fsmonitor-daemon in bare repo' '
 	grep "bare repository .* is incompatible with fsmonitor" actual
 '
 
+test_expect_success MINGW,FSMONITOR_DAEMON 'run fsmonitor-daemon in virtual repo' '
+	test_when_finished "rm -rf ./fake-virtual-clone actual" &&
+	git init fake-virtual-clone &&
+	test_must_fail git -C ./fake-virtual-clone \
+			   -c core.virtualfilesystem=true \
+			   fsmonitor--daemon run 2>actual &&
+	grep "virtual repository .* is incompatible with fsmonitor" actual
+'
+
 test_expect_success 'setup' '
 	: >tracked &&
 	: >modified &&