diff --git a/builtin/checkout-index.c b/builtin/checkout-index.c
index dbc403afa43169..4ac566b5e22cb2 100644
--- a/builtin/checkout-index.c
+++ b/builtin/checkout-index.c
@@ -128,8 +128,9 @@ static int checkout_all(const char *prefix, int prefix_length, int include_spars
 	int i, errs = 0;
 	struct cache_entry *last_ce = NULL;
 
-	/* TODO: audit for interaction with sparse-index. */
-	ensure_full_index(&the_index);
+	if (include_sparse)
+		ensure_full_index(&the_index);
+
 	for (i = 0; i < active_nr ; i++) {
 		struct cache_entry *ce = active_cache[i];
 		if (!include_sparse && !path_in_sparse_checkout(ce->name, &the_index))
diff --git a/t/t1092-sparse-checkout-compatibility.sh b/t/t1092-sparse-checkout-compatibility.sh
index 27da8d9154a787..d97ef4c9a66eb2 100755
--- a/t/t1092-sparse-checkout-compatibility.sh
+++ b/t/t1092-sparse-checkout-compatibility.sh
@@ -1148,6 +1148,7 @@ test_expect_success 'sparse-index is not expanded' '
 	ensure_not_expanded add . &&
 
 	ensure_not_expanded checkout-index -f a &&
+	ensure_not_expanded checkout-index -f --all &&
 	for ref in update-deep update-folder1 update-folder2 update-deep
 	do
 		echo >>sparse-index/README.md &&