diff --git a/packages/core/src/project.ts b/packages/core/src/project.ts
index ba907367adb..de55eccb1e1 100644
--- a/packages/core/src/project.ts
+++ b/packages/core/src/project.ts
@@ -246,12 +246,13 @@ const layer = Layer.effect(
       if (repo) {
         const previous = yield* cached(repo.commonDirectory)
         const id = (yield* remote(repo)) ?? previous ?? (yield* root(repo))
-        const canonical = yield* git.worktree
-          .list(repo)
-          .pipe(
-            Effect.map((items) => items.find((item) => item.kind === "main")?.directory ?? repo.worktree),
-            Effect.catch(() => Effect.succeed(repo.worktree)),
-          )
+        const canonical =
+          repo.gitDirectory === repo.commonDirectory
+            ? repo.worktree
+            : yield* git.worktree.list(repo).pipe(
+                Effect.map((items) => items.find((item) => item.kind === "main")?.directory ?? repo.worktree),
+                Effect.catch(() => Effect.succeed(repo.worktree)),
+              )
         return yield* persist({
           previous,
           id: id ?? ID.global,
diff --git a/packages/core/test/project.test.ts b/packages/core/test/project.test.ts
index 7be0a5ad77c..8cb44e0f77f 100644
--- a/packages/core/test/project.test.ts
+++ b/packages/core/test/project.test.ts
@@ -143,6 +143,7 @@ describe("Project.resolve", () => {
 
       expect(result.id).toBe(Project.ID.make(yield* Effect.promise(() => rootCommit(tmp.path))))
       expect(result.directory).toBe(yield* real(tmp.path))
+      expect(result.canonical).toBe(result.directory)
       expect(result.previous).toBeUndefined()
       expect(result.vcs?.type).toBe("git")
     }),