diff --git a/builtin/fetch-pack.c b/builtin/fetch-pack.c
index 1724b76052..85aff029b2 100644
--- a/builtin/fetch-pack.c
+++ b/builtin/fetch-pack.c
@@ -15,6 +15,7 @@ static int transfer_unpack_limit = -1;
 static int fetch_unpack_limit = -1;
 static int unpack_limit = 100;
 static int prefer_ofs_delta = 1;
+static int no_done = 0;
 static struct fetch_pack_args args = {
 	/* .uploadpack = */ "git-upload-pack",
 };
@@ -229,16 +230,17 @@ static void insert_alternate_refs(void)
 }
 
 #define INITIAL_FLUSH 16
+#define PIPESAFE_FLUSH 32
 #define LARGE_FLUSH 1024
 
 static int next_flush(int count)
 {
-	if (count < INITIAL_FLUSH * 2)
-		count += INITIAL_FLUSH;
-	else if (count < LARGE_FLUSH)
+	int flush_limit = args.stateless_rpc ? LARGE_FLUSH : PIPESAFE_FLUSH;
+
+	if (count < flush_limit)
 		count <<= 1;
 	else
-		count += LARGE_FLUSH;
+		count += flush_limit;
 	return count;
 }
 
@@ -250,6 +252,7 @@ static int find_common(int fd[2], unsigned char *result_sha1,
 	const unsigned char *sha1;
 	unsigned in_vain = 0;
 	int got_continue = 0;
+	int got_ready = 0;
 	struct strbuf req_buf = STRBUF_INIT;
 	size_t state_len = 0;
 
@@ -288,6 +291,7 @@ static int find_common(int fd[2], unsigned char *result_sha1,
 			struct strbuf c = STRBUF_INIT;
 			if (multi_ack == 2)     strbuf_addstr(&c, " multi_ack_detailed");
 			if (multi_ack == 1)     strbuf_addstr(&c, " multi_ack");
+			if (no_done)            strbuf_addstr(&c, " no-done");
 			if (use_sideband == 2)  strbuf_addstr(&c, " side-band-64k");
 			if (use_sideband == 1)  strbuf_addstr(&c, " side-band");
 			if (args.use_thin_pack) strbuf_addstr(&c, " thin-pack");
@@ -406,8 +410,10 @@ static int find_common(int fd[2], unsigned char *result_sha1,
 					retval = 0;
 					in_vain = 0;
 					got_continue = 1;
-					if (ack == ACK_ready)
+					if (ack == ACK_ready) {
 						rev_list = NULL;
+						got_ready = 1;
+					}
 					break;
 					}
 				}
@@ -421,8 +427,10 @@ static int find_common(int fd[2], unsigned char *result_sha1,
 		}
 	}
 done:
-	packet_buf_write(&req_buf, "done\n");
-	send_request(fd[1], &req_buf);
+	if (!got_ready || !no_done) {
+		packet_buf_write(&req_buf, "done\n");
+		send_request(fd[1], &req_buf);
+	}
 	if (args.verbose)
 		fprintf(stderr, "done\n");
 	if (retval != 0) {
@@ -725,6 +733,12 @@ static struct ref *do_fetch_pack(int fd[2],
 		if (args.verbose)
 			fprintf(stderr, "Server supports multi_ack_detailed\n");
 		multi_ack = 2;
+		if (server_supports("no-done")) {
+			if (args.verbose)
+				fprintf(stderr, "Server supports no-done\n");
+			if (args.stateless_rpc)
+				no_done = 1;
+		}
 	}
 	else if (server_supports("multi_ack")) {
 		if (args.verbose)
diff --git a/t/test-lib.sh b/t/test-lib.sh
index 7a56f11101..abc47f3abc 100644
--- a/t/test-lib.sh
+++ b/t/test-lib.sh
@@ -993,14 +993,14 @@ rm -fr "$test" || {
 	exit 1
 }
 
+HOME="$TRASH_DIRECTORY"
+export HOME
+
 test_create_repo "$test"
 # Use -P to resolve symlinks in our working directory so that the cwd
 # in subprocesses like git equals our $PWD (for pathname comparisons).
 cd -P "$test" || exit 1
 
-HOME=$(pwd)
-export HOME
-
 this_test=${0##*/}
 this_test=${this_test%%-*}
 for skp in $GIT_SKIP_TESTS
diff --git a/upload-pack.c b/upload-pack.c
index eb80dd9aad..bba053f0aa 100644
--- a/upload-pack.c
+++ b/upload-pack.c
@@ -27,6 +27,7 @@ static const char upload_pack_usage[] = "git upload-pack [--strict] [--timeout=<
 static unsigned long oldest_have;
 
 static int multi_ack, nr_our_refs;
+static int no_done;
 static int use_thin_pack, use_ofs_delta, use_include_tag;
 static int no_progress, daemon_mode;
 static int shallow_nr;
@@ -431,6 +432,7 @@ static int get_common_commits(void)
 	char last_hex[41];
 	int got_common = 0;
 	int got_other = 0;
+	int sent_ready = 0;
 
 	save_commit_buffer = 0;
 
@@ -440,10 +442,17 @@ static int get_common_commits(void)
 
 		if (!len) {
 			if (multi_ack == 2 && got_common
-			    && !got_other && ok_to_give_up())
+			    && !got_other && ok_to_give_up()) {
+				sent_ready = 1;
 				packet_write(1, "ACK %s ready\n", last_hex);
+			}
 			if (have_obj.nr == 0 || multi_ack)
 				packet_write(1, "NAK\n");
+
+			if (no_done && sent_ready) {
+				packet_write(1, "ACK %s\n", last_hex);
+				return 0;
+			}
 			if (stateless_rpc)
 				exit(0);
 			got_common = 0;
@@ -457,9 +466,10 @@ static int get_common_commits(void)
 				got_other = 1;
 				if (multi_ack && ok_to_give_up()) {
 					const char *hex = sha1_to_hex(sha1);
-					if (multi_ack == 2)
+					if (multi_ack == 2) {
+						sent_ready = 1;
 						packet_write(1, "ACK %s ready\n", hex);
-					else
+					} else
 						packet_write(1, "ACK %s continue\n", hex);
 				}
 				break;
@@ -535,6 +545,8 @@ static void receive_needs(void)
 			multi_ack = 2;
 		else if (strstr(line+45, "multi_ack"))
 			multi_ack = 1;
+		if (strstr(line+45, "no-done"))
+			no_done = 1;
 		if (strstr(line+45, "thin-pack"))
 			use_thin_pack = 1;
 		if (strstr(line+45, "ofs-delta"))
@@ -635,8 +647,9 @@ static int send_ref(const char *refname, const unsigned char *sha1, int flag, vo
 		die("git upload-pack: cannot find object %s:", sha1_to_hex(sha1));
 
 	if (capabilities)
-		packet_write(1, "%s %s%c%s\n", sha1_to_hex(sha1), refname,
-			0, capabilities);
+		packet_write(1, "%s %s%c%s%s\n", sha1_to_hex(sha1), refname,
+			     0, capabilities,
+			     stateless_rpc ? " no-done" : "");
 	else
 		packet_write(1, "%s %s\n", sha1_to_hex(sha1), refname);
 	capabilities = NULL;