diff --git a/GVFS/GVFS.FunctionalTests/Tests/EnlistmentPerFixture/HealthTests.cs b/GVFS/GVFS.FunctionalTests/Tests/EnlistmentPerFixture/HealthTests.cs
index 3e4d7ec84..e46999175 100644
--- a/GVFS/GVFS.FunctionalTests/Tests/EnlistmentPerFixture/HealthTests.cs
+++ b/GVFS/GVFS.FunctionalTests/Tests/EnlistmentPerFixture/HealthTests.cs
@@ -262,9 +262,10 @@ private void ValidateSubDirectoryHealth(List<string> outputLines, List<string> s
 
         private void ValidateEnlistmentStatus(string outputLine, string statusMessage)
         {
-            // Regex to extract the status message for the enlistment
-            // "Repository status: <status-message>"
-            Match lineMatch = Regex.Match(outputLine, @"^Repository status:\s*(.*)$");
+            // Regex to extract the status message for the enlistment. The verb prints
+            // "Repository status: <status-message>" when the calculation covers the whole enlistment,
+            // and "Directory status (<path>): <status-message>" when scoped to a subdirectory.
+            Match lineMatch = Regex.Match(outputLine, @"^(?:Repository status|Directory status \([^)]*\)):\s*(.*)$");
 
             string outputtedStatusMessage = lineMatch.Groups[1].Value;
 
diff --git a/GVFS/GVFS/CommandLine/HealthVerb.cs b/GVFS/GVFS/CommandLine/HealthVerb.cs
index 9f9ed2109..8bb453ac9 100644
--- a/GVFS/GVFS/CommandLine/HealthVerb.cs
+++ b/GVFS/GVFS/CommandLine/HealthVerb.cs
@@ -208,7 +208,23 @@ private void PrintOutput(EnlistmentHealthData enlistmentHealthData)
 
             bool healthyRepo = (enlistmentHealthData.PlaceholderPercentage + enlistmentHealthData.ModifiedPathsPercentage) < MaximumHealthyHydration;
 
-            this.Output.WriteLine("\nRepository status: " + (healthyRepo ? "OK" : "Highly Hydrated"));
+            // Only label the summary as "Repository status" when the calculation actually covered
+            // the whole enlistment. When the user scoped the check to a subdirectory (via -d or by
+            // running from a subdirectory of the enlistment) the number describes only that subtree,
+            // so label it accordingly to avoid falsely reporting the repository as highly hydrated.
+            bool isWholeRepo = string.IsNullOrEmpty(enlistmentHealthData.TargetDirectory)
+                || enlistmentHealthData.TargetDirectory == GVFSConstants.GitPathSeparatorString;
+
+            string statusLabel = isWholeRepo
+                ? "Repository status"
+                : "Directory status (" + enlistmentHealthData.TargetDirectory.TrimEnd(GVFSConstants.GitPathSeparator) + ")";
+
+            this.Output.WriteLine("\n" + statusLabel + ": " + (healthyRepo ? "OK" : "Highly Hydrated"));
+
+            if (!isWholeRepo)
+            {
+                this.Output.WriteLine("To see the full repository status, switch to the root of the repository and re-run 'gvfs health'.");
+            }
         }
 
         /// <summary>