diff --git a/packages/server/src/server/daemon-e2e/filesystem.e2e.test.ts b/packages/server/src/server/daemon-e2e/filesystem.e2e.test.ts
index 7fee55e216..0c99744e62 100644
--- a/packages/server/src/server/daemon-e2e/filesystem.e2e.test.ts
+++ b/packages/server/src/server/daemon-e2e/filesystem.e2e.test.ts
@@ -31,6 +31,81 @@ afterEach(async () => {
   await ctx.cleanup();
 }, 60000);
 
+describe("checkout discard", () => {
+  test.each([".", "apps/web"])(
+    "discards selected Changes from the %s workspace without changing siblings",
+    async (workspacePath) => {
+      const cwd = tmpCwd();
+      function git(args: string[]): string {
+        return execFileSync("git", args, { cwd, encoding: "utf8", stdio: "pipe" });
+      }
+      try {
+        git(["init", "-b", "main"]);
+        git(["config", "user.name", "Paseo Test"]);
+        git(["config", "user.email", "test@getpaseo.local"]);
+        git(["config", "core.autocrlf", "false"]);
+        const nested = path.join(cwd, "apps", "web");
+        mkdirSync(nested, { recursive: true });
+        writeFileSync(path.join(nested, "target[ab].txt"), "target base\n");
+        writeFileSync(path.join(nested, "targeta.txt"), "sibling base\n");
+        writeFileSync(path.join(nested, "deleted.txt"), "deleted base\n");
+        git(["add", "."]);
+        git(["-c", "commit.gpgsign=false", "commit", "-m", "initial"]);
+        const creation = await ctx.client.createWorkspace({
+          source: { kind: "directory", path: path.join(cwd, workspacePath) },
+          title: "Discard regression",
+        });
+        const workspaceCwd = creation.workspace?.workspaceDirectory;
+        if (!workspaceCwd) {
+          throw new Error(creation.error ?? "Workspace creation failed");
+        }
+
+        writeFileSync(path.join(nested, "target[ab].txt"), "target edited\n");
+        writeFileSync(path.join(nested, "targeta.txt"), "sibling edited\n");
+        writeFileSync(path.join(nested, "staged.txt"), "staged new file\n");
+        writeFileSync(path.join(nested, "scratch.txt"), "untracked file\n");
+        git(["--literal-pathspecs", "add", "--", "apps/web/target[ab].txt", "apps/web/staged.txt"]);
+        git(["rm", "apps/web/deleted.txt"]);
+
+        const subscription = ctx.client.observeCheckoutDiff(workspaceCwd, { mode: "uncommitted" });
+        try {
+          const changes = await subscription.ready;
+          expect(changes.error).toBeNull();
+          expect(changes.files.map((file) => file.path).sort()).toEqual([
+            "apps/web/deleted.txt",
+            "apps/web/scratch.txt",
+            "apps/web/staged.txt",
+            "apps/web/target[ab].txt",
+            "apps/web/targeta.txt",
+          ]);
+          const selectedPaths = changes.files
+            .filter((file) => file.path !== "apps/web/targeta.txt")
+            .map((file) => file.path);
+          const discarded = await ctx.client.checkoutDiscardChanges(workspaceCwd, {
+            paths: selectedPaths,
+          });
+          expect(discarded).toMatchObject({ success: true, error: null });
+
+          const target = await ctx.client.readFile(cwd, "apps/web/target[ab].txt");
+          expect(new TextDecoder().decode(target.bytes)).toBe("target base\n");
+          const restored = await ctx.client.readFile(cwd, "apps/web/deleted.txt");
+          expect(new TextDecoder().decode(restored.bytes)).toBe("deleted base\n");
+          const sibling = await ctx.client.readFile(cwd, "apps/web/targeta.txt");
+          expect(new TextDecoder().decode(sibling.bytes)).toBe("sibling edited\n");
+          await expect(ctx.client.readFile(cwd, "apps/web/staged.txt")).rejects.toThrow(/ENOENT/);
+          await expect(ctx.client.readFile(cwd, "apps/web/scratch.txt")).rejects.toThrow(/ENOENT/);
+          expect(git(["status", "--porcelain=v1", "-z"])).toBe(" M apps/web/targeta.txt\0");
+        } finally {
+          await subscription.release();
+        }
+      } finally {
+        // afterEach shuts down the daemon and its repository observers first.
+        onTestFinished(() => rmSync(cwd, { recursive: true, force: true }));
+      }
+    },
+  );
+});
+
 describe("file explorer", () => {
   test.each(["..", "..."])(
     "workspace suggestions resolve exact paths starting with %s",
diff --git a/packages/server/src/utils/checkout-git.ts b/packages/server/src/utils/checkout-git.ts
index 0f34a1ea73..bda89506b5 100644
--- a/packages/server/src/utils/checkout-git.ts
+++ b/packages/server/src/utils/checkout-git.ts
@@ -3553,13 +3553,13 @@ export async function commitAll(cwd: string, message: string): Promise<void> {
 }
 
 export async function discardChanges(cwd: string, pathspecs: string[]): Promise<void> {
-  await requireGitRepo(cwd);
+  const worktreeRoot = await requireGitWorktreeRoot(cwd);
   if (pathspecs.length === 0) {
     return;
   }
   try {
     await runGitCommand(["--literal-pathspecs", "reset", "-q", "HEAD", "--", ...pathspecs], {
-      cwd,
+      cwd: worktreeRoot,
       timeout: DISCARD_CHANGES_TIMEOUT_MS,
     });
   } catch {
@@ -3567,7 +3567,7 @@ export async function discardChanges(cwd: string, pathspecs: string[]): Promise<
     await runGitCommand(
       ["--literal-pathspecs", "rm", "--cached", "-r", "-q", "--ignore-unmatch", "--", ...pathspecs],
       {
-        cwd,
+        cwd: worktreeRoot,
         timeout: DISCARD_CHANGES_TIMEOUT_MS,
       },
     );
@@ -3579,7 +3579,7 @@ export async function discardChanges(cwd: string, pathspecs: string[]): Promise<
   const status = await runGitCommand(
     ["--literal-pathspecs", "status", "--porcelain=v1", "-z", "--", ...pathspecs],
     {
-      cwd,
+      cwd: worktreeRoot,
       timeout: DISCARD_CHANGES_TIMEOUT_MS,
     },
   );
@@ -3605,13 +3605,13 @@ export async function discardChanges(cwd: string, pathspecs: string[]): Promise<
   }
   if (tracked.length > 0) {
     await runGitCommand(["--literal-pathspecs", "checkout", "-q", "--", ...tracked], {
-      cwd,
+      cwd: worktreeRoot,
       timeout: DISCARD_CHANGES_TIMEOUT_MS,
     });
   }
   if (untracked.length > 0) {
     await runGitCommand(["--literal-pathspecs", "clean", "-fd", "-q", "--", ...untracked], {
-      cwd,
+      cwd: worktreeRoot,
       timeout: DISCARD_CHANGES_TIMEOUT_MS,
     });
   }