diff --git a/gvfs-helper.c b/gvfs-helper.c
index d3903108ad946b..dc8b24f10cef49 100644
--- a/gvfs-helper.c
+++ b/gvfs-helper.c
@@ -1352,13 +1352,16 @@ static int option_parse_shared_cache_directory(const struct option *opt,
 		 */
 		strbuf_addbuf(&gvfs_shared_cache_pathname, &buf_arg);
 
+		/* Attempt to create the directory, in case it doesn't exist. */
+		safe_create_leading_directories(the_repository,
+						gvfs_shared_cache_pathname.buf);
+		mkdir(gvfs_shared_cache_pathname.buf, 0777);
+
 		odb_add_to_alternates_memory(the_repository->objects, buf_arg.buf);
 
 		strbuf_release(&buf_arg);
 		return 0;
-	}
-
-	else {
+	} else {
 		/*
 		 * The requested shared-cache is different from the one
 		 * we inherited.  Replace the inherited value with this
@@ -1371,6 +1374,11 @@ static int option_parse_shared_cache_directory(const struct option *opt,
 		strbuf_setlen(&gvfs_shared_cache_pathname, 0);
 		strbuf_addbuf(&gvfs_shared_cache_pathname, &buf_arg);
 
+		/* Attempt to create the directory, in case it doesn't exist. */
+		safe_create_leading_directories(the_repository,
+						gvfs_shared_cache_pathname.buf);
+		mkdir(gvfs_shared_cache_pathname.buf, 0777);
+
 		odb_add_to_alternates_memory(the_repository->objects, buf_arg.buf);
 
 		/*
diff --git a/t/t9210-scalar.sh b/t/t9210-scalar.sh
index 588a09355b9286..17274e5599ec70 100755
--- a/t/t9210-scalar.sh
+++ b/t/t9210-scalar.sh
@@ -455,6 +455,37 @@ test_expect_success '`scalar clone` with GVFS-enabled server' '
 	)
 '
 
+test_expect_success '`scalar clone` with GVFS-enabled server; local cache path' '
+	: the fake cache server requires fake authentication &&
+	git config --global core.askPass true &&
+
+	LOCAL_CACHE_BASE="$(pwd)/local" &&
+
+	# We must set credential.interactive=true to bypass a setting
+	# in "scalar clone" that disables interactive credentials during
+	# an unattended command.
+	scalar \
+		-c credential.interactive=true \
+		clone --gvfs-protocol \
+		--local-cache-path="$LOCAL_CACHE_BASE" \
+		--single-branch -- http://$ORIGIN_HOST_PORT/ with-local &&
+
+	: verify that the shared cache has been configured &&
+	cache_key="url_$(printf "%s" http://$ORIGIN_HOST_PORT/ |
+		tr A-Z a-z |
+		test-tool sha1)" &&
+	LOCAL_CACHE_DIR="$LOCAL_CACHE_BASE/$cache_key" &&
+	echo "$LOCAL_CACHE_DIR" >expect &&
+	git -C with-local/src config gvfs.sharedCache >actual &&
+	test_cmp expect actual &&
+
+	: check the local cache is recreated on fetch &&
+	rm -rf $LOCAL_CACHE_BASE &&
+	git -C with-local fetch &&
+	test_path_is_dir "$LOCAL_CACHE_DIR" &&
+	test_path_is_dir "$LOCAL_CACHE_DIR/pack"
+'
+
 . "$TEST_DIRECTORY"/lib-gvfs-helper.sh
 
 test_expect_success 'scalar clone: all verbs with different servers' '