diff --git a/pkg/gui/presentation/files.go b/pkg/gui/presentation/files.go
index cc0a9388972..7d545d24ca8 100644
--- a/pkg/gui/presentation/files.go
+++ b/pkg/gui/presentation/files.go
@@ -84,8 +84,10 @@ func renderAux[T any](
 	}
 
 	isRoot := treeDepth == -1
+	hasChildren := len(node.Children) > 0
 
-	if node.IsFile() {
+	// Pure file node (no children) - render and return
+	if node.IsFile() && !hasChildren {
 		if isRoot {
 			return []string{}
 		}
@@ -128,6 +130,7 @@ func getFileLine(
 	var nameColor style.TextStyle
 
 	file := node.File
+	hasChildren := len(node.Children) > 0
 
 	indentation := strings.Repeat("  ", visualDepth)
 
@@ -140,7 +143,8 @@ func getFileLine(
 	}
 
 	if file == nil {
-		output += indentation + ""
+		// Pure directory node
+		output += indentation
 		arrow := EXPANDED_ARROW
 		if isCollapsed {
 			arrow = COLLAPSED_ARROW
@@ -149,7 +153,17 @@ func getFileLine(
 		arrowStyle := nameColor
 
 		output += arrowStyle.Sprint(arrow) + " "
+	} else if hasChildren {
+		// Node with both file and children (e.g., deleted symlink replaced with directory)
+		// Show file status followed by expand/collapse arrow
+		output += indentation + formatFileStatus(file, nameColor) + nameColor.Sprint(" ")
+		arrow := EXPANDED_ARROW
+		if isCollapsed {
+			arrow = COLLAPSED_ARROW
+		}
+		output += nameColor.Sprint(arrow) + " "
 	} else {
+		// Pure file node
 		// Sprinting the space at the end in the specific style is for the sake of
 		// when a reverse style is used in the theme, which looks ugly if you just
 		// use the default style
@@ -158,7 +172,7 @@ func getFileLine(
 
 	isSubmodule := file != nil && file.IsSubmodule(submoduleConfigs)
 	isLinkedWorktree := file != nil && file.IsWorktree
-	isDirectory := file == nil
+	isDirectory := file == nil || hasChildren
 
 	if showFileIcons {
 		icon := icons.IconForFile(name, isSubmodule, isLinkedWorktree, isDirectory, customIconsConfig)
@@ -231,7 +245,8 @@ func getCommitFileLine(
 	commitFile := node.File
 	output := indentation
 
-	isDirectory := commitFile == nil
+	hasChildren := len(node.Children) > 0
+	isDirectory := commitFile == nil || hasChildren
 
 	nameColor := theme.DefaultTextColor
 
@@ -244,7 +259,8 @@ func getCommitFileLine(
 		nameColor = theme.DefaultTextColor
 	}
 
-	if isDirectory {
+	if commitFile == nil {
+		// Pure directory node
 		arrow := EXPANDED_ARROW
 		if isCollapsed {
 			arrow = COLLAPSED_ARROW
@@ -252,6 +268,7 @@ func getCommitFileLine(
 
 		output += nameColor.Sprint(arrow) + " "
 	} else {
+		// Node with file (with or without children)
 		var symbol string
 		symbolStyle := nameColor
 
@@ -266,6 +283,14 @@ func getCommitFileLine(
 		}
 
 		output += symbolStyle.Sprint(symbol) + " "
+
+		if hasChildren {
+			arrow := EXPANDED_ARROW
+			if isCollapsed {
+				arrow = COLLAPSED_ARROW
+			}
+			output += nameColor.Sprint(arrow) + " "
+		}
 	}
 
 	name = utils.EscapeSpecialChars(name)
diff --git a/pkg/gui/presentation/files_test.go b/pkg/gui/presentation/files_test.go
index a5b01c1561e..7e7ecec6118 100644
--- a/pkg/gui/presentation/files_test.go
+++ b/pkg/gui/presentation/files_test.go
@@ -109,6 +109,39 @@ M  file1
 			),
 			collapsedPaths: []string{"dir1"},
 		},
+		{
+			name: "deleted symlink replaced with directory containing files",
+			files: []*models.File{
+				{Path: "dir/link", ShortStatus: "D ", HasStagedChanges: true},
+				{Path: "dir/link/file1", ShortStatus: "A ", HasStagedChanges: true},
+				{Path: "dir/link/file2", ShortStatus: "A ", HasStagedChanges: true},
+			},
+			showRootItem: false,
+			expected: toStringSlice(
+				`
+▼ dir
+  D  ▼ link
+    A  file1
+    A  file2
+`,
+			),
+		},
+		{
+			name: "deleted symlink replaced with directory - collapsed",
+			files: []*models.File{
+				{Path: "dir/link", ShortStatus: "D ", HasStagedChanges: true},
+				{Path: "dir/link/file1", ShortStatus: "A ", HasStagedChanges: true},
+				{Path: "dir/link/file2", ShortStatus: "A ", HasStagedChanges: true},
+			},
+			showRootItem:   false,
+			collapsedPaths: []string{"dir/link"},
+			expected: toStringSlice(
+				`
+▼ dir
+  D  ▶ link
+`,
+			),
+		},
 	}
 
 	oldColorLevel := color.ForceSetColorLevel(terminfo.ColorLevelNone)
@@ -200,6 +233,39 @@ M file1
 			),
 			collapsedPaths: []string{"dir1"},
 		},
+		{
+			name: "deleted symlink replaced with directory containing files",
+			files: []*models.CommitFile{
+				{Path: "dir/link", ChangeStatus: "D"},
+				{Path: "dir/link/file1", ChangeStatus: "A"},
+				{Path: "dir/link/file2", ChangeStatus: "A"},
+			},
+			showRootItem: false,
+			expected: toStringSlice(
+				`
+▼ dir
+  D ▼ link
+    A file1
+    A file2
+`,
+			),
+		},
+		{
+			name: "deleted symlink replaced with directory - collapsed",
+			files: []*models.CommitFile{
+				{Path: "dir/link", ChangeStatus: "D"},
+				{Path: "dir/link/file1", ChangeStatus: "A"},
+				{Path: "dir/link/file2", ChangeStatus: "A"},
+			},
+			showRootItem:   false,
+			collapsedPaths: []string{"dir/link"},
+			expected: toStringSlice(
+				`
+▼ dir
+  D ▶ link
+`,
+			),
+		},
 	}
 
 	oldColorLevel := color.ForceSetColorLevel(terminfo.ColorLevelNone)