diff --git a/git/repo/base.py b/git/repo/base.py
@@ -242,6 +242,28 @@ def __init__(
            # It's important to normalize the paths, as submodules will otherwise
            # initialize their repo instances with paths that depend on path-portions
            # that will not exist after being removed. It's just cleaner.
            if is_git_dir(curpath):
                git_dir = curpath
                # from man git-config : core.worktree

diff --git a/test/test_repo.py b/test/test_repo.py
@@ -1126,6 +1126,42 @@ def test_git_work_tree_env(self, rw_dir):
            self.assertEqual(r.working_tree_dir, repo_dir)
            self.assertEqual(r.working_dir, repo_dir)

    @with_rw_directory
    def test_rebasing(self, rw_dir):
        r = Repo.init(rw_dir)