diff --git a/main.c b/main.c
index 982d05f..fea2392 100644
--- a/main.c
+++ b/main.c
@@ -1526,6 +1526,18 @@ load_dir (struct ovl_data *lo, struct ovl_node *n, struct ovl_layer *layer, char
               return NULL;
             }
         }
+
+      ret = is_directory_opaque (it, path);
+      if (ret < 0)
+        {
+          it->ds->closedir (dp);
+          return NULL;
+        }
+      if (ret > 0)
+        {
+          n->last_layer = it;
+          stop_lookup = true;
+        }
     }
 
   if (get_timeout (lo) > 0)
@@ -1803,7 +1815,10 @@ do_lookup_file (struct ovl_data *lo, fuse_ino_t parent, const char *name)
                   return NULL;
                 }
               if (ret > 0)
-                node->last_layer = it;
+                {
+                  node->last_layer = it;
+                  stop_lookup = true;
+                }
             }
 insert_node:
           if (insert_node (pnode, node, false) == NULL)
diff --git a/tests/fedora-installs.sh b/tests/fedora-installs.sh
index a6e7059..4c9a2fa 100755
--- a/tests/fedora-installs.sh
+++ b/tests/fedora-installs.sh
@@ -98,3 +98,18 @@ mkdir -p lower3/dir1/dir2
 fuse-overlayfs -o lowerdir=lower3:lower2:lower1,upperdir=upper,workdir=workdir merged
 
 test \! -e merged/dir1/dir2/foo
+
+umount merged
+
+# https://github.com/containers/fuse-overlayfs/issues/138
+rm -rf lower1 lower2 lower3 lower upper workdir merged
+mkdir lower1 lower2 lower3 upper workdir merged
+
+mkdir -p lower1/dir1/dir2
+touch lower1/dir1/dir2/foo
+mkdir -p lower3/dir1/dir2
+touch lower3/dir1/dir2/.wh..wh..opq
+
+fuse-overlayfs -o lowerdir=lower3:lower2:lower1,upperdir=upper,workdir=workdir merged
+
+test \! -e merged/dir1/dir2/foo