diff --git a/hgext/inotify/__init__.py b/hgext/inotify/__init__.py
--- a/hgext/inotify/__init__.py
+++ b/hgext/inotify/__init__.py
@@ -52,6 +52,8 @@ def reposetup(ui, repo):
 
         def status(self, match, ignored, clean, unknown=True):
             files = match.files()
+            if '.' in files:
+                files = [] 
             try:
                 if not ignored and not self.inotifyserver:
                     result = client.query(ui, repo, files, match, False,
diff --git a/tests/test-inotify b/tests/test-inotify
--- a/tests/test-inotify
+++ b/tests/test-inotify
@@ -27,4 +27,12 @@ hg status -c
 echo % all
 hg status -A
 
+echo '% path patterns'
+echo x > dir/x
+hg status .
+hg status dir
+cd dir
+hg status .
+cd ..
+
 kill `cat hg.pid`
diff --git a/tests/test-inotify.out b/tests/test-inotify.out
--- a/tests/test-inotify.out
+++ b/tests/test-inotify.out
@@ -27,3 +27,8 @@ C dir/bar/foo
 C dir/x
 C dir/y
 C e
+% path patterns
+M dir/x
+? hg.pid
+M dir/x
+M x