diff --git a/plugins/git4idea/src/git4idea/repo/GitRepositoryReader.java b/plugins/git4idea/src/git4idea/repo/GitRepositoryReader.java
index ddd741f7d125..57857dff03d8 100644
--- a/plugins/git4idea/src/git4idea/repo/GitRepositoryReader.java
+++ b/plugins/git4idea/src/git4idea/repo/GitRepositoryReader.java
@@ -87,13 +87,21 @@ class GitRepositoryReader {
 
     GitLocalBranch currentBranch;
     String currentRevision;
-    if (localBranches.isEmpty() && headInfo.content != null) {
+    if (!headInfo.isBranch) {
+      currentBranch = null;
+      currentRevision = headInfo.content;
+    }
+    else if (!localBranches.isEmpty()) {
+      currentBranch = findCurrentBranch(headInfo, state, localBranches);
+      currentRevision = getCurrentRevision(headInfo, currentBranch);
+    }
+    else if (headInfo.content != null) {
       currentBranch = new GitLocalBranch(headInfo.content, GitBranch.DUMMY_HASH);
       currentRevision = null;
     }
     else {
-      currentBranch = findCurrentBranch(headInfo, state, localBranches);
-      currentRevision = getCurrentRevision(headInfo, currentBranch);
+      currentBranch = null;
+      currentRevision = null;
     }
     return new GitBranchState(currentRevision, currentBranch, state, localBranches, branches.second);
   }
diff --git a/plugins/git4idea/tests/git4idea/repo/GitRepositoryReaderNewTest.java b/plugins/git4idea/tests/git4idea/repo/GitRepositoryReaderNewTest.java
index 1f8846f06133..6f882e8705df 100644
--- a/plugins/git4idea/tests/git4idea/repo/GitRepositoryReaderNewTest.java
+++ b/plugins/git4idea/tests/git4idea/repo/GitRepositoryReaderNewTest.java
@@ -71,12 +71,28 @@ public class GitRepositoryReaderNewTest extends GitSingleRepoTest {
 
   // inspired by IDEA-134286
   public void test_detached_HEAD() throws IOException {
+    String head = getToDetachedHead();
+    GitBranchState state = readState();
+    assertEquals("Detached HEAD is not detected", GitRepository.State.DETACHED, state.getState());
+    assertEquals("Detached HEAD hash is incorrect", head, state.getCurrentRevision());
+  }
+
+  // inspired by IDEA-135966
+  public void test_no_local_branches() throws IOException {
+    String head = getToDetachedHead();
+    git("branch -D master");
+    GitBranchState state = readState();
+    assertEquals("Detached HEAD is not detected", GitRepository.State.DETACHED, state.getState());
+    assertEquals("Detached HEAD hash is incorrect", head, state.getCurrentRevision());
+    assertTrue("There should be no local branches", state.getLocalBranches().isEmpty());
+  }
+
+  @NotNull
+  private static String getToDetachedHead() throws IOException {
     makeCommit("file.txt");
     makeCommit("file.txt");
     git("checkout HEAD^");
-    GitBranchState state = readState();
-    assertEquals("Detached HEAD is not detected", GitRepository.State.DETACHED, state.getState());
-    assertEquals("Detached HEAD hash is incorrect", last(), state.getCurrentRevision());
+    return last();
   }
 
   @NotNull