diff --git a/platform/dvcs-impl/src/com/intellij/dvcs/ui/RepositoryChangesGroupingPolicy.kt b/platform/dvcs-impl/src/com/intellij/dvcs/ui/RepositoryChangesGroupingPolicy.kt
index 52a9b45d3dc6..2ae2ffa67d34 100644
--- a/platform/dvcs-impl/src/com/intellij/dvcs/ui/RepositoryChangesGroupingPolicy.kt
+++ b/platform/dvcs-impl/src/com/intellij/dvcs/ui/RepositoryChangesGroupingPolicy.kt
@@ -20,6 +20,8 @@ class RepositoryChangesGroupingPolicy(val project: Project, val model: DefaultTr
     val nextPolicyParent = nextPolicy?.getParentNodeFor(nodePath, subtreeRoot)
 
     file?.let { repositoryManager.getRepositoryForFile(it, true) }?.let { repository ->
+      if (repositoryManager.isExternal(repository)) return nextPolicyParent
+      
       val grandParent = nextPolicyParent ?: subtreeRoot
       val cachingRoot = getCachingRoot(grandParent, subtreeRoot)