diff --git a/platform/lang-impl/src/com/intellij/ide/scratch/ScratchProjectViewPane.java b/platform/lang-impl/src/com/intellij/ide/scratch/ScratchProjectViewPane.java
index e1098c107e7f..c31d05269762 100644
--- a/platform/lang-impl/src/com/intellij/ide/scratch/ScratchProjectViewPane.java
+++ b/platform/lang-impl/src/com/intellij/ide/scratch/ScratchProjectViewPane.java
@@ -25,8 +25,10 @@ import com.intellij.ide.projectView.impl.ProjectTreeStructure;
 import com.intellij.ide.projectView.impl.ProjectViewPane;
 import com.intellij.ide.projectView.impl.nodes.BasePsiNode;
 import com.intellij.ide.util.treeView.AbstractTreeNode;
+import com.intellij.openapi.fileTypes.FileTypeRegistry;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.vfs.LocalFileSystem;
+import com.intellij.openapi.vfs.VfsUtilCore;
 import com.intellij.openapi.vfs.VirtualFile;
 import com.intellij.pom.NavigatableWithText;
 import com.intellij.psi.PsiDirectory;
@@ -178,13 +180,14 @@ public class ScratchProjectViewPane extends ProjectViewPane {
 
   private static class MyPsiNode extends BasePsiNode<PsiFileSystemItem> implements NavigatableWithText {
 
-    MyPsiNode(Project project, PsiFileSystemItem value) {
+    MyPsiNode(@NotNull Project project, @NotNull PsiFileSystemItem value) {
       super(project, value, ViewSettings.DEFAULT);
     }
 
     @Override
     public boolean isAlwaysLeaf() {
-      return !getValue().isDirectory();
+      PsiFileSystemItem value = getValue();
+      return value != null && !value.isDirectory();
     }
 
     @Nullable
@@ -192,21 +195,26 @@ public class ScratchProjectViewPane extends ProjectViewPane {
     protected Collection<AbstractTreeNode> getChildrenImpl() {
       if (isAlwaysLeaf()) return Collections.emptyList();
       final List<AbstractTreeNode> list = ContainerUtil.newArrayList();
-      getValue().processChildren(new PsiElementProcessor<PsiFileSystemItem>() {
-        @Override
-        public boolean execute(@NotNull PsiFileSystemItem element) {
-          list.add(new MyPsiNode(getProject(), element));
-          return true;
-        }
-      });
+      PsiFileSystemItem value = getValue();
+      if (value != null) {
+        value.processChildren(new PsiElementProcessor<PsiFileSystemItem>() {
+          @Override
+          public boolean execute(@NotNull PsiFileSystemItem element) {
+            list.add(new MyPsiNode(getProject(), element));
+            return true;
+          }
+        });
+      }
       return list;
     }
 
     @Override
     protected void updateImpl(PresentationData data) {
       PsiFileSystemItem value = getValue();
-      data.setIcon(value.getIcon(0));
-      data.setPresentableText(value.getName());
+      if (value != null) {
+        data.setIcon(value.getIcon(0));
+        data.setPresentableText(value.getName());
+      }
     }
 
     @Nullable
@@ -214,5 +222,15 @@ public class ScratchProjectViewPane extends ProjectViewPane {
     public String getNavigateActionText(boolean focusEditor) {
       return null;
     }
+
+    @Override
+    public boolean contains(@NotNull VirtualFile file) {
+      PsiFileSystemItem value = getValue();
+      if (!(value instanceof PsiDirectory)) return super.contains(file);
+      PsiDirectory dir = (PsiDirectory)value;
+
+      return VfsUtilCore.isAncestor(dir.getVirtualFile(), file, false) &&
+             !FileTypeRegistry.getInstance().isFileIgnored(file);
+    }
   }
 }
diff --git a/plugins/git4idea/src/git4idea/repo/GitRepositoryReader.java b/plugins/git4idea/src/git4idea/repo/GitRepositoryReader.java
index 892791fcff5c..ddd741f7d125 100644
--- a/plugins/git4idea/src/git4idea/repo/GitRepositoryReader.java
+++ b/plugins/git4idea/src/git4idea/repo/GitRepositoryReader.java
@@ -80,11 +80,22 @@ class GitRepositoryReader {
   @NotNull
   GitBranchState readState(@NotNull Collection<GitRemote> remotes) {
     Pair<Set<GitLocalBranch>, Set<GitRemoteBranch>> branches = readBranches(remotes);
+    Set<GitLocalBranch> localBranches = branches.first;
+
     HeadInfo headInfo = readHead();
     Repository.State state = readRepositoryState(headInfo);
-    GitLocalBranch currentBranch = findCurrentBranch(headInfo, state, branches.first);
-    String currentRevision = getCurrentRevision(headInfo, currentBranch);
-    return new GitBranchState(currentRevision, currentBranch, state, branches.first, branches.second);
+
+    GitLocalBranch currentBranch;
+    String currentRevision;
+    if (localBranches.isEmpty() && headInfo.content != null) {
+      currentBranch = new GitLocalBranch(headInfo.content, GitBranch.DUMMY_HASH);
+      currentRevision = null;
+    }
+    else {
+      currentBranch = findCurrentBranch(headInfo, state, localBranches);
+      currentRevision = getCurrentRevision(headInfo, currentBranch);
+    }
+    return new GitBranchState(currentRevision, currentBranch, state, localBranches, branches.second);
   }
 
   @Nullable
diff --git a/plugins/git4idea/tests/git4idea/repo/GitRepositoryReaderNewTest.java b/plugins/git4idea/tests/git4idea/repo/GitRepositoryReaderNewTest.java
index 0ae3fff2356f..1f8846f06133 100644
--- a/plugins/git4idea/tests/git4idea/repo/GitRepositoryReaderNewTest.java
+++ b/plugins/git4idea/tests/git4idea/repo/GitRepositoryReaderNewTest.java
@@ -18,6 +18,7 @@ package git4idea.repo;
 import com.intellij.dvcs.repo.Repository;
 import com.intellij.openapi.util.Condition;
 import com.intellij.util.containers.ContainerUtil;
+import git4idea.GitLocalBranch;
 import git4idea.GitRemoteBranch;
 import git4idea.test.GitSingleRepoTest;
 import org.jetbrains.annotations.NotNull;
@@ -39,7 +40,8 @@ import static git4idea.test.GitTestUtil.makeCommit;
 public class GitRepositoryReaderNewTest extends GitSingleRepoTest {
 
   // inspired by IDEA-93806
-  public void test_rebase_with_conflicts_while_being_on_detached_HEAD() {
+  public void test_rebase_with_conflicts_while_being_on_detached_HEAD() throws IOException {
+    makeCommit("file.txt");
     conflict(myRepo, "feature");
     commit(myRepo);
     commit(myRepo);
@@ -52,7 +54,8 @@ public class GitRepositoryReaderNewTest extends GitSingleRepoTest {
   }
 
   // inspired by IDEA-124052
-  public void test_remote_reference_without_remote() {
+  public void test_remote_reference_without_remote() throws IOException {
+    makeCommit("file.txt");
     final String INVALID_REMOTE = "invalid-remote";
     final String INVALID_REMOTE_BRANCH = "master";
     git("update-ref refs/remotes/" + INVALID_REMOTE + "/" + INVALID_REMOTE_BRANCH + " HEAD");
@@ -68,6 +71,7 @@ public class GitRepositoryReaderNewTest extends GitSingleRepoTest {
 
   // inspired by IDEA-134286
   public void test_detached_HEAD() throws IOException {
+    makeCommit("file.txt");
     makeCommit("file.txt");
     git("checkout HEAD^");
     GitBranchState state = readState();
@@ -84,4 +88,15 @@ public class GitRepositoryReaderNewTest extends GitSingleRepoTest {
     return reader.readState(remotes);
   }
 
+  // inspired by IDEA-134412
+  public void test_fresh_repository_is_on_branch() {
+    GitLocalBranch currentBranch = readState().getCurrentBranch();
+    assertNotNull("Current branch shouldn't be null in a fresh repository", currentBranch);
+    assertEquals("Fresh repository should be on master", "master", currentBranch.getName());
+  }
+
+  @Override
+  protected boolean makeInitialCommit() {
+    return false;
+  }
 }