diff --git a/src/cargo/core/workspace.rs b/src/cargo/core/workspace.rs
index b34ea9acaf8..c2cb23a8fa8 100644
--- a/src/cargo/core/workspace.rs
+++ b/src/cargo/core/workspace.rs
@@ -829,6 +829,10 @@ impl<'cfg> Workspace<'cfg> {
         }
         Ok(())
     }
+
+    pub fn set_target_dir(&mut self, target_dir: Filesystem) {
+        self.target_dir = Some(target_dir);
+    }
 }
 
 impl<'cfg> Packages<'cfg> {
diff --git a/src/cargo/ops/cargo_install.rs b/src/cargo/ops/cargo_install.rs
index a2c5565e79f..505b940e8d4 100644
--- a/src/cargo/ops/cargo_install.rs
+++ b/src/cargo/ops/cargo_install.rs
@@ -200,31 +200,35 @@ fn install_one(
         )?
     };
 
-    let mut td_opt = None;
-    let mut needs_cleanup = false;
-    let overidden_target_dir = if source_id.is_path() {
-        None
-    } else if let Some(dir) = config.target_dir()? {
-        Some(dir)
-    } else if let Ok(td) = TempFileBuilder::new().prefix("cargo-install").tempdir() {
-        let p = td.path().to_owned();
-        td_opt = Some(td);
-        Some(Filesystem::new(p))
+    let (mut ws, git_package) = if source_id.is_git() {
+        // Don't use ws.current() in order to keep the package source as a git source so that
+        // install tracking uses the correct source.
+        (Workspace::new(pkg.manifest_path(), config)?, Some(&pkg))
+    } else if source_id.is_path() {
+        (Workspace::new(pkg.manifest_path(), config)?, None)
     } else {
-        needs_cleanup = true;
-        Some(Filesystem::new(config.cwd().join("target-install")))
-    };
-
-    let mut ws = match overidden_target_dir {
-        Some(dir) => Workspace::ephemeral(pkg, config, Some(dir), false)?,
-        None => {
-            let mut ws = Workspace::new(pkg.manifest_path(), config)?;
-            ws.set_require_optional_deps(false);
-            ws
-        }
+        (Workspace::ephemeral(pkg, config, None, false)?, None)
     };
     ws.set_ignore_lock(config.lock_update_allowed());
-    let pkg = ws.current()?;
+    ws.set_require_optional_deps(false);
+
+    let mut td_opt = None;
+    let mut needs_cleanup = false;
+    if !source_id.is_path() {
+        let target_dir = if let Some(dir) = config.target_dir()? {
+            dir
+        } else if let Ok(td) = TempFileBuilder::new().prefix("cargo-install").tempdir() {
+            let p = td.path().to_owned();
+            td_opt = Some(td);
+            Filesystem::new(p)
+        } else {
+            needs_cleanup = true;
+            Filesystem::new(config.cwd().join("target-install"))
+        };
+        ws.set_target_dir(target_dir);
+    }
+
+    let pkg = git_package.map_or_else(|| ws.current(), |pkg| Ok(pkg))?;
 
     if from_cwd {
         if pkg.manifest().edition() == Edition::Edition2015 {
diff --git a/tests/testsuite/install.rs b/tests/testsuite/install.rs
index 98dd12fe26c..c2777f85acb 100644
--- a/tests/testsuite/install.rs
+++ b/tests/testsuite/install.rs
@@ -316,10 +316,10 @@ fn multiple_crates_git_all() {
     let p = git::repo(&paths::root().join("foo"))
         .file(
             "Cargo.toml",
-            r#"\
-[workspace]
-members = ["bin1", "bin2"]
-"#,
+            r#"
+            [workspace]
+            members = ["bin1", "bin2"]
+            "#,
         )
         .file("bin1/Cargo.toml", &basic_manifest("bin1", "0.1.0"))
         .file("bin2/Cargo.toml", &basic_manifest("bin2", "0.1.0"))
@@ -1422,3 +1422,29 @@ fn install_version_req() {
         .with_stderr_contains("[INSTALLING] foo v0.0.3")
         .run();
 }
+
+#[cargo_test]
+fn git_install_reads_workspace_manifest() {
+    let p = git::repo(&paths::root().join("foo"))
+        .file(
+            "Cargo.toml",
+            r#"
+            [workspace]
+            members = ["bin1"]
+
+            [profile.release]
+            incremental = 3
+            "#,
+        )
+        .file("bin1/Cargo.toml", &basic_manifest("bin1", "0.1.0"))
+        .file(
+            "bin1/src/main.rs",
+            r#"fn main() { println!("Hello, world!"); }"#,
+        )
+        .build();
+
+    cargo_process(&format!("install --git {}", p.url().to_string()))
+        .with_status(101)
+        .with_stderr_contains("  invalid type: integer `3`[..]")
+        .run();
+}