diff --git a/lua/lualine/components/branch/git_branch.lua b/lua/lualine/components/branch/git_branch.lua
index dcc9775ff..0daaab63a 100644
--- a/lua/lualine/components/branch/git_branch.lua
+++ b/lua/lualine/components/branch/git_branch.lua
@@ -77,6 +77,14 @@ function M.find_git_dir(dir_path)
   -- get file dir so we can search from that dir
   local file_dir = dir_path or vim.fn.expand('%:p:h')
 
+  local oil_exists, oil = pcall(require, 'oil')
+  if oil_exists then
+    local ok, dir = pcall(oil.get_current_dir)
+    if ok and dir and dir ~= '' then
+      file_dir = vim.fn.fnamemodify(dir, ":p:h")
+    end
+  end
+
   -- extract correct file dir from terminals
   if file_dir and file_dir:match('term://.*') then
     file_dir = vim.fn.expand(file_dir:gsub('term://(.+)//.+', '%1'))