diff --git a/core/src/util/fs.ts b/core/src/util/fs.ts
index 2850d903f4..1cf6490c29 100644
--- a/core/src/util/fs.ts
+++ b/core/src/util/fs.ts
@@ -135,6 +135,7 @@ export async function findConfigPathsInPath({
     log,
     filter: (f) => isConfigFilename(basename(f)),
     scanRoot: dir,
+    hashUntrackedFiles: false,
   })
 
   return paths.map((f) => f.path)
diff --git a/core/src/vcs/git-repo.ts b/core/src/vcs/git-repo.ts
index d0df8493cc..323d4b710c 100644
--- a/core/src/vcs/git-repo.ts
+++ b/core/src/vcs/git-repo.ts
@@ -27,7 +27,7 @@ import { realpath } from "fs/promises"
 
 const { pathExists } = fsExtra
 
-type ScanRepoParams = Pick<GetFilesParams, "log" | "path" | "pathDescription" | "failOnPrompt">
+type ScanRepoParams = Pick<GetFilesParams, "log" | "path" | "pathDescription" | "failOnPrompt" | "hashUntrackedFiles">
 
 interface GitRepoGetFilesParams extends GetFilesParams {
   scanFromProjectRoot: boolean
@@ -162,6 +162,7 @@ export class GitRepoHandler extends AbstractGitHandler {
       path: scanRoot,
       pathDescription: pathDescription || "repository",
       failOnPrompt,
+      hashUntrackedFiles: params.hashUntrackedFiles,
     })
 
     const filesAtPath = fileTree.getFilesAtPath(path)
diff --git a/core/src/vcs/git-sub-tree.ts b/core/src/vcs/git-sub-tree.ts
index 0c6be2a71e..265b89fadf 100644
--- a/core/src/vcs/git-sub-tree.ts
+++ b/core/src/vcs/git-sub-tree.ts
@@ -163,7 +163,7 @@ export class GitSubTreeHandler extends AbstractGitHandler {
       return []
     }
 
-    const { log, path, pathDescription = "directory", filter, failOnPrompt = false } = params
+    const { log, path, pathDescription = "directory", filter, failOnPrompt = false, hashUntrackedFiles = true } = params
 
     const gitLog = log
       .createLog({ name: "git" })
@@ -246,6 +246,7 @@ export class GitSubTreeHandler extends AbstractGitHandler {
             matchPath(join(submoduleRelPath, p), augmentedIncludes, augmentedExcludes) && (!filter || filter(p)),
           scanRoot: submodulePath,
           failOnPrompt,
+          hashUntrackedFiles,
         })
       })
     }
@@ -290,7 +291,12 @@ export class GitSubTreeHandler extends AbstractGitHandler {
       // No need to stat unless it has no hash, is a symlink, or is modified
       // Note: git ls-files always returns mode 120000 for symlinks
       if (hash && entry.mode !== "120000" && !modifiedFiles.has(resolvedPath)) {
-        return ensureHash(output, undefined, modifiedFiles)
+        return ensureHash({
+          file: output,
+          stats: undefined,
+          modifiedFiles,
+          hashUntrackedFiles,
+        })
       }
 
       try {
@@ -313,7 +319,12 @@ export class GitSubTreeHandler extends AbstractGitHandler {
                 gitLog.verbose(`Ignoring symlink pointing outside of ${pathDescription} at ${resolvedPath}`)
                 return
               }
-              return ensureHash(output, stats, modifiedFiles)
+              return ensureHash({
+                file: output,
+                stats,
+                modifiedFiles,
+                hashUntrackedFiles,
+              })
             } catch (err) {
               if (isErrnoException(err) && err.code === "ENOENT") {
                 gitLog.verbose(`Ignoring dead symlink at ${resolvedPath}`)
@@ -322,10 +333,20 @@ export class GitSubTreeHandler extends AbstractGitHandler {
               throw err
             }
           } else {
-            return ensureHash(output, stats, modifiedFiles)
+            return ensureHash({
+              file: output,
+              stats,
+              modifiedFiles,
+              hashUntrackedFiles,
+            })
           }
         } else {
-          return ensureHash(output, stats, modifiedFiles)
+          return ensureHash({
+            file: output,
+            stats,
+            modifiedFiles,
+            hashUntrackedFiles,
+          })
         }
       } catch (err) {
         if (isErrnoException(err) && err.code === "ENOENT") {
@@ -465,21 +486,42 @@ function parseGitLsFilesOutputLine(data: Buffer): GitEntry | undefined {
 /**
  * Make sure we have a fresh hash for each file.
  */
-async function ensureHash(
-  file: VcsFile,
-  stats: fsExtra.Stats | undefined,
+async function ensureHash({
+  file,
+  stats,
+  modifiedFiles,
+  hashUntrackedFiles,
+}: {
+  file: VcsFile
+  stats: fsExtra.Stats | undefined
   modifiedFiles: Set<string>
-): Promise<VcsFile> {
-  if (file.hash === "" || modifiedFiles.has(file.path)) {
-    // Don't attempt to hash directories. Directories (which will only come up via symlinks btw)
-    // will by extension be filtered out of the list.
-    if (stats && !stats.isDirectory()) {
-      const hash = await hashObject(stats, file.path)
-      if (hash !== "") {
-        file.hash = hash
-        return file
-      }
+  hashUntrackedFiles: boolean
+}): Promise<VcsFile> {
+  // If the file has not been modified, then it's either committed or untracked.
+  if (!modifiedFiles.has(file.path)) {
+    // If the hash is already defined, then the file is committed and its hash is up-to-date.
+    if (file.hash !== "") {
+      return file
+    }
+
+    // Otherwise, the file is untracked.
+    if (!hashUntrackedFiles) {
+      // So we can skip its hash calculation if we don't need the hashes of untracked files.
+      // Hashes can be skipped while scanning the FS for Garden config files.
+      return file
     }
   }
+
+  // Don't attempt to hash directories. Directories (which will only come up via symlinks btw)
+  // will by extension be filtered out of the list.
+  if (!stats || stats.isDirectory()) {
+    return file
+  }
+
+  const hash = await hashObject(stats, file.path)
+  if (hash !== "") {
+    file.hash = hash
+  }
+
   return file
 }
diff --git a/core/src/vcs/vcs.ts b/core/src/vcs/vcs.ts
index 622ac5af00..395df4c0f3 100644
--- a/core/src/vcs/vcs.ts
+++ b/core/src/vcs/vcs.ts
@@ -122,6 +122,7 @@ export interface GetFilesParams {
   filter?: (path: string) => boolean
   failOnPrompt?: boolean
   scanRoot: string | undefined
+  hashUntrackedFiles?: boolean
 }
 
 export interface BaseIncludeExcludeFiles {
diff --git a/core/test/unit/src/commands/build.ts b/core/test/unit/src/commands/build.ts
index 31efe07a86..b7ec59cb80 100644
--- a/core/test/unit/src/commands/build.ts
+++ b/core/test/unit/src/commands/build.ts
@@ -22,6 +22,7 @@ import { taskResultOutputs, getAllTaskResults } from "../../../helpers.js"
 import type { ModuleConfig } from "../../../../src/config/module.js"
 import type { Log } from "../../../../src/logger/log-entry.js"
 import fsExtra from "fs-extra"
+
 const { writeFile } = fsExtra
 import { join } from "path"
 import type { ProcessCommandResult } from "../../../../src/commands/base.js"
@@ -324,10 +325,8 @@ describe("BuildCommand", () => {
     })
 
     it("should rebuild module if a deep dependency has been modified", async () => {
-      let garden = await getFreshTestGarden()
-
       const { result: result1 } = await buildCommand.action({
-        garden,
+        garden: await getFreshTestGarden(),
         ...defaultOpts,
         args: { names: ["aaa-service"] },
         opts: withDefaultGlobalOpts({ "watch": false, "force": true, "with-dependants": false }),
@@ -337,8 +336,6 @@ describe("BuildCommand", () => {
 
       await writeFile(join(projectPath, "C/file.txt"), "module c has been modified")
 
-      garden = await getFreshTestGarden()
-
       const { result: result2 } = await buildCommand.action({
         garden: await getFreshTestGarden(),
         ...defaultOpts,