diff --git a/vfs/dir.go b/vfs/dir.go
index c72494eee..a4a31c4b6 100644
--- a/vfs/dir.go
+++ b/vfs/dir.go
@@ -760,6 +760,7 @@ func (d *Dir) _readDirFromEntries(entries fs.DirEntries, dirTree dirtree.DirTree
 			dir := node.(*Dir)
 			dir.mu.Lock()
 			dir.modTime = item.ModTime(context.TODO())
+			dir.entry = item
 			if dirTree != nil {
 				err = dir._readDirFromDirTree(dirTree, when)
 				if err != nil {
diff --git a/vfs/dir_test.go b/vfs/dir_test.go
index 555cacf1f..69e45c269 100644
--- a/vfs/dir_test.go
+++ b/vfs/dir_test.go
@@ -4,6 +4,7 @@ import (
 	"context"
 	"fmt"
 	"os"
+	"runtime"
 	"sort"
 	"testing"
 	"time"
@@ -655,3 +656,34 @@ func TestDirFileOpen(t *testing.T) {
 	require.NoError(t, err)
 	assert.Equal(t, int64(12), fi.Size())
 }
+
+func TestDirEntryModTimeInvalidation(t *testing.T) {
+	if runtime.GOOS == "windows" {
+		t.Skip("dirent modtime is unreliable on Windows filesystems")
+	}
+	r, vfs := newTestVFS(t)
+
+	// Needs to be less than 2x the wait time below, othewrwise the entry
+	// gets cleared out before it had a chance to be updated.
+	vfs.Opt.DirCacheTime = fs.Duration(50 * time.Millisecond)
+
+	r.WriteObject(context.Background(), "dir/file1", "file1 contents", t1)
+
+	node, err := vfs.Stat("dir")
+	require.NoError(t, err)
+	modTime1 := node.(*Dir).DirEntry().ModTime(context.Background())
+
+	// Wait some time, then write another file which must update ModTime of
+	// the directory.
+	time.Sleep(75 * time.Millisecond)
+	r.WriteObject(context.Background(), "dir/file2", "file2 contents", t2)
+
+	node2, err := vfs.Stat("dir")
+	require.NoError(t, err)
+	modTime2 := node2.(*Dir).DirEntry().ModTime(context.Background())
+
+	// ModTime of directory must be different after second file was written.
+	if modTime1.Equal(modTime2) {
+		t.Error("ModTime not invalidated")
+	}
+}