diff --git a/builtin-reset.c b/builtin-reset.c
index 11d1c6e4d..e4418bced 100644
--- a/builtin-reset.c
+++ b/builtin-reset.c
@@ -286,10 +286,8 @@ int cmd_reset(int argc, const char **argv, const char *prefix)
 	if (reset_type == NONE)
 		reset_type = MIXED; /* by default */
 
-	if ((reset_type == HARD || reset_type == MERGE)
-	    && !is_inside_work_tree())
-		die("%s reset requires a work tree",
-		    reset_type_names[reset_type]);
+	if (reset_type == HARD || reset_type == MERGE)
+		setup_work_tree();
 
 	/* Soft reset does not touch the index file nor the working tree
 	 * at all, but requires them in a good order.  Other resets reset
diff --git a/t/t7103-reset-bare.sh b/t/t7103-reset-bare.sh
index 68041df5f..afb55b3a4 100755
--- a/t/t7103-reset-bare.sh
+++ b/t/t7103-reset-bare.sh
@@ -29,6 +29,12 @@ test_expect_success 'soft reset is ok' '
 	(cd .git && git reset --soft)
 '
 
+test_expect_success 'hard reset works with GIT_WORK_TREE' '
+	mkdir worktree &&
+	GIT_WORK_TREE=$PWD/worktree GIT_DIR=$PWD/.git git reset --hard &&
+	test_cmp file worktree/file
+'
+
 test_expect_success 'setup bare' '
 	git clone --bare . bare.git &&
 	cd bare.git