diff --git a/repository.c b/repository.c
index a7679ceeaa..80252b79e9 100644
--- a/repository.c
+++ b/repository.c
@@ -104,6 +104,13 @@ void repo_set_hash_algo(struct repository *repo, int hash_algo)
 	repo->hash_algo = &hash_algos[hash_algo];
 }
 
+void repo_set_compat_hash_algo(struct repository *repo, int algo)
+{
+	if (hash_algo_by_ptr(repo->hash_algo) == algo)
+		BUG("hash_algo and compat_hash_algo match");
+	repo->compat_hash_algo = algo ? &hash_algos[algo] : NULL;
+}
+
 /*
  * Attempt to resolve and set the provided 'gitdir' for repository 'repo'.
  * Return 0 upon success and a non-zero value upon failure.
@@ -184,6 +191,7 @@ int repo_init(struct repository *repo,
 		goto error;
 
 	repo_set_hash_algo(repo, format.hash_algo);
+	repo_set_compat_hash_algo(repo, GIT_HASH_UNKNOWN);
 	repo->repository_format_worktree_config = format.worktree_config;
 
 	/* take ownership of format.partial_clone */
diff --git a/repository.h b/repository.h
index 5f18486f64..bf3fc601cc 100644
--- a/repository.h
+++ b/repository.h
@@ -160,6 +160,9 @@ struct repository {
 	/* Repository's current hash algorithm, as serialized on disk. */
 	const struct git_hash_algo *hash_algo;
 
+	/* Repository's compatibility hash algorithm. */
+	const struct git_hash_algo *compat_hash_algo;
+
 	/* A unique-id for tracing purposes. */
 	int trace2_repo_id;
 
@@ -199,6 +202,7 @@ void repo_set_gitdir(struct repository *repo, const char *root,
 		     const struct set_gitdir_args *extra_args);
 void repo_set_worktree(struct repository *repo, const char *path);
 void repo_set_hash_algo(struct repository *repo, int algo);
+void repo_set_compat_hash_algo(struct repository *repo, int compat_algo);
 void initialize_the_repository(void);
 RESULT_MUST_BE_USED
 int repo_init(struct repository *r, const char *gitdir, const char *worktree);
diff --git a/setup.c b/setup.c
index 18927a847b..aa8bf5da52 100644
--- a/setup.c
+++ b/setup.c
@@ -1564,6 +1564,8 @@ const char *setup_git_directory_gently(int *nongit_ok)
 		}
 		if (startup_info->have_repository) {
 			repo_set_hash_algo(the_repository, repo_fmt.hash_algo);
+			repo_set_compat_hash_algo(the_repository,
+						  GIT_HASH_UNKNOWN);
 			the_repository->repository_format_worktree_config =
 				repo_fmt.worktree_config;
 			/* take ownership of repo_fmt.partial_clone */
@@ -1657,6 +1659,7 @@ void check_repository_format(struct repository_format *fmt)
 	check_repository_format_gently(get_git_dir(), fmt, NULL);
 	startup_info->have_repository = 1;
 	repo_set_hash_algo(the_repository, fmt->hash_algo);
+	repo_set_compat_hash_algo(the_repository, GIT_HASH_UNKNOWN);
 	the_repository->repository_format_worktree_config =
 		fmt->worktree_config;
 	the_repository->repository_format_partial_clone =