diff --git a/gitops/config.go b/gitops/config.go
index 5abb0d3..9c83a5f 100644
--- a/gitops/config.go
+++ b/gitops/config.go
@@ -1,13 +1,14 @@
 package gitops
 
 import (
-	"os"
 	"os/exec"
 	"strings"
 )
 
-func IsGitRepositoryCurrentDir() bool {
-	_, err := os.Stat(".git")
+// IsGitRepository checks if the current working directory is inside a Git repository.
+func IsGitRepository() bool {
+	cmd := exec.Command("git", "rev-parse", "--is-inside-work-tree")
+	err := cmd.Run()
 	return err == nil
 }
 
diff --git a/internal/appcore/hooks_management.go b/internal/appcore/hooks_management.go
index aa08b56..eb64d97 100644
--- a/internal/appcore/hooks_management.go
+++ b/internal/appcore/hooks_management.go
@@ -716,7 +716,7 @@ func runHooksStatus(c *cli.Context) error {
 
 // isGitRepository checks if current directory is in a git repository
 func isGitRepository() bool {
-	return gitops.IsGitRepositoryCurrentDir()
+	return gitops.IsGitRepository()
 }
 
 // installHook installs or updates a hook with lrc managed section
diff --git a/tests/worktree-hooks.sh b/tests/worktree-hooks.sh
index ad9a5f1..14cfe8f 100644
--- a/tests/worktree-hooks.sh
+++ b/tests/worktree-hooks.sh
@@ -272,6 +272,30 @@ for hook in pre-commit prepare-commit-msg commit-msg post-commit; do
 	assert_file_not_contains_or_missing "local worktree uninstall removes managed section: $hook" "# BEGIN lrc managed section - DO NOT EDIT" "$WT_LOCAL_HOOKS_DIR/$hook"
 done
 
+bold ""
+bold "══ Local Hook Management In Subdirectories ════════════════════"
+
+mkdir -p "$LOCAL_REPO_DIR/subdir"
+cd "$LOCAL_REPO_DIR/subdir"
+
+lrc hooks install --local >/dev/null
+STATUS_OUTPUT_SUBDIR="$(lrc hooks status 2>&1)"
+
+for hook in pre-commit prepare-commit-msg commit-msg post-commit; do
+	assert_file_contains "subdirectory install adds managed section: $hook" "# BEGIN lrc managed section - DO NOT EDIT" "$WT_LOCAL_HOOKS_DIR/$hook"
+done
+
+assert_contains "subdirectory status reports common-dir hooks path" "hooksPath: $WT_LOCAL_HOOKS_DIR" "$STATUS_OUTPUT_SUBDIR"
+assert_contains "subdirectory status reports worktree root" "repo: $LOCAL_REPO_DIR" "$STATUS_OUTPUT_SUBDIR"
+
+lrc hooks uninstall --local >/dev/null
+
+for hook in pre-commit prepare-commit-msg commit-msg post-commit; do
+	assert_file_not_contains_or_missing "subdirectory uninstall removes managed section: $hook" "# BEGIN lrc managed section - DO NOT EDIT" "$WT_LOCAL_HOOKS_DIR/$hook"
+done
+
+cd "$LOCAL_REPO_DIR"
+
 bold ""
 bold "══ Results ═══════════════════════════════════════════════════"
 TOTAL=$((PASS + FAIL))