diff --git a/extensions/git/package.json b/extensions/git/package.json
index aba696781b6..6a0e20b3eb3 100644
--- a/extensions/git/package.json
+++ b/extensions/git/package.json
@@ -1148,6 +1148,20 @@
           "description": "%config.enableSmartCommit%",
           "default": false
         },
+        "git.smartCommitChanges": {
+          "type": "string",
+          "enum": [
+            "all",
+            "tracked"
+          ],
+          "enumDescriptions": [
+            "%config.smartCommitChanges.all%",
+            "%config.smartCommitChanges.tracked%"
+          ],
+          "scope": "resource",
+          "description": "%config.smartCommitChanges%",
+          "default": "all"
+        },
         "git.suggestSmartCommit": {
           "type": "boolean",
           "scope": "resource",
diff --git a/extensions/git/package.nls.json b/extensions/git/package.nls.json
index cddbdad605e..151b62d4458 100644
--- a/extensions/git/package.nls.json
+++ b/extensions/git/package.nls.json
@@ -89,6 +89,9 @@
 	"config.ignoreLimitWarning": "Ignores the warning when there are too many changes in a repository.",
 	"config.defaultCloneDirectory": "The default location to clone a git repository.",
 	"config.enableSmartCommit": "Commit all changes when there are no staged changes.",
+	"config.smartCommitChanges": "Control which changes are automatically staged by Smart Commit.",
+	"config.smartCommitChanges.all": "Automatically stage all changes.",
+	"config.smartCommitChanges.tracked": "Automatically staged tracked changes only.",
 	"config.suggestSmartCommit": "Suggests to enable smart commit (commit all changes when there are no staged changes).",
 	"config.enableCommitSigning": "Enables commit signing with GPG.",
 	"config.discardAllScope": "Controls what changes are discarded by the `Discard all changes` command. `all` discards all changes. `tracked` discards only tracked files. `prompt` shows a prompt dialog every time the action is run.",
diff --git a/extensions/git/src/commands.ts b/extensions/git/src/commands.ts
index 39b48f2c5e9..036f152ee4d 100755
--- a/extensions/git/src/commands.ts
+++ b/extensions/git/src/commands.ts
@@ -1275,8 +1275,8 @@ export class CommandCenter {
 
 		// no changes, and the user has not configured to commit all in this case
 		if (!noUnstagedChanges && noStagedChanges && !enableSmartCommit) {
-
 			const suggestSmartCommit = config.get<boolean>('suggestSmartCommit') === true;
+
 			if (!suggestSmartCommit) {
 				return false;
 			}
@@ -1330,6 +1330,10 @@ export class CommandCenter {
 			return false;
 		}
 
+		if (opts.all && config.get<'all' | 'tracked'>('smartCommitChanges') === 'tracked') {
+			opts.all = 'tracked';
+		}
+
 		await repository.commit(message, opts);
 
 		const postCommitCommand = config.get<'none' | 'push' | 'sync'>('postCommitCommand');
diff --git a/extensions/git/src/git.ts b/extensions/git/src/git.ts
index b306cab1255..243bf2471c6 100644
--- a/extensions/git/src/git.ts
+++ b/extensions/git/src/git.ts
@@ -642,7 +642,7 @@ export function parseLsFiles(raw: string): LsFilesElement[] {
 }
 
 export interface CommitOptions {
-	all?: boolean;
+	all?: boolean | 'tracked';
 	amend?: boolean;
 	signoff?: boolean;
 	signCommit?: boolean;
@@ -1081,8 +1081,16 @@ export class Repository {
 		return result.stdout.trim();
 	}
 
-	async add(paths: string[]): Promise<void> {
-		const args = ['add', '-A', '--'];
+	async add(paths: string[], opts?: { update?: boolean }): Promise<void> {
+		const args = ['add'];
+
+		if (opts && opts.update) {
+			args.push('-u');
+		} else {
+			args.push('-A');
+		}
+
+		args.push('--');
 
 		if (paths && paths.length) {
 			args.push.apply(args, paths);
diff --git a/extensions/git/src/repository.ts b/extensions/git/src/repository.ts
index a4b37bebd5e..7320c08eaea 100644
--- a/extensions/git/src/repository.ts
+++ b/extensions/git/src/repository.ts
@@ -910,7 +910,8 @@ export class Repository implements Disposable {
 		if (this.rebaseCommit) {
 			await this.run(Operation.RebaseContinue, async () => {
 				if (opts.all) {
-					await this.repository.add([]);
+					const addOpts = opts.all === 'tracked' ? { update: true } : {};
+					await this.repository.add([], addOpts);
 				}
 
 				await this.repository.rebaseContinue();
@@ -918,9 +919,11 @@ export class Repository implements Disposable {
 		} else {
 			await this.run(Operation.Commit, async () => {
 				if (opts.all) {
-					await this.repository.add([]);
+					const addOpts = opts.all === 'tracked' ? { update: true } : {};
+					await this.repository.add([], addOpts);
 				}
 
+				delete opts.all;
 				await this.repository.commit(message, opts);
 			});
 		}