diff --git a/pkgs/clan-cli/clan_cli/dirs.py b/pkgs/clan-cli/clan_cli/dirs.py
index 514bbe12b..cf5151e42 100644
--- a/pkgs/clan-cli/clan_cli/dirs.py
+++ b/pkgs/clan-cli/clan_cli/dirs.py
@@ -10,7 +10,7 @@ def get_clan_flake_toplevel() -> Path:
     for project_file in [".clan-flake", ".git", ".hg", ".svn", "flake.nix"]:
         initial_path = Path(os.getcwd())
         path = Path(initial_path)
-        while path.parent == path:
+        while path.parent != path:
             if (path / project_file).exists():
                 return path
             path = path.parent
diff --git a/pkgs/clan-cli/tests/test_dirs.py b/pkgs/clan-cli/tests/test_dirs.py
index e37949066..2dec0e174 100644
--- a/pkgs/clan-cli/tests/test_dirs.py
+++ b/pkgs/clan-cli/tests/test_dirs.py
@@ -12,3 +12,11 @@ def test_get_clan_flake_toplevel(
     monkeypatch.chdir(temporary_dir)
     with pytest.raises(ClanError):
         get_clan_flake_toplevel()
+    (temporary_dir / ".git").touch()
+    assert get_clan_flake_toplevel() == temporary_dir
+
+    subdir = temporary_dir / "subdir"
+    subdir.mkdir()
+    monkeypatch.chdir(subdir)
+    (subdir / ".clan-flake").touch()
+    assert get_clan_flake_toplevel() == subdir