From be98101a6111f67a6d72dff061ea8f001bd4c6ad Mon Sep 17 00:00:00 2001
From: chillaranand <anand21nanda@gmail.com>
Date: Thu, 8 Jan 2026 20:59:48 +0530
Subject: [PATCH] fix(output): dvc update should honor output cache flag

---
 dvc/output.py             |  2 +-
 tests/func/test_update.py | 21 +++++++++++++++++++++
 2 files changed, 22 insertions(+), 1 deletion(-)

diff --git a/dvc/output.py b/dvc/output.py
index 384ba77cd8..0e44a05a7e 100644
--- a/dvc/output.py
+++ b/dvc/output.py
@@ -505,7 +505,7 @@ def use_scm_ignore(self):
         if not self.is_in_repo:
             return False
 
-        return self.use_cache or self.stage.is_repo_import
+        return self.use_cache
 
     @property
     def cache(self):
diff --git a/tests/func/test_update.py b/tests/func/test_update.py
index 7de4e641a3..04d594e651 100644
--- a/tests/func/test_update.py
+++ b/tests/func/test_update.py
@@ -461,3 +461,24 @@ def test_update_import_url_to_remote_directory_same_hash(
         "bar": {"baz": "foo"},
         "same": "same",
     }
+
+
+def test_update_import_cache_false_no_gitignore(tmp_dir, dvc, scm, erepo_dir):
+    with erepo_dir.chdir():
+        erepo_dir.scm_gen({"file": "content"}, commit="add file")
+
+    stage = dvc.imp(os.fspath(erepo_dir), "file", "imported_file")
+    stage.outs[0].use_cache = False
+    stage.dump()
+
+    # Remove "imported_file" from .gitignore
+    ignore_file = tmp_dir / ".gitignore"
+    ignore_file.write_text("")
+
+    with erepo_dir.chdir():
+        erepo_dir.scm_gen("file", "new content", commit="update file")
+
+    dvc.update([stage.path])
+
+    assert (tmp_dir / "imported_file").read_text() == "new content"
+    assert "imported_file" not in ignore_file.read_text()