diff --git a/CHANGELOG.md b/CHANGELOG.md
index bcc8ec7e4..498fa9b68 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,6 +12,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Fixed
 - Fixed Ask GitHub landing page chat box placement to be centered on the page instead of at the bottom. [#1046](https://github.com/sourcebot-dev/sourcebot/pull/1046)
+- Fixed issue where local git connections (`file://`) would fail when matching a file instead of a directory. [#1049](https://github.com/sourcebot-dev/sourcebot/pull/1049)
 
 ## [4.16.2] - 2026-03-25
 
diff --git a/packages/backend/src/repoCompileUtils.ts b/packages/backend/src/repoCompileUtils.ts
index 9307e9b29..eecb9fb27 100644
--- a/packages/backend/src/repoCompileUtils.ts
+++ b/packages/backend/src/repoCompileUtils.ts
@@ -14,6 +14,7 @@ import { createLogger } from '@sourcebot/shared';
 import { BitbucketConnectionConfig, GerritConnectionConfig, GiteaConnectionConfig, GitlabConnectionConfig, GenericGitHostConnectionConfig, AzureDevOpsConnectionConfig } from '@sourcebot/schemas/v3/connection.type';
 import { ProjectVisibility } from "azure-devops-node-api/interfaces/CoreInterfaces.js";
 import path from 'path';
+import fs from 'fs/promises';
 import { glob } from 'glob';
 import { getLocalDefaultBranch, getOriginUrl, isPathAValidGitRepoRoot, isUrlAValidGitRepo } from './git.js';
 import assert from 'assert';
@@ -611,6 +612,14 @@ export const compileGenericGitHostConfig_file = async (
     logger.info(`Found ${repoPaths.length} path(s) matching pattern '${configUrl.pathname}'`);
 
     await Promise.all(repoPaths.map((repoPath) => gitOperationLimit(async () => {
+        const stat = await fs.stat(repoPath).catch(() => null);
+        if (!stat || !stat.isDirectory()) {
+            const warning = `Skipping ${repoPath} - path is not a directory.`;
+            logger.warn(warning);
+            warnings.push(warning);
+            return;
+        }
+
         const isGitRepo = await isPathAValidGitRepoRoot({
             path: repoPath,
         });