diff --git a/builtin/index-pack.c b/builtin/index-pack.c
index af7dc37..38ff03a 100644
--- a/builtin/index-pack.c
+++ b/builtin/index-pack.c
@@ -34,6 +34,8 @@
 	struct object_entry *obj;
 	void *data;
 	unsigned long size;
+	int ref_first, ref_last;
+	int ofs_first, ofs_last;
 };
 
 /*
@@ -221,6 +223,15 @@
 	die("pack has bad object at offset %lu: %s", offset, buf);
 }
 
+static struct base_data *alloc_base_data(void)
+{
+	struct base_data *base = xmalloc(sizeof(struct base_data));
+	memset(base, 0, sizeof(*base));
+	base->ref_last = -1;
+	base->ofs_last = -1;
+	return base;
+}
+
 static void free_base_data(struct base_data *c)
 {
 	if (c->data) {
@@ -553,58 +564,76 @@
 	nr_resolved_deltas++;
 }
 
-static void find_unresolved_deltas(struct base_data *base,
-				   struct base_data *prev_base)
+static struct base_data *find_unresolved_deltas_1(struct base_data *base,
+						  struct base_data *prev_base)
 {
-	int i, ref_first, ref_last, ofs_first, ofs_last;
-
-	/*
-	 * This is a recursive function. Those brackets should help reducing
-	 * stack usage by limiting the scope of the delta_base union.
-	 */
-	{
+	if (base->ref_last == -1 && base->ofs_last == -1) {
 		union delta_base base_spec;
 
 		hashcpy(base_spec.sha1, base->obj->idx.sha1);
 		find_delta_children(&base_spec,
-				    &ref_first, &ref_last, OBJ_REF_DELTA);
+				    &base->ref_first, &base->ref_last, OBJ_REF_DELTA);
 
 		memset(&base_spec, 0, sizeof(base_spec));
 		base_spec.offset = base->obj->idx.offset;
 		find_delta_children(&base_spec,
-				    &ofs_first, &ofs_last, OBJ_OFS_DELTA);
+				    &base->ofs_first, &base->ofs_last, OBJ_OFS_DELTA);
+
+		if (base->ref_last == -1 && base->ofs_last == -1) {
+			free(base->data);
+			return NULL;
+		}
+
+		link_base_data(prev_base, base);
 	}
 
-	if (ref_last == -1 && ofs_last == -1) {
-		free(base->data);
-		return;
-	}
-
-	link_base_data(prev_base, base);
-
-	for (i = ref_first; i <= ref_last; i++) {
-		struct object_entry *child = objects + deltas[i].obj_no;
-		struct base_data result;
+	if (base->ref_first <= base->ref_last) {
+		struct object_entry *child = objects + deltas[base->ref_first].obj_no;
+		struct base_data *result = alloc_base_data();
 
 		assert(child->real_type == OBJ_REF_DELTA);
-		resolve_delta(child, base, &result);
-		if (i == ref_last && ofs_last == -1)
+		resolve_delta(child, base, result);
+		if (base->ref_first == base->ref_last && base->ofs_last == -1)
 			free_base_data(base);
-		find_unresolved_deltas(&result, base);
+
+		base->ref_first++;
+		return result;
 	}
 
-	for (i = ofs_first; i <= ofs_last; i++) {
-		struct object_entry *child = objects + deltas[i].obj_no;
-		struct base_data result;
+	if (base->ofs_first <= base->ofs_last) {
+		struct object_entry *child = objects + deltas[base->ofs_first].obj_no;
+		struct base_data *result = alloc_base_data();
 
 		assert(child->real_type == OBJ_OFS_DELTA);
-		resolve_delta(child, base, &result);
-		if (i == ofs_last)
+		resolve_delta(child, base, result);
+		if (base->ofs_first == base->ofs_last)
 			free_base_data(base);
-		find_unresolved_deltas(&result, base);
+
+		base->ofs_first++;
+		return result;
 	}
 
 	unlink_base_data(base);
+	return NULL;
+}
+
+static void find_unresolved_deltas(struct base_data *base)
+{
+	struct base_data *new_base, *prev_base = NULL;
+	for (;;) {
+		new_base = find_unresolved_deltas_1(base, prev_base);
+
+		if (new_base) {
+			prev_base = base;
+			base = new_base;
+		} else {
+			free(base);
+			base = prev_base;
+			if (!base)
+				return;
+			prev_base = base->base;
+		}
+	}
 }
 
 static int compare_delta_entry(const void *a, const void *b)
@@ -684,13 +713,13 @@
 		progress = start_progress("Resolving deltas", nr_deltas);
 	for (i = 0; i < nr_objects; i++) {
 		struct object_entry *obj = &objects[i];
-		struct base_data base_obj;
+		struct base_data *base_obj = alloc_base_data();
 
 		if (is_delta_type(obj->type))
 			continue;
-		base_obj.obj = obj;
-		base_obj.data = NULL;
-		find_unresolved_deltas(&base_obj, NULL);
+		base_obj->obj = obj;
+		base_obj->data = NULL;
+		find_unresolved_deltas(base_obj);
 		display_progress(progress, nr_resolved_deltas);
 	}
 }
@@ -783,20 +812,20 @@
 	for (i = 0; i < n; i++) {
 		struct delta_entry *d = sorted_by_pos[i];
 		enum object_type type;
-		struct base_data base_obj;
+		struct base_data *base_obj = alloc_base_data();
 
 		if (objects[d->obj_no].real_type != OBJ_REF_DELTA)
 			continue;
-		base_obj.data = read_sha1_file(d->base.sha1, &type, &base_obj.size);
-		if (!base_obj.data)
+		base_obj->data = read_sha1_file(d->base.sha1, &type, &base_obj->size);
+		if (!base_obj->data)
 			continue;
 
-		if (check_sha1_signature(d->base.sha1, base_obj.data,
-				base_obj.size, typename(type)))
+		if (check_sha1_signature(d->base.sha1, base_obj->data,
+				base_obj->size, typename(type)))
 			die("local object %s is corrupt", sha1_to_hex(d->base.sha1));
-		base_obj.obj = append_obj_to_pack(f, d->base.sha1,
-					base_obj.data, base_obj.size, type);
-		find_unresolved_deltas(&base_obj, NULL);
+		base_obj->obj = append_obj_to_pack(f, d->base.sha1,
+					base_obj->data, base_obj->size, type);
+		find_unresolved_deltas(base_obj);
 		display_progress(progress, nr_resolved_deltas);
 	}
 	free(sorted_by_pos);