diff --git a/src/exec.cc b/src/exec.cc
index 000caa2c..b9016ad0 100644
--- a/src/exec.cc
+++ b/src/exec.cc
@@ -122,6 +122,7 @@ class Executor {
       }
     }
 
+    output_ts = GetTimestamp(n.output.c_str());
     done_[n.output] = output_ts;
     return output_ts;
   }
diff --git a/testcase/transitive_updates.sh b/testcase/transitive_updates.sh
new file mode 100755
index 00000000..4c9b1af4
--- /dev/null
+++ b/testcase/transitive_updates.sh
@@ -0,0 +1,33 @@
+#!/bin/sh
+#
+# Copyright 2022 Google Inc. All rights reserved
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#      http:#www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+set -e
+
+mk="$@"
+
+cat <<EOF > Makefile
+a: b
+	echo a > a
+b: c
+	echo b > b
+c:
+	echo c > c
+EOF
+
+${mk}
+sleep 0.1
+touch c
+${mk}