diff --git a/src/borg/archive.py b/src/borg/archive.py
index f4acf8749..c27faf67c 100644
--- a/src/borg/archive.py
+++ b/src/borg/archive.py
@@ -422,7 +422,7 @@ Number of files: {0.stats.nfiles}'''.format(
         return stats
 
     def extract_item(self, item, restore_attrs=True, dry_run=False, stdout=False, sparse=False,
-                     hardlink_masters=None, original_path=None, pi=None):
+                     hardlink_masters=None, stripped_components=0, original_path=None, pi=None):
         """
         Extract archive item.
 
@@ -432,9 +432,11 @@ Number of files: {0.stats.nfiles}'''.format(
         :param stdout: write extracted data to stdout
         :param sparse: write sparse files (chunk-granularity, independent of the original being sparse)
         :param hardlink_masters: maps paths to (chunks, link_target) for extracting subtrees with hardlinks correctly
+        :param stripped_components: stripped leading path components to correct hard link extraction
         :param original_path: 'path' key as stored in archive
         :param pi: ProgressIndicatorPercent (or similar) for file extraction progress (in bytes)
         """
+        hardlink_masters = hardlink_masters or {}
         has_damaged_chunks = 'chunks_healthy' in item
         if dry_run or stdout:
             if 'chunks' in item:
@@ -473,11 +475,11 @@ Number of files: {0.stats.nfiles}'''.format(
                     os.makedirs(os.path.dirname(path))
             # Hard link?
             if 'source' in item:
-                source = os.path.join(dest, item.source)
+                source = os.path.join(dest, *item.source.split(os.sep)[stripped_components:])
                 with backup_io():
                     if os.path.exists(path):
                         os.unlink(path)
-                    if not hardlink_masters:
+                    if item.source not in hardlink_masters:
                         os.link(source, path)
                         return
                 item.chunks, link_target = hardlink_masters[item.source]
diff --git a/src/borg/archiver.py b/src/borg/archiver.py
index cf2f233f1..f5ebd7308 100644
--- a/src/borg/archiver.py
+++ b/src/borg/archiver.py
@@ -420,12 +420,14 @@ class Archiver:
     def build_filter(matcher, peek_and_store_hardlink_masters, strip_components):
         if strip_components:
             def item_filter(item):
-                peek_and_store_hardlink_masters(item)
-                return matcher.match(item.path) and os.sep.join(item.path.split(os.sep)[strip_components:])
+                matched = matcher.match(item.path) and os.sep.join(item.path.split(os.sep)[strip_components:])
+                peek_and_store_hardlink_masters(item, matched)
+                return matched
         else:
             def item_filter(item):
-                peek_and_store_hardlink_masters(item)
-                return matcher.match(item.path)
+                matched = matcher.match(item.path)
+                peek_and_store_hardlink_masters(item, matched)
+                return matched
         return item_filter
 
     @with_repository()
@@ -450,8 +452,8 @@ class Archiver:
         partial_extract = not matcher.empty() or strip_components
         hardlink_masters = {} if partial_extract else None
 
-        def peek_and_store_hardlink_masters(item):
-            if (partial_extract and stat.S_ISREG(item.mode) and
+        def peek_and_store_hardlink_masters(item, matched):
+            if (partial_extract and not matched and stat.S_ISREG(item.mode) and
                     item.get('hardlink_master', True) and 'source' not in item):
                 hardlink_masters[item.get('path')] = (item.get('chunks'), None)
 
@@ -486,7 +488,7 @@ class Archiver:
                         archive.extract_item(item, restore_attrs=False)
                     else:
                         archive.extract_item(item, stdout=stdout, sparse=sparse, hardlink_masters=hardlink_masters,
-                                             original_path=orig_path, pi=pi)
+                                             stripped_components=strip_components, original_path=orig_path, pi=pi)
             except BackupOSError as e:
                 self.print_warning('%s: %s', remove_surrogates(orig_path), e)
 
diff --git a/src/borg/testsuite/archiver.py b/src/borg/testsuite/archiver.py
index aa6614316..fd7eb5fc8 100644
--- a/src/borg/testsuite/archiver.py
+++ b/src/borg/testsuite/archiver.py
@@ -2204,8 +2204,8 @@ def test_compare_chunk_contents():
 
 class TestBuildFilter:
     @staticmethod
-    def peek_and_store_hardlink_masters(item):
-        return False
+    def peek_and_store_hardlink_masters(item, matched):
+        pass
 
     def test_basic(self):
         matcher = PatternMatcher()