diff --git a/app/controllers/projects/blob_controller.rb b/app/controllers/projects/blob_controller.rb
index 08066acb45c7f241fc3053b90e8b7fcdee7380bc..2a588a06c7e74f67b39eed1959c356981c596ea4 100644
--- a/app/controllers/projects/blob_controller.rb
+++ b/app/controllers/projects/blob_controller.rb
@@ -131,6 +131,7 @@ def blob
     @blob ||= @repository.blob_at(@commit.id, @path)
 
     if @blob
+      @blob = @repository.blob_at(@commit.id, @blob.data.strip) if @blob.file_link?
       @blob
     else
       if tree = @repository.tree(@commit.id, @path)
diff --git a/lib/gitlab/git/blob.rb b/lib/gitlab/git/blob.rb
index 1c8e55ecf50752f8a1764dde15745170cb96408b..e0e41a8ce15a17cf0723424f9d02775a657b9e30 100644
--- a/lib/gitlab/git/blob.rb
+++ b/lib/gitlab/git/blob.rb
@@ -205,6 +205,10 @@ def external_storage
 
       alias_method :external_size, :lfs_size
 
+      def file_link?
+        @mode == '120000'
+      end
+
       private
 
       def record_metric_blob_size
diff --git a/spec/features/projects/blobs/blob_show_spec.rb b/spec/features/projects/blobs/blob_show_spec.rb
index b6b9a8ae96270ae6e654259893d8bdab7ba1f5d2..d0f976e364e90aa7a9796d59b6d97e1e616017e4 100644
--- a/spec/features/projects/blobs/blob_show_spec.rb
+++ b/spec/features/projects/blobs/blob_show_spec.rb
@@ -135,6 +135,29 @@ def create_file(file_name, content)
       end
     end
 
+    context 'visiting a symlink' do
+      before do
+        allow_any_instance_of(Repository).to receive(:blob_at).with(anything, 'files/markdown/ruby-style-guide.md').and_call_original
+
+        # Fake symlink file
+        allow_any_instance_of(Repository).to receive(:blob_at).with(anything, 'test-link.md') do
+          double(:blob, file_link?: true, data: 'files/markdown/ruby-style-guide.md')
+        end
+
+        allow_any_instance_of(Gitlab::Git::Commit).to receive(:last_for_path).with(anything, anything, 'test-link.md', literal_pathspec: true) do
+          double(:commit, sha: project.commit.sha)
+        end
+
+        visit_blob('test-link.md')
+
+        wait_for_requests
+      end
+
+      it 'displays the linked blob' do
+        expect(page).to have_content("[PEP-8](http://www.python.org/dev/peps/pep-0008/)")
+      end
+    end
+
     context 'when ref switch' do
       def switch_ref_to(ref_name)
         first('.qa-branches-select').click
diff --git a/spec/lib/gitlab/git/blob_spec.rb b/spec/lib/gitlab/git/blob_spec.rb
index fb4510a78de75fe75e514b31dfb495b38cc1eab5..b0488d225810967deb8ff684eb1405d60933f549 100644
--- a/spec/lib/gitlab/git/blob_spec.rb
+++ b/spec/lib/gitlab/git/blob_spec.rb
@@ -664,4 +664,36 @@
       end
     end
   end
+
+  describe '#file_link?' do
+    subject { blob.file_link? }
+
+    context 'file is a soft link' do
+      let(:blob) do
+        Gitlab::Git::Blob.new(name: 'test', mode: '120000')
+      end
+
+      it { is_expected.to be_truthy }
+    end
+
+    context 'file is a normal file' do
+      let(:blob) do
+        data = "test\nblob"
+
+        Gitlab::Git::Blob.new(name: 'test', size: data.bytesize, data: data, mode: '100644')
+      end
+
+      it { is_expected.to be_falsey }
+    end
+
+    context 'file is an executable' do
+      let(:blob) do
+        data = "test\nblob"
+
+        Gitlab::Git::Blob.new(name: 'test', size: data.bytesize, data: data, mode: '100755')
+      end
+
+      it { is_expected.to be_falsey }
+    end
+  end
 end