diff --git a/CHANGELOG b/CHANGELOG
index c7511bd3245a89828d1f235b2eff9ab921ed4ce8..9ebf918371f0548908257e7a4e5eaf01f5b537fc 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -3,6 +3,7 @@ Please view this file on the master branch, on stable branches it's out of date.
 v 7.14.0 (unreleased)
   - Fix redirection after sign in when using auto_sign_in_with_provider
   - Upgrade gitlab_git to 7.2.14 to ignore CRLFs in .gitmodules (Stan Hu)
+  - Clear cache to prevent listing deleted branches after MR removes source branch (Stan Hu)
   - Provide more feedback what went wrong if HipChat service failed test (Stan Hu)
   - Fix bug where backslashes in inline diffs could be dropped (Stan Hu)
   - Disable turbolinks when linking to Bitbucket import status (Stan Hu)
diff --git a/app/models/repository.rb b/app/models/repository.rb
index 3bba3ca888a8b49453389cbddfe9403596c052dd..24c32d90051484cedc3a28cd647b73d257525fcf 100644
--- a/app/models/repository.rb
+++ b/app/models/repository.rb
@@ -148,6 +148,10 @@ class Repository
     @lookup_cache ||= {}
   end
 
+  def expire_branch_names
+    cache.expire(:branch_names)
+  end
+
   def method_missing(m, *args, &block)
     if m == :lookup && !block_given?
       lookup_cache[m] ||= {}
diff --git a/lib/gitlab/satellite/merge_action.rb b/lib/gitlab/satellite/merge_action.rb
index f9bf286697ed436096a07158e7c71d625157775b..52e8130956c2e1d5af1735fcc8b2396cefe85d5e 100644
--- a/lib/gitlab/satellite/merge_action.rb
+++ b/lib/gitlab/satellite/merge_action.rb
@@ -36,6 +36,7 @@ module Gitlab
             if merge_request.remove_source_branch?
               # will raise CommandFailed when push fails
               merge_repo.git.push(default_options, :origin, ":#{merge_request.source_branch}")
+              merge_request.source_project.repository.expire_branch_names
             end
             # merge, push and branch removal successful
             true
diff --git a/spec/lib/gitlab/satellite/merge_action_spec.rb b/spec/lib/gitlab/satellite/merge_action_spec.rb
index 9b1c9a34e294198cca4ccd3164e5255e71ad6874..e977261c726a0b7ee294b18482ae36319127a9d3 100644
--- a/spec/lib/gitlab/satellite/merge_action_spec.rb
+++ b/spec/lib/gitlab/satellite/merge_action_spec.rb
@@ -101,4 +101,18 @@ describe 'Gitlab::Satellite::MergeAction' do
       end
     end
   end
+
+  describe '#merge!' do
+    let(:merge_request) { create(:merge_request, source_project: project, target_project: project, source_branch: "markdown", should_remove_source_branch: true) }
+    let(:merge_action) { Gitlab::Satellite::MergeAction.new(merge_request.author, merge_request) }
+
+    it 'clears cache of source repo after removing source branch' do
+      project.repository.expire_branch_names
+      expect(project.repository.branch_names).to include('markdown')
+
+      merge_action.merge!
+
+      expect(project.repository.branch_names).not_to include('markdown')
+    end
+  end
 end