diff --git a/node_modules/libcipm/CHANGELOG.md b/node_modules/libcipm/CHANGELOG.md
index 26cf2d224cfb0..de37a13c2d78c 100644
--- a/node_modules/libcipm/CHANGELOG.md
+++ b/node_modules/libcipm/CHANGELOG.md
@@ -2,6 +2,16 @@
 
 All notable changes to this project will be documented in this file. See [standard-version](https://github.com/conventional-changelog/standard-version) for commit guidelines.
 
+<a name="4.0.4"></a>
+## [4.0.4](https://github.com/npm/libcipm/compare/v4.0.3...v4.0.4) (2019-09-24)
+
+
+### Bug Fixes
+
+* pack git directories properly ([576ab36](https://github.com/npm/libcipm/commit/576ab36)), closes [#4](https://github.com/npm/libcipm/issues/4)
+
+
+
 <a name="4.0.3"></a>
 ## [4.0.3](https://github.com/npm/libcipm/compare/v4.0.2...v4.0.3) (2019-08-12)
 
diff --git a/node_modules/libcipm/index.js b/node_modules/libcipm/index.js
index 7c9b59f62d44d..50f338c602679 100644
--- a/node_modules/libcipm/index.js
+++ b/node_modules/libcipm/index.js
@@ -244,7 +244,10 @@ class Installer {
       /^dev(elopment)?$/.test(this.opts.also)
     )
     const includeProd = !/^dev(elopment)?$/.test(this.opts.only)
-    return (dep.dev && includeDev) || (!dep.dev && includeProd)
+    const includeOptional = includeProd && this.opts.optional
+    return (dep.dev && includeDev) ||
+      (dep.optional && includeOptional) ||
+      (!dep.dev && !dep.optional && includeProd)
   }
 
   updateJson (tree) {
@@ -370,7 +373,10 @@ class Installer {
         pkg, stage, pkgPath, LifecycleOpts(this.opts).concat({
           // TODO: can be removed once npm-lifecycle is updated to modern
           //       config practices.
-          config: Object.assign({}, this.opts, { log: null }),
+          config: Object.assign({}, this.opts, {
+            log: null,
+            dirPacker: null
+          }),
           dir: this.prefix
         }))
       ).tap(() => { this.timings.scripts += Date.now() - start })
diff --git a/node_modules/libcipm/lib/extract.js b/node_modules/libcipm/lib/extract.js
index 5681d1ce8cacd..f87d2c791d40e 100644
--- a/node_modules/libcipm/lib/extract.js
+++ b/node_modules/libcipm/lib/extract.js
@@ -12,7 +12,8 @@ let workerFarm
 const ENABLE_WORKERS = false
 
 const ExtractOpts = figgyPudding({
-  log: {}
+  log: {},
+  dirPacker: {}
 })
 
 module.exports = {
diff --git a/node_modules/libcipm/package.json b/node_modules/libcipm/package.json
index f520bd6fbc3db..7aa96e97574c0 100644
--- a/node_modules/libcipm/package.json
+++ b/node_modules/libcipm/package.json
@@ -1,28 +1,28 @@
 {
-  "_from": "libcipm@4.0.3",
-  "_id": "libcipm@4.0.3",
+  "_from": "libcipm@4.0.4",
+  "_id": "libcipm@4.0.4",
   "_inBundle": false,
-  "_integrity": "sha512-nuIxNtqA+kIkwUiNM/nZ0yPyR7NkSUov6g6mCfFPkYylO1dEovZBL+NZ3axdouS2UOTa8GdnJ7/meSc1/0AIGw==",
+  "_integrity": "sha512-S2hmT4tYXTpq1H98K+gm/fujDcgQKqPz0QwkmtKrGklAo7U0DI9ZYmQq/EahF3sqw33Quv9gMHJGeodqyX23kg==",
   "_location": "/libcipm",
   "_phantomChildren": {},
   "_requested": {
     "type": "version",
     "registry": true,
-    "raw": "libcipm@4.0.3",
+    "raw": "libcipm@4.0.4",
     "name": "libcipm",
     "escapedName": "libcipm",
-    "rawSpec": "4.0.3",
+    "rawSpec": "4.0.4",
     "saveSpec": null,
-    "fetchSpec": "4.0.3"
+    "fetchSpec": "4.0.4"
   },
   "_requiredBy": [
     "#USER",
     "/"
   ],
-  "_resolved": "https://registry.npmjs.org/libcipm/-/libcipm-4.0.3.tgz",
-  "_shasum": "6a6db4a6e040e56f4af18bb1d664e05e8eb23a39",
-  "_spec": "libcipm@4.0.3",
-  "_where": "/Users/isaacs/dev/npm/cli",
+  "_resolved": "https://registry.npmjs.org/libcipm/-/libcipm-4.0.4.tgz",
+  "_shasum": "6d28fd0f31e61963f8ec7125e9247349181f6cf4",
+  "_spec": "libcipm@4.0.4",
+  "_where": "/Users/mperrotte/npminc/cli",
   "author": {
     "name": "Kat Marchán",
     "email": "kzm@sykosomatic.org"
@@ -96,5 +96,5 @@
     "update-coc": "weallbehave -o . && git add CODE_OF_CONDUCT.md && git commit -m 'docs(coc): updated CODE_OF_CONDUCT.md'",
     "update-contrib": "weallcontribute -o . && git add CONTRIBUTING.md && git commit -m 'docs(contributing): updated CONTRIBUTING.md'"
   },
-  "version": "4.0.3"
+  "version": "4.0.4"
 }
diff --git a/package-lock.json b/package-lock.json
index 026c686e6fef9..f2ab35e24f61b 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -3060,9 +3060,9 @@
       }
     },
     "libcipm": {
-      "version": "4.0.3",
-      "resolved": "https://registry.npmjs.org/libcipm/-/libcipm-4.0.3.tgz",
-      "integrity": "sha512-nuIxNtqA+kIkwUiNM/nZ0yPyR7NkSUov6g6mCfFPkYylO1dEovZBL+NZ3axdouS2UOTa8GdnJ7/meSc1/0AIGw==",
+      "version": "4.0.4",
+      "resolved": "https://registry.npmjs.org/libcipm/-/libcipm-4.0.4.tgz",
+      "integrity": "sha512-S2hmT4tYXTpq1H98K+gm/fujDcgQKqPz0QwkmtKrGklAo7U0DI9ZYmQq/EahF3sqw33Quv9gMHJGeodqyX23kg==",
       "requires": {
         "bin-links": "^1.1.2",
         "bluebird": "^3.5.1",
diff --git a/package.json b/package.json
index 22d3f538ab1aa..e8cfebb459f76 100644
--- a/package.json
+++ b/package.json
@@ -73,7 +73,7 @@
     "is-cidr": "^3.0.0",
     "json-parse-better-errors": "^1.0.2",
     "lazy-property": "~1.0.0",
-    "libcipm": "^4.0.3",
+    "libcipm": "^4.0.4",
     "libnpm": "^3.0.1",
     "libnpmaccess": "^3.0.2",
     "libnpmhook": "^5.0.3",