diff --git a/dvc/repo/index.py b/dvc/repo/index.py
index 1b9fef083..8207125cb 100644
--- a/dvc/repo/index.py
+++ b/dvc/repo/index.py
@@ -589,6 +589,10 @@ def build_data_index(
     from dvc_data.index.build import build_entries, build_entry
     from dvc_data.index.save import build_tree
 
+    ignore = None
+    if workspace == "repo" and isinstance(fs, LocalFileSystem):
+        ignore = index.repo.dvcignore
+
     data = DataIndex()
     for key in index.data_keys.get(workspace, set()):
         out_path = fs.path.join(path, *key)
@@ -610,7 +614,11 @@ def build_data_index(
             continue
 
         for entry in build_entries(
-            out_path, fs, compute_hash=compute_hash, state=index.repo.state
+            out_path,
+            fs,
+            compute_hash=compute_hash,
+            state=index.repo.state,
+            ignore=ignore,
         ):
             if not entry.key or entry.key == ("",):
                 # NOTE: whether the root will be returned by build_entries