diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index 59f4f48..0d3f5cc 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -15,10 +15,11 @@ jobs:
         uses: ./
         with:
           base_ref: 027b33661ae3211230e8cd03d19df49ba620b379
-          head_ref: 182a672418c5bae4d6b7ca1244da5f28bf5ff6f0
+          head_ref: ${{ github.sha }}
           kustomizations: |-
             testdata/prod
             testdata/stage
+            testdata/new
       - uses: mshick/add-pr-comment@v2
         with:
           message: ${{ steps.test-action.outputs.diff }}
diff --git a/entrypoint.sh b/entrypoint.sh
index 67f1486..e334fe4 100755
--- a/entrypoint.sh
+++ b/entrypoint.sh
@@ -4,12 +4,28 @@ set -eux
 
 build_dir=$(mktemp -d)
 
-build() {
-	ref="$1"
-	git checkout "$1" --quiet
+build_base() {
+	ref="$INPUT_BASE_REF"
+	git checkout "$ref" --quiet
 
 	for target in $INPUT_KUSTOMIZATIONS; do
-		echo "Building $target" to "$build_dir/$ref/$target"
+		echo "Building base $target" to "$build_dir/$ref/$target"
+		mkdir -p "$build_dir/$ref/$target"
+		if [ ! -d "$target" ]; then
+			echo "Base $target does not exist. Treating it as an empty dir"
+			mkdir -p "$target"
+		else
+			kustomize build "$target" -o "$build_dir/$ref/$target/"
+		fi
+	done
+}
+
+build_head() {
+	ref="$INPUT_HEAD_REF"
+	git checkout "$ref" --quiet
+
+	for target in $INPUT_KUSTOMIZATIONS; do
+		echo "Building head $target" to "$build_dir/$ref/$target"
 		mkdir -p "$build_dir/$ref/$target"
 		kustomize build "$target" -o "$build_dir/$ref/$target/"
 	done
@@ -17,8 +33,8 @@ build() {
 
 git config --global --add safe.directory "$GITHUB_WORKSPACE"
 
-build "$INPUT_BASE_REF"
-build "$INPUT_HEAD_REF"
+build_base
+build_head
 
 base_ref_build_dir="$build_dir/$INPUT_BASE_REF"
 head_ref_build_dir="$build_dir/$INPUT_HEAD_REF"
diff --git a/testdata/new/README.md b/testdata/new/README.md
new file mode 100644
index 0000000..14d024d
--- /dev/null
+++ b/testdata/new/README.md
@@ -0,0 +1 @@
+The point of this folder is to test that if the base commit does not contain this folder, the action is still successful
\ No newline at end of file
diff --git a/testdata/new/kustomization.yml b/testdata/new/kustomization.yml
new file mode 100644
index 0000000..27bb5cb
--- /dev/null
+++ b/testdata/new/kustomization.yml
@@ -0,0 +1,4 @@
+apiVersion: kustomize.config.k8s.io/v1beta1
+kind: Kustomization
+resources:
+  - ../base