diff --git a/src/main/java/com/google/devtools/build/lib/remote/AbstractActionInputPrefetcher.java b/src/main/java/com/google/devtools/build/lib/remote/AbstractActionInputPrefetcher.java
index f1700d6..057ac04 100644
--- a/src/main/java/com/google/devtools/build/lib/remote/AbstractActionInputPrefetcher.java
+++ b/src/main/java/com/google/devtools/build/lib/remote/AbstractActionInputPrefetcher.java
@@ -46,6 +46,7 @@
 import com.google.devtools.build.lib.remote.util.RxUtils;
 import com.google.devtools.build.lib.remote.util.RxUtils.TransferResult;
 import com.google.devtools.build.lib.remote.util.TempPathGenerator;
+import com.google.devtools.build.lib.vfs.FileSymlinkLoopException;
 import com.google.devtools.build.lib.vfs.FileSystemUtils;
 import com.google.devtools.build.lib.vfs.OutputPermissions;
 import com.google.devtools.build.lib.vfs.Path;
@@ -426,6 +427,36 @@
     return null;
   }
 
+  private Path resolveOneSymlink(Path path) throws IOException {
+    var targetPathFragment = path.readSymbolicLink();
+    if (targetPathFragment.isAbsolute()) {
+      return path.getFileSystem().getPath(targetPathFragment);
+    } else {
+      return checkNotNull(path.getParentDirectory()).getRelative(targetPathFragment);
+    }
+  }
+
+  private Path maybeResolveSymlink(Path path) throws IOException {
+    // Potentially resolves a symlink to its target path. This differs from
+    // Path#resolveSymbolicLinks() that:
+    //   1. Path#resolveSymbolicLinks() checks each segment of the path, but we assume there is no
+    //      intermediate symlink because they should've been already normalized for outputs.
+    //   2. In case of dangling symlink, we return the target path instead of throwing
+    //      FileNotFoundException because we want to download output to that target path.
+    var maxAttempt = 32;
+    while (path.isSymbolicLink() && maxAttempt-- > 0) {
+      var resolvedPath = resolveOneSymlink(path);
+      if (resolvedPath.asFragment().equals(path.asFragment())) {
+        throw new FileSymlinkLoopException(path.asFragment());
+      }
+      path = resolvedPath;
+    }
+    if (maxAttempt <= 0) {
+      throw new FileSymlinkLoopException(path.asFragment());
+    }
+    return path;
+  }
+
   private Completable downloadFileNoCheckRx(
       ActionExecutionMetadata action,
       DirectoryContext dirCtx,
@@ -434,14 +465,23 @@
       ActionInput actionInput,
       FileArtifactValue metadata,
       Priority priority) {
-    if (path.isSymbolicLink()) {
-      try {
-        path = path.resolveSymbolicLinks();
-      } catch (IOException e) {
-        return Completable.error(e);
+    // If the path to be prefetched is a non-dangling symlink, prefetch its target path instead.
+    // Note that this only applies to symlinks created by spawns (or, currently, with the internal
+    // version of BwoB); symlinks created in-process through an ActionFileSystem should have already
+    // been resolved into their materializationExecPath in maybeGetSymlink.
+    try {
+      if (treeRoot != null) {
+        var treeRootRelativePath = path.relativeTo(treeRoot);
+        treeRoot = maybeResolveSymlink(treeRoot);
+        path = treeRoot.getRelative(treeRootRelativePath);
+      } else {
+        path = maybeResolveSymlink(path);
       }
+    } catch (IOException e) {
+      return Completable.error(e);
     }
 
+    Path finalTreeRoot = treeRoot;
     Path finalPath = path;
 
     AtomicBoolean completed = new AtomicBoolean(false);
@@ -461,7 +501,7 @@
                             directExecutor())
                         .doOnComplete(
                             () -> {
-                              finalizeDownload(dirCtx, treeRoot, tempPath, finalPath);
+                              finalizeDownload(dirCtx, finalTreeRoot, tempPath, finalPath);
                               completed.set(true);
                             }),
                 tempPath -> {
diff --git a/src/main/java/com/google/devtools/build/lib/vfs/FileSymlinkLoopException.java b/src/main/java/com/google/devtools/build/lib/vfs/FileSymlinkLoopException.java
index 4026e39..6fc2f21 100644
--- a/src/main/java/com/google/devtools/build/lib/vfs/FileSymlinkLoopException.java
+++ b/src/main/java/com/google/devtools/build/lib/vfs/FileSymlinkLoopException.java
@@ -16,12 +16,13 @@
 
 import com.google.devtools.build.lib.io.FileSymlinkException;
 
-final class FileSymlinkLoopException extends FileSymlinkException {
+/** A {@link FileSymlinkException} that indicates a symlink loop. */
+public final class FileSymlinkLoopException extends FileSymlinkException {
   FileSymlinkLoopException(String message) {
     super(message);
   }
 
-  FileSymlinkLoopException(PathFragment pathFragment) {
+  public FileSymlinkLoopException(PathFragment pathFragment) {
     this(pathFragment.getPathString() + " (Too many levels of symbolic links)");
   }
 
diff --git a/src/test/java/com/google/devtools/build/lib/remote/BuildWithoutTheBytesIntegrationTest.java b/src/test/java/com/google/devtools/build/lib/remote/BuildWithoutTheBytesIntegrationTest.java
index b568707..5eda1fb 100644
--- a/src/test/java/com/google/devtools/build/lib/remote/BuildWithoutTheBytesIntegrationTest.java
+++ b/src/test/java/com/google/devtools/build/lib/remote/BuildWithoutTheBytesIntegrationTest.java
@@ -112,6 +112,9 @@
     return true;
   }
 
+  @Override
+  protected void injectFile(byte[] content) {}
+
   @After
   public void tearDown() throws IOException {
     if (worker != null) {
@@ -233,217 +236,6 @@
   }
 
   @Test
-  public void symlinkToGeneratedFile() throws Exception {
-    write(
-        "a/defs.bzl",
-        "def _impl(ctx):",
-        "  if ctx.attr.chain_length < 1:",
-        "    fail('chain_length must be > 0')",
-        "",
-        "  file = ctx.actions.declare_file(ctx.label.name + '.file')",
-        // Use ctx.actions.run_shell instead of ctx.actions.write, so that it runs remotely.
-        "  ctx.actions.run_shell(",
-        "    outputs = [file],",
-        "    command = 'echo hello > $1',",
-        "    arguments = [file.path],",
-        "  )",
-        "",
-        "  for i in range(ctx.attr.chain_length):",
-        "    sym = ctx.actions.declare_file(ctx.label.name + '.sym' + str(i))",
-        "    ctx.actions.symlink(output = sym, target_file = file)",
-        "    file = sym",
-        "",
-        "  out = ctx.actions.declare_file(ctx.label.name + '.out')",
-        "  ctx.actions.run_shell(",
-        "    inputs = [sym],",
-        "    outputs = [out],",
-        "    command = '[[ hello == $(cat $1) ]] && touch $2',",
-        "    arguments = [sym.path, out.path],",
-        "    execution_requirements = {'no-remote': ''} if ctx.attr.local else {},",
-        "  )",
-        "",
-        "  return DefaultInfo(files = depset([out]))",
-        "",
-        "my_rule = rule(",
-        "  implementation = _impl,",
-        "  attrs = {",
-        "    'chain_length': attr.int(),",
-        "    'local': attr.bool(),",
-        "  },",
-        ")");
-
-    write(
-        "a/BUILD",
-        "load(':defs.bzl', 'my_rule')",
-        "",
-        "my_rule(name = 'one_local', local = True, chain_length = 1)",
-        "my_rule(name = 'two_local', local = True, chain_length = 2)",
-        "my_rule(name = 'one_remote', local = False, chain_length = 1)",
-        "my_rule(name = 'two_remote', local = False, chain_length = 2)");
-
-    buildTarget("//a:one_local", "//a:two_local", "//a:one_remote", "//a:two_remote");
-  }
-
-  @Test
-  public void symlinkToDirectory() throws Exception {
-    write(
-        "a/defs.bzl",
-        "def _impl(ctx):",
-        "  if ctx.attr.chain_length < 1:",
-        "    fail('chain_length must be > 0')",
-        "",
-        "  dir = ctx.actions.declare_directory(ctx.label.name + '.dir')",
-        "  ctx.actions.run_shell(",
-        "    outputs = [dir],",
-        "    command = 'mkdir -p $1/some/path && echo hello > $1/some/path/inside.txt',",
-        "    arguments = [dir.path],",
-        "  )",
-        "",
-        "  for i in range(ctx.attr.chain_length):",
-        "    sym = ctx.actions.declare_directory(ctx.label.name + '.sym' + str(i))",
-        "    ctx.actions.symlink(output = sym, target_file = dir)",
-        "    dir = sym",
-        "",
-        "  out = ctx.actions.declare_file(ctx.label.name + '.out')",
-        "  ctx.actions.run_shell(",
-        "    inputs = [sym],",
-        "    outputs = [out],",
-        "    command = '[[ hello == $(cat $1/some/path/inside.txt) ]] && touch $2',",
-        "    arguments = [sym.path, out.path],",
-        "    execution_requirements = {'no-remote': ''} if ctx.attr.local else {},",
-        "  )",
-        "",
-        "  return DefaultInfo(files = depset([out]))",
-        "",
-        "my_rule = rule(",
-        "  implementation = _impl,",
-        "  attrs = {",
-        "    'chain_length': attr.int(),",
-        "    'local': attr.bool()",
-        "  },",
-        ")");
-
-    write(
-        "a/BUILD",
-        "load(':defs.bzl', 'my_rule')",
-        "",
-        "my_rule(name = 'one_local', local = True, chain_length = 1)",
-        "my_rule(name = 'two_local', local = True, chain_length = 2)",
-        "my_rule(name = 'one_remote', local = False, chain_length = 1)",
-        "my_rule(name = 'two_remote', local = False, chain_length = 2)");
-
-    buildTarget("//a:one_local", "//a:two_local", "//a:one_remote", "//a:two_remote");
-  }
-
-  @Test
-  public void symlinkToNestedFile() throws Exception {
-    addOptions("--noincompatible_strict_conflict_checks");
-
-    write(
-        "a/defs.bzl",
-        "def _impl(ctx):",
-        "  if ctx.attr.chain_length < 1:",
-        "    fail('chain_length must be > 0')",
-        "",
-        "  dir = ctx.actions.declare_directory(ctx.label.name + '.dir')",
-        "  file = ctx.actions.declare_file(ctx.label.name + '.dir/some/path/inside.txt')",
-        "  ctx.actions.run_shell(",
-        "    outputs = [dir, file],",
-        "    command = 'mkdir -p $1/some/path && echo hello > $1/some/path/inside.txt',",
-        "    arguments = [dir.path],",
-        "  )",
-        "",
-        "  for i in range(ctx.attr.chain_length):",
-        "    sym = ctx.actions.declare_file(ctx.label.name + '.sym' + str(i))",
-        "    ctx.actions.symlink(output = sym, target_file = file)",
-        "    file = sym",
-        "",
-        "  out = ctx.actions.declare_file(ctx.label.name + '.out')",
-        "  ctx.actions.run_shell(",
-        "    inputs = [sym],",
-        "    outputs = [out],",
-        "    command = '[[ hello == $(cat $1) ]] && touch $2',",
-        "    arguments = [sym.path, out.path],",
-        "    execution_requirements = {'no-remote': ''} if ctx.attr.local else {},",
-        "  )",
-        "",
-        "  return DefaultInfo(files = depset([out]))",
-        "",
-        "my_rule = rule(",
-        "  implementation = _impl,",
-        "  attrs = {",
-        "    'chain_length': attr.int(),",
-        "    'local': attr.bool(),",
-        "  },",
-        ")");
-
-    write(
-        "a/BUILD",
-        "load(':defs.bzl', 'my_rule')",
-        "",
-        "my_rule(name = 'one_local', local = True, chain_length = 1)",
-        "my_rule(name = 'two_local', local = True, chain_length = 2)",
-        "my_rule(name = 'one_remote', local = False, chain_length = 1)",
-        "my_rule(name = 'two_remote', local = False, chain_length = 2)");
-
-    buildTarget("//a:one_local", "//a:two_local", "//a:one_remote", "//a:two_remote");
-  }
-
-  @Test
-  public void symlinkToNestedDirectory() throws Exception {
-    addOptions("--noincompatible_strict_conflict_checks");
-
-    write(
-        "a/defs.bzl",
-        "def _impl(ctx):",
-        "  if ctx.attr.chain_length < 1:",
-        "    fail('chain_length must be > 0')",
-        "",
-        "  dir = ctx.actions.declare_directory(ctx.label.name + '.dir')",
-        "  subdir = ctx.actions.declare_directory(ctx.label.name + '.dir/some/path')",
-        "  ctx.actions.run_shell(",
-        "    outputs = [dir, subdir],",
-        "    command = 'mkdir -p $1/some/path && echo hello > $1/some/path/inside.txt',",
-        "    arguments = [dir.path],",
-        "  )",
-        "",
-        "  for i in range(ctx.attr.chain_length):",
-        "    sym = ctx.actions.declare_directory(ctx.label.name + '.sym' + str(i))",
-        "    ctx.actions.symlink(output = sym, target_file = subdir)",
-        "    subdir = sym",
-        "",
-        "  out = ctx.actions.declare_file(ctx.label.name + '.out')",
-        "  ctx.actions.run_shell(",
-        "    inputs = [sym],",
-        "    outputs = [out],",
-        "    command = '[[ hello == $(cat $1/inside.txt) ]] && touch $2',",
-        "    arguments = [sym.path, out.path],",
-        "    execution_requirements = {'no-remote': ''} if ctx.attr.local else {},",
-        "  )",
-        "",
-        "  return DefaultInfo(files = depset([out]))",
-        "",
-        "my_rule = rule(",
-        "  implementation = _impl,",
-        "  attrs = {",
-        "    'chain_length': attr.int(),",
-        "    'local': attr.bool(),",
-        "  },",
-        ")");
-
-    write(
-        "a/BUILD",
-        "load(':defs.bzl', 'my_rule')",
-        "",
-        "my_rule(name = 'one_local', local = True, chain_length = 1)",
-        "my_rule(name = 'two_local', local = True, chain_length = 2)",
-        "my_rule(name = 'one_remote', local = False, chain_length = 1)",
-        "my_rule(name = 'two_remote', local = False, chain_length = 2)");
-
-    buildTarget("//a:one_local", "//a:two_local", "//a:one_remote", "//a:two_remote");
-  }
-
-  @Test
   public void outputSymlinkHandledGracefully() throws Exception {
     // Symlinks may not be supported on Windows
     assumeFalse(OS.getCurrent() == OS.WINDOWS);
@@ -693,118 +485,6 @@
   }
 
   @Test
-  public void downloadToplevel_symlinkFile() throws Exception {
-    // TODO(chiwang): Make metadata for downloaded symlink non-remote.
-    assumeFalse(OS.getCurrent() == OS.WINDOWS);
-
-    setDownloadToplevel();
-    writeSymlinkRule();
-    write(
-        "BUILD",
-        "load(':symlink.bzl', 'symlink')",
-        "genrule(",
-        "  name = 'foo',",
-        "  srcs = [],",
-        "  outs = ['out/foo.txt'],",
-        "  cmd = 'echo foo > $@',",
-        ")",
-        "symlink(",
-        "  name = 'foo-link',",
-        "  target = ':foo'",
-        ")");
-
-    buildTarget("//:foo-link");
-
-    assertValidOutputFile("foo-link", "foo\n");
-
-    // Delete link, re-plant symlink
-    getOutputPath("foo-link").delete();
-
-    buildTarget("//:foo-link");
-
-    assertValidOutputFile("foo-link", "foo\n");
-
-    // Delete target, re-download it
-    getOutputPath("foo").delete();
-
-    assertValidOutputFile("foo-link", "foo\n");
-  }
-
-  @Test
-  public void downloadToplevel_symlinkSourceFile() throws Exception {
-    // TODO(chiwang): Make metadata for downloaded symlink non-remote.
-    assumeFalse(OS.getCurrent() == OS.WINDOWS);
-
-    setDownloadToplevel();
-    writeSymlinkRule();
-    write(
-        "BUILD",
-        "load(':symlink.bzl', 'symlink')",
-        "symlink(",
-        "  name = 'foo-link',",
-        "  target = ':foo.txt'",
-        ")");
-    write("foo.txt", "foo");
-
-    buildTarget("//:foo-link");
-
-    assertOnlyOutputContent("//:foo-link", "foo-link", "foo" + lineSeparator());
-
-    // Delete link, re-plant symlink
-    getOutputPath("foo-link").delete();
-
-    buildTarget("//:foo-link");
-
-    assertOnlyOutputContent("//:foo-link", "foo-link", "foo" + lineSeparator());
-  }
-
-  @Test
-  public void downloadToplevel_symlinkTree() throws Exception {
-    // TODO(chiwang): Make metadata for downloaded symlink non-remote.
-    assumeFalse(OS.getCurrent() == OS.WINDOWS);
-
-    setDownloadToplevel();
-    writeSymlinkRule();
-    writeOutputDirRule();
-    write(
-        "BUILD",
-        "load(':output_dir.bzl', 'output_dir')",
-        "load(':symlink.bzl', 'symlink')",
-        "output_dir(",
-        "  name = 'foo',",
-        "  content_map = {'file-1': '1', 'file-2': '2', 'file-3': '3'},",
-        ")",
-        "symlink(",
-        "  name = 'foo-link',",
-        "  target = ':foo'",
-        ")");
-
-    buildTarget("//:foo-link");
-
-    assertValidOutputFile("foo-link/file-1", "1");
-    assertValidOutputFile("foo-link/file-2", "2");
-    assertValidOutputFile("foo-link/file-3", "3");
-
-    getOutputPath("foo-link").deleteTree();
-
-    // Delete link, re-plant symlink
-    buildTarget("//:foo-link");
-
-    assertValidOutputFile("foo-link/file-1", "1");
-    assertValidOutputFile("foo-link/file-2", "2");
-    assertValidOutputFile("foo-link/file-3", "3");
-
-    // Delete target, re-download them
-    getOutputPath("foo").deleteTree();
-
-    buildTarget("//:foo-link");
-
-    assertValidOutputFile("foo-link/file-1", "1");
-    assertValidOutputFile("foo-link/file-2", "2");
-    assertValidOutputFile("foo-link/file-3", "3");
-  }
-
-  @Test
   public void leaseExtension() throws Exception {
     // Test that Bazel will extend the leases for remote output by sending FindMissingBlobs calls
     // periodically to remote server. The test assumes remote server will set mtime of referenced
diff --git a/src/test/java/com/google/devtools/build/lib/remote/BuildWithoutTheBytesIntegrationTestBase.java b/src/test/java/com/google/devtools/build/lib/remote/BuildWithoutTheBytesIntegrationTestBase.java
index 8f6c0b3..36ce7f4 100644
--- a/src/test/java/com/google/devtools/build/lib/remote/BuildWithoutTheBytesIntegrationTestBase.java
+++ b/src/test/java/com/google/devtools/build/lib/remote/BuildWithoutTheBytesIntegrationTestBase.java
@@ -19,6 +19,7 @@
 import static com.google.devtools.build.lib.vfs.FileSystemUtils.writeContent;
 import static java.nio.charset.StandardCharsets.UTF_8;
 import static org.junit.Assert.assertThrows;
+import static org.junit.Assume.assumeFalse;
 
 import com.google.common.collect.ImmutableList;
 import com.google.common.collect.ImmutableMap;
@@ -55,6 +56,8 @@
 
   protected abstract boolean hasAccessToRemoteOutputs();
 
+  protected abstract void injectFile(byte[] content);
+
   protected void waitDownloads() throws Exception {
     // Trigger afterCommand of modules so that downloads are waited.
     runtimeWrapper.newCommand();
@@ -394,6 +397,221 @@
   }
 
   @Test
+  public void symlinkToGeneratedFile() throws Exception {
+    injectFile("hello".getBytes(UTF_8));
+    write(
+        "a/defs.bzl",
+        "def _impl(ctx):",
+        "  if ctx.attr.chain_length < 1:",
+        "    fail('chain_length must be > 0')",
+        "",
+        "  file = ctx.actions.declare_file(ctx.label.name + '.file')",
+        // Use ctx.actions.run_shell instead of ctx.actions.write, so that it runs remotely.
+        "  ctx.actions.run_shell(",
+        "    outputs = [file],",
+        "    command = 'echo -n hello > $1',",
+        "    arguments = [file.path],",
+        "  )",
+        "",
+        "  for i in range(ctx.attr.chain_length):",
+        "    sym = ctx.actions.declare_file(ctx.label.name + '.sym' + str(i))",
+        "    ctx.actions.symlink(output = sym, target_file = file)",
+        "    file = sym",
+        "",
+        "  out = ctx.actions.declare_file(ctx.label.name + '.out')",
+        "  ctx.actions.run_shell(",
+        "    inputs = [sym],",
+        "    outputs = [out],",
+        "    command = '[[ hello == $(cat $1) ]] && touch $2',",
+        "    arguments = [sym.path, out.path],",
+        "    execution_requirements = {'no-remote': ''} if ctx.attr.local else {},",
+        "  )",
+        "",
+        "  return DefaultInfo(files = depset([out]))",
+        "",
+        "my_rule = rule(",
+        "  implementation = _impl,",
+        "  attrs = {",
+        "    'chain_length': attr.int(),",
+        "    'local': attr.bool(),",
+        "  },",
+        ")");
+
+    write(
+        "a/BUILD",
+        "load(':defs.bzl', 'my_rule')",
+        "",
+        "my_rule(name = 'one_local', local = True, chain_length = 1)",
+        "my_rule(name = 'two_local', local = True, chain_length = 2)",
+        "my_rule(name = 'one_remote', local = False, chain_length = 1)",
+        "my_rule(name = 'two_remote', local = False, chain_length = 2)");
+
+    buildTarget("//a:one_local", "//a:two_local", "//a:one_remote", "//a:two_remote");
+  }
+
+  @Test
+  public void symlinkToDirectory() throws Exception {
+    injectFile("hello".getBytes(UTF_8));
+    write(
+        "a/defs.bzl",
+        "def _impl(ctx):",
+        "  if ctx.attr.chain_length < 1:",
+        "    fail('chain_length must be > 0')",
+        "",
+        "  dir = ctx.actions.declare_directory(ctx.label.name + '.dir')",
+        "  ctx.actions.run_shell(",
+        "    outputs = [dir],",
+        "    command = 'mkdir -p $1/some/path && echo -n hello > $1/some/path/inside.txt',",
+        "    arguments = [dir.path],",
+        "  )",
+        "",
+        "  for i in range(ctx.attr.chain_length):",
+        "    sym = ctx.actions.declare_directory(ctx.label.name + '.sym' + str(i))",
+        "    ctx.actions.symlink(output = sym, target_file = dir)",
+        "    dir = sym",
+        "",
+        "  out = ctx.actions.declare_file(ctx.label.name + '.out')",
+        "  ctx.actions.run_shell(",
+        "    inputs = [sym],",
+        "    outputs = [out],",
+        "    command = '[[ hello == $(cat $1/some/path/inside.txt) ]] && touch $2',",
+        "    arguments = [sym.path, out.path],",
+        "    execution_requirements = {'no-remote': ''} if ctx.attr.local else {},",
+        "  )",
+        "",
+        "  return DefaultInfo(files = depset([out]))",
+        "",
+        "my_rule = rule(",
+        "  implementation = _impl,",
+        "  attrs = {",
+        "    'chain_length': attr.int(),",
+        "    'local': attr.bool()",
+        "  },",
+        ")");
+
+    write(
+        "a/BUILD",
+        "load(':defs.bzl', 'my_rule')",
+        "",
+        "my_rule(name = 'one_local', local = True, chain_length = 1)",
+        "my_rule(name = 'two_local', local = True, chain_length = 2)",
+        "my_rule(name = 'one_remote', local = False, chain_length = 1)",
+        "my_rule(name = 'two_remote', local = False, chain_length = 2)");
+
+    buildTarget("//a:one_local", "//a:two_local", "//a:one_remote", "//a:two_remote");
+  }
+
+  @Test
+  public void symlinkToNestedFile() throws Exception {
+    injectFile("hello".getBytes(UTF_8));
+    addOptions("--noincompatible_strict_conflict_checks");
+
+    write(
+        "a/defs.bzl",
+        "def _impl(ctx):",
+        "  if ctx.attr.chain_length < 1:",
+        "    fail('chain_length must be > 0')",
+        "",
+        "  dir = ctx.actions.declare_directory(ctx.label.name + '.dir')",
+        "  file = ctx.actions.declare_file(ctx.label.name + '.dir/some/path/inside.txt')",
+        "  ctx.actions.run_shell(",
+        "    outputs = [dir, file],",
+        "    command = 'mkdir -p $1/some/path && echo -n hello > $1/some/path/inside.txt',",
+        "    arguments = [dir.path],",
+        "  )",
+        "",
+        "  for i in range(ctx.attr.chain_length):",
+        "    sym = ctx.actions.declare_file(ctx.label.name + '.sym' + str(i))",
+        "    ctx.actions.symlink(output = sym, target_file = file)",
+        "    file = sym",
+        "",
+        "  out = ctx.actions.declare_file(ctx.label.name + '.out')",
+        "  ctx.actions.run_shell(",
+        "    inputs = [sym],",
+        "    outputs = [out],",
+        "    command = '[[ hello == $(cat $1) ]] && touch $2',",
+        "    arguments = [sym.path, out.path],",
+        "    execution_requirements = {'no-remote': ''} if ctx.attr.local else {},",
+        "  )",
+        "",
+        "  return DefaultInfo(files = depset([out]))",
+        "",
+        "my_rule = rule(",
+        "  implementation = _impl,",
+        "  attrs = {",
+        "    'chain_length': attr.int(),",
+        "    'local': attr.bool(),",
+        "  },",
+        ")");
+
+    write(
+        "a/BUILD",
+        "load(':defs.bzl', 'my_rule')",
+        "",
+        "my_rule(name = 'one_local', local = True, chain_length = 1)",
+        "my_rule(name = 'two_local', local = True, chain_length = 2)",
+        "my_rule(name = 'one_remote', local = False, chain_length = 1)",
+        "my_rule(name = 'two_remote', local = False, chain_length = 2)");
+
+    buildTarget("//a:one_local", "//a:two_local", "//a:one_remote", "//a:two_remote");
+  }
+
+  @Test
+  public void symlinkToNestedDirectory() throws Exception {
+    injectFile("hello".getBytes(UTF_8));
+    addOptions("--noincompatible_strict_conflict_checks");
+
+    write(
+        "a/defs.bzl",
+        "def _impl(ctx):",
+        "  if ctx.attr.chain_length < 1:",
+        "    fail('chain_length must be > 0')",
+        "",
+        "  dir = ctx.actions.declare_directory(ctx.label.name + '.dir')",
+        "  subdir = ctx.actions.declare_directory(ctx.label.name + '.dir/some/path')",
+        "  ctx.actions.run_shell(",
+        "    outputs = [dir, subdir],",
+        "    command = 'mkdir -p $1/some/path && echo -n hello > $1/some/path/inside.txt',",
+        "    arguments = [dir.path],",
+        "  )",
+        "",
+        "  for i in range(ctx.attr.chain_length):",
+        "    sym = ctx.actions.declare_directory(ctx.label.name + '.sym' + str(i))",
+        "    ctx.actions.symlink(output = sym, target_file = subdir)",
+        "    subdir = sym",
+        "",
+        "  out = ctx.actions.declare_file(ctx.label.name + '.out')",
+        "  ctx.actions.run_shell(",
+        "    inputs = [sym],",
+        "    outputs = [out],",
+        "    command = '[[ hello == $(cat $1/inside.txt) ]] && touch $2',",
+        "    arguments = [sym.path, out.path],",
+        "    execution_requirements = {'no-remote': ''} if ctx.attr.local else {},",
+        "  )",
+        "",
+        "  return DefaultInfo(files = depset([out]))",
+        "",
+        "my_rule = rule(",
+        "  implementation = _impl,",
+        "  attrs = {",
+        "    'chain_length': attr.int(),",
+        "    'local': attr.bool(),",
+        "  },",
+        ")");
+
+    write(
+        "a/BUILD",
+        "load(':defs.bzl', 'my_rule')",
+        "",
+        "my_rule(name = 'one_local', local = True, chain_length = 1)",
+        "my_rule(name = 'two_local', local = True, chain_length = 2)",
+        "my_rule(name = 'one_remote', local = False, chain_length = 1)",
+        "my_rule(name = 'two_remote', local = False, chain_length = 2)");
+
+    buildTarget("//a:one_local", "//a:two_local", "//a:one_remote", "//a:two_remote");
+  }
+
+  @Test
   public void localAction_stdoutIsReported() throws Exception {
     // Disable on Windows since it fails for unknown reasons.
     // TODO(chiwang): Enable it on windows.
@@ -830,6 +1048,118 @@
   }
 
   @Test
+  public void downloadToplevel_symlinkFile() throws Exception {
+    // TODO(chiwang): Make metadata for downloaded symlink non-remote.
+    assumeFalse(OS.getCurrent() == OS.WINDOWS);
+
+    setDownloadToplevel();
+    writeSymlinkRule();
+    write(
+        "BUILD",
+        "load(':symlink.bzl', 'symlink')",
+        "genrule(",
+        "  name = 'foo',",
+        "  srcs = [],",
+        "  outs = ['out/foo.txt'],",
+        "  cmd = 'echo foo > $@',",
+        ")",
+        "symlink(",
+        "  name = 'foo-link',",
+        "  target = ':foo'",
+        ")");
+
+    buildTarget("//:foo-link");
+
+    assertValidOutputFile("foo-link", "foo\n");
+
+    // Delete link, re-plant symlink
+    getOutputPath("foo-link").delete();
+
+    buildTarget("//:foo-link");
+
+    assertValidOutputFile("foo-link", "foo\n");
+
+    // Delete target, re-download it
+    getOutputPath("foo").delete();
+
+    assertValidOutputFile("foo-link", "foo\n");
+  }
+
+  @Test
+  public void downloadToplevel_symlinkSourceFile() throws Exception {
+    // TODO(chiwang): Make metadata for downloaded symlink non-remote.
+    assumeFalse(OS.getCurrent() == OS.WINDOWS);
+
+    setDownloadToplevel();
+    writeSymlinkRule();
+    write(
+        "BUILD",
+        "load(':symlink.bzl', 'symlink')",
+        "symlink(",
+        "  name = 'foo-link',",
+        "  target = ':foo.txt'",
+        ")");
+    write("foo.txt", "foo");
+
+    buildTarget("//:foo-link");
+
+    assertOnlyOutputContent("//:foo-link", "foo-link", "foo" + lineSeparator());
+
+    // Delete link, re-plant symlink
+    getOutputPath("foo-link").delete();
+
+    buildTarget("//:foo-link");
+
+    assertOnlyOutputContent("//:foo-link", "foo-link", "foo" + lineSeparator());
+  }
+
+  @Test
+  public void downloadToplevel_symlinkTree() throws Exception {
+    // TODO(chiwang): Make metadata for downloaded symlink non-remote.
+    assumeFalse(OS.getCurrent() == OS.WINDOWS);
+
+    setDownloadToplevel();
+    writeSymlinkRule();
+    writeOutputDirRule();
+    write(
+        "BUILD",
+        "load(':output_dir.bzl', 'output_dir')",
+        "load(':symlink.bzl', 'symlink')",
+        "output_dir(",
+        "  name = 'foo',",
+        "  content_map = {'file-1': '1', 'file-2': '2', 'file-3': '3'},",
+        ")",
+        "symlink(",
+        "  name = 'foo-link',",
+        "  target = ':foo'",
+        ")");
+
+    buildTarget("//:foo-link");
+
+    assertValidOutputFile("foo-link/file-1", "1");
+    assertValidOutputFile("foo-link/file-2", "2");
+    assertValidOutputFile("foo-link/file-3", "3");
+
+    getOutputPath("foo-link").deleteTree();
+
+    // Delete link, re-plant symlink
+    buildTarget("//:foo-link");
+
+    assertValidOutputFile("foo-link/file-1", "1");
+    assertValidOutputFile("foo-link/file-2", "2");
+    assertValidOutputFile("foo-link/file-3", "3");
+
+    // Delete target, re-download them
+    getOutputPath("foo").deleteTree();
+
+    buildTarget("//:foo-link");
+
+    assertValidOutputFile("foo-link/file-1", "1");
+    assertValidOutputFile("foo-link/file-2", "2");
+    assertValidOutputFile("foo-link/file-3", "3");
+  }
+
+  @Test
   public void treeOutputsFromLocalFileSystem_works() throws Exception {
     // Disable on Windows since it fails for unknown reasons.
     // TODO(chiwang): Enable it on windows.