task: metadata: install: pip install -e .[all]
patch: diff --git a/dvc/repo/ls.py b/dvc/repo/ls.py
index 9344e8b10..e02d52116 100644
--- a/dvc/repo/ls.py
+++ b/dvc/repo/ls.py
@@ -53,9 +53,9 @@ def _ls(repo, path_info, recursive=None, dvc_only=False):
     def onerror(exc):
         raise exc
 
-    # use our own RepoTree instance instead of repo.repo_tree since we do not
-    # want fetch/stream enabled for ls
-    tree = RepoTree(repo)
+    # use our own RepoTree instance instead of repo.repo_tree since we want to
+    # fetch directory listings, but don't want to fetch file contents.
+    tree = RepoTree(repo, stream=True)
 
     ret = {}
     try:
diff --git a/dvc/repo/tree.py b/dvc/repo/tree.py
index 175d80f95..23cf58a0f 100644
--- a/dvc/repo/tree.py
+++ b/dvc/repo/tree.py
@@ -137,10 +137,36 @@ class DvcTree(BaseTree):
 
         return not self.isdir(path)
 
-    def _walk(self, root, trie, topdown=True):
+    def _add_dir(self, top, trie, out, download_callback=None, **kwargs):
+        if not self.fetch and not self.stream:
+            return
+
+        # pull dir cache if needed
+        dir_cache = out.get_dir_cache(**kwargs)
+
+        # pull dir contents if needed
+        if self.fetch:
+            if out.changed_cache(filter_info=top):
+                used_cache = out.get_used_cache(filter_info=top)
+                downloaded = self.repo.cloud.pull(used_cache, **kwargs)
+                if download_callback:
+                    download_callback(downloaded)
+
+        for entry in dir_cache:
+            entry_relpath = entry[out.remote.tree.PARAM_RELPATH]
+            if os.name == "nt":
+                entry_relpath = entry_relpath.replace("/", os.sep)
+            path_info = out.path_info / entry_relpath
+            trie[path_info.parts] = None
+
+    def _walk(self, root, trie, topdown=True, **kwargs):
         dirs = set()
         files = []
 
+        out = trie.get(root.parts)
+        if out and out.is_dir_checksum:
+            self._add_dir(root, trie, out, **kwargs)
+
         root_len = len(root.parts)
         for key, out in trie.iteritems(prefix=root.parts):  # noqa: B301
             if key == root.parts:
@@ -160,9 +186,7 @@ class DvcTree(BaseTree):
         for dname in dirs:
             yield from self._walk(root / dname, trie)
 
-    def walk(
-        self, top, topdown=True, onerror=None, download_callback=None, **kwargs
-    ):
+    def walk(self, top, topdown=True, onerror=None, **kwargs):
         from pygtrie import Trie
 
         assert topdown
@@ -185,26 +209,10 @@ class DvcTree(BaseTree):
         for out in outs:
             trie[out.path_info.parts] = out
 
-            if out.is_dir_checksum and (self.fetch or self.stream):
-                # pull dir cache if needed
-                dir_cache = out.get_dir_cache(**kwargs)
-
-                # pull dir contents if needed
-                if self.fetch:
-                    if out.changed_cache(filter_info=top):
-                        used_cache = out.get_used_cache(filter_info=top)
-                        downloaded = self.repo.cloud.pull(used_cache, **kwargs)
-                        if download_callback:
-                            download_callback(downloaded)
-
-                for entry in dir_cache:
-                    entry_relpath = entry[out.remote.tree.PARAM_RELPATH]
-                    if os.name == "nt":
-                        entry_relpath = entry_relpath.replace("/", os.sep)
-                    path_info = out.path_info / entry_relpath
-                    trie[path_info.parts] = None
-
-        yield from self._walk(root, trie, topdown=topdown)
+            if out.is_dir_checksum and root.isin_or_eq(out.path_info):
+                self._add_dir(top, trie, out, **kwargs)
+
+        yield from self._walk(root, trie, topdown=topdown, **kwargs)
 
     def isdvc(self, path, **kwargs):
         try:

problem_statement: dvc list doesn't list contents of dvc-tracked folders
## Bug Report

`dvc list` does not ever seem to list folders or subfolders within a dvc file. If there are dvc files tracking single files, then I do see the file in `dvc list`, but if I am tracking an entire folder, I do not get anything. DVC would need to download all the .dir files associated with dvc files, which it does not seem to be doing during `dvc list`

### Please provide information about your setup

**Output of `dvc version`:**

```console
 → dvc version  
DVC version: 1.0.1
Python version: 3.7.6
Platform: Linux-5.4.0-37-generic-x86_64-with-debian-bullseye-sid
Binary: False
Package: pip
Supported remotes: gs, hdfs, http, https, ssh
Cache: reflink - not supported, hardlink - supported, symlink - supported
Filesystem type (cache directory): ('ext4', '/dev/nvme0n1p7')
Repo: dvc, git
Filesystem type (workspace): ('ext4', '/dev/nvme0n1p7')
```

**Additional Information (if any):**
```console
 → ls images/                                                                                                                                                                                       
Landsat8TOA  Landsat8TOA.dvc  PSScene4Band  PSScene4Band.dvc  Sentinel2TOA  Sentinel2TOA.dvc

→ dvc list -v -R . images/Landsat8TOA                                                                                                                                                              
2020-06-24 15:59:25,584 DEBUG: Creating external repo .@None
2020-06-24 15:59:25,584 DEBUG: erepo: git clone . to a temporary dir
2020-06-24 15:59:25,798 ERROR: failed to list '.' - The path 'images/Landsat8TOA' does not exist in the target repository 'ExternalRepo: '/tmp/tmpiiq_y618dvc-clone'' neither as a DVC output nor as a Git-tracked file.
------------------------------------------------------------
Traceback (most recent call last):
  File "/home/durand/Stuff/Anaconda/envs/sats/lib/python3.7/site-packages/dvc/command/ls/__init__.py", line 35, in run
    dvc_only=self.args.dvc_only,
  File "/home/durand/Stuff/Anaconda/envs/sats/lib/python3.7/site-packages/dvc/repo/ls.py", line 40, in ls
    raise PathMissingError(path, repo, dvc_only=dvc_only)
dvc.exceptions.PathMissingError: The path 'images/Landsat8TOA' does not exist in the target repository 'ExternalRepo: '/tmp/tmpiiq_y618dvc-clone'' neither as a DVC output nor as a Git-tracked file.
------------------------------------------------------------

```

Cheers,
Durand
repo: iterative/dvc
test_cmd: pytest --no-header -rA --tb=line --color=no -p no:cacheprovider -W ignore::DeprecationWarning
test_patch: diff --git a/tests/func/test_ls.py b/tests/func/test_ls.py
index bdf1c8cc0..14d57acf1 100644
--- a/tests/func/test_ls.py
+++ b/tests/func/test_ls.py
@@ -445,3 +445,30 @@ def test_ls_shows_pipeline_tracked_outs(tmp_dir, dvc, scm, run_copy):
 
     files = Repo.ls(os.curdir, dvc_only=True)
     match_files(files, ((("bar",), True),))
+
+
+def test_ls_granular(erepo_dir):
+    with erepo_dir.chdir():
+        erepo_dir.dvc_gen(
+            {
+                "dir": {
+                    "1": "1",
+                    "2": "2",
+                    "subdir": {"foo": "foo", "bar": "bar"},
+                }
+            },
+            commit="create dir",
+        )
+
+    entries = Repo.ls(os.fspath(erepo_dir), os.path.join("dir", "subdir"))
+    assert entries == [
+        {"isout": False, "isdir": False, "isexec": False, "path": "bar"},
+        {"isout": False, "isdir": False, "isexec": False, "path": "foo"},
+    ]
+
+    entries = Repo.ls(os.fspath(erepo_dir), "dir")
+    assert entries == [
+        {"isout": False, "isdir": False, "isexec": False, "path": "1"},
+        {"isout": False, "isdir": False, "isexec": False, "path": "2"},
+        {"isout": False, "isdir": True, "isexec": False, "path": "subdir"},
+    ]