diff --git a/dvc/repo/ls.py b/dvc/repo/ls.py
--- 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
--- a/dvc/repo/tree.py
+++ b/dvc/repo/tree.py
@@ -137,10 +137,36 @@ def isfile(self, path):
 
         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 @@ def _walk(self, root, trie, topdown=True):
         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 @@ def walk(
         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:

Related to https://github.com/iterative/dvc/issues/3182 , as we will also need to download .dir cache files and parse them for this functionality.
This will be a very useful change, +1 
Closing this in favor of https://github.com/iterative/dvc/issues/4107 , since it is newer. I have a WIP PR that should be ready later today. 
diff --git a/tests/func/test_ls.py b/tests/func/test_ls.py
--- 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"},
+    ]

list: cannot list content of the data folder
## Description
`dvc list url target`  where `target` is out-directory cannot list content of it

## Steps for reproduce
```
$ mkdir folder
$ echo content > folder/data.raw
$ dvc add folder
...
To track the changes with git, run:

        git add folder.dvc .gitignore

$ git add folder.dvc 
$ git commit -m 'add folder'
[master 9dc66b6] add folder
 1 file changed, 7 insertions(+)
 create mode 100644 folder.dvc
```
```
$ dvc list . folder
folder
$ dvc list . folder -R
folder
```
but **expects**
```
$ dvc list . folder
data.raw
$ dvc list . folder -R
data.raw
```
## Info
```
$ dvc --version
0.86.2+d4b019.mod
```

## Relates
#2509

tests/func/test_ls.py::test_ls_granular
tests/func/test_ls.py::test_ls_repo tests/func/test_ls.py::test_ls_repo_with_color tests/func/test_ls.py::test_ls_repo_recursive tests/func/test_ls.py::test_ls_repo_dvc_only_recursive tests/func/test_ls.py::test_ls_repo_with_path_dir tests/func/test_ls.py::test_ls_repo_with_path_dir_dvc_only_empty tests/func/test_ls.py::test_ls_repo_with_path_subdir tests/func/test_ls.py::test_ls_repo_with_path_subdir_dvc_only tests/func/test_ls.py::test_ls_repo_with_path_subdir_dvc_only_recursive tests/func/test_ls.py::test_ls_repo_with_path_file_out tests/func/test_ls.py::test_ls_repo_with_file_path_fs tests/func/test_ls.py::test_ls_repo_with_missed_path tests/func/test_ls.py::test_ls_repo_with_missed_path_dvc_only tests/func/test_ls.py::test_ls_repo_with_removed_dvc_dir tests/func/test_ls.py::test_ls_repo_with_removed_dvc_dir_recursive tests/func/test_ls.py::test_ls_repo_with_removed_dvc_dir_with_path_dir tests/func/test_ls.py::test_ls_repo_with_removed_dvc_dir_with_path_file tests/func/test_ls.py::test_ls_remote_repo tests/func/test_ls.py::test_ls_remote_repo_recursive tests/func/test_ls.py::test_ls_remote_git_only_repo_recursive tests/func/test_ls.py::test_ls_remote_repo_with_path_dir tests/func/test_ls.py::test_ls_remote_repo_with_rev tests/func/test_ls.py::test_ls_remote_repo_with_rev_recursive tests/func/test_ls.py::test_ls_not_existed_url tests/func/test_ls.py::test_ls_shows_pipeline_tracked_outs