diff --git a/core/org.eclipse.cdt.core/model/org/eclipse/cdt/core/settings/model/util/CDataUtil.java b/core/org.eclipse.cdt.core/model/org/eclipse/cdt/core/settings/model/util/CDataUtil.java
index 3c0b0b0e941..02bf91aa7fe 100644
--- a/core/org.eclipse.cdt.core/model/org/eclipse/cdt/core/settings/model/util/CDataUtil.java
+++ b/core/org.eclipse.cdt.core/model/org/eclipse/cdt/core/settings/model/util/CDataUtil.java
@@ -504,6 +504,10 @@ public class CDataUtil {
 	
 	public static boolean isExcluded(IPath path, ICSourceEntry entry){
 		IPath entryPath = new Path(entry.getName());
+		
+		if(path.isPrefixOf(entryPath))
+			return false;
+		
 		if(!entryPath.isPrefixOf(path))
 			return true;