diff --git a/cabal-gild.cabal b/cabal-gild.cabal
--- a/cabal-gild.cabal
+++ b/cabal-gild.cabal
@@ -11,7 +11,7 @@
 maintainer: Taylor Fausak
 name: cabal-gild
 synopsis: Formats package descriptions.
-version: 1.5.0.0
+version: 1.5.0.1
 
 source-repository head
   type: git
diff --git a/source/library/CabalGild/Unstable/Action/EvaluatePragmas.hs b/source/library/CabalGild/Unstable/Action/EvaluatePragmas.hs
--- a/source/library/CabalGild/Unstable/Action/EvaluatePragmas.hs
+++ b/source/library/CabalGild/Unstable/Action/EvaluatePragmas.hs
@@ -85,7 +85,7 @@
       inclusions =
         List.nubOrd
           . fmap clean
-          $ if null incs then ["**"] else incs
+          $ if null incs then fmap (`FilePath.combine` "**") directories else incs
   files <- Trans.lift $ MonadWalk.walk root inclusions exclusions
   let comments = concatMap (snd . FieldLine.annotation) fls
       position =
diff --git a/source/test-suite/Main.hs b/source/test-suite/Main.hs
--- a/source/test-suite/Main.hs
+++ b/source/test-suite/Main.hs
@@ -1559,6 +1559,12 @@
       "build-depends:\n >> no\n -- comment\n parse"
       "build-depends:\n  -- comment\n  >> no\n  parse\n"
 
+  Hspec.it "only discovers modules in given directories" $ do
+    expectDiscover
+      (".", [["Setup.hs"], ["source", "Example.hs"]])
+      "-- cabal-gild: discover source\nexposed-modules:"
+      "-- cabal-gild: discover source\nexposed-modules: Example\n"
+
   Hspec.around_ withTemporaryDirectory
     . Hspec.it "discovers modules on the file system"
     $ do