diff --git a/pkg/analysis_server/lib/src/context_manager.dart b/pkg/analysis_server/lib/src/context_manager.dart
index 2447fcd..6f815d1 100644
--- a/pkg/analysis_server/lib/src/context_manager.dart
+++ b/pkg/analysis_server/lib/src/context_manager.dart
@@ -239,20 +239,23 @@
     List<Resource> children = folder.getChildren();
     for (Resource child in children) {
       String path = child.path;
-      // ignore if wasn't previously excluded
-      bool wasExcluded =
-          _isExcludedBy(oldExcludedPaths, path) &&
-          !_isExcludedBy(excludedPaths, path);
-      if (!wasExcluded) {
-        continue;
-      }
       // add files, recurse into folders
       if (child is File) {
-        if (_shouldFileBeAnalyzed(child)) {
-          Source source = child.createSource();
-          changeSet.addedSource(source);
-          info.sources[path] = source;
+        // ignore if should not be analyzed at all
+        if (!_shouldFileBeAnalyzed(child)) {
+          continue;
         }
+        // ignore if was not excluded
+        bool wasExcluded =
+            _isExcludedBy(oldExcludedPaths, path) &&
+            !_isExcludedBy(excludedPaths, path);
+        if (!wasExcluded) {
+          continue;
+        }
+        // do add the file
+        Source source = child.createSource();
+        changeSet.addedSource(source);
+        info.sources[path] = source;
       } else if (child is Folder) {
         if (child.shortName == PACKAGES_NAME) {
           continue;
diff --git a/pkg/analysis_server/test/context_manager_test.dart b/pkg/analysis_server/test/context_manager_test.dart
index 161c060..0fb2192 100644
--- a/pkg/analysis_server/test/context_manager_test.dart
+++ b/pkg/analysis_server/test/context_manager_test.dart
@@ -323,6 +323,24 @@
     manager.assertContextFiles(project, [file1, file2]);
   }
 
+  void test_setRoots_exclude_sameRoot_removeExcludedFile_inFolder() {
+    // prepare paths
+    String project = '/project';
+    String file1 = '$project/bin/file1.dart';
+    String file2 = '$project/bin/file2.dart';
+    // create files
+    resourceProvider.newFile(file1, '// 1');
+    resourceProvider.newFile(file2, '// 2');
+    // set roots
+    manager.setRoots(<String>[project], <String>[file2], <String, String>{});
+    manager.assertContextPaths([project]);
+    manager.assertContextFiles(project, [file1]);
+    // stop excluding "2"
+    manager.setRoots(<String>[project], <String>[], <String, String>{});
+    manager.assertContextPaths([project]);
+    manager.assertContextFiles(project, [file1, file2]);
+  }
+
   void test_setRoots_exclude_sameRoot_removeExcludedFolder() {
     // prepare paths
     String project = '/project';