diff --git a/android/proto.go b/android/proto.go
index 0ffb9b62a..6887900c4 100644
--- a/android/proto.go
+++ b/android/proto.go
@@ -268,6 +268,13 @@ func Bp2buildProtoProperties(ctx Bp2buildMutatorContext, m *ModuleBase, srcs baz
 								protoIncludeDirs = append(protoIncludeDirs, dir)
 							}
 						}
+
+						// proto.local_include_dirs are similar to proto.include_dirs, except that it is relative to the module directory
+						for _, dir := range props.Proto.Local_include_dirs {
+							relativeToTop := pathForModuleSrc(ctx, dir).String()
+							protoIncludeDirs = append(protoIncludeDirs, relativeToTop)
+						}
+
 					} else if props.Proto.Type != info.Type && props.Proto.Type != nil {
 						ctx.ModuleErrorf("Cannot handle arch-variant types for protos at this time.")
 					}
@@ -292,9 +299,14 @@ func Bp2buildProtoProperties(ctx Bp2buildMutatorContext, m *ModuleBase, srcs baz
 			// (or a different subpackage), it will not find it.
 			// The CcProtoGen action itself runs fine because we construct the correct ProtoInfo,
 			// but the FileDescriptorSet of each proto_library might not be compile-able
-			if pkg != ctx.ModuleDir() {
+			//
+			// Add manual tag if either
+			// 1. .proto files are in more than one package
+			// 2. proto.include_dirs is not empty
+			if len(SortedStringKeys(pkgToSrcs)) > 1 || len(protoIncludeDirs) > 0 {
 				tags.Append(bazel.MakeStringListAttribute([]string{"manual"}))
 			}
+
 			ctx.CreateBazelTargetModule(
 				bazel.BazelTargetModuleProperties{Rule_class: "proto_library"},
 				CommonAttributes{Name: name, Dir: proptools.StringPtr(pkg), Tags: tags},
diff --git a/bp2build/cc_library_conversion_test.go b/bp2build/cc_library_conversion_test.go
index 28dbf7ead..650121724 100644
--- a/bp2build/cc_library_conversion_test.go
+++ b/bp2build/cc_library_conversion_test.go
@@ -4965,6 +4965,7 @@ cc_library_static {
 		}),
 		MakeBazelTarget("proto_library", "foo_proto", AttrNameToString{
 			"srcs": `["foo.proto"]`,
+			"tags": `["manual"]`,
 		}),
 		MakeBazelTarget("cc_lite_proto_library", "foo_cc_proto_lite", AttrNameToString{
 			"deps": `[
@@ -5033,6 +5034,7 @@ cc_library_static {
 		MakeBazelTarget("proto_library", "foo_proto", AttrNameToString{
 			"srcs":                `["foo.proto"]`,
 			"strip_import_prefix": `""`,
+			"tags":                `["manual"]`,
 		}),
 		MakeBazelTarget("cc_lite_proto_library", "foo_cc_proto_lite", AttrNameToString{
 			"deps": `[
@@ -5103,6 +5105,7 @@ cc_library_static {
 		}),
 		MakeBazelTarget("proto_library", "foo_proto", AttrNameToString{
 			"srcs": `["foo.proto"]`,
+			"tags": `["manual"]`,
 		}),
 		MakeBazelTarget("cc_lite_proto_library", "foo_cc_proto_lite", AttrNameToString{
 			"deps": `[":foo_proto"]`,
@@ -5137,3 +5140,58 @@ cc_library_static {
 	}
 	runCcLibraryTestCase(t, tc)
 }
+
+func TestProtoLocalIncludeDirs(t *testing.T) {
+	tc := Bp2buildTestCase{
+		Description:                "cc_library depends on .proto files using proto.local_include_dirs",
+		ModuleTypeUnderTest:        "cc_library",
+		ModuleTypeUnderTestFactory: cc.LibraryFactory,
+		Blueprint:                  simpleModuleDoNotConvertBp2build("cc_library", "libprotobuf-cpp-lite"),
+		Filesystem: map[string]string{
+			"foo/Android.bp": `cc_library_static {
+	name: "foo",
+	srcs: [
+	   "foo.proto",
+	],
+	proto: {
+		local_include_dirs: ["foo_subdir"],
+	},
+	bazel_module: { bp2build_available: true },
+}`,
+			"foo/foo.proto":                   "",
+			"foo/foo_subdir/Android.bp":       "",
+			"foo/foo_subdir/foo_subdir.proto": "",
+		},
+	}
+
+	// We will run the test 2 times and check in foo and foo/foo_subdir directories
+	// foo dir
+	tc.Dir = "foo"
+	tc.ExpectedBazelTargets = []string{
+		MakeBazelTarget("cc_library_static", "foo", AttrNameToString{
+			"local_includes":                    `["."]`,
+			"deps":                              `["//:libprotobuf-cpp-lite"]`,
+			"implementation_whole_archive_deps": `[":foo_cc_proto_lite"]`,
+		}),
+		MakeBazelTarget("proto_library", "foo_proto", AttrNameToString{
+			"srcs": `["foo.proto"]`,
+			"tags": `["manual"]`,
+		}),
+		MakeBazelTarget("cc_lite_proto_library", "foo_cc_proto_lite", AttrNameToString{
+			"deps":            `[":foo_proto"]`,
+			"transitive_deps": `["//foo/foo_subdir:foo.foo_subdir.include_dir_bp2build_generated_proto"]`,
+		}),
+	}
+	runCcLibraryTestCase(t, tc)
+
+	// foo/foo_subdir
+	tc.Dir = "foo/foo_subdir"
+	tc.ExpectedBazelTargets = []string{
+		MakeBazelTarget("proto_library", "foo.foo_subdir.include_dir_bp2build_generated_proto", AttrNameToString{
+			"srcs":                `["foo_subdir.proto"]`,
+			"strip_import_prefix": `""`,
+			"tags":                `["manual"]`,
+		}),
+	}
+	runCcLibraryTestCase(t, tc)
+}
diff --git a/python/bp2build.go b/python/bp2build.go
index 41e9f4974..8bc3d0a3e 100644
--- a/python/bp2build.go
+++ b/python/bp2build.go
@@ -33,6 +33,12 @@ type bazelPythonLibraryAttributes struct {
 
 type bazelPythonProtoLibraryAttributes struct {
 	Deps bazel.LabelListAttribute
+
+	// A list of proto_library targets that the proto_library in `deps` depends on
+	// This list is overestimation.
+	// Overestimation is necessary since Soong includes other protos via proto.include_dirs and not
+	// a specific .proto file module explicitly.
+	Transitive_deps bazel.LabelListAttribute
 }
 
 type baseAttributes struct {
@@ -81,7 +87,8 @@ func (m *PythonLibraryModule) makeArchVariantBaseAttributes(ctx android.TopDownM
 		}, android.CommonAttributes{
 			Name: pyProtoLibraryName,
 		}, &bazelPythonProtoLibraryAttributes{
-			Deps: bazel.MakeLabelListAttribute(protoInfo.Proto_libs),
+			Deps:            bazel.MakeLabelListAttribute(protoInfo.Proto_libs),
+			Transitive_deps: bazel.MakeLabelListAttribute(protoInfo.Transitive_proto_libs),
 		})
 
 		attrs.Deps.Add(bazel.MakeLabelAttribute(":" + pyProtoLibraryName))