diff --git a/packages/zip-it-and-ship-it/src/runtimes/node/in_source_config/index.ts b/packages/zip-it-and-ship-it/src/runtimes/node/in_source_config/index.ts
index 394a0de7b5..e8de69941a 100644
--- a/packages/zip-it-and-ship-it/src/runtimes/node/in_source_config/index.ts
+++ b/packages/zip-it-and-ship-it/src/runtimes/node/in_source_config/index.ts
@@ -1,3 +1,5 @@
+import { dirname } from 'path'
+
 import type { ArgumentPlaceholder, Expression, SpreadElement, JSXNamespacedName } from '@babel/types'
 import mergeOptions from 'merge-options'
 import { z } from 'zod'
@@ -215,10 +217,26 @@ export const parseSource = (source: string, { functionName }: FindISCDeclaration
 }
 
 export const augmentFunctionConfig = (
+  mainFile: string,
   tomlConfig: FunctionConfig,
   inSourceConfig: InSourceConfig = {},
-): FunctionConfig & InSourceConfig => {
-  return mergeOptions.call({ concatArrays: true }, tomlConfig, inSourceConfig)
+) => {
+  const mergedConfig = mergeOptions.call({ concatArrays: true }, tomlConfig, inSourceConfig) as FunctionConfig &
+    InSourceConfig
+
+  // We can't simply merge included files from the TOML and from in-source
+  // configuration because their globs are relative to different base paths.
+  // In the future, we could shift things around so we resolve each glob
+  // relative to the right base, but for now we say that included files in
+  // the source override any files defined in the TOML. It doesn't make a lot
+  // of sense to be defining include files for a framework-generated function
+  // in the TOML anyway.
+  if (inSourceConfig?.includedFiles && inSourceConfig.includedFiles.length !== 0) {
+    mergedConfig.includedFiles = inSourceConfig.includedFiles
+    mergedConfig.includedFilesBasePath = dirname(mainFile)
+  }
+
+  return mergedConfig
 }
 
 export type ISCHandlerArg = ArgumentPlaceholder | Expression | SpreadElement | JSXNamespacedName
diff --git a/packages/zip-it-and-ship-it/src/runtimes/node/index.ts b/packages/zip-it-and-ship-it/src/runtimes/node/index.ts
index 69ed26e594..bf94d1f343 100644
--- a/packages/zip-it-and-ship-it/src/runtimes/node/index.ts
+++ b/packages/zip-it-and-ship-it/src/runtimes/node/index.ts
@@ -65,7 +65,7 @@ const zipFunction: ZipFunction = async function ({
 
   const staticAnalysisResult = await parseFile(mainFile, { functionName: name })
   const runtimeAPIVersion = staticAnalysisResult.runtimeAPIVersion === 2 ? 2 : 1
-  const mergedConfig = augmentFunctionConfig(config, staticAnalysisResult.config)
+  const mergedConfig = augmentFunctionConfig(mainFile, config, staticAnalysisResult.config)
   const pluginsModulesPath = await getPluginsModulesPath(srcDir)
   const bundlerName = await getBundlerName({
     config: mergedConfig,
diff --git a/packages/zip-it-and-ship-it/tests/fixtures-esm/v2-api-included-files/function.js b/packages/zip-it-and-ship-it/tests/fixtures-esm/v2-api-included-files/netlify/functions/function.js
similarity index 80%
rename from packages/zip-it-and-ship-it/tests/fixtures-esm/v2-api-included-files/function.js
rename to packages/zip-it-and-ship-it/tests/fixtures-esm/v2-api-included-files/netlify/functions/function.js
index c9964292d1..ff900f0e9a 100644
--- a/packages/zip-it-and-ship-it/tests/fixtures-esm/v2-api-included-files/function.js
+++ b/packages/zip-it-and-ship-it/tests/fixtures-esm/v2-api-included-files/netlify/functions/function.js
@@ -6,5 +6,5 @@ export default async () =>
   })
 
 export const config = {
-  includedFiles: ['blog/author*'],
+  includedFiles: ['../../blog/post*'],
 }
diff --git a/packages/zip-it-and-ship-it/tests/v2api.test.ts b/packages/zip-it-and-ship-it/tests/v2api.test.ts
index acbf5b0462..c06449f549 100644
--- a/packages/zip-it-and-ship-it/tests/v2api.test.ts
+++ b/packages/zip-it-and-ship-it/tests/v2api.test.ts
@@ -5,6 +5,7 @@ import { promisify } from 'util'
 
 import merge from 'deepmerge'
 import glob from 'glob'
+import { pathExists } from 'path-exists'
 import semver from 'semver'
 import { dir as getTmpDir } from 'tmp-promise'
 import { afterEach, describe, expect, test, vi } from 'vitest'
@@ -598,39 +599,39 @@ describe.runIf(semver.gte(nodeVersion, '18.13.0'))('V2 functions API', () => {
     },
   )
 
-  testMany(
-    'Includes in the bundle files included in the TOML and in the function source',
-    ['bundler_default'],
-    async (options) => {
-      const fixtureName = 'v2-api-included-files'
-      const { files, tmpDir } = await zipFixture(fixtureName, {
-        fixtureDir: FIXTURES_ESM_DIR,
-        opts: merge(options, {
-          archiveFormat: ARCHIVE_FORMAT.NONE,
-          config: {
-            '*': {
-              includedFiles: ['blog/post*'],
-            },
+  test('Includes in the bundle files included in the function source', async () => {
+    const fixtureName = 'v2-api-included-files'
+    const { files, tmpDir } = await zipFixture(`${fixtureName}/netlify/functions`, {
+      fixtureDir: FIXTURES_ESM_DIR,
+      opts: {
+        archiveFormat: ARCHIVE_FORMAT.NONE,
+        basePath: resolve(FIXTURES_ESM_DIR, fixtureName),
+        config: {
+          '*': {
+            includedFiles: ['blog/author*'],
           },
-        }),
-      })
+        },
+      },
+    })
 
-      const [{ name: archive, entryFilename, includedFiles, runtimeAPIVersion }] = files
-      const func = await importFunctionFile(`${tmpDir}/${archive}/${entryFilename}`)
-      const { body: bodyStream, multiValueHeaders = {}, statusCode } = await invokeLambda(func)
-      const body = await readAsBuffer(bodyStream)
+    const [{ name: archive, entryFilename, includedFiles, runtimeAPIVersion }] = files
+    const func = await importFunctionFile(`${tmpDir}/${archive}/${entryFilename}`)
+    const { body: bodyStream, multiValueHeaders = {}, statusCode } = await invokeLambda(func)
+    const body = await readAsBuffer(bodyStream)
 
-      expect(body).toBe('<h1>Hello world</h1>')
-      expect(multiValueHeaders['content-type']).toEqual(['text/html'])
-      expect(statusCode).toBe(200)
-      expect(runtimeAPIVersion).toBe(2)
-      expect(includedFiles).toEqual([
-        resolve(FIXTURES_ESM_DIR, fixtureName, 'blog/author1.md'),
-        resolve(FIXTURES_ESM_DIR, fixtureName, 'blog/post1.md'),
-        resolve(FIXTURES_ESM_DIR, fixtureName, 'blog/post2.md'),
-      ])
-    },
-  )
+    expect(body).toBe('<h1>Hello world</h1>')
+    expect(multiValueHeaders['content-type']).toEqual(['text/html'])
+    expect(statusCode).toBe(200)
+    expect(runtimeAPIVersion).toBe(2)
+    expect(includedFiles).toEqual([
+      resolve(FIXTURES_ESM_DIR, fixtureName, 'blog/post1.md'),
+      resolve(FIXTURES_ESM_DIR, fixtureName, 'blog/post2.md'),
+    ])
+
+    for (const path of includedFiles as string[]) {
+      expect(await pathExists(path)).toBeTruthy()
+    }
+  })
 
   test('Uses the bundler specified in the `nodeBundler` property from the in-source configuration', async () => {
     const fixtureName = 'v2-api-bundler-none'