diff --git a/__tests__/fs-helper.test.ts b/__tests__/fs-helper.test.ts
index d400934..566b627 100644
--- a/__tests__/fs-helper.test.ts
+++ b/__tests__/fs-helper.test.ts
@@ -30,7 +30,7 @@ describe('stageActionFiles', () => {
     )
   })
 
-  it('copies all non-hidden files to the staging directory', () => {
+  it('copies all files (excluding the .git folder) to the staging directory', () => {
     fs.writeFileSync(`${sourceDir}/action.yml`, fileContent)
 
     fs.mkdirSync(`${sourceDir}/.git`)
@@ -44,12 +44,14 @@ describe('stageActionFiles', () => {
     expect(fs.existsSync(`${stagingDir}/src/main.js`)).toBe(true)
     expect(fs.existsSync(`${stagingDir}/src/other.js`)).toBe(true)
 
-    // Hidden files should not be copied
+    // Hidden files are copied
+    expect(fs.existsSync(`${stagingDir}/.github`)).toBe(true)
+
+    // .git folder is not copied
     expect(fs.existsSync(`${stagingDir}/.git`)).toBe(false)
-    expect(fs.existsSync(`${stagingDir}/.github`)).toBe(false)
   })
 
-  it('copies all non-hidden files to the staging directory, even if action.yml is in a subdirectory', () => {
+  it('copies all files (excluding the .git folder) to the staging directory, even if action.yml is in a subdirectory', () => {
     fs.mkdirSync(`${sourceDir}/my-sub-action`, { recursive: true })
     fs.writeFileSync(`${sourceDir}/my-sub-action/action.yml`, fileContent)
 
diff --git a/badges/coverage.svg b/badges/coverage.svg
index 367f1bd..ab35b08 100644
--- a/badges/coverage.svg
+++ b/badges/coverage.svg
@@ -1 +1 @@
-<svg xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" width="116" height="20" role="img" aria-label="Coverage: 97.08%"><title>Coverage: 97.08%</title><linearGradient id="s" x2="0" y2="100%"><stop offset="0" stop-color="#bbb" stop-opacity=".1"/><stop offset="1" stop-opacity=".1"/></linearGradient><clipPath id="r"><rect width="116" height="20" rx="3" fill="#fff"/></clipPath><g clip-path="url(#r)"><rect width="63" height="20" fill="#555"/><rect x="63" width="53" height="20" fill="#4c1"/><rect width="116" height="20" fill="url(#s)"/></g><g fill="#fff" text-anchor="middle" font-family="Verdana,Geneva,DejaVu Sans,sans-serif" text-rendering="geometricPrecision" font-size="110"><text aria-hidden="true" x="325" y="150" fill="#010101" fill-opacity=".3" transform="scale(.1)" textLength="530">Coverage</text><text x="325" y="140" transform="scale(.1)" fill="#fff" textLength="530">Coverage</text><text aria-hidden="true" x="885" y="150" fill="#010101" fill-opacity=".3" transform="scale(.1)" textLength="430">97.08%</text><text x="885" y="140" transform="scale(.1)" fill="#fff" textLength="430">97.08%</text></g></svg>
\ No newline at end of file
+<svg xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" width="110" height="20" role="img" aria-label="Coverage: 97.1%"><title>Coverage: 97.1%</title><linearGradient id="s" x2="0" y2="100%"><stop offset="0" stop-color="#bbb" stop-opacity=".1"/><stop offset="1" stop-opacity=".1"/></linearGradient><clipPath id="r"><rect width="110" height="20" rx="3" fill="#fff"/></clipPath><g clip-path="url(#r)"><rect width="63" height="20" fill="#555"/><rect x="63" width="47" height="20" fill="#4c1"/><rect width="110" height="20" fill="url(#s)"/></g><g fill="#fff" text-anchor="middle" font-family="Verdana,Geneva,DejaVu Sans,sans-serif" text-rendering="geometricPrecision" font-size="110"><text aria-hidden="true" x="325" y="150" fill="#010101" fill-opacity=".3" transform="scale(.1)" textLength="530">Coverage</text><text x="325" y="140" transform="scale(.1)" fill="#fff" textLength="530">Coverage</text><text aria-hidden="true" x="855" y="150" fill="#010101" fill-opacity=".3" transform="scale(.1)" textLength="370">97.1%</text><text x="855" y="140" transform="scale(.1)" fill="#fff" textLength="370">97.1%</text></g></svg>
\ No newline at end of file
diff --git a/dist/index.js b/dist/index.js
index ae9fc2a..5eb598e 100644
--- a/dist/index.js
+++ b/dist/index.js
@@ -106596,7 +106596,7 @@ function isDirectory(dirPath) {
 function readFileContents(filePath) {
     return fs.readFileSync(filePath);
 }
-// Copy actions files from sourceDir to targetDir, excluding files and folders not relevant to the action
+// Copy actions files from sourceDir to targetDir, excluding the .git folder.
 // Errors if the repo appears to not contain any action files, such as an action.yml file
 function stageActionFiles(actionDir, targetDir) {
     let actionYmlFound = false;
@@ -106606,8 +106606,11 @@ function stageActionFiles(actionDir, targetDir) {
             if (basename === 'action.yml' || basename === 'action.yaml') {
                 actionYmlFound = true;
             }
-            // Filter out hidden folers like .git and .github
-            return basename === '.' || !basename.startsWith('.');
+            // Filter out the .git folder.
+            if (basename === '.git') {
+                return false;
+            }
+            return true;
         }
     });
     if (!actionYmlFound) {
diff --git a/src/fs-helper.ts b/src/fs-helper.ts
index a9b5997..497075b 100644
--- a/src/fs-helper.ts
+++ b/src/fs-helper.ts
@@ -90,7 +90,7 @@ export function readFileContents(filePath: string): Buffer {
   return fs.readFileSync(filePath)
 }
 
-// Copy actions files from sourceDir to targetDir, excluding files and folders not relevant to the action
+// Copy actions files from sourceDir to targetDir, excluding the .git folder.
 // Errors if the repo appears to not contain any action files, such as an action.yml file
 export function stageActionFiles(actionDir: string, targetDir: string): void {
   let actionYmlFound = false
@@ -103,8 +103,12 @@ export function stageActionFiles(actionDir: string, targetDir: string): void {
         actionYmlFound = true
       }
 
-      // Filter out hidden folers like .git and .github
-      return basename === '.' || !basename.startsWith('.')
+      // Filter out the .git folder.
+      if (basename === '.git') {
+        return false
+      }
+
+      return true
     }
   })