diff --git a/plugins/package-managers/cargo/src/main/kotlin/Cargo.kt b/plugins/package-managers/cargo/src/main/kotlin/Cargo.kt
index 0c60ebd6eeded..13ab6a5b2718b 100644
--- a/plugins/package-managers/cargo/src/main/kotlin/Cargo.kt
+++ b/plugins/package-managers/cargo/src/main/kotlin/Cargo.kt
@@ -191,14 +191,18 @@ class Cargo(
         )
 
         val nonProjectPackages = packageById.values.mapNotNullTo(mutableSetOf()) { cargoPkg ->
-            cargoPkg.takeUnless { it.isProject() }?.toPackage(hashes)
+            cargoPkg.takeUnless { it.isProject(workingDir) }?.toPackage(hashes)
         }
 
         return listOf(ProjectAnalyzerResult(project, nonProjectPackages))
     }
 }
 
-private fun CargoMetadata.Package.isProject() = source == null
+private fun CargoMetadata.Package.isProject(root: File? = null): Boolean {
+    val path = id.substringAfter("path+file://", "").removeSuffix(")").ifEmpty { null }
+    val isWithinRoot = root != null && path != null && File(path).startsWith(root)
+    return source == null && isWithinRoot
+}
 
 private fun CargoMetadata.Package.toPackage(hashes: Map<String, String>): Package {
     val declaredLicenses = parseDeclaredLicenses()