diff --git a/lib/resourceFactory.js b/lib/resourceFactory.js
index 57638775..73541f5d 100644
--- a/lib/resourceFactory.js
+++ b/lib/resourceFactory.js
@@ -1,4 +1,5 @@
 const path = require("path");
+const minimatch = require("minimatch");
 const FsAdapter = require("./adapters/FileSystem");
 const MemAdapter = require("./adapters/Memory");
 const ReaderCollection = require("./ReaderCollection");
@@ -52,31 +53,26 @@ const resourceFactory = {
 
 		function processDependencies(project) {
 			if (project.resources && project.resources.pathMappings) {
-				const fsReaders = [];
-				for (let virBasePath in project.resources.pathMappings) {
-					// Create an fs reader for every path mapping
+				const fsAdapters = [];
+				for (const virBasePath in project.resources.pathMappings) {
 					if (project.resources.pathMappings.hasOwnProperty(virBasePath)) {
+						// Prevent duplicate dependency resource locators
 						const fsPath = project.resources.pathMappings[virBasePath];
 						const fsBasePath = path.join(project.path, fsPath);
-
-						if (useNamespaces && project.metadata.namespace) { // Prefix resource paths with namespace
-							virBasePath = "/resources/" + project.metadata.namespace + virBasePath;
-						}
-
-						// Prevent duplicate dependency resource locators
 						const key = virBasePath + fsBasePath;
 						if (dependencyPathIndex[key]) {
 							continue;
 						}
 						dependencyPathIndex[key] = true;
 
-						const fsReader = resourceFactory.createAdapter({
-							fsBasePath,
+						// Create an fs adapter for every path mapping
+						const fsAdapter = resourceFactory.createFsAdapterForVirtualBasePath({
+							project,
 							virBasePath,
-							excludes: getProjectExcludes ? getProjectExcludes(project) : [],
-							project
+							useNamespace: useNamespaces,
+							getProjectExcludes
 						});
-						fsReaders.push(fsReader);
+						fsAdapters.push(fsAdapter);
 					}
 				}
 
@@ -86,11 +82,11 @@ const resourceFactory = {
 					const virtualReader = virtualReaders[project.metadata.name];
 					const readerCollection = new ReaderCollectionPrioritized({
 						name: `fs & vir reader collection for project ${project.metadata.name}`,
-						readers: [virtualReader, ...fsReaders]
+						readers: [virtualReader, ...fsAdapters]
 					});
 					dependencyCollection.push(readerCollection);
 				} else {
-					dependencyCollection.push(...fsReaders);
+					dependencyCollection.push(...fsAdapters);
 				}
 			}
 
@@ -100,19 +96,16 @@ const resourceFactory = {
 		}
 
 		if (tree.resources && tree.resources.pathMappings) {
-			for (let virBasePath in tree.resources.pathMappings) {
+			for (const virBasePath in tree.resources.pathMappings) {
 				if (tree.resources.pathMappings.hasOwnProperty(virBasePath)) {
-					const fsBasePath = path.join(tree.path, tree.resources.pathMappings[virBasePath]);
-
-					if (useNamespaces && tree.metadata.namespace) { // Prefix resource paths with namespace
-						virBasePath = "/resources/" + tree.metadata.namespace + virBasePath;
-					}
-					sourceResourceLocators.push(resourceFactory.createAdapter({
-						fsBasePath,
+					// Create an fs adapter for every path mapping
+					const fsAdapter = resourceFactory.createFsAdapterForVirtualBasePath({
+						project: tree,
 						virBasePath,
-						excludes: getProjectExcludes ? getProjectExcludes(tree) : [],
-						project: tree
-					}));
+						useNamespace: useNamespaces,
+						getProjectExcludes
+					});
+					sourceResourceLocators.push(fsAdapter);
 				}
 			}
 		}
@@ -135,6 +128,57 @@ const resourceFactory = {
 		};
 	},
 
+	createFsAdapterForVirtualBasePath({project, virBasePath, useNamespace, getProjectExcludes}) {
+		const fsPath = project.resources.pathMappings[virBasePath];
+		const fsBasePath = path.join(project.path, fsPath);
+
+		let pathExcludes;
+		if (getProjectExcludes) {
+			pathExcludes = getProjectExcludes(project);
+		}
+		if (useNamespace && project.metadata.namespace) { // Prefix resource paths with namespace
+			const namespacedBasePath = "/resources/" + project.metadata.namespace;
+			virBasePath = namespacedBasePath + virBasePath;
+
+			if (pathExcludes) {
+				const normalizedPatterns = pathExcludes.map((pattern) => {
+					return resourceFactory._normalizePattern(pattern, namespacedBasePath);
+				});
+				pathExcludes = Array.prototype.concat.apply([], normalizedPatterns);
+			}
+		}
+
+		return resourceFactory.createAdapter({
+			fsBasePath,
+			virBasePath,
+			excludes: pathExcludes,
+			project
+		});
+	},
+
+	/**
+	 * Normalizes virtual glob patterns by prefixing them with
+	 * a given virtual base directory path
+	 *
+	 * @param {string} virPattern glob pattern for virtual directory structure
+	 * @param {string} virBaseDir virtual base directory path to prefix the given patterns with
+	 * @returns {Promise<string[]>} Promise resolving to list of normalized glob patterns
+	 */
+	_normalizePattern(virPattern, virBaseDir) {
+		const mm = new minimatch.Minimatch(virPattern);
+
+		const resultGlobs = [];
+		for (let i = 0; i < mm.globSet.length; i++) {
+			let resultPattern = path.posix.join(virBaseDir, mm.globSet[i]);
+
+			if (mm.negate) {
+				resultPattern = "!" + resultPattern;
+			}
+			resultGlobs.push(resultPattern);
+		}
+		return resultGlobs;
+	},
+
 	/**
 	 * Creates a resource <code>ReaderWriter</code>.
 	 *
diff --git a/test/lib/resources.js b/test/lib/resources.js
index ac6904b1..59fea462 100644
--- a/test/lib/resources.js
+++ b/test/lib/resources.js
@@ -46,7 +46,7 @@ test("Get resource from application.a (/index.html) and write it to /dest/ using
 		}));
 });
 
-test("createCollectionsForTree", (t) => {
+test("createCollectionsForTree: high level test", (t) => {
 	// Creates resource reader collections for a given tree
 	const resourceReaders = ui5Fs.resourceFactory.createCollectionsForTree(applicationBTree);
 
@@ -114,6 +114,40 @@ test.serial("createCollectionsForTree with excludes", (t) => {
 		"Fifth createAdapter call: Correct exclude patterns supplied");
 });
 
+test.serial("createFsAdapterForVirtualBasePath", (t) => {
+	const createAdapterSpy = sinon.spy(ui5Fs.resourceFactory, "createAdapter");
+
+	const fsAdapter = ui5Fs.resourceFactory.createFsAdapterForVirtualBasePath({
+		project: applicationBTreeWithExcludes,
+		virBasePath: "/",
+		useNamespace: true,
+		getProjectExcludes: () => {
+			return [
+				"{/sub-directory-1/,/sub-directory-2/}**",
+				"/pony-path/**",
+				"!/duck*path/**",
+				"!**.json"
+			];
+		}
+	});
+
+	t.deepEqual(createAdapterSpy.callCount, 1, "createAdapter got called one time");
+	const firstCall = createAdapterSpy.getCall(0).args[0];
+	t.deepEqual(firstCall.fsBasePath, path.join(applicationBPath, "webapp"),
+		"First createAdapter call: Correct base path supplied");
+	t.deepEqual(firstCall.excludes, [
+		"/resources/id1/sub-directory-1/**",
+		"/resources/id1/sub-directory-2/**",
+		"/resources/id1/pony-path/**",
+		"!/resources/id1/duck*path/**",
+		"!/resources/id1/**.json"
+	],
+	"First createAdapter call: Correct exclude patterns supplied");
+
+	t.deepEqual(fsAdapter._fsBasePath, path.join(applicationBPath, "webapp"), "Returned an FS adapter");
+	// t.deepEqual(fsAdapter);
+});
+
 /* Test data */
 const applicationBTree = {
 	"id": "application.b",