diff --git a/src/nimblepkg/packageinfo.nim b/src/nimblepkg/packageinfo.nim
index 929587b8..0428d2aa 100644
--- a/src/nimblepkg/packageinfo.nim
+++ b/src/nimblepkg/packageinfo.nim
@@ -510,13 +510,13 @@ proc iterInstallFiles*(realDir: string, pkgInfo: PackageInfo,
     for kind, file in walkDir(realDir):
       if kind == pcDir:
         let skip = pkgInfo.checkInstallDir(realDir, file)
-
         if skip: continue
+        # we also have to stop recursing if we reach an in-place nimbleDir
+        if file == options.getNimbleDir().expandFilename(): continue
 
         iterInstallFiles(file, pkgInfo, options, action)
       else:
         let skip = pkgInfo.checkInstallFile(realDir, file)
-
         if skip: continue
 
         action(file)
diff --git a/tests/issue428/dummy.nimble b/tests/issue428/dummy.nimble
new file mode 100644
index 00000000..dec76c1b
--- /dev/null
+++ b/tests/issue428/dummy.nimble
@@ -0,0 +1,10 @@
+# Package
+
+version       = "0.1.0"
+author        = "Author"
+description   = "dummy"
+license       = "MIT"
+
+# Dependencies
+
+requires "nim >= 0.17.3"
\ No newline at end of file
diff --git a/tests/tester.nim b/tests/tester.nim
index d780f40d..fdd569ca 100644
--- a/tests/tester.nim
+++ b/tests/tester.nim
@@ -354,6 +354,12 @@ test "issue #338":
   cd "issue338":
     check execNimble("install", "-y").exitCode == QuitSuccess
 
+test "issue #428":
+  cd "issue428":
+    # Note: Can't use execNimble because it patches nimbleDir
+    check execCmdEx(nimblePath & " -y --nimbleDir=./nimbleDir install").exitCode == QuitSuccess
+    check dirExists("nimbleDir/pkgs/dummy-0.1.0")
+
 test "can list":
   check execNimble("list").exitCode == QuitSuccess