diff --git a/src/Tasks/Microsoft.NET.Build.Tasks/DependencyContextBuilder2.cs b/src/Tasks/Microsoft.NET.Build.Tasks/DependencyContextBuilder2.cs
index c3a04d6083a8..6646e0c1615f 100644
--- a/src/Tasks/Microsoft.NET.Build.Tasks/DependencyContextBuilder2.cs
+++ b/src/Tasks/Microsoft.NET.Build.Tasks/DependencyContextBuilder2.cs
@@ -766,10 +766,16 @@ private void CalculateExcludedLibraries()
                     var dependencyName = dependenciesToWalk.Pop();
                     if (!includedDependencies.ContainsKey(dependencyName))
                     {
-                        includedDependencies.Add(dependencyName, _dependencyLibraries[dependencyName]);
-                        foreach (var newDependency in _libraryDependencies[dependencyName])
+                        //  There may not be a library in the assets file if a referenced project has
+                        //  PrivateAssets="all" for a package reference, and there is a package in the graph
+                        //  that depends on the same packge.
+                        if (_dependencyLibraries.TryGetValue(dependencyName, out var dependencyLibrary))
                         {
-                            dependenciesToWalk.Push(newDependency.Name);
+                            includedDependencies.Add(dependencyName, dependencyLibrary);
+                            foreach (var newDependency in _libraryDependencies[dependencyName])
+                            {
+                                dependenciesToWalk.Push(newDependency.Name);
+                            }
                         }
                     }
                 }
diff --git a/src/Tests/Microsoft.NET.Publish.Tests/GivenThatWeWantToExcludeAPackageFromPublish.cs b/src/Tests/Microsoft.NET.Publish.Tests/GivenThatWeWantToExcludeAPackageFromPublish.cs
index 1cb4b9b86746..67e81527e2ab 100644
--- a/src/Tests/Microsoft.NET.Publish.Tests/GivenThatWeWantToExcludeAPackageFromPublish.cs
+++ b/src/Tests/Microsoft.NET.Publish.Tests/GivenThatWeWantToExcludeAPackageFromPublish.cs
@@ -12,6 +12,7 @@
 using System.Xml.Linq;
 using Xunit.Abstractions;
 using System.Collections.Generic;
+using Microsoft.NET.TestFramework.ProjectConstruction;
 
 namespace Microsoft.NET.Publish.Tests
 {
@@ -166,5 +167,37 @@ public void It_publishes_a_PackageReference_with_PrivateAssets_All_and_Publish_t
 
             publishDirectory.Should().OnlyHaveFiles(expectedFiles);
         }
+
+        [Fact]
+        public void TransitiveNetStandardPackageReferenceAndPublishFalse()
+        {
+            var testLibraryProject = new TestProject()
+            {
+                Name = "TestLibrary",
+                IsSdkProject = true,
+                TargetFrameworks = "netstandard2.0"
+            };
+
+            testLibraryProject.PackageReferences.Add(new TestPackageReference("WindowsAzure.Storage", "9.3.3"));
+
+            var testProject = new TestProject()
+            {
+                Name = "TestApp",
+                IsSdkProject = true,
+                IsExe = true,
+                TargetFrameworks = "netcoreapp3.0"
+            };
+
+            testProject.PackageReferences.Add(new TestPackageReference("Newtonsoft.Json", "12.0.2", privateAssets: "all"));
+
+            testProject.ReferencedProjects.Add(testLibraryProject);
+
+            var testAsset = _testAssetsManager.CreateTestProject(testProject)
+                .Restore(Log, testProject.Name);
+
+            var publishCommand = new PublishCommand(Log, Path.Combine(testAsset.TestRoot, testProject.Name));
+
+            publishCommand.Execute().Should().Pass();
+        }
     }
 }