diff --git a/CHANGELOG.md b/CHANGELOG.md
index ce7e306f..2a84de39 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,9 @@ and this project adheres to [Semantic Versioning](http://semver.org/spec/v2.0.0.
 - Display non-Java files in Java Projects explorer. [#145](https://github.com/microsoft/vscode-java-dependency/issues/145)
 - Apply file decorators to project level. [#481](https://github.com/microsoft/vscode-java-dependency/issues/481)
 
+### Fixed
+- Apply `files.exclude` to Java Projects explorer. [#214](https://github.com/microsoft/vscode-java-dependency/issues/214)
+
 ## 0.21.2
 ### Fixed
 - Improve the output of exporting jar tasks. [#699](https://github.com/microsoft/vscode-java-dependency/issues/699)
diff --git a/src/java/jdtls.ts b/src/java/jdtls.ts
index a5674e62..b3fc6424 100644
--- a/src/java/jdtls.ts
+++ b/src/java/jdtls.ts
@@ -1,7 +1,9 @@
 // Copyright (c) Microsoft Corporation. All rights reserved.
 // Licensed under the MIT license.
 
-import { CancellationToken, commands } from "vscode";
+
+import * as minimatch from "minimatch";
+import { CancellationToken, Uri, commands, workspace } from "vscode";
 import { Commands, executeJavaLanguageServerCommand } from "../commands";
 import { IClasspath } from "../tasks/buildArtifact/IStepMetadata";
 import { IMainClassInfo } from "../tasks/buildArtifact/ResolveMainClassExecutor";
@@ -20,8 +22,32 @@ export namespace Jdtls {
         return commands.executeCommand(Commands.EXECUTE_WORKSPACE_COMMAND, Commands.JAVA_PROJECT_REFRESH_LIB_SERVER, params);
     }
 
-    export async function getPackageData(params: { [key: string]: any }): Promise<INodeData[]> {
-        return await commands.executeCommand(Commands.EXECUTE_WORKSPACE_COMMAND, Commands.JAVA_GETPACKAGEDATA, params) || [];
+    export async function getPackageData(params: IPackageDataParam): Promise<INodeData[]> {
+        const uri: Uri | null = !params.projectUri ? null : Uri.parse(params.projectUri);
+        const excludePatterns: {[key: string]: boolean} | undefined = workspace.getConfiguration("files", uri).get("exclude");
+
+        let nodeData: INodeData[] = await commands.executeCommand(Commands.EXECUTE_WORKSPACE_COMMAND,
+            Commands.JAVA_GETPACKAGEDATA, params) || [];
+        if (excludePatterns && nodeData.length) {
+            const uriOfChildren: string[] = nodeData.map((node: INodeData) => node.uri).filter(Boolean) as string[];
+            const urisToExclude: Set<string> = new Set<string>();
+            for (const pattern in excludePatterns) {
+                if (excludePatterns[pattern]) {
+                    const toExclude: string[] = minimatch.match(uriOfChildren, pattern);
+                    toExclude.forEach((uri: string) => urisToExclude.add(uri));
+                }
+            }
+
+            if (urisToExclude.size) {
+                nodeData = nodeData.filter((node: INodeData) => {
+                    if (!node.uri) {
+                        return true;
+                    }
+                    return !urisToExclude.has(node.uri);
+                })
+            }
+        }
+        return nodeData;
     }
 
     export async function resolvePath(params: string): Promise<INodeData[]> {
@@ -49,3 +75,8 @@ export namespace Jdtls {
         return <Promise<string[]>>executeJavaLanguageServerCommand(Commands.JAVA_RESOLVE_BUILD_FILES);
     }
 }
+
+interface IPackageDataParam {
+    projectUri: string | undefined,
+    [key: string]: any,
+}
\ No newline at end of file
diff --git a/src/settings.ts b/src/settings.ts
index 08b99213..c0b9d86c 100644
--- a/src/settings.ts
+++ b/src/settings.ts
@@ -16,7 +16,8 @@ export class Settings {
         context.subscriptions.push(workspace.onDidChangeConfiguration((e: ConfigurationChangeEvent) => {
             if ((e.affectsConfiguration("java.dependency.syncWithFolderExplorer") && Settings.syncWithFolderExplorer()) ||
                     e.affectsConfiguration("java.dependency.showMembers") ||
-                    e.affectsConfiguration("java.dependency.packagePresentation")) {
+                    e.affectsConfiguration("java.dependency.packagePresentation") ||
+                    e.affectsConfiguration("files.exclude")) {
                 commands.executeCommand(Commands.VIEW_PACKAGE_INTERNAL_REFRESH);
             } else if (e.affectsConfiguration("java.dependency.autoRefresh")) {
                 syncHandler.updateFileWatcher(Settings.autoRefresh());
diff --git a/test/maven-suite/projectView.test.ts b/test/maven-suite/projectView.test.ts
index ae73ccd0..11fffebf 100644
--- a/test/maven-suite/projectView.test.ts
+++ b/test/maven-suite/projectView.test.ts
@@ -223,4 +223,11 @@ suite("Maven Project View Tests", () => {
         assert.equal(mainClasses![0].name, "com.mycompany.app.App", "mainClasses[0]'s name should be com.mycompany.app.App");
     });
 
+    test("Can apply 'files.exclude'", async function() {
+        const explorer = DependencyExplorer.getInstance(contextManager.context);
+
+        const projectNode = (await explorer.dataProvider.getChildren())![0] as ProjectNode;
+        const projectChildren = await projectNode.getChildren();
+        assert.ok(!projectChildren.find((node: DataNode) => node.nodeData.name === ".hidden"));
+    });
 });
diff --git a/test/maven/.hidden b/test/maven/.hidden
new file mode 100644
index 00000000..e69de29b
diff --git a/test/maven/.vscode/settings.json b/test/maven/.vscode/settings.json
index 66e66c61..ee7bd904 100644
--- a/test/maven/.vscode/settings.json
+++ b/test/maven/.vscode/settings.json
@@ -1,3 +1,6 @@
 {
-    "java.server.launchMode": "Standard"
+    "java.server.launchMode": "Standard",
+    "files.exclude": {
+        "**/.hidden": true,
+    }
 }