diff --git a/src/parser-includes.ts b/src/parser-includes.ts
index 41a33976..d7633d22 100644
--- a/src/parser-includes.ts
+++ b/src/parser-includes.ts
@@ -94,6 +94,12 @@ export class ParserIncludes {
                     fileDoc["include"] = this.expandInclude(fileDoc["include"], opts.variables);
                     fileDoc["include"].forEach((inner: any, i: number) => {
                         if (!inner["local"]) return;
+                        if (inner["rules"]) {
+                            const rulesResult = Utils.getRulesResult({cwd: opts.cwd, variables: opts.variables, rules: inner["rules"]}, gitData);
+                            if (rulesResult.when === "never") {
+                                return;
+                            }
+                        }
                         fileDoc["include"][i] = {
                             project: value["project"],
                             file: inner["local"].replace(/^\//, ""),
diff --git a/tests/test-cases/include-project-file/.gitlab-ci-3.yml b/tests/test-cases/include-project-file/.gitlab-ci-3.yml
new file mode 100644
index 00000000..83d407eb
--- /dev/null
+++ b/tests/test-cases/include-project-file/.gitlab-ci-3.yml
@@ -0,0 +1,7 @@
+---
+include:
+  # https://gitlab.com/ANGkeith/gitlab-ci-local-test
+  - project: angkeith/gitlab-ci-local-test
+    ref: issue/#1011
+    file:
+      - .gitlab-ci.yml
diff --git a/tests/test-cases/include-project-file/integration.test.ts b/tests/test-cases/include-project-file/integration.test.ts
index 5394f13d..a261d318 100644
--- a/tests/test-cases/include-project-file/integration.test.ts
+++ b/tests/test-cases/include-project-file/integration.test.ts
@@ -49,3 +49,22 @@ test("include:project should target default branch when ref is missing", async (
     const filteredStdout = writeStreams.stdoutLines.filter(f => f.startsWith("job >")).join("\n");
     expect(filteredStdout).toEqual(expected);
 });
+
+test("include:project should respect rules specified in included project", async () => {
+    const writeStreams = new WriteStreamsMock();
+
+    await handler({
+        file: ".gitlab-ci-3.yml",
+        cwd: "tests/test-cases/include-project-file",
+        noColor: true,
+        list: true,
+    }, writeStreams);
+
+
+    const expected = [
+        "name                                    description  stage   when        allow_failure  needs",
+        "should execute since rule eval to true               test    on_success  false      ",
+    ];
+
+    expect(writeStreams.stdoutLines.join("\n")).toEqual(expected.join("\n"));
+});