diff --git a/Cargo.lock b/Cargo.lock
index 5d6cf0809c7e75..68b950b9a13033 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1047,7 +1047,7 @@ dependencies = [
  "aws-smithy-runtime-api",
  "aws-smithy-types",
  "aws-types",
- "bytes 1.6.1",
+ "bytes 1.7.1",
  "http 0.2.9",
  "regex",
  "tracing 0.1.40",
@@ -1069,7 +1069,7 @@ dependencies = [
  "aws-smithy-runtime-api",
  "aws-smithy-types",
  "aws-types",
- "bytes 1.6.1",
+ "bytes 1.7.1",
  "http 0.2.9",
  "regex",
  "tracing 0.1.40",
diff --git a/src/sources/file.rs b/src/sources/file.rs
index 3bf8aa826e5409..362cae59cc07ba 100644
--- a/src/sources/file.rs
+++ b/src/sources/file.rs
@@ -511,6 +511,11 @@ pub fn file_source(
         return Box::pin(future::ready(Err(())));
     }
 
+    let exclude_patterns = config
+        .exclude
+        .iter()
+        .map(|path_buf| path_buf.iter().collect::<std::path::PathBuf>())
+        .collect::<Vec<PathBuf>>();
     let ignore_before = calculate_ignore_before(config.ignore_older_secs);
     let glob_minimum_cooldown = config.glob_minimum_cooldown_ms;
     let (ignore_checkpoints, read_from) = reconcile_position_options(
@@ -525,7 +530,7 @@ pub fn file_source(
 
     let paths_provider = Glob::new(
         &config.include,
-        &config.exclude,
+        &exclude_patterns,
         MatchOptions::default(),
         emitter.clone(),
     )
@@ -1407,6 +1412,52 @@ mod tests {
         assert_eq!(is, [n as usize; 3]);
     }
 
+    #[tokio::test]
+    async fn file_exclude_paths() {
+        let n = 5;
+
+        let dir = tempdir().unwrap();
+        let config = file::FileConfig {
+            include: vec![dir.path().join("a//b/*.log.*")],
+            exclude: vec![dir.path().join("a//b/test.log.*")],
+            ..test_default_file_config(&dir)
+        };
+
+        let path1 = dir.path().join("a//b/a.log.1");
+        let path2 = dir.path().join("a//b/test.log.1");
+        let received = run_file_source(&config, false, NoAcks, LogNamespace::Legacy, async {
+            std::fs::create_dir_all(dir.path().join("a/b")).unwrap();
+            let mut file1 = File::create(&path1).unwrap();
+            let mut file2 = File::create(&path2).unwrap();
+
+            sleep_500_millis().await; // The files must be observed at their original lengths before writing to them
+
+            for i in 0..n {
+                writeln!(&mut file1, "1 {}", i).unwrap();
+                writeln!(&mut file2, "2 {}", i).unwrap();
+            }
+
+            sleep_500_millis().await;
+        })
+        .await;
+
+        let mut is = [0; 1];
+
+        for event in received {
+            let line =
+                event.as_log()[log_schema().message_key().unwrap().to_string()].to_string_lossy();
+            let mut split = line.split(' ');
+            let file = split.next().unwrap().parse::<usize>().unwrap();
+            assert_ne!(file, 4);
+            let i = split.next().unwrap().parse::<usize>().unwrap();
+
+            assert_eq!(is[file - 1], i);
+            is[file - 1] += 1;
+        }
+
+        assert_eq!(is, [n as usize; 1]);
+    }
+
     #[tokio::test]
     async fn file_key_acknowledged() {
         file_key(Acks).await