diff --git a/packages/core/src/package/diff/PackageDiffImpl.ts b/packages/core/src/package/diff/PackageDiffImpl.ts
index 4584caf3e..356d9f3f8 100644
--- a/packages/core/src/package/diff/PackageDiffImpl.ts
+++ b/packages/core/src/package/diff/PackageDiffImpl.ts
@@ -73,7 +73,13 @@ export default class PackageDiffImpl {
 
             // Check whether the package has been modified
             for (let filename of modified_files) {
-                if (filename.includes(path.normalize(pkgDescriptor.path))) {
+                
+                let normalizedPkgPath = path.normalize(pkgDescriptor.path);
+                let normalizedFilename = path.normalize(filename);
+            
+                let relativePath = path.relative(normalizedPkgPath, normalizedFilename);
+            
+                if (!relativePath.startsWith('..')) {
                     SFPLogger.log(`Found change(s) in ${filename}`, LoggerLevel.TRACE, this.logger);
                     return { isToBeBuilt: true, reason: `Found change(s) in package`, tag: tag };
                 }
diff --git a/packages/core/tests/package/PackageDiffImpl.test.ts b/packages/core/tests/package/PackageDiffImpl.test.ts
index 781487743..69a44d44a 100644
--- a/packages/core/tests/package/PackageDiffImpl.test.ts
+++ b/packages/core/tests/package/PackageDiffImpl.test.ts
@@ -74,6 +74,11 @@ describe('Determines whether a given package has changed', () => {
         let result = await packageDiffImpl.exec();
         expect(result.isToBeBuilt).toEqual(true);
         expect(result.reason).toEqual(`Found change(s) in package`);
+
+        packageDiffImpl = new PackageDiffImpl(new ConsoleLogger(), 'core-b', null);
+        result = await packageDiffImpl.exec();
+        expect(result.isToBeBuilt).toEqual(false);
+
     });
 
     it('should return true if package descriptor has changed', async () => {
@@ -187,6 +192,18 @@ const packageConfigJson: string = `
         "PermSetC"
       ]
     },
+    {
+      "path": "packages/domains/core-b",
+      "package": "core-b",
+      "default": false,
+      "versionName": "covax",
+      "versionNumber": "1.0.0.0",
+      "assignPermSetsPreDeployment": [
+        "PermSetA",
+        "PermSetB",
+        "PermSetC"
+      ]
+    },
     {
       "path": "packages/frameworks/mass-dataload",
       "package": "mass-dataload",