diff --git a/repo_resource/common.py b/repo_resource/common.py
index 81c599c..6148dde 100644
--- a/repo_resource/common.py
+++ b/repo_resource/common.py
@@ -376,6 +376,24 @@ def __manifest_out(self, filename):
         finally:
             self.__restore_oldpwd()
 
+    def resolve_manifest_include(self, manifest):
+        for idx, element in enumerate(list(manifest.iter())):
+            if element.tag == 'include':
+                sub_manifest_name = element.get('name')
+                sub_xml = ET.parse('.repo/manifests/'+sub_manifest_name)
+                sub_manifest = sub_xml.getroot()
+
+                # resolve recursively include in sub manifests
+                self.resolve_manifest_include(sub_manifest)
+
+                # insert sub manifest in the parent without 'manifest' elements
+                for sub_element in reversed(list(sub_manifest.iter())):
+                    if sub_element.tag != 'manifest':
+                        manifest.insert(idx, sub_element)
+
+                # remove 'include' element
+                manifest.remove(element)
+
     def update_manifest(self, jobs):
         projects = []
         removed_projects = []
@@ -387,6 +405,7 @@ def update_manifest(self, jobs):
                 print('Updating project revisions in manifest')
                 xml = ET.parse('.repo/manifests/'+self.__name)
                 manifest = xml.getroot()
+                self.resolve_manifest_include(manifest)
 
                 for r in manifest.findall('remote'):
                     url = r.get('fetch').rstrip('/')
diff --git a/repo_resource/requirements.txt b/repo_resource/requirements.txt
index 54349a8..45ffbba 100644
--- a/repo_resource/requirements.txt
+++ b/repo_resource/requirements.txt
@@ -1,3 +1,4 @@
+setuptools==74.1.2
 gitrepo==2.32.2
 ssh-agent-setup==2.0.1
 GitPython==3.1.31
diff --git a/repo_resource/test_check.py b/repo_resource/test_check.py
index 34b6182..7debee6 100644
--- a/repo_resource/test_check.py
+++ b/repo_resource/test_check.py
@@ -78,6 +78,20 @@ def setUp(self):
                 'name': 'aosp_remove_yukawa_project.xml'
             }
         }
+        self.include_one_project_source = {
+            'source': {
+                'url': 'https://github.com/makohoek/demo-manifests.git',
+                'revision': 'main',
+                'name': 'aosp_include_one_project.xml'
+            }
+        }
+        self.include_multiple_projects_source = {
+            'source': {
+                'url': 'https://github.com/makohoek/demo-manifests.git',
+                'revision': 'main',
+                'name': 'aosp_include_multiple_projects.xml'
+            }
+        }
 
     def tearDown(self):
         p = common.CACHEDIR
@@ -403,6 +417,26 @@ def test_no_remove_project_element(self):
         version = versions[0]['version']
         self.assertNotIn('remove-project', version)
 
+    def test_include_one_project_version(self):
+        data = self.include_one_project_source
+        instream = StringIO(json.dumps(data))
+        versions = check.check(instream)
+
+        expected_version = '<manifest><remote fetch=\"https://android.googlesource.com/\" name=\"aosp\"></remote><default remote=\"aosp\" revision=\"refs/tags/android-12.0.0_r32\"></default><project groups=\"pdk\" name=\"device/generic/common\" path=\"device/generic/common\" revision=\"033d50e2298811d81de7db8cdea63e349a96c9ba\"></project><remote fetch=\"https://github.com/\" name=\"github\"></remote><project name=\"CirrusLogic/tinyhal\" path=\"external/tinyhal\" remote=\"github\" revision=\"69d47887c13da461bf8400231a1c7f7290826037\"></project></manifest>'  # noqa: E501
+
+        version = versions[0]['version']
+        self.assertEqual(version, expected_version)
+
+    def test_include_multiple_projects_version(self):
+        data = self.include_multiple_projects_source
+        instream = StringIO(json.dumps(data))
+        versions = check.check(instream)
+
+        expected_version = '<manifest><remote fetch=\"https://android.googlesource.com/\" name=\"aosp\"></remote><default remote=\"aosp\" revision=\"refs/tags/android-12.0.0_r32\"></default><remote fetch=\"https://github.com/\" name=\"github\"></remote><project name=\"wimglenn/oyaml\" path=\"external/oyaml\" remote=\"github\" revision=\"6350d9de586f40014296b55427ccbc1d7f47269a\"></project><remote fetch=\"https://github.com/\" name=\"github\"></remote><project name=\"OP-TEE/optee_client\" path=\"vendor/linaro/optee_client\" remote=\"github\" revision=\"8533e0e6329840ee96cf81b6453f257204227e6c\"></project><project groups=\"pdk\" name=\"device/generic/common\" path=\"device/generic/common\" revision=\"033d50e2298811d81de7db8cdea63e349a96c9ba\"></project><remote fetch=\"https://github.com/\" name=\"github\"></remote><project name=\"CirrusLogic/tinyhal\" path=\"external/tinyhal\" remote=\"github\" revision=\"69d47887c13da461bf8400231a1c7f7290826037\"></project></manifest>'  # noqa: E501
+
+        version = versions[0]['version']
+        self.assertEqual(version, expected_version)
+
 
 if __name__ == '__main__':
     unittest.main()