diff --git a/crates/oxide/src/scanner/sources.rs b/crates/oxide/src/scanner/sources.rs
index f28b16a49865..49fc576a4ea0 100644
--- a/crates/oxide/src/scanner/sources.rs
+++ b/crates/oxide/src/scanner/sources.rs
@@ -1,7 +1,7 @@
 use crate::glob::split_pattern;
 use crate::GlobEntry;
 use bexpand::Expression;
-use std::path::PathBuf;
+use std::path::{Component, Path, PathBuf};
 use tracing::{event, Level};
 
 use super::auto_source_detection::IGNORED_CONTENT_DIRS;
@@ -116,12 +116,12 @@ impl PublicSourceEntry {
                 PathBuf::from(&self.base).join(&self.pattern)
             };
 
-            match dunce::canonicalize(combined_path) {
-                Ok(resolved_path) if resolved_path.is_dir() => {
+            match resolve_path(&combined_path, self.negated) {
+                Ok(resolved_path) if combined_path.is_dir() => {
                     self.base = resolved_path.to_string_lossy().to_string();
                     self.pattern = "**/*".to_owned();
                 }
-                Ok(resolved_path) if resolved_path.is_file() => {
+                Ok(resolved_path) if combined_path.is_file() => {
                     self.base = resolved_path
                         .parent()
                         .unwrap()
@@ -144,7 +144,7 @@ impl PublicSourceEntry {
             Some(static_part) => {
                 // TODO: If the base does not exist on disk, try removing the last slash and try
                 // again.
-                match dunce::canonicalize(base.join(static_part)) {
+                match resolve_path(&base.join(static_part), self.negated) {
                     Ok(base) => base,
                     Err(err) => {
                         event!(tracing::Level::ERROR, "Failed to resolve glob: {:?}", err);
@@ -171,6 +171,39 @@ impl PublicSourceEntry {
     }
 }
 
+fn resolve_path(path: &Path, preserve_symlinks: bool) -> std::io::Result<PathBuf> {
+    if preserve_symlinks {
+        path.metadata()?;
+        return Ok(normalize_path_lexically(path));
+    }
+
+    dunce::canonicalize(path)
+}
+
+/// Lexically normalize an absolute path without resolving it through the
+/// filesystem.
+///
+/// This intentionally preserves symlink path shapes, so `..` segments after a
+/// symlinked component are collapsed without resolving to the symlink target.
+/// Current callers pass absolute paths; relative paths with leading `..`
+/// segments would lose those leading components because `PathBuf::pop` on an
+/// empty buffer is a no-op.
+fn normalize_path_lexically(path: &Path) -> PathBuf {
+    let mut normalized = PathBuf::new();
+
+    for component in path.components() {
+        match component {
+            Component::CurDir => {}
+            Component::ParentDir => {
+                normalized.pop();
+            }
+            component => normalized.push(component.as_os_str()),
+        }
+    }
+
+    normalized
+}
+
 /// For each public source entry:
 ///
 /// 1. Perform brace expansion
diff --git a/crates/oxide/tests/scanner.rs b/crates/oxide/tests/scanner.rs
index 4003ff253048..62f7ba1b91a7 100644
--- a/crates/oxide/tests/scanner.rs
+++ b/crates/oxide/tests/scanner.rs
@@ -1761,6 +1761,48 @@ mod scanner {
         assert_eq!(candidates, vec!["content-['abcd/xyz.html']"]);
     }
 
+    #[test]
+    fn test_source_not_can_ignore_symlinked_directory() {
+        let dir = tempdir().unwrap().into_path();
+        create_files_in(
+            &dir,
+            &[("directory_a/a.html", "content-['directory_a/a.html']")],
+        );
+        let symlink_path = dir.join("symlink");
+        symlink(dir.join("directory_a"), &symlink_path).unwrap();
+        assert!(fs::symlink_metadata(&symlink_path)
+            .unwrap()
+            .file_type()
+            .is_symlink());
+
+        let mut scanner = Scanner::new(vec![
+            public_source_entry_from_pattern(dir.clone(), "@source './'"),
+            public_source_entry_from_pattern(dir.clone(), "@source not './symlink'"),
+        ]);
+        let candidates = scanner.scan();
+
+        assert_eq!(candidates, vec!["content-['directory_a/a.html']"]);
+
+        let base_dir =
+            format!("{}{}", dunce::canonicalize(&dir).unwrap().display(), "/").replace('\\', "/");
+        let files = scanner
+            .get_files()
+            .iter()
+            .map(|file| file.replace('\\', "/").replace(&base_dir, ""))
+            .collect::<Vec<_>>();
+
+        assert_eq!(files, vec!["directory_a/a.html"]);
+
+        let mut scanner = Scanner::new(vec![
+            public_source_entry_from_pattern(dir.clone(), "@source './'"),
+            public_source_entry_from_pattern(dir.clone(), "@source not './symlink'"),
+            public_source_entry_from_pattern(dir.clone(), "@source not './directory_a'"),
+        ]);
+        let candidates = scanner.scan();
+
+        assert!(candidates.is_empty());
+    }
+
     #[test]
     fn test_extract_used_css_variables_from_css() {
         let dir = tempdir().unwrap().into_path();