diff --git a/gazelle/bzl/gazelle.go b/gazelle/bzl/gazelle.go
index b58eee63..dccec274 100644
--- a/gazelle/bzl/gazelle.go
+++ b/gazelle/bzl/gazelle.go
@@ -233,11 +233,10 @@ func (*bzlLibraryLang) GenerateRules(args language.GenerateArgs) language.Genera
 
 		r.SetAttr("srcs", []string{f})
 
-		if args.File == nil || !args.File.HasDefaultVisibility() {
-			inPrivateDir := pathtools.Index(args.Rel, "private") >= 0
-			if !inPrivateDir {
-				r.SetAttr("visibility", []string{"//visibility:public"})
-			}
+		shouldSetVisibility := args.File == nil || !args.File.HasDefaultVisibility()
+		if shouldSetVisibility {
+			vis := checkInternalVisibility(args.Rel, "//visibility:public")
+			r.SetAttr("visibility", []string{vis})
 		}
 
 		fullPath := filepath.Join(args.Dir, f)
@@ -335,3 +334,16 @@ func (s srcsList) Contains(m string) bool {
 	}
 	return false
 }
+
+// checkInternalVisibility overrides the given visibility if the package is
+// internal.
+func checkInternalVisibility(rel, visibility string) string {
+	if i := pathtools.Index(rel, "internal"); i > 0 {
+		visibility = fmt.Sprintf("//%s:__subpackages__", rel[:i-1])
+	} else if i := pathtools.Index(rel, "private"); i > 0 {
+		visibility = fmt.Sprintf("//%s:__subpackages__", rel[:i-1])
+	} else if pathtools.HasPrefix(rel, "internal") || pathtools.HasPrefix(rel, "private") {
+		visibility = "//:__subpackages__"
+	}
+	return visibility
+}
diff --git a/gazelle/bzl/testdata/private/nested/private/BUILD.out b/gazelle/bzl/testdata/private/nested/private/BUILD.out
new file mode 100644
index 00000000..442401ca
--- /dev/null
+++ b/gazelle/bzl/testdata/private/nested/private/BUILD.out
@@ -0,0 +1,7 @@
+load("@bazel_skylib//:bzl_library.bzl", "bzl_library")
+
+bzl_library(
+    name = "bar",
+    srcs = ["bar.bzl"],
+    visibility = ["//nested:__subpackages__"],
+)
diff --git a/gazelle/bzl/testdata/private/nested/private/bar.bzl b/gazelle/bzl/testdata/private/nested/private/bar.bzl
new file mode 100644
index 00000000..c8a48713
--- /dev/null
+++ b/gazelle/bzl/testdata/private/nested/private/bar.bzl
@@ -0,0 +1,6 @@
+"""
+Test sample code.
+"""
+
+def func():
+    pass
diff --git a/gazelle/bzl/testdata/private/nested/private/inside/internal/BUILD.out b/gazelle/bzl/testdata/private/nested/private/inside/internal/BUILD.out
new file mode 100644
index 00000000..afaf8f38
--- /dev/null
+++ b/gazelle/bzl/testdata/private/nested/private/inside/internal/BUILD.out
@@ -0,0 +1,7 @@
+load("@bazel_skylib//:bzl_library.bzl", "bzl_library")
+
+bzl_library(
+    name = "bar",
+    srcs = ["bar.bzl"],
+    visibility = ["//nested/private/inside:__subpackages__"],
+)
diff --git a/gazelle/bzl/testdata/private/nested/private/inside/internal/bar.bzl b/gazelle/bzl/testdata/private/nested/private/inside/internal/bar.bzl
new file mode 100644
index 00000000..c8a48713
--- /dev/null
+++ b/gazelle/bzl/testdata/private/nested/private/inside/internal/bar.bzl
@@ -0,0 +1,6 @@
+"""
+Test sample code.
+"""
+
+def func():
+    pass
diff --git a/gazelle/bzl/testdata/private/private/BUILD.out b/gazelle/bzl/testdata/private/private/BUILD.out
index eb2e935d..f442a99a 100644
--- a/gazelle/bzl/testdata/private/private/BUILD.out
+++ b/gazelle/bzl/testdata/private/private/BUILD.out
@@ -3,4 +3,5 @@ load("@bazel_skylib//:bzl_library.bzl", "bzl_library")
 bzl_library(
     name = "bar",
     srcs = ["bar.bzl"],
+    visibility = ["//:__subpackages__"],
 )