diff --git a/crates/rust-analyzer/src/config.rs b/crates/rust-analyzer/src/config.rs
index 110575e85cb95..c347913fb2f3f 100644
--- a/crates/rust-analyzer/src/config.rs
+++ b/crates/rust-analyzer/src/config.rs
@@ -697,7 +697,22 @@ impl Config {
         match self.data.linkedProjects.as_slice() {
             [] => match self.discovered_projects.as_ref() {
                 Some(discovered_projects) => {
-                    discovered_projects.iter().cloned().map(LinkedProject::from).collect()
+                    let exclude_dirs: Vec<_> = self
+                        .data
+                        .files_excludeDirs
+                        .iter()
+                        .map(|p| self.root_path.join(p))
+                        .collect();
+                    discovered_projects
+                        .iter()
+                        .filter(|p| {
+                            let (ProjectManifest::ProjectJson(path)
+                            | ProjectManifest::CargoToml(path)) = p;
+                            !exclude_dirs.iter().any(|p| path.starts_with(p))
+                        })
+                        .cloned()
+                        .map(LinkedProject::from)
+                        .collect()
                 }
                 None => Vec::new(),
             },
diff --git a/crates/rust-analyzer/tests/slow-tests/main.rs b/crates/rust-analyzer/tests/slow-tests/main.rs
index 5bb925f62be37..6d2788d337d59 100644
--- a/crates/rust-analyzer/tests/slow-tests/main.rs
+++ b/crates/rust-analyzer/tests/slow-tests/main.rs
@@ -20,7 +20,7 @@ use lsp_types::{
     notification::DidOpenTextDocument,
     request::{
         CodeActionRequest, Completion, Formatting, GotoTypeDefinition, HoverRequest,
-        WillRenameFiles,
+        WillRenameFiles, WorkspaceSymbol,
     },
     CodeActionContext, CodeActionParams, CompletionParams, DidOpenTextDocumentParams,
     DocumentFormattingParams, FileRename, FormattingOptions, GotoDefinitionParams, HoverParams,
@@ -1056,3 +1056,41 @@ fn main() {}
         }),
     );
 }
+
+#[test]
+fn test_exclude_config_works() {
+    if skip_slow_tests() {
+        return;
+    }
+
+    let server = Project::with_fixture(
+        r#"
+//- /foo/Cargo.toml
+[package]
+name = "foo"
+version = "0.0.0"
+
+//- /foo/src/lib.rs
+pub fn foo() {}
+
+//- /bar/Cargo.toml
+[package]
+name = "bar"
+version = "0.0.0"
+
+//- /bar/src/lib.rs
+pub fn bar() {}
+"#,
+    )
+    .root("foo")
+    .root("bar")
+    .with_config(json!({
+       "files": {
+           "excludeDirs": ["foo", "bar"]
+        }
+    }))
+    .server()
+    .wait_until_workspace_is_loaded();
+
+    server.request::<WorkspaceSymbol>(Default::default(), json!([]));
+}