diff --git a/server/src/__tests__/completions.test.ts b/server/src/__tests__/completions.test.ts
index b2e23b2d..a5bc501d 100644
--- a/server/src/__tests__/completions.test.ts
+++ b/server/src/__tests__/completions.test.ts
@@ -404,22 +404,41 @@ describe('On Completion', () => {
   })
 
   it('provides suggestions for direcitive statement after keywords "include", "inherit" and "requrie" are typed', async () => {
-    jest.spyOn(bitBakeProjectScanner, 'includes', 'get').mockReturnValue([{
-      name: 'init-manager-none',
-      path: {
-        root: '/',
-        dir: '/home/projects/poky/meta/conf/distro/include',
-        base: 'init-manager-none.inc',
-        ext: '.inc',
-        name: 'init-manager-none'
+    const documentUri = 'file:///home/projects/poky/meta/conf-2/path/to/dummy.bb'
+    jest.spyOn(bitBakeProjectScanner, 'includes', 'get').mockReturnValue([
+      {
+        name: 'init-manager-none',
+        path: {
+          root: '/',
+          dir: '/home/projects/poky/meta/conf/distro/include',
+          base: 'init-manager-none.inc',
+          ext: '.inc',
+          name: 'init-manager-none'
+        },
+        extraInfo: 'layer: core',
+        layerInfo: {
+          name: 'core',
+          path: '/home/projects/poky/meta',
+          priority: 5
+        }
       },
-      extraInfo: 'layer: core',
-      layerInfo: {
-        name: 'core',
-        path: '/home/projects/poky/meta',
-        priority: 5
+      {
+        name: 'init-manager-none-2',
+        path: {
+          root: '/',
+          dir: '/home/projects/poky/meta/conf-2/distro/include', // Note that this fake path is under the same "conf-2" folder as the documentUri
+          base: 'init-manager-none-2.inc',
+          ext: '.inc',
+          name: 'init-manager-none-2'
+        },
+        extraInfo: 'layer: core',
+        layerInfo: {
+          name: 'core',
+          path: '/home/projects/poky/meta',
+          priority: 5
+        }
       }
-    }])
+    ])
 
     jest.spyOn(bitBakeProjectScanner, 'classes', 'get').mockReturnValue([{
       name: 'copyleft_filter',
@@ -439,13 +458,13 @@ describe('On Completion', () => {
     }])
 
     await analyzer.analyze({
-      uri: DUMMY_URI,
+      uri: documentUri,
       document: FIXTURE_DOCUMENT.COMPLETION
     })
 
     const resultForInclude = onCompletionHandler({
       textDocument: {
-        uri: DUMMY_URI
+        uri: documentUri
       },
       position: {
         line: 10,
@@ -455,7 +474,7 @@ describe('On Completion', () => {
 
     const resultForRequire = onCompletionHandler({
       textDocument: {
-        uri: DUMMY_URI
+        uri: documentUri
       },
       position: {
         line: 11,
@@ -465,7 +484,7 @@ describe('On Completion', () => {
 
     const resultForInherit = onCompletionHandler({
       textDocument: {
-        uri: DUMMY_URI
+        uri: documentUri
       },
       position: {
         line: 12,
@@ -477,7 +496,7 @@ describe('On Completion', () => {
       expect.arrayContaining([
         expect.objectContaining(
           {
-            label: 'init-manager-none',
+            label: 'init-manager-none.inc',
             kind: 8,
             insertText: 'conf/distro/include/init-manager-none.inc'
           }
@@ -485,11 +504,16 @@ describe('On Completion', () => {
       ])
     )
 
+    const index1 = resultForInclude.findIndex((item) => item.label === 'init-manager-none.inc')
+    const index2 = resultForInclude.findIndex((item) => item.label === 'init-manager-none-2.inc')
+    // Since the path of "init-manager-none-2.inc" is under the same "conf-2" folder as the documentUri, it should be suggested first
+    expect(index2).toBeLessThan(index1)
+
     expect(resultForRequire).toEqual(
       expect.arrayContaining([
         expect.objectContaining(
           {
-            label: 'init-manager-none',
+            label: 'init-manager-none.inc',
             kind: 8,
             insertText: 'conf/distro/include/init-manager-none.inc'
           }
diff --git a/server/src/connectionHandlers/onCompletion.ts b/server/src/connectionHandlers/onCompletion.ts
index 5764a4f5..88e45e37 100644
--- a/server/src/connectionHandlers/onCompletion.ts
+++ b/server/src/connectionHandlers/onCompletion.ts
@@ -21,6 +21,8 @@ import { VARIABLE_FLAGS } from '../completions/variable-flags'
 import { bitBakeProjectScanner } from '../BitBakeProjectScanner'
 import type { ElementInfo } from '../lib/src/types/BitbakeScanResult'
 
+let documentUri = ''
+
 export function onCompletionHandler (textDocumentPositionParams: TextDocumentPositionParams): CompletionItem[] {
   const wordPosition = {
     line: textDocumentPositionParams.position.line,
@@ -28,7 +30,7 @@ export function onCompletionHandler (textDocumentPositionParams: TextDocumentPos
     character: Math.max(textDocumentPositionParams.position.character - 1, 0)
   }
 
-  const documentUri = textDocumentPositionParams.textDocument.uri
+  documentUri = textDocumentPositionParams.textDocument.uri
 
   const word = analyzer.wordAtPointFromTextPosition({
     ...textDocumentPositionParams,
@@ -222,7 +224,7 @@ function convertElementInfoListToCompletionItemList (elementInfoList: ElementInf
   for (const element of elementInfoList) {
     const filePath = getFilePath(element, fileType)
     const completionItem: CompletionItem = {
-      label: element.name,
+      label: element.name + (element.path?.ext === '.inc' ? '.inc' : ''),
       labelDetails: {
         description: filePath ?? fileType
       },
@@ -234,6 +236,19 @@ function convertElementInfoListToCompletionItemList (elementInfoList: ElementInf
     completionItems.push(completionItem)
   }
 
+  if (completionItems.length > 0) {
+    const docUriSplit = documentUri.replace('file://', '').split('/')
+    const condition = (item: CompletionItem): boolean => {
+      if (item.insertText === undefined || item.insertText.split('.')[0] === item.label.split('.')[0]) {
+        return false
+      } else {
+        return docUriSplit.includes(item.insertText.split('/')[0])
+      }
+    }
+
+    completionItems.sort((a, b) => Number(condition(b)) - Number(condition(a)))
+  }
+
   return completionItems
 }