diff --git a/tccpp.c b/tccpp.c
index 770873f..b1bf113 100644
--- a/tccpp.c
+++ b/tccpp.c
@@ -1528,7 +1528,7 @@ ST_FUNC void preprocess(int is_bof)
     int i, c, n, saved_parse_flags;
     char buf[1024], *q;
     Sym *s;
-    int include_next_count = 0;
+    char *p3 = 0;
 
     saved_parse_flags = parse_flags;
     parse_flags = PARSE_FLAG_PREPROCESS
@@ -1618,6 +1618,11 @@ ST_FUNC void preprocess(int is_bof)
         /* store current file in stack, but increment stack later below */
         *s1->include_stack_ptr = file;
 
+        #ifdef INC_DEBUG
+            if (tok == TOK_INCLUDE_NEXT)
+                printf("%s (1) include_next file %s\n", file->filename, buf);
+        #endif
+
         n = s1->nb_include_paths + s1->nb_sysinclude_paths;
         for (i = -2; i < n; ++i) {
             char buf1[sizeof file->filename];
@@ -1649,36 +1654,67 @@ ST_FUNC void preprocess(int is_bof)
                 pstrcat(buf1, sizeof(buf1), "/");
             }
 
+            #ifdef INC_DEBUG
+            if (tok == TOK_INCLUDE_NEXT)
+                printf("%s (2) include_next path <%s> name <%s>\n", file->filename, buf1, buf);
+            #endif
+
             pstrcat(buf1, sizeof(buf1), buf);
 
             if (tok == TOK_INCLUDE_NEXT) {
-                for (f = s1->include_stack_ptr; f >= s1->include_stack; --f)
-                    if (0 == PATHCMP((*f)->filename, buf1)) {
-#ifdef INC_DEBUG
-                        printf("%s: #include_next skipping %s\n", file->filename, buf1);
-#endif
-			include_next_count++;
+                char *p1 = buf1;
+                if ((p1[0] == '.') && IS_DIRSEP(p1[1])) p1 += 2;
+
+                if (p3) {
+                    if (0 == PATHCMP(p1, p3)) {
+                        #ifdef INC_DEBUG
+                        printf("%s (3) include_next skipping <%s>\n", file->filename, p1);
+                        #endif
                         goto include_trynext;
                     }
+                }
+                else {
+                    for (f = s1->include_stack_ptr; f >= s1->include_stack; --f) {
+                        char *p2 = (*f)->filename;
+                        if ((p2[0] == '.') && IS_DIRSEP(p2[1])) p2 += 2;
+                        if (0 == PATHCMP(p2, p1)) {
+                            p3 = p2;
+                            break;
+                        }
+                    }
+                    #ifdef INC_DEBUG
+                        printf("%s: (4) include_next skipping <%s> (p3=%p)\n", file->filename, buf1, p3);
+                    #endif
+                    goto include_trynext;
+                }
+                #ifdef INC_DEBUG
+                printf("%s (5) include_next considering <%s>\n", file->filename, buf1);
+                #endif
             }
 
             e = search_cached_include(s1, buf1);
             if (e && (define_find(e->ifndef_macro) || e->ifndef_macro == TOK_once)) {
                 /* no need to parse the include because the 'ifndef macro'
                    is defined */
-#ifdef INC_DEBUG
-                printf("%s: skipping cached %s\n", file->filename, buf1);
-#endif
+
+                #ifdef INC_DEBUG
+                printf("%s: skipping cached <%s>\n", file->filename, buf1);
+                #endif
                 goto include_done;
             }
 
-            if (tcc_open(s1, buf1) < 0)
+            if (tcc_open(s1, buf1) < 0) {
+                #ifdef INC_DEBUG
+                printf("%s: include open failed <%s>\n", file->filename, buf1);
+                #endif
 include_trynext:
                 continue;
+            }
+
+            #ifdef INC_DEBUG
+            printf("%s: including <%s>\n", file->prev->filename, file->filename);
+            #endif
 
-#ifdef INC_DEBUG
-            printf("%s: including %s\n", file->prev->filename, file->filename);
-#endif
             /* update target deps */
             dynarray_add((void ***)&s1->target_deps, &s1->nb_target_deps,
                     tcc_strdup(buf1));
@@ -1691,8 +1727,7 @@ include_trynext:
             ch = file->buf_ptr[0];
             goto the_end;
         }
-        if (include_next_count == 0)
-    	    tcc_error("include file '%s' not found", buf);
+        tcc_error("include file '%s' not found", buf);
 include_done:
         break;
     case TOK_IFNDEF:
@@ -1709,9 +1744,9 @@ include_done:
             tcc_error("invalid argument for '#if%sdef'", c ? "n" : "");
         if (is_bof) {
             if (c) {
-#ifdef INC_DEBUG
-                printf("#ifndef %s\n", get_tok_str(tok, NULL));
-#endif
+                #ifdef INC_DEBUG
+                    printf("#ifndef %s\n", get_tok_str(tok, NULL));
+                #endif
                 file->ifndef_macro = tok;
             }
         }