diff --git a/README.md b/README.md
index 4be4ac4..7dd51eb 100644
--- a/README.md
+++ b/README.md
@@ -225,6 +225,14 @@ reverseDir("./output", "./templates", {
 
 The command writes files at their original template paths, restores recorded `<@var(...)>` tokens, wraps edited inline conditional output back in the original conditional block, and restores template files that were skipped by path conditionals.
 
+The template output directory may be inside the rendered directory, for example:
+
+```sh
+tdir reverse ./ ./reversed --include "components/**"
+```
+
+When the template output directory is inside the rendered directory, reverse snapshots included files before writing and excludes the output directory from include glob matching.
+
 ## Unmatched directives
 
 A `<@if>` without a matching `<@endif>` throws when the renderer is initialized:
diff --git a/index.test.ts b/index.test.ts
index c9c334c..9f8132d 100644
--- a/index.test.ts
+++ b/index.test.ts
@@ -245,6 +245,20 @@ test("reverseDir only includes new rendered files matching include globs", () =>
   expect(existsSync(join(templateOut, "<@if(context.web.create)><@var(context.web.dir)>", "debug.tmp"))).toBe(false)
 })
 
+test("reverseDir can write templates inside rendered output without including its own writes", () => {
+  const createRenderer = initRenderer("./testdata/if_example")
+  const render = createRenderer(ifExampleSchema)
+  const renderedOut = join(tmp, "rendered")
+  render(renderedOut, { web: true, header: { render: true, text: "My Title" } }, { reverseMap: true })
+  writeFileSync(join(renderedOut, "new.html"), "<main>new</main>\n")
+
+  const result = reverseDir(renderedOut, join(renderedOut, "reversed"), { include: ["**/*"] })
+  expect(result.warnings).toEqual([])
+  expect(existsSync(join(renderedOut, "reversed", "<@if(context.web)>web", "if_example.html"))).toBe(true)
+  expect(existsSync(join(renderedOut, "reversed", "new.html"))).toBe(true)
+  expect(existsSync(join(renderedOut, "reversed", "reversed", "new.html"))).toBe(false)
+})
+
 test("wrong schema throws error",() => {
   const createRenderer  = initRenderer("./testdata/if_example")
   expect(() => createRenderer(z.object({
diff --git a/reverse.ts b/reverse.ts
index 2599eed..8e2ed0e 100644
--- a/reverse.ts
+++ b/reverse.ts
@@ -314,40 +314,36 @@ function inferTemplatePath(outputPath: string, directoryMap: Map<string, string>
   return joinPath(bestTemplateDir, suffix, basenamePath(normalized))
 }
 
-function walkFiles(root: string, current = root): string[] {
+function walkFiles(root: string, excludedRoots: string[] = []): string[] {
   const files: string[] = []
-  for (const entry of readdirSync(current).sort()) {
-    const path = resolvePath(current, entry)
-    const stat = statSync(path)
-    if (stat.isDirectory()) {
-      files.push(...walkFiles(root, path))
-    } else if (stat.isFile()) {
-      files.push(normalizePath(relative(root, path)))
+  const pending = [root]
+
+  while (pending.length > 0) {
+    const current = pending.pop()!
+    for (const entry of readdirSync(current).sort()) {
+      const path = resolvePath(current, entry)
+      if (excludedRoots.some(excluded => isInsidePath(excluded, path))) continue
+      const stat = statSync(path)
+      if (stat.isDirectory()) {
+        pending.push(path)
+      } else if (stat.isFile()) {
+        files.push(normalizePath(relative(root, path)))
+      }
     }
   }
+
   return files
 }
 
 function copyIncludedRenderedFiles(
   renderedRoot: string,
   templateRoot: string,
-  mapPath: string,
-  manifest: ReverseMapManifest,
-  include: ReverseOptions["include"],
+  includedOutputPaths: string[],
+  directoryMap: Map<string, string>,
 ): number {
-  const matchers = getIncludeMatchers(include)
-  if (matchers.length === 0) return 0
-
-  const mappedOutputPaths = new Set(manifest.files.map(file => normalizePath(file.outputPath)))
-  const mapRelativePath = normalizePath(relative(renderedRoot, mapPath))
-  const directoryMap = buildDirectoryMap(manifest)
   let filesWritten = 0
 
-  for (const outputPath of walkFiles(renderedRoot)) {
-    if (outputPath === mapRelativePath) continue
-    if (mappedOutputPaths.has(outputPath)) continue
-    if (!matchesAny(outputPath, matchers)) continue
-
+  for (const outputPath of includedOutputPaths) {
     const renderedPath = resolveInside(renderedRoot, outputPath)
     const templatePath = resolveInside(templateRoot, inferTemplatePath(outputPath, directoryMap))
     mkdirSync(dirname(templatePath), { recursive: true })
@@ -358,6 +354,25 @@ function copyIncludedRenderedFiles(
   return filesWritten
 }
 
+function getIncludedRenderedFiles(
+  renderedRoot: string,
+  templateRoot: string,
+  mapPath: string,
+  manifest: ReverseMapManifest,
+  include: ReverseOptions["include"],
+): string[] {
+  const matchers = getIncludeMatchers(include)
+  if (matchers.length === 0) return []
+
+  const mappedOutputPaths = new Set(manifest.files.map(file => normalizePath(file.outputPath)))
+  const mapRelativePath = normalizePath(relative(renderedRoot, mapPath))
+  return walkFiles(renderedRoot, [templateRoot]).filter(outputPath => {
+    return outputPath !== mapRelativePath
+      && !mappedOutputPaths.has(outputPath)
+      && matchesAny(outputPath, matchers)
+  })
+}
+
 export function reverseDir(
   renderedDir: string,
   templateDir: string,
@@ -369,6 +384,14 @@ export function reverseDir(
     ? resolvePath(renderedRoot, options.mapPath)
     : resolvePath(renderedRoot, ".tdir-map.json")
   const manifest = readManifest(mapPath)
+  const directoryMap = buildDirectoryMap(manifest)
+  const includedOutputPaths = getIncludedRenderedFiles(
+    renderedRoot,
+    templateRoot,
+    mapPath,
+    manifest,
+    options.include,
+  )
   const warnings: ReverseWarning[] = []
   let filesWritten = 0
 
@@ -415,9 +438,8 @@ export function reverseDir(
   filesWritten += copyIncludedRenderedFiles(
     renderedRoot,
     templateRoot,
-    mapPath,
-    manifest,
-    options.include,
+    includedOutputPaths,
+    directoryMap,
   )
 
   return { filesWritten, warnings }