diff --git a/eldev-plugins.el b/eldev-plugins.el
index 7d2e0ff..cd3dcbc 100644
--- a/eldev-plugins.el
+++ b/eldev-plugins.el
@@ -61,7 +61,7 @@ Since 0.3."
 ;; Autoloads.
 
 (defun eldev--autoloads-source-dir ()
-  (if eldev-project-source-dirs (file-name-as-directory (car eldev-project-source-dirs)) ""))
+  (if eldev-project-source-dirs (file-name-as-directory (car (eldev-listify eldev-project-source-dirs))) ""))
 
 (defvar eldev--collect-autoloads-from
   ;; FIXME: Here we explicitly use only one (the first) source directory.  Should that be
diff --git a/test/autoloads.el b/test/autoloads.el
index 8fc99d8..e1e8a07 100644
--- a/test/autoloads.el
+++ b/test/autoloads.el
@@ -64,11 +64,28 @@
 (ert-deftest eldev-autoloads-6 ()
   ;; This project has special source directories and activates `autoloads' plugin.
   (let ((eldev--test-project "project-l"))
+    (eldev--test-delete-cache)
     (eldev--test-run nil ("eval" "--dont-require" `(project-l-hello))
       (should (string= stdout "\"Hello\"\n"))
       (should (= exit-code 0)))
     (eldev--test-run nil ("eval" "--dont-require" `(project-l-misc-hello))
       (should (string= stdout "\"Hello\"\n"))
+      (should (= exit-code 0)))
+    ;; It's a dependency of the project, and also has autoloaded functions.
+    (eldev--test-run nil ("eval" "--dont-require" `(dependency-d-autoloaded) `(dependency-d-stable))
+      (should (string= stdout (eldev--test-lines "\"Loaded automatically\"" "t")))
+      (should (= exit-code 0)))
+    ;; Make sure this works also with local dependencies.
+    (eldev--test-run nil ("--setup" `(eldev-use-local-dependency "../dependency-d")
+                          "eval" "--dont-require" `(dependency-d-autoloaded) `(dependency-d-stable))
+      (should (string= stdout (eldev--test-lines "\"Loaded automatically\"" "nil")))
+      (should (= exit-code 0)))))
+
+(ert-deftest eldev-autoloads-7 ()
+  ;; This dependency library has a special source directory and activates `autoloads' plugin.
+  (let ((eldev--test-project "dependency-d"))
+    (eldev--test-run nil ("eval" "--dont-require" `(dependency-d-autoloaded))
+      (should (string= stdout "\"Loaded automatically\"\n"))
       (should (= exit-code 0)))))
 
 
diff --git a/test/dependency-d/.gitignore b/test/dependency-d/.gitignore
new file mode 100644
index 0000000..a2d4c93
--- /dev/null
+++ b/test/dependency-d/.gitignore
@@ -0,0 +1 @@
+/lisp/dependency-d-autoloads.el
diff --git a/test/dependency-d/Eldev b/test/dependency-d/Eldev
new file mode 100644
index 0000000..2defd29
--- /dev/null
+++ b/test/dependency-d/Eldev
@@ -0,0 +1,3 @@
+(setf eldev-project-source-dirs "lisp")
+
+(eldev-use-plugin 'autoloads)
diff --git a/test/dependency-d/lisp/dependency-d.el b/test/dependency-d/lisp/dependency-d.el
new file mode 100644
index 0000000..5a2fe5e
--- /dev/null
+++ b/test/dependency-d/lisp/dependency-d.el
@@ -0,0 +1,17 @@
+;;; dependency-d.el --- Dependency test package D with a special source directory
+
+;; Version: 1.0.99
+
+(defun dependency-d-hello ()
+  "Hello")
+
+(defun dependency-d-stable ()
+  nil)
+
+;;;###autoload
+(defun dependency-d-autoloaded ()
+  "Loaded automatically")
+
+(provide 'dependency-d)
+
+;;; dependency-d.el ends here
diff --git a/test/local-dependencies.el b/test/local-dependencies.el
index 6c2f119..a9a9411 100644
--- a/test/local-dependencies.el
+++ b/test/local-dependencies.el
@@ -50,6 +50,23 @@
       (should (string= stdout (eldev--test-lines "t" "t" "(1 0)" "(1 0)")))
       (should (= exit-code 0)))))
 
+(ert-deftest eldev-local-dependencies-3 ()
+  (let ((eldev--test-project "project-l"))
+    (eldev--test-delete-cache)
+    ;; `dependency-d' uses a source directory.  Make sure it is handled correctly when it
+    ;; is loaded as a local.  Explicitly requiring the dependency feature since the
+    ;; project doesn't do that for autoload testing.
+    (eldev--test-run nil ("--quiet" "eval" `(progn (require 'dependency-d) (dependency-d-stable)) `(package-desc-version (eldev-find-package-descriptor 'dependency-d)))
+      (should (string= stdout (eldev--test-lines "t" "(1 0)")))
+      (should (= exit-code 0)))
+    (eldev--test-run nil ("--setup" `(eldev-use-local-dependency "../dependency-d")
+                          "eval" `(progn (require 'dependency-d) (dependency-d-stable)) `(package-desc-version (eldev-find-package-descriptor 'dependency-d)))
+      (should (string= stdout (eldev--test-lines "nil" "(1 0 99)")))
+      (should (= exit-code 0)))
+    (eldev--test-run nil ("--quiet" "eval" `(progn (require 'dependency-d) (dependency-d-stable)) `(package-desc-version (eldev-find-package-descriptor 'dependency-d)))
+      (should (string= stdout (eldev--test-lines "t" "(1 0)")))
+      (should (= exit-code 0)))))
+
 
 (ert-deftest eldev-local-dependency-fixes-missing-dependency-1 ()
   (eldev--test-run "dependency-a" ("clean")
diff --git a/test/package-archive-a/archive-contents b/test/package-archive-a/archive-contents
index 06f5ac8..4ce1371 100644
--- a/test/package-archive-a/archive-contents
+++ b/test/package-archive-a/archive-contents
@@ -1,6 +1,7 @@
 (1
  (dependency-a . [(1 0) nil "Dependency test package A" single nil])
  (dependency-b . [(1 0) ((dependency-a (0))) "Dependency test package B" single nil])
+ (dependency-d . [(1 0) nil "Dependency test package D with a special source directory" single nil])
  (dummy-lint . [(1 0) nil "Dummy linter" single nil])
  (misc-a . [(1 0) nil "Miscellaneous package A" single nil])
  (project-i . [(1 0) nil "Test project with autoload cookies in multiple files" tar nil])
diff --git a/test/package-archive-a/dependency-d-1.0.el b/test/package-archive-a/dependency-d-1.0.el
new file mode 100644
index 0000000..15b0439
--- /dev/null
+++ b/test/package-archive-a/dependency-d-1.0.el
@@ -0,0 +1,17 @@
+;;; dependency-d.el --- Dependency test package D with a special source directory
+
+;; Version: 1.0
+
+(defun dependency-d-hello ()
+  "Hello")
+
+(defun dependency-d-stable ()
+  t)
+
+;;;###autoload
+(defun dependency-d-autoloaded ()
+  "Loaded automatically")
+
+(provide 'dependency-d)
+
+;;; dependency-d.el ends here
diff --git a/test/project-l/src/project-l.el b/test/project-l/src/project-l.el
index 772598f..f500c4a 100644
--- a/test/project-l/src/project-l.el
+++ b/test/project-l/src/project-l.el
@@ -1,7 +1,7 @@
 ;;; project-l.el --- Test project where source code is contained in a subdirectory of project root; and with autoloads
 
 ;; Version: 1.0
-;; Package-Requires: ((dependency-a "0.1"))
+;; Package-Requires: ((dependency-a "0.1") (dependency-d "1.0"))
 ;; Homepage: https://example.com/
 
 ;;; Commentary: