diff --git a/docs/manifest-format.md b/docs/manifest-format.md
index b45b91809..bf1a09337 100644
--- a/docs/manifest-format.md
+++ b/docs/manifest-format.md
@@ -579,7 +579,9 @@ This also applies to all extend-project elements in the included manifests.
 Same syntax as the corresponding element of `project`.
 
 Attribute `revision`: Name of a Git branch (e.g. `main` or `refs/heads/main`)
-default to which all projects in the included manifest belong.
+default to which all projects in the included manifest belong. This recurses,
+meaning it will apply to all projects in all manifests included as a result of
+this element.
 
 ## Local Manifests {#local-manifests}
 
diff --git a/man/repo-manifest.1 b/man/repo-manifest.1
index 38c728e6e..74e44efdd 100644
--- a/man/repo-manifest.1
+++ b/man/repo-manifest.1
@@ -641,7 +641,9 @@ extend\-project elements in the included manifests. Same syntax as the
 corresponding element of `project`.
 .PP
 Attribute `revision`: Name of a Git branch (e.g. `main` or `refs/heads/main`)
-default to which all projects in the included manifest belong.
+default to which all projects in the included manifest belong. This recurses,
+meaning it will apply to all projects in all manifests included as a result of
+this element.
 .PP
 Local Manifests
 .PP
diff --git a/manifest_xml.py b/manifest_xml.py
index 2d476748c..0e899e5ab 100644
--- a/manifest_xml.py
+++ b/manifest_xml.py
@@ -1305,6 +1305,14 @@ https://gerrit.googlesource.com/git-repo/+/HEAD/docs/manifest-format.md
 
         nodes = []
         for node in manifest.childNodes:
+            if (
+                parent_node
+                and node.nodeName in ("include", "project")
+                and not node.hasAttribute("revision")
+            ):
+                node.setAttribute(
+                    "revision", parent_node.getAttribute("revision")
+                )
             if node.nodeName == "include":
                 name = self._reqatt(node, "name")
                 if restrict_includes:
@@ -1349,14 +1357,6 @@ https://gerrit.googlesource.com/git-repo/+/HEAD/docs/manifest-format.md
                             node.getAttribute("groups")
                         )
                     node.setAttribute("groups", ",".join(sorted(nodeGroups)))
-                if (
-                    parent_node
-                    and node.nodeName == "project"
-                    and not node.hasAttribute("revision")
-                ):
-                    node.setAttribute(
-                        "revision", parent_node.getAttribute("revision")
-                    )
                 nodes.append(node)
         return nodes
 
diff --git a/tests/test_manifest_xml.py b/tests/test_manifest_xml.py
index 960d0cd85..0cd84f081 100644
--- a/tests/test_manifest_xml.py
+++ b/tests/test_manifest_xml.py
@@ -422,9 +422,27 @@ class IncludeElementTests(ManifestParseTestCase):
         (self.manifest_dir / "stable.xml").write_text(
             """
 <manifest>
+  <include name="man1.xml" />
+  <include name="man2.xml" revision="stable-branch2" />
   <project name="stable-name1" path="stable-path1" />
   <project name="stable-name2" path="stable-path2" revision="stable-branch2" />
 </manifest>
+"""
+        )
+        (self.manifest_dir / "man1.xml").write_text(
+            """
+<manifest>
+  <project name="man1-name1" />
+  <project name="man1-name2" revision="stable-branch3" />
+</manifest>
+"""
+        )
+        (self.manifest_dir / "man2.xml").write_text(
+            """
+<manifest>
+  <project name="man2-name1" />
+  <project name="man2-name2" revision="stable-branch3" />
+</manifest>
 """
         )
         include_m = manifest_xml.XmlManifest(str(self.repodir), str(root_m))
@@ -441,6 +459,14 @@ class IncludeElementTests(ManifestParseTestCase):
             if proj.name == "stable-name2":
                 # Check stable proj revision can override include node.
                 self.assertEqual("stable-branch2", proj.revisionExpr)
+            if proj.name == "man1-name1":
+                self.assertEqual("stable-branch", proj.revisionExpr)
+            if proj.name == "man1-name2":
+                self.assertEqual("stable-branch3", proj.revisionExpr)
+            if proj.name == "man2-name1":
+                self.assertEqual("stable-branch2", proj.revisionExpr)
+            if proj.name == "man2-name2":
+                self.assertEqual("stable-branch3", proj.revisionExpr)
 
     def test_group_levels(self):
         root_m = self.manifest_dir / "root.xml"