diff --git a/synthtool/gcp/snippets.py b/synthtool/gcp/snippets.py
index 72c00e3d6..c697a8ecf 100644
--- a/synthtool/gcp/snippets.py
+++ b/synthtool/gcp/snippets.py
@@ -87,10 +87,10 @@ def all_snippets_from_file(sample_file: str) -> Dict[str, str]:
             close_match = re.match(pattern=CLOSE_SNIPPET_REGEX, string=line)
             open_exclude_match = re.match(pattern=OPEN_EXCLUDE_REGEX, string=line)
             close_exclude_match = re.match(pattern=CLOSE_EXCLUDE_REGEX, string=line)
-            if open_match:
+            if open_match and not excluding:
                 open_snippets.add(open_match[1])
                 snippet_lines[open_match[1]] = []
-            elif close_match:
+            elif close_match and not excluding:
                 open_snippets.discard(close_match[1])
             elif open_exclude_match:
                 excluding = True
diff --git a/tests/fixtures/snippets/interleaved_with_exclude.js b/tests/fixtures/snippets/interleaved_with_exclude.js
new file mode 100644
index 000000000..21b3c39d3
--- /dev/null
+++ b/tests/fixtures/snippets/interleaved_with_exclude.js
@@ -0,0 +1,25 @@
+/**
+ * Copyright 2020 Google LLC
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *    http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+// [START snippet_1]
+var line1 = 1;
+// [START_EXCLUDE]
+// [START snippet_2]
+var line2 = 2;
+// [END snippet_2]
+// [END_EXCLUDE]
+var line3 = 3;
+// [END snippet_1]
diff --git a/tests/test_snippets.py b/tests/test_snippets.py
index 60c28671f..5870db510 100644
--- a/tests/test_snippets.py
+++ b/tests/test_snippets.py
@@ -85,6 +85,25 @@ def test_interleaving_snippets():
     os.chdir(cwd)
 
 
+def test_interleaving_snippets_with_exclude():
+    cwd = os.getcwd()
+    os.chdir(FIXTURES)
+
+    all_snippets = snippets.all_snippets_from_file(
+        "snippets/interleaved_with_exclude.js"
+    )
+    assert len(all_snippets) == 1
+
+    assert (
+        all_snippets["snippet_1"]
+        == """var line1 = 1;
+var line3 = 3;
+"""
+    )
+
+    os.chdir(cwd)
+
+
 def test_nested_snippets():
     cwd = os.getcwd()
     os.chdir(FIXTURES)