diff --git a/go/private/rules/binary.bzl b/go/private/rules/binary.bzl
index 78e74e26af..3481f1fe43 100644
--- a/go/private/rules/binary.bzl
+++ b/go/private/rules/binary.bzl
@@ -46,6 +46,19 @@ load(
 
 _EMPTY_DEPSET = depset([])
 
+def _include_path(hdr):
+    if not hdr.root.path:
+        fail("Expected hdr to be a generated file, got source file: " + hdr.path)
+
+    root_relative_path = hdr.path[len(hdr.root.path + "/"):]
+    if not root_relative_path.startswith("external/"):
+        return hdr.root.path
+
+    # All headers should be includeable via a path relative to their repository
+    # root, regardless of whether the repository is external or not. If it is,
+    # we thus need to append "external/<external repo name>" to the path.
+    return "/".join([hdr.root.path] + root_relative_path.split("/")[0:2])
+
 def new_cc_import(
         go,
         hdrs = _EMPTY_DEPSET,
@@ -62,7 +75,7 @@ def new_cc_import(
             defines = defines,
             local_defines = local_defines,
             headers = hdrs,
-            includes = depset([hdr.root.path for hdr in hdrs.to_list()]),
+            includes = depset([_include_path(hdr) for hdr in hdrs.to_list()]),
         ),
         linking_context = cc_common.create_linking_context(
             linker_inputs = depset([
diff --git a/tests/core/cgo/BUILD.bazel b/tests/core/cgo/BUILD.bazel
index a9c9c7656e..7f39f6b29a 100644
--- a/tests/core/cgo/BUILD.bazel
+++ b/tests/core/cgo/BUILD.bazel
@@ -1,4 +1,5 @@
 load("@io_bazel_rules_go//go:def.bzl", "go_binary", "go_library", "go_test")
+load("@io_bazel_rules_go//go/tools/bazel_testing:def.bzl", "go_bazel_test")
 
 go_test(
     name = "opts_test",
@@ -408,3 +409,8 @@ cc_library(
     srcs = ["split_import_c.c"],
     hdrs = ["split_import_c.h"],
 )
+
+go_bazel_test(
+    name = "external_includes_test",
+    srcs = ["external_includes_test.go"],
+)
diff --git a/tests/core/cgo/external_includes_test.go b/tests/core/cgo/external_includes_test.go
new file mode 100644
index 0000000000..0e1ba06afe
--- /dev/null
+++ b/tests/core/cgo/external_includes_test.go
@@ -0,0 +1,85 @@
+// Copyright 2020 The Bazel Authors. All rights reserved.
+//
+// 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.
+
+package external_includes_test
+
+import (
+	"testing"
+
+	"github.com/bazelbuild/rules_go/go/tools/bazel_testing"
+)
+
+func TestMain(m *testing.M) {
+	bazel_testing.TestMain(m, bazel_testing.Args{
+		Main: `
+-- other_repo/WORKSPACE --
+-- other_repo/cc/BUILD.bazel --
+cc_binary(
+    name = "main",
+    srcs = ["main.c"],
+    deps = ["//cgo"],
+)
+-- other_repo/cc/main.c --
+#include "cgo/cgo.h"
+
+int main() {}
+-- other_repo/cgo/BUILD.bazel --
+load("@io_bazel_rules_go//go:def.bzl", "go_binary", "go_library")
+
+go_binary(
+    name = "cgo",
+    embed = [":cgo_lib"],
+    importpath = "example.com/rules_go/cgo",
+    linkmode = "c-archive",
+    visibility = ["//visibility:public"],
+)
+
+go_library(
+    name = "cgo_lib",
+    srcs = ["cgo.go"],
+    cgo = True,
+    importpath = "example.com/rules_go/cgo",
+    visibility = ["//visibility:private"],
+)
+-- other_repo/cgo/cgo.go --
+package main
+
+import "C"
+
+//export HelloCgo
+func HelloCgo() {}
+
+func main() {}
+`,
+	WorkspaceSuffix: `
+local_repository(
+    name = "other_repo",
+    path = "other_repo",
+)
+`,
+	})
+}
+
+func TestExternalIncludes(t *testing.T) {
+	t.Run("default", func(t *testing.T) {
+		if err := bazel_testing.RunBazel("build", "@other_repo//cc:main"); err != nil {
+			t.Fatalf("Did not expect error:\n%+v", err)
+		}
+	})
+	t.Run("experimental_sibling_repository_layout", func(t *testing.T) {
+		if err := bazel_testing.RunBazel("build", "--experimental_sibling_repository_layout", "@other_repo//cc:main"); err != nil {
+			t.Fatalf("Did not expect error:\n%+v", err)
+		}
+	})
+}