diff --git a/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/misc/JarUtils.kt b/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/misc/JarUtils.kt
index 07aa921e..8035715d 100644
--- a/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/misc/JarUtils.kt
+++ b/modules/kobalt-plugin-api/src/main/kotlin/com/beust/kobalt/misc/JarUtils.kt
@@ -65,7 +65,7 @@ public class JarUtils {
                     val includedFile = IncludedFile(From(foundFile.path), To(""), listOf(IFileSpec.GlobSpec("**")))
                     addSingleFile(".", includedFile, outputStream, expandJarFiles)
                 } else {
-                    if (expandJarFiles && foundFile.name.endsWith(".jar") && ! foundFile.path.contains("resources")) {
+                    if (file.expandJarFiles && foundFile.name.endsWith(".jar") && ! file.from.contains("resources")) {
                         log(2, "Writing contents of jar file $foundFile")
                         val stream = JarInputStream(FileInputStream(localFile))
                         var entry = stream.nextEntry
@@ -154,8 +154,9 @@ open class Direction(open val p: String) {
         else p + "/"
 }
 
-class IncludedFile(val fromOriginal: From, val toOriginal: To, val specs: List<IFileSpec>) {
-    constructor(specs: List<IFileSpec>) : this(From(""), To(""), specs)
+class IncludedFile(val fromOriginal: From, val toOriginal: To, val specs: List<IFileSpec>,
+        val expandJarFiles: Boolean = false) {
+    constructor(specs: List<IFileSpec>, expandJarFiles: Boolean = false) : this(From(""), To(""), specs, expandJarFiles)
     fun from(s: String) = File(if (fromOriginal.isCurrentDir()) s else KFiles.joinDir(from, s))
     val from: String get() = fromOriginal.path.replace("\\", "/")
     fun to(s: String) = File(if (toOriginal.isCurrentDir()) s else KFiles.joinDir(to, s))
diff --git a/src/main/kotlin/com/beust/kobalt/plugin/packaging/JarGenerator.kt b/src/main/kotlin/com/beust/kobalt/plugin/packaging/JarGenerator.kt
index bb2e57cc..78bd0238 100644
--- a/src/main/kotlin/com/beust/kobalt/plugin/packaging/JarGenerator.kt
+++ b/src/main/kotlin/com/beust/kobalt/plugin/packaging/JarGenerator.kt
@@ -70,7 +70,8 @@ class JarGenerator @Inject constructor(val dependencyManager: DependencyManager)
                 if (! seen.contains(file.path)) {
                     seen.add(file.path)
                     if (! KFiles.isExcluded(file, jar.excludes)) {
-                        result.add(IncludedFile(arrayListOf(IFileSpec.FileSpec(file.path))))
+                        result.add(IncludedFile(specs = arrayListOf(IFileSpec.FileSpec(file.path)),
+                                expandJarFiles = true))
                     }
                 }
             }
diff --git a/src/test/kotlin/com/beust/kobalt/VerifyKobaltZip.kt b/src/test/kotlin/com/beust/kobalt/VerifyKobaltZip.kt
index 9f93b30c..144514e6 100644
--- a/src/test/kotlin/com/beust/kobalt/VerifyKobaltZip.kt
+++ b/src/test/kotlin/com/beust/kobalt/VerifyKobaltZip.kt
@@ -3,6 +3,7 @@ package com.beust.kobalt
 import com.beust.kobalt.api.Kobalt
 import com.beust.kobalt.misc.KFiles
 import com.beust.kobalt.misc.log
+import org.testng.Assert
 import org.testng.annotations.Test
 import java.io.File
 import java.io.FileInputStream
@@ -11,6 +12,9 @@ import java.util.jar.JarFile
 import java.util.jar.JarInputStream
 
 class VerifyKobaltZipTest : KobaltTest() {
+    private fun verifyMainJarFile(ins: InputStream) {
+        assertExistsInJarInputStream(JarInputStream(ins), "com/beust/kobalt/MainKt.class", "templates/plugin.jar")
+    }
     @Test
     fun verifySourceJarFile() {
         assertExistsInJar("kobalt-" + Kobalt.version + "-sources.jar", "com/beust/kobalt/Main.kt")
@@ -60,24 +64,26 @@ class VerifyKobaltZipTest : KobaltTest() {
         log(1, "$zipFilePath looks correct")
     }
 
-    private fun assertExistsInJar(jarName: String, fileName: String) {
-        val sourceJarPath = KFiles.joinDir("kobaltBuild", "libs", jarName)
-        assertExistsInJar(JarInputStream(FileInputStream(File(sourceJarPath))), fileName)
+    private fun assertExistsInJarInputStream(ins: JarInputStream, vararg fileNames: String) {
+        with(jarContents(ins)) {
+            fileNames.forEach { fileName ->
+                Assert.assertTrue(contains(fileName), "Couldn't find $fileName")
+            }
+        }
     }
 
-    private fun assertExistsInJar(stream: JarInputStream, fileName: String) {
+    private fun assertExistsInJar(jarName: String, vararg fileNames: String) {
+        val sourceJarPath = KFiles.joinDir("kobaltBuild", "libs", jarName)
+        assertExistsInJarInputStream(JarInputStream(FileInputStream(File(sourceJarPath))), *fileNames)
+    }
+
+    private fun jarContents(stream: JarInputStream) : Set<String> {
+        val result = hashSetOf<String>()
         var entry = stream.nextEntry
-        var found = false
         while (entry != null) {
-            if (entry.name == fileName) found = true
+            result.add(entry.name)
             entry = stream.nextEntry
         }
-        if (! found) {
-            throw AssertionError("Couldn't find Main.kt in $fileName")
-        }
-    }
-
-    private fun verifyMainJarFile(ins: InputStream) {
-        assertExistsInJar(JarInputStream(ins), "com/beust/kobalt/MainKt.class")
+        return result
     }
 }