diff --git a/src/cargo/sources/path.rs b/src/cargo/sources/path.rs
index db8e7d99876..0c4b1faa595 100644
--- a/src/cargo/sources/path.rs
+++ b/src/cargo/sources/path.rs
@@ -147,6 +147,8 @@ impl<'cfg> PathSource<'cfg> {
             if let Some(result) = self.discover_git_and_list_files(pkg, root, &mut filter) {
                 return result;
             }
+            // no include option and not git repo discovered (see rust-lang/cargo#7183).
+            return self.list_files_walk_except_dot_files_and_dirs(pkg, &mut filter);
         }
         self.list_files_walk(pkg, &mut filter)
     }
@@ -329,6 +331,28 @@ impl<'cfg> PathSource<'cfg> {
         }
     }
 
+    fn list_files_walk_except_dot_files_and_dirs(
+        &self,
+        pkg: &Package,
+        filter: &mut dyn FnMut(&Path) -> CargoResult<bool>,
+    ) -> CargoResult<Vec<PathBuf>> {
+        let root = pkg.root();
+        let mut exclude_dot_files_dir_builder = GitignoreBuilder::new(root);
+        exclude_dot_files_dir_builder.add_line(None, ".*")?;
+        let ignore_dot_files_and_dirs = exclude_dot_files_dir_builder.build()?;
+
+        let mut filter_ignore_dot_files_and_dirs = |path: &Path| -> CargoResult<bool> {
+            let relative_path = path.strip_prefix(root)?;
+            match ignore_dot_files_and_dirs
+                .matched_path_or_any_parents(relative_path, /* is_dir */ false)
+            {
+                Match::Ignore(_) => Ok(false),
+                _ => filter(path),
+            }
+        };
+        self.list_files_walk(pkg, &mut filter_ignore_dot_files_and_dirs)
+    }
+
     fn list_files_walk(
         &self,
         pkg: &Package,
@@ -368,10 +392,6 @@ impl<'cfg> PathSource<'cfg> {
         entries.sort_unstable_by(|a, b| a.as_os_str().cmp(b.as_os_str()));
         for path in entries {
             let name = path.file_name().and_then(|s| s.to_str());
-            // Skip dotfile directories.
-            if name.map(|s| s.starts_with('.')) == Some(true) {
-                continue;
-            }
             if is_root && name == Some("target") {
                 // Skip Cargo artifacts.
                 continue;
diff --git a/tests/testsuite/package.rs b/tests/testsuite/package.rs
index 811642afa39..8b924eed791 100644
--- a/tests/testsuite/package.rs
+++ b/tests/testsuite/package.rs
@@ -425,11 +425,12 @@ fn include() {
             version = "0.0.1"
             authors = []
             exclude = ["*.txt"]
-            include = ["foo.txt", "**/*.rs", "Cargo.toml"]
+            include = ["foo.txt", "**/*.rs", "Cargo.toml", ".dotfile"]
         "#,
         )
         .file("foo.txt", "")
         .file("src/main.rs", r#"fn main() { println!("hello"); }"#)
+        .file(".dotfile", "")
         // Should be ignored when packaging.
         .file("src/bar.txt", "")
         .build();
@@ -442,6 +443,7 @@ fn include() {
 See https://doc.rust-lang.org/cargo/reference/manifest.html#package-metadata for more info.
 [WARNING] both package.include and package.exclude are specified; the exclude list will be ignored
 [PACKAGING] foo v0.0.1 ([..])
+[ARCHIVING] .dotfile
 [ARCHIVING] Cargo.toml
 [ARCHIVING] foo.txt
 [ARCHIVING] src/main.rs
@@ -1420,3 +1422,26 @@ fn gitignore_negate() {
          ",
     );
 }
+
+#[cargo_test]
+fn exclude_dot_files_and_directories_by_default() {
+    include_exclude_test(
+        "[]",
+        "[]",
+        &["src/lib.rs", ".dotfile", ".dotdir/file"],
+        "Cargo.toml\n\
+         src/lib.rs\n\
+         ",
+    );
+
+    include_exclude_test(
+        r#"["Cargo.toml", "src/lib.rs", ".dotfile", ".dotdir/file"]"#,
+        "[]",
+        &["src/lib.rs", ".dotfile", ".dotdir/file"],
+        ".dotdir/file\n\
+         .dotfile\n\
+         Cargo.toml\n\
+         src/lib.rs\n\
+         ",
+    );
+}