diff --git a/.gitignore b/.gitignore
index 3208b8e..9fc083e 100644
--- a/.gitignore
+++ b/.gitignore
@@ -44,3 +44,4 @@ docs/_build
 
 # IDEs
 /.idea
+.venv
diff --git a/HISTORY.rst b/HISTORY.rst
index 62064a8..84b7a8f 100644
--- a/HISTORY.rst
+++ b/HISTORY.rst
@@ -3,6 +3,12 @@
 History
 -------
 
+0.5.2 (2017-05-18)
+~~~~~~~~~~~~~~~~~~
+
+* Skipping directories which makes skipping subfolders much faster
+* Fixed bug which incorrectly skipped files
+
 0.5.1 (2017-05-09)
 ~~~~~~~~~~~~~~~~~~
 
diff --git a/MANIFEST.in b/MANIFEST.in
index 5d11fe6..74d4daa 100644
--- a/MANIFEST.in
+++ b/MANIFEST.in
@@ -1,5 +1,5 @@
 include *.rst *.txt
-recursive-include tests *
+recursive-exclude tests *
 recursive-exclude * __pycache__
 recursive-exclude * *.py[co]
 
diff --git a/importanize/__init__.py b/importanize/__init__.py
index 273edef..6162a29 100755
--- a/importanize/__init__.py
+++ b/importanize/__init__.py
@@ -4,7 +4,7 @@
 
 __author__ = 'Miroslav Shubernetskiy'
 __email__ = 'miroslav@miki725.com'
-__version__ = '0.5.1'
+__version__ = '0.5.2'
 __description__ = (
     'Utility for organizing Python imports using PEP8 or custom rules'
 )
diff --git a/importanize/__main__.py b/importanize/__main__.py
index d5fe87d..649d3b2 100644
--- a/importanize/__main__.py
+++ b/importanize/__main__.py
@@ -244,7 +244,8 @@ def run(source, config, args, path=None):
 
     elif source.is_file():
         if config.get('exclude'):
-            if any(map(lambda i: fnmatch(six.text_type(source.resolve()), i),
+            norm = os.path.normpath(os.path.abspath(six.text_type(source)))
+            if any(map(lambda i: fnmatch(norm, i),
                        config.get('exclude'))):
                 log.info('Skipping {}'.format(source))
                 return
@@ -253,6 +254,13 @@ def run(source, config, args, path=None):
         return run(text, config, args, source)
 
     elif source.is_dir():
+        if config.get('exclude'):
+            norm = os.path.normpath(os.path.abspath(six.text_type(source)))
+            if any(map(lambda i: fnmatch(norm, i),
+                       config.get('exclude'))):
+                log.info('Skipping {}'.format(source))
+                return
+
         files = (
             f for f in source.iterdir()
             if not f.is_file() or f.is_file() and f.suffixes == ['.py']
diff --git a/tests/test_main.py b/tests/test_main.py
index 680f7c2..bdacdbd 100644
--- a/tests/test_main.py
+++ b/tests/test_main.py
@@ -200,7 +200,24 @@ def test_run_dir(self, mock_print):
         ])
 
     @mock.patch(TESTING_MODULE + '.print', create=True)
-    def test_run_dir_co(self, mock_print):
+    def test_run_dir_skipped(self, mock_print):
+        config = deepcopy(PEP8_CONFIG)
+        config['exclude'] = ['*/test_data']
+
+        actual = run(
+            self.test_data,
+            config,
+            mock.Mock(formatter='grouped',
+                      ci=False,
+                      print=True,
+                      header=False),
+        )
+
+        self.assertIsNone(actual)
+        mock_print.assert_not_called()
+
+    @mock.patch(TESTING_MODULE + '.print', create=True)
+    def test_run_dir_ci(self, mock_print):
         with self.assertRaises(CIFailure):
             run(
                 self.test_data,