diff --git a/src/main/java/net/minecraftforge/fml/relauncher/CoreModManager.java b/src/main/java/net/minecraftforge/fml/relauncher/CoreModManager.java
index c266b19ba..81fe60db9 100644
--- a/src/main/java/net/minecraftforge/fml/relauncher/CoreModManager.java
+++ b/src/main/java/net/minecraftforge/fml/relauncher/CoreModManager.java
@@ -371,7 +371,7 @@ public class CoreModManager {
                     ignoredModFiles.add(coreMod.getName());
                     continue;
                 }
-                ModListHelper.additionalMods.putAll(extractContainedDepJars(jar, versionedModDir));
+                ModListHelper.additionalMods.putAll(extractContainedDepJars(jar, coreMods, versionedModDir));
                 fmlCorePlugin = mfAttributes.getValue("FMLCorePlugin");
                 if (fmlCorePlugin == null)
                 {
@@ -424,7 +424,7 @@ public class CoreModManager {
         }
     }
 
-    private static Map<String,File> extractContainedDepJars(JarFile jar, File versionedModsDir) throws IOException
+    private static Map<String,File> extractContainedDepJars(JarFile jar, File baseModsDir, File versionedModsDir) throws IOException
     {
         Map<String,File> result = Maps.newHashMap();
         if (!jar.getManifest().getMainAttributes().containsKey(MODCONTAINSDEPS)) return result;
@@ -433,7 +433,8 @@ public class CoreModManager {
         String[] depList = deps.split(" ");
         for (String dep : depList)
         {
-            if (skipContainedDeps.contains(dep))
+            String depEndName = new File(dep).getName(); // extract last part of name
+            if (skipContainedDeps.contains(dep) || skipContainedDeps.contains(depEndName))
             {
                 FMLRelaunchLog.log(Level.ERROR, "Skipping dep at request: %s", dep);
                 continue;
@@ -444,26 +445,34 @@ public class CoreModManager {
                 FMLRelaunchLog.log(Level.ERROR, "Found invalid ContainsDeps declaration %s in %s", dep, jar.getName());
                 continue;
             }
-            File target = new File(versionedModsDir, dep);
+            File target = new File(versionedModsDir, depEndName);
+            File modTarget = new File(baseModsDir, depEndName);
             if (target.exists())
             {
                 FMLRelaunchLog.log(Level.DEBUG, "Found existing ContainsDep extracted to %s, skipping extraction", target.getCanonicalPath());
                 result.put(dep,target);
                 continue;
             }
-            FMLRelaunchLog.log(Level.DEBUG, "Extracted ContainedDep %s from %s to %s", dep, jar.getName(), target.getCanonicalPath());
+            else if (modTarget.exists())
+            {
+                FMLRelaunchLog.log(Level.DEBUG, "Found ContainsDep in main mods directory at %s, skipping extraction", modTarget.getCanonicalPath());
+                result.put(dep, modTarget);
+                continue;
+            }
+
+            FMLRelaunchLog.log(Level.DEBUG, "Extracting ContainedDep %s from %s to %s", dep, jar.getName(), target.getCanonicalPath());
             try
             {
                 Files.createParentDirs(target);
                 FileOutputStream targ = new FileOutputStream(target);
                 ByteStreams.copy(jar.getInputStream(jarEntry), targ);
                 targ.close();
+                FMLRelaunchLog.log(Level.DEBUG, "Extracted ContainedDep %s from %s to %s", dep, jar.getName(), target.getCanonicalPath());
+                result.put(dep,target);
             } catch (IOException e)
             {
                 FMLRelaunchLog.log(Level.ERROR, e, "An error occurred extracting dependency");
-                continue;
             }
-            result.put(dep,target);
         }
         return result;
     }