diff --git a/hledger-lib/Hledger/Read/JournalReader.hs b/hledger-lib/Hledger/Read/JournalReader.hs
index 4a06a09c3..cbc382e2e 100644
--- a/hledger-lib/Hledger/Read/JournalReader.hs
+++ b/hledger-lib/Hledger/Read/JournalReader.hs
@@ -32,6 +32,7 @@ Hledger.Read.Common, to avoid import cycles.
 {-# LANGUAGE OverloadedStrings   #-}
 {-# LANGUAGE PackageImports      #-}
 {-# LANGUAGE ScopedTypeVariables #-}
+{-# LANGUAGE MultiWayIf #-}
 
 --- ** exports
 module Hledger.Read.JournalReader (
@@ -72,13 +73,14 @@ where
 
 --- ** imports
 import Control.Exception qualified as C
-import Control.Monad (forM_, when, void, unless, filterM)
+import Control.Monad (forM_, when, void, unless, filterM, forM)
 import Control.Monad.IO.Class (MonadIO, liftIO)
 import Control.Monad.Except (ExceptT(..), runExceptT)
 import Control.Monad.State.Strict (evalStateT,get,modify',put)
 import Control.Monad.Trans.Class (lift)
 import Data.Char (toLower)
 import Data.Either (isRight, lefts)
+import Data.Functor ((<&>))
 import Data.Map.Strict qualified as M
 import Data.Text (Text)
 import Data.String
@@ -91,6 +93,7 @@ import Safe
 import Text.Megaparsec hiding (parse)
 import Text.Megaparsec.Char
 import Text.Printf
+import System.Directory (canonicalizePath, doesFileExist, makeAbsolute)
 import System.FilePath
 import "Glob" System.FilePath.Glob hiding (match)
 -- import "filepattern" System.FilePattern.Directory
@@ -103,8 +106,6 @@ import Hledger.Read.CsvReader qualified as CsvReader (reader)
 import Hledger.Read.RulesReader qualified as RulesReader (reader)
 import Hledger.Read.TimeclockReader qualified as TimeclockReader (reader)
 import Hledger.Read.TimedotReader qualified as TimedotReader (reader)
-import System.Directory (canonicalizePath, doesFileExist)
-import Data.Functor ((<&>))
 
 --- ** doctest setup
 -- $setup
@@ -341,7 +342,7 @@ includedirectivep iopts = do
         Just fmt -> map ((show fmt++":")++) paths
 
   -- Parse each one, as if inlined here.
-  forM_ prefixedpaths $ parseIncludedFile iopts eoff
+  forM_ prefixedpaths $ parseIncludedFile iopts
 
   where
 
@@ -407,9 +408,30 @@ includedirectivep iopts = do
       -- Exclude any directories or symlinks to directories, and canonicalise, and sort.
       files <- liftIO $
         filterM doesFileExist paths
-        >>= mapM canonicalizePath
+        >>= mapM makeAbsolute
         <&> sort
 
+      -- -- If a glob was used, exclude the current file, for convenience.
+      -- let
+      --   files3 =
+      --     dbg6 (parentf <> " include: matched files" <> if isglob then " (excluding current file)" else "") $
+      --     (if isglob then filter (/= parentf) else id) files
+
+      -- Throw an error if one of these files is among the grandparent files, forming a cycle.
+      -- Though, ignore the immediate parent file for convenience. XXX inconsistent - should it ignore all cyclic includes ?
+      -- We used to store the canonical paths, then switched to non-canonical paths for more useful output,
+      -- which means for each include directive we must re-canonicalise everything here; noticeable ? XXX
+      parentj <- get
+      let parentfiles = jincludefilestack parentj
+      cparentfiles <- liftIO $ mapM canonicalizePath parentfiles
+      let cparentf = take 1 parentfiles
+      files2 <- forM files $ \f -> do
+        cf <- liftIO $ canonicalizePath f
+        if
+          | [cf] == cparentf -> return cf  -- current file - return canonicalised, will be excluded later
+          | cf `elem` drop 1 cparentfiles -> customFailure $ parseErrorAt off $ "This included file forms a cycle: " ++ f
+          | otherwise -> return f
+
       -- Work around a Glob bug with dot dirs: while **/ ignores dot dirs in the starting and ending dirs,
       -- it does search dot dirs in between those two (Glob #49).
       -- This could be inconvenient, eg making it hard to avoid VCS directories in a source tree.
@@ -418,38 +440,33 @@ includedirectivep iopts = do
       -- things in dot dirs. An --old-glob command line flag disables this workaround, for backward compatibility.
       oldglobflag <- liftIO $ getFlag ["old-glob"]
       let
-        files2 = (if isglob && not oldglobflag then filter (not.hasdotdir) else id) files
+        files3 = (if isglob && not oldglobflag then filter (not.hasdotdir) else id) files2
           where
             hasdotdir p = any isdotdir $ splitPath p
               where
                 isdotdir c = "." `isPrefixOf` c && "/" `isSuffixOf` c
 
       -- Throw an error if no files were matched.
-      when (null files2) $
-        customFailure $ parseErrorAt off $ "No files were matched by glob pattern: " ++ globpattern
+      when (null files3) $ customFailure $ parseErrorAt off $ "No files were matched by: " ++ globpattern
 
-      -- If a glob was used, exclude the current file, for convenience.
+      -- If the current file got included, ignore it.
+      -- This is done last to avoid triggering the error above.
       let
-        files3 =
-          dbg6 (parentf <> " include: matched files" <> if isglob then " (excluding current file)" else "") $
-          (if isglob then filter (/= parentf) else id) files2
+        files4 =
+          dbg6 (parentf <> " include: matched files (excluding current file)") $
+          filter (not.(`elem` cparentf)) files3
 
-      return files3
+      return files4
 
     -- Parse the given included file (and any deeper includes, recursively) as if it was inlined in the current (parent) file.
     -- The offset of the start of the include directive in the parent file is provided for error messages.
-    parseIncludedFile :: MonadIO m => InputOpts -> Int -> PrefixedFilePath -> ErroringJournalParser m ()
-    parseIncludedFile iopts1 eoff prefixedpath = do
+    parseIncludedFile :: MonadIO m => InputOpts -> PrefixedFilePath -> ErroringJournalParser m ()
+    parseIncludedFile iopts1 prefixedpath = do
       let (_mprefix,filepath) = splitReaderPrefix prefixedpath
 
-      -- Throw an error if a cycle is detected
-      parentj <- get
-      let parentfilestack = jincludefilestack parentj
-      when (dbg7 "parseIncludedFile: reading" filepath `elem` parentfilestack) $
-        customFailure $ parseErrorAt eoff $ "This included file forms a cycle: " ++ filepath
-
       -- Read the file's content, or throw an error
       childInput <- lift $ readFilePortably filepath `orRethrowIOError` "failed to read a file"
+      parentj <- get
       let initChildj = newJournalWithParseStateFrom filepath parentj
 
       -- Choose a reader based on the file path prefix or file extension,
@@ -496,13 +513,11 @@ includedirectivep iopts = do
           ,jincludefilestack      = filepath : jincludefilestack j
           }
 
--- Get the canonical path of the file referenced by this parse position.
--- Symbolic links will be dereferenced. This probably will always succeed
--- (since the parse file's path is probably always absolute).
+-- Get the absolute path of the file referenced by this parse position.
+-- (Symbolic links will not be dereferenced.)
+-- This probably will always succeed, since the parse file's path is probably always absolute.
 sourcePosFilePath :: (MonadIO m) => SourcePos -> m FilePath
-sourcePosFilePath = liftIO . canonicalizePath . sourceName
--- "canonicalizePath is a very big hammer. If you only need an absolute path, makeAbsolute is sufficient"
--- but we only do this once per include directive, seems ok to leave it as is.
+sourcePosFilePath = liftIO . makeAbsolute . sourceName
 
 -- | Lift an IO action into the exception monad, rethrowing any IO
 -- error with the given message prepended.
@@ -1263,8 +1278,8 @@ tests_JournalReader = testGroup "JournalReader" [
      assertParse ignoredpricecommoditydirectivep "N $\n"
 
   ,testGroup "includedirectivep" [
-      testCase "include" $ assertParseErrorE (includedirectivep definputopts) "include nosuchfile\n" "No files were matched by glob pattern: nosuchfile"
-     ,testCase "glob" $ assertParseErrorE (includedirectivep definputopts) "include nosuchfile*\n" "No files were matched by glob pattern: nosuchfile*"
+      testCase "include" $ assertParseErrorE (includedirectivep definputopts) "include nosuchfile\n" "No files were matched by: nosuchfile"
+     ,testCase "glob" $ assertParseErrorE (includedirectivep definputopts) "include nosuchfile*\n" "No files were matched by: nosuchfile*"
      ]
 
   ,testCase "marketpricedirectivep" $ assertParseEq marketpricedirectivep
diff --git a/hledger/test/journal/include/include.test b/hledger/test/journal/include/include.test
index 21f30ed52..252f6614b 100644
--- a/hledger/test/journal/include/include.test
+++ b/hledger/test/journal/include/include.test
@@ -35,7 +35,7 @@ include ~/a.j
 $  HOME="$PWD" hledger -f - print
 2025-01-01 a
 
->= 0
+>=
 
 # ** 4. include followed by whitespace and/or comment -> missing argument error
 <
@@ -79,10 +79,9 @@ $ hledger -f- files
 >2 /Invalid glob/
 >=1
 
-# ** 10. Including the current file literally -> cycle error.
-$ hledger -f self.j files
->2 /included file forms a cycle/
->=1
+# ** 10. Including the current file literally -> harmless, current file is ignored.
+$ hledger -f self.j files | sed -E 's|.*/||'
+self.j
 
 # ** 11. Including a multi-file cycle, all literally -> cycle error.
 $ hledger -f cycle/cycle.j files
@@ -90,7 +89,7 @@ $ hledger -f cycle/cycle.j files
 >=1
 
 # ** 12. Including the current file via glob -> harmless, globs ignore current file.
-$ hledger -f glob-self.j files | sed -E 's|.*hledger/test/journal/include/||'
+$ hledger -f glob-self.j files | sed -E 's|.*/||'
 glob-self.j
 
 # ** 13. Including a cycle, involving globs -> cycle error
@@ -101,6 +100,7 @@ $ hledger -f cycle/globcycle.j files
 # ** 14. Old-style deep glob **/*.j -> all non-dot .j files in current dir or non-dot subdirs.
 <
 include glob-deep/**/*.j
+
 $ hledger -f - files | sed -E 's|.*/glob-deep/|glob-deep/|'
 -
 glob-deep/a.j
@@ -112,8 +112,6 @@ glob-deep/b/bb/bb.j
 glob-deep/c/c.j
 
 # ** 15. Simpler deep glob **.j -> same as above.
-<
-include glob-deep/**/*.j
 $ hledger -f - files | sed -E 's|.*/glob-deep/|glob-deep/|'
 -
 glob-deep/a.j
@@ -124,25 +122,18 @@ glob-deep/b/b.j
 glob-deep/b/bb/bb.j
 glob-deep/c/c.j
 
-# ** 16. --old-glob preserves pre-1.50 glob behaviour: avoiding dot things at top (.c/) and bottom (b/.d.j),
-# but searching intermediate dot dirs (b/.e/).
+# ** 16. --old-glob preserves pre-1.50 glob behaviour: avoiding dot things at top (.c/)
+# and at bottom (b/.d.j), searching intermediate dot dirs (b/.e/).
 <
 include glob-dot/**.j
+
 $ hledger -f - files --old-glob | sed -E 's|.*/glob-dot/||'
 -
 a.j
 b/.e/e.j
 b/b.j
 
-# ** 17. Otherwise, globs avoid all paths involving dot dirs (.c/, b/.d.j, b/.e/) (a workaround).
-<
-include glob-dot/**.j
-$ hledger -f - files | sed -E 's|.*/glob-dot/||'
--
-a.j
-b/b.j
-
-# ** 18. A non-glob path can match dot things.
+# ** 17. Dot things can be matched by an explicit non-glob path.
 <
 include glob-dot/.c/c.j
 include glob-dot/b/.d.j
@@ -153,27 +144,36 @@ $ hledger -f - files | sed -E 's|.*/glob-dot/||'
 b/.d.j
 b/.e/e.j
 
-# ** 19. A glob follows a symlink to a regular file (and shows the target file's path).
+# ** 18. They can't be matched by a glob path, even if explicitly mentioned, by default.
+<
+include glob-dot/.c/c.j*
+$ hledger -f - files | sed -E 's|.*/glob-dot/||'
+>2 /No files were matched/
+#>=1  # sed hides the exit code
+
+# ** 19. They can be matched by an explicit glob path if --old-glob is used.
+<
+include glob-dot/.c/c.j*
+$ hledger -f - files --old-glob | sed -E 's|.*/glob-dot/||'
+-
+.c/c.j
+
+# ** 20. A glob follows a symlink to a regular file. (And shows the symlink's path.)
 $ hledger -f glob-symlinked-file/a.j files | sed -E 's|.*/glob-symlinked-file/||'
 a.j
-c.j
+b.j
 
-# ** 20. A glob follows a symlink to a regular dir.
+# ** 21. A glob follows a symlink to a regular dir.
 $ hledger -f glob-symlinked-dir/a.j files | sed -E 's|.*/glob-symlinked-dir/||'
 a.j
-c/c.j
+b/c.j
 
-# ** 21. A glob follows a symlink to a dot file.
+# ** 22. A glob follows a symlink to a dot file.
 $ hledger -f glob-symlinked-dotfile/a.j files | sed -E 's|.*/glob-symlinked-dotfile/||'
 a.j
-.c.j
+b.j
 
-# ** 22. A glob does not follow a symlink to a dot dir.
+# ** 23. A glob follows a symlink to a dot dir.
 $ hledger -f glob-symlinked-dotdir/a.j files | sed -E 's|.*/glob-symlinked-dotdir/||'
->2 /No files were matched by glob pattern/
-#>=1  # sed hides this
-
-# ** 23. A glob does follow a symlink to a dot dir if --old-glob is used.
-$ hledger -f glob-symlinked-dotdir/a.j files --old-glob | sed -E 's|.*/glob-symlinked-dotdir/||'
 a.j
-.c/c.j
+b/c.j