diff --git a/src/actions/xcode/xcode_common.lua b/src/actions/xcode/xcode_common.lua
index 6f430dc5..bda20e4f 100644
--- a/src/actions/xcode/xcode_common.lua
+++ b/src/actions/xcode/xcode_common.lua
@@ -397,7 +397,7 @@
 					_p(3,'name = Products;')
 				else
 					_p(3,'name = "%s";', node.name)
-					if node.path then
+					if node.path and not node.isvpath then
 						local p = node.path
 						if node.parent.path then
 							p = path.getrelative(node.parent.path, node.path)
diff --git a/src/base/project.lua b/src/base/project.lua
index 8e891684..1f40cde3 100644
--- a/src/base/project.lua
+++ b/src/base/project.lua
@@ -21,8 +21,15 @@
 		local tr = premake.tree.new(prj.name)
 		tr.project = prj
 
+		local isvpath
+		
+		local function onadd(node)
+			node.isvpath = isvpath
+		end
+		
 		for fcfg in premake.project.eachfile(prj) do
-			local node = premake.tree.add(tr, fcfg.vpath)
+			isvpath = (fcfg.name ~= fcfg.vpath)			
+			local node = premake.tree.add(tr, fcfg.vpath, onadd)
 			node.cfg = fcfg
 		end
 
diff --git a/src/base/tree.lua b/src/base/tree.lua
index 2d610018..527aa4cf 100644
--- a/src/base/tree.lua
+++ b/src/base/tree.lua
@@ -31,11 +31,14 @@
 --    The tree to contain the new node.
 -- @param p
 --    The path of the new node.
+-- @param onaddfunc
+--     A function to call when a new node is added to the tree. Receives the
+--     new node as an argument.
 -- @returns
 --    The new tree node.
 --
 
-	function premake.tree.add(tr, p)
+	function premake.tree.add(tr, p, onaddfunc)
 		-- Special case "." refers to the current node
 		if p == "." then
 			return tr
@@ -43,7 +46,7 @@
 		
 		-- Look for the immediate parent for this new node, creating it if necessary.
 		-- Recurses to create as much of the tree as necessary.
-		local parentnode = tree.add(tr, path.getdirectory(p))
+		local parentnode = tree.add(tr, path.getdirectory(p), onaddfunc)
 
 		-- Another special case, ".." refers to the parent node and doesn't create anything
 		local childname = path.getname(p)
@@ -59,6 +62,9 @@
 		if not childnode or childnode.path ~= p then
 			childnode = tree.insert(parentnode, tree.new(childname))
 			childnode.path = p
+			if onaddfunc then
+				onaddfunc(childnode)
+			end
 		end
 		
 		return childnode
diff --git a/tests/actions/xcode/test_xcode_project.lua b/tests/actions/xcode/test_xcode_project.lua
index 8437ee0b..642e68e9 100644
--- a/tests/actions/xcode/test_xcode_project.lua
+++ b/tests/actions/xcode/test_xcode_project.lua
@@ -81,6 +81,19 @@
 		]]
 	end
 
+	function suite.PBXBuildFile_IgnoresVpaths()
+		files { "source.h", "source.c", "source.cpp", "Info.plist" }
+		vpaths { ["Source Files"] = { "**.c", "**.cpp" } }
+		prepare()
+		xcode.PBXBuildFile(tr)
+		test.capture [[
+/* Begin PBXBuildFile section */
+		[source.c:build] /* source.c in Sources */ = {isa = PBXBuildFile; fileRef = [source.c] /* source.c */; };
+		[source.cpp:build] /* source.cpp in Sources */ = {isa = PBXBuildFile; fileRef = [source.cpp] /* source.cpp */; };
+/* End PBXBuildFile section */
+		]]
+	end
+
 
 ---------------------------------------------------------------------------
 -- PBXFileReference tests
@@ -467,6 +480,34 @@
 	end
 
 
+	function suite.PBXGroup_OnVpaths()
+		files { "include/premake/source.h" }
+		vpaths { ["Headers"] = "**.h" }
+		prepare()
+		xcode.PBXGroup(tr)
+		test.capture [[
+/* Begin PBXGroup section */
+		[MyProject] /* MyProject */ = {
+			isa = PBXGroup;
+			children = (
+				[Headers] /* Headers */,
+				[Products] /* Products */,
+			);
+			name = "MyProject";
+			sourceTree = "<group>";
+		};
+		[Headers] /* Headers */ = {
+			isa = PBXGroup;
+			children = (
+				[source.h] /* source.h */,
+			);
+			name = "Headers";
+			sourceTree = "<group>";
+		};
+		]]
+	end
+
+
 ---------------------------------------------------------------------------
 -- PBXNativeTarget tests
 ---------------------------------------------------------------------------