diff --git a/internal/cmd/module/local_preview.go b/internal/cmd/module/local_preview.go
index 89a18e4..915ab9a 100644
--- a/internal/cmd/module/local_preview.go
+++ b/internal/cmd/module/local_preview.go
@@ -51,7 +51,7 @@ func localPreview() cli.ActionFunc {
 
 		fp := filepath.Join(os.TempDir(), "spacectl", "local-workspace", fmt.Sprintf("%s.tar.gz", uploadMutation.UploadLocalWorkspace.ID))
 
-		matchFn, err := internal.GetIgnoreMatcherFn(ctx)
+		matchFn, err := internal.GetIgnoreMatcherFn(ctx, nil)
 		if err != nil {
 			return fmt.Errorf("couldn't analyze .gitignore and .terraformignore files")
 		}
diff --git a/internal/cmd/stack/flags.go b/internal/cmd/stack/flags.go
index 2c878fe..1fbf9f3 100644
--- a/internal/cmd/stack/flags.go
+++ b/internal/cmd/stack/flags.go
@@ -32,6 +32,12 @@ var flagNoFindRepositoryRoot = &cli.BoolFlag{
 	Value: false,
 }
 
+var flagProjectRootOnly = &cli.BoolFlag{
+	Name:  "project-root-only",
+	Usage: "Indicate if spacelift should only package files inside this stacks project_root",
+	Value: false,
+}
+
 var flagRequiredCommitSHA = &cli.StringFlag{
 	Name:     "sha",
 	Usage:    "[Required] `SHA` of the commit to set as canonical for the stack",
diff --git a/internal/cmd/stack/local_preview.go b/internal/cmd/stack/local_preview.go
index 09f2213..ad545e4 100644
--- a/internal/cmd/stack/local_preview.go
+++ b/internal/cmd/stack/local_preview.go
@@ -22,13 +22,25 @@ func localPreview() cli.ActionFunc {
 		}
 		ctx := context.Background()
 
+		var packagePath *string = nil
+		if cliCtx.Bool(flagProjectRootOnly.Name) {
+			root, err := getGitRepositorySubdir()
+			if err != nil {
+				return fmt.Errorf("couldn't get the packagePath: %w", err)
+			}
+			packagePath = &root
+		}
 		if !cliCtx.Bool(flagNoFindRepositoryRoot.Name) {
 			if err := internal.MoveToRepositoryRoot(); err != nil {
 				return fmt.Errorf("couldn't move to repository root: %w", err)
 			}
 		}
 
-		fmt.Println("Packing local workspace...")
+		if packagePath == nil {
+			fmt.Printf("Packing local workspace...\n")
+		} else {
+			fmt.Printf("Packing '%s' as local workspace...\n", *packagePath)
+		}
 
 		var uploadMutation struct {
 			UploadLocalWorkspace struct {
@@ -47,7 +59,7 @@ func localPreview() cli.ActionFunc {
 
 		fp := filepath.Join(os.TempDir(), "spacectl", "local-workspace", fmt.Sprintf("%s.tar.gz", uploadMutation.UploadLocalWorkspace.ID))
 
-		matchFn, err := internal.GetIgnoreMatcherFn(ctx)
+		matchFn, err := internal.GetIgnoreMatcherFn(ctx, packagePath)
 		if err != nil {
 			return fmt.Errorf("couldn't analyze .gitignore and .terraformignore files")
 		}
diff --git a/internal/cmd/stack/stack.go b/internal/cmd/stack/stack.go
index faabcc0..010226c 100644
--- a/internal/cmd/stack/stack.go
+++ b/internal/cmd/stack/stack.go
@@ -114,6 +114,7 @@ func Command() *cli.Command {
 				Flags: []cli.Flag{
 					flagStackID,
 					flagNoFindRepositoryRoot,
+					flagProjectRootOnly,
 					flagRunMetadata,
 					flagNoTail,
 					flagNoUpload,
diff --git a/internal/local_preview.go b/internal/local_preview.go
index 3ad5dd9..677d3ae 100644
--- a/internal/local_preview.go
+++ b/internal/local_preview.go
@@ -6,6 +6,7 @@ import (
 	"net/http"
 	"os"
 	"path/filepath"
+	"strings"
 
 	"github.com/cheggaaa/pb/v3"
 	ignore "github.com/sabhiram/go-gitignore"
@@ -45,8 +46,10 @@ func MoveToRepositoryRoot() error {
 	}
 }
 
-// GetIgnoreMatcherFn creates an ignore-matcher for archiving purposes. Respects gitignore and terraformignore.
-func GetIgnoreMatcherFn(ctx context.Context) (func(filePath string) bool, error) {
+// GetIgnoreMatcherFn creates an ignore-matcher for archiving purposes
+// This function respects gitignore and terraformignore, and
+// optionally if a projectRoot is provided it only include files from this root
+func GetIgnoreMatcherFn(ctx context.Context, projectRoot *string) (func(filePath string) bool, error) {
 	gitignore, err := ignore.CompileIgnoreFile(".gitignore")
 	if err != nil && !os.IsNotExist(err) {
 		return nil, fmt.Errorf("couldn't compile .gitignore file: %w", err)
@@ -66,6 +69,15 @@ func GetIgnoreMatcherFn(ctx context.Context) (func(filePath string) bool, error)
 		if terraformignore != nil && terraformignore.MatchesPath(filePath) {
 			return false
 		}
+
+		if projectRoot != nil {
+			// ensure the root only matches the directory and not all other files
+			root := strings.TrimSuffix(*projectRoot, "/") + "/"
+			if !strings.HasPrefix(filePath, root) {
+				return false
+			}
+		}
+
 		return true
 	}, nil
 }