diff --git a/docs/guides/board-operator/execution-workspaces-and-runtime-services.md b/docs/guides/board-operator/execution-workspaces-and-runtime-services.md
index e38b1b2692d..16eeefe881e 100644
--- a/docs/guides/board-operator/execution-workspaces-and-runtime-services.md
+++ b/docs/guides/board-operator/execution-workspaces-and-runtime-services.md
@@ -138,6 +138,7 @@ fetches with it. Details and caveats:
 Code state moves between runs through the local execution-workspace cwd alone — not through a git remote.
 
 - Each run's prepare step bundles the local worktree to the run's remote dir over ssh, with no `git remote` configured.
+- Other project repositories under `.paperclip-repositories/` make the same round trip. Each one is bundled and restored as its own Git checkout.
 - The adapter's restore step at the end of the run writes any new remote commits back into the local worktree directly.
 - Adapters must never `git push` from runtime code, and must never assume a remote exists.
 - A failed restore is a run-level error and records `workspace_finalize=failed` on the execution workspace, which gates dependent issue wakes until the next successful finalize.
diff --git a/packages/adapter-utils/src/remote-managed-runtime.ts b/packages/adapter-utils/src/remote-managed-runtime.ts
index cb47f3caede..8c5d2581e18 100644
--- a/packages/adapter-utils/src/remote-managed-runtime.ts
+++ b/packages/adapter-utils/src/remote-managed-runtime.ts
@@ -1,5 +1,5 @@
 import path from "node:path";
-import { GIT_ARCHIVE_EXCLUDES } from "./git-workspace-sync.js";
+import { GIT_ARCHIVE_EXCLUDES, PROJECT_REPOSITORIES_DIR } from "./git-workspace-sync.js";
 import {
   type SshRemoteExecutionSpec,
   prepareWorkspaceForSshExecution,
@@ -13,7 +13,7 @@ import {
   type SandboxAdditionalSource,
   type SandboxManagedRuntimeAssetRestoreContext,
 } from "./sandbox-managed-runtime.js";
-import { captureDirectorySnapshot } from "./workspace-restore-merge.js";
+import { captureDirectorySnapshot, type DirectorySnapshot } from "./workspace-restore-merge.js";
 import type { RuntimeProgressSink } from "./runtime-progress.js";
 
 // The fixed heavy-directory excludes every referenced project drops,
@@ -145,13 +145,27 @@ export async function prepareRemoteManagedRuntime(input: {
         workspaceExclude: input.workspaceExclude,
       })
     : null;
+  const projectRepositories = preparedWorkspace?.repositories ?? [];
   const baselineSnapshot = preparedWorkspace
     ? await captureDirectorySnapshot(input.workspaceLocalDir, {
         exclude: preparedWorkspace.gitBacked
-          ? [...GIT_ARCHIVE_EXCLUDES, ".paperclip-runtime"]
+          ? [
+              ...GIT_ARCHIVE_EXCLUDES,
+              ".paperclip-runtime",
+              ...(projectRepositories.length > 0 ? [PROJECT_REPOSITORIES_DIR] : []),
+            ]
           : [".paperclip-runtime", ...(input.workspaceFileMode === "all" ? input.workspaceExclude ?? [] : [])],
       })
     : null;
+  const repositoryBaselines: Array<{ path: string; baselineSnapshot: DirectorySnapshot }> = [];
+  for (const repository of projectRepositories) {
+    repositoryBaselines.push({
+      path: repository,
+      baselineSnapshot: await captureDirectorySnapshot(path.join(input.workspaceLocalDir, repository), {
+        exclude: [...GIT_ARCHIVE_EXCLUDES, ".paperclip-runtime"],
+      }),
+    });
+  }
 
   const assetDirs: Record<string, string> = {};
   try {
@@ -177,6 +191,7 @@ export async function prepareRemoteManagedRuntime(input: {
         baselineSnapshot,
         restoreGitHistory: preparedWorkspace.gitBacked,
         onProgress: input.onProgress,
+        repositories: repositoryBaselines,
       });
     }
     throw error;
@@ -244,6 +259,7 @@ export async function prepareRemoteManagedRuntime(input: {
           baselineSnapshot,
           restoreGitHistory: preparedWorkspace.gitBacked,
           onProgress,
+          repositories: repositoryBaselines,
         });
       }
       for (const asset of input.assets ?? []) {
diff --git a/packages/adapter-utils/src/ssh-fixture.test.ts b/packages/adapter-utils/src/ssh-fixture.test.ts
index 83c4ad7e6d5..39d3c52515e 100644
--- a/packages/adapter-utils/src/ssh-fixture.test.ts
+++ b/packages/adapter-utils/src/ssh-fixture.test.ts
@@ -21,6 +21,16 @@ import {
 import { prepareRemoteManagedRuntime } from "./remote-managed-runtime.js";
 
 const SSH_FIXTURE_TEST_TIMEOUT_MS = 30_000;
+const UNREACHABLE_SSH_SPEC = {
+  host: "127.0.0.1",
+  port: 1,
+  username: "nobody",
+  remoteWorkspacePath: "/nonexistent",
+  remoteCwd: "/nonexistent",
+  privateKey: null,
+  knownHosts: null,
+  strictHostKeyChecking: false,
+} as const;
 let sshEnvLabUnsupportedReason: string | null = null;
 
 // One entry per fixture root directory, registered at creation time so
@@ -850,6 +860,205 @@ describe("ssh env-lab fixture", () => {
     await expect(readFile(path.join(localRepo, "run-b.txt"), "utf8")).resolves.toBe("from run b\n");
   }, SSH_FIXTURE_TEST_TIMEOUT_MS);
 
+  it("round-trips project repositories nested in .paperclip-repositories across consecutive SSH runs", async () => {
+    const rootDir = await createFixtureRootDir();
+    const statePath = path.join(rootDir, "state.json");
+    const localRepo = path.join(rootDir, "local-workspace");
+    const nestedRelative = ".paperclip-repositories/frontend-0123456789ab";
+    const nestedRepo = path.join(localRepo, nestedRelative);
+
+    await mkdir(localRepo, { recursive: true });
+    await git(localRepo, ["init"]);
+    await git(localRepo, ["checkout", "-b", "main"]);
+    await git(localRepo, ["config", "user.name", "Paperclip Test"]);
+    await git(localRepo, ["config", "user.email", "test@paperclip.dev"]);
+    await writeFile(path.join(localRepo, "backend.txt"), "backend base\n", "utf8");
+    await git(localRepo, ["add", "backend.txt"]);
+    await git(localRepo, ["commit", "-m", "backend initial"]);
+    await writeFile(path.join(localRepo, ".git", "info", "exclude"), "\n/.paperclip-repositories/\n", { flag: "a" });
+
+    await mkdir(nestedRepo, { recursive: true });
+    await git(nestedRepo, ["init"]);
+    await git(nestedRepo, ["checkout", "-b", "main"]);
+    await git(nestedRepo, ["config", "user.name", "Paperclip Test"]);
+    await git(nestedRepo, ["config", "user.email", "test@paperclip.dev"]);
+    await writeFile(path.join(nestedRepo, "frontend.txt"), "frontend base\n", "utf8");
+    await writeFile(path.join(nestedRepo, "obsolete.txt"), "tracked\n", "utf8");
+    await git(nestedRepo, ["add", "frontend.txt", "obsolete.txt"]);
+    await git(nestedRepo, ["commit", "-m", "frontend initial"]);
+    await writeFile(path.join(nestedRepo, "frontend.txt"), "frontend dirty local\n", "utf8");
+    await rm(path.join(nestedRepo, "obsolete.txt"));
+
+    const started = await startSshEnvLabFixtureOrSkip(statePath, "SSH nested project repositories test");
+    if (!started) return;
+    const config = await buildSshEnvLabFixtureConfig(started);
+    const spec = {
+      ...config,
+      remoteCwd: started.workspaceDir,
+    } as const;
+
+    const first = await prepareRemoteManagedRuntime({
+      spec,
+      runId: "run-1",
+      adapterKey: "test-adapter",
+      workspaceLocalDir: localRepo,
+    });
+    const remoteNested = path.posix.join(first.workspaceRemoteDir, nestedRelative);
+
+    const remoteNestedStatus = await runSshCommand(
+      config,
+      `cd ${JSON.stringify(remoteNested)} && git log -1 --pretty=%s && git status --short`,
+    );
+    expect(remoteNestedStatus.stdout).toContain("frontend initial");
+    expect(remoteNestedStatus.stdout).toContain("M frontend.txt");
+    expect(remoteNestedStatus.stdout).toContain("D obsolete.txt");
+    const remoteAnchorStatus = await runSshCommand(
+      config,
+      `cd ${JSON.stringify(first.workspaceRemoteDir)} && git status --short --untracked-files=all`,
+    );
+    expect(remoteAnchorStatus.stdout).not.toContain(".paperclip-repositories");
+
+    await runSshCommand(
+      config,
+      [
+        `cd ${JSON.stringify(remoteNested)}`,
+        `git config user.name "Paperclip SSH"`,
+        `git config user.email "ssh@paperclip.dev"`,
+        `git add frontend.txt`,
+        `git commit -m "remote frontend update" >/dev/null`,
+        `printf "frontend remote dirty\\n" > frontend.txt`,
+        `cd ${JSON.stringify(first.workspaceRemoteDir)}`,
+        `git config user.name "Paperclip SSH"`,
+        `git config user.email "ssh@paperclip.dev"`,
+        `printf "backend remote\\n" > backend.txt`,
+        `git add backend.txt`,
+        `git commit -m "remote backend update" >/dev/null`,
+      ].join(" && "),
+      { timeoutMs: 30_000, maxBuffer: 256 * 1024 },
+    );
+
+    await first.restoreWorkspace();
+
+    await expect(stat(path.join(nestedRepo, ".git"))).resolves.toBeDefined();
+    expect(await git(nestedRepo, ["log", "-1", "--pretty=%s"])).toBe("remote frontend update");
+    await expect(readFile(path.join(nestedRepo, "frontend.txt"), "utf8")).resolves.toBe("frontend remote dirty\n");
+    expect(await git(localRepo, ["log", "-1", "--pretty=%s"])).toBe("remote backend update");
+    expect(await git(localRepo, ["status", "--short", "--untracked-files=all"])).not.toContain(".paperclip-repositories");
+
+    const second = await prepareRemoteManagedRuntime({
+      spec,
+      runId: "run-2",
+      adapterKey: "test-adapter",
+      workspaceLocalDir: localRepo,
+    });
+    const secondNestedLog = await runSshCommand(
+      config,
+      `cd ${JSON.stringify(path.posix.join(second.workspaceRemoteDir, nestedRelative))} && git log -1 --pretty=%s`,
+    );
+    expect(secondNestedLog.stdout.trim()).toBe("remote frontend update");
+    await second.restoreWorkspace();
+    await expect(stat(path.join(nestedRepo, ".git"))).resolves.toBeDefined();
+    await expect(readFile(path.join(nestedRepo, "frontend.txt"), "utf8")).resolves.toBe("frontend remote dirty\n");
+  }, SSH_FIXTURE_TEST_TIMEOUT_MS * 2);
+
+  it("restores project repositories through the direct SSH restore path", async () => {
+    const rootDir = await createFixtureRootDir();
+    const statePath = path.join(rootDir, "state.json");
+    const localRepo = path.join(rootDir, "local-workspace");
+    const nestedRelative = ".paperclip-repositories/frontend-0123456789ab";
+    const nestedRepo = path.join(localRepo, nestedRelative);
+
+    for (const repo of [localRepo, nestedRepo]) {
+      await mkdir(repo, { recursive: true });
+      await git(repo, ["init"]);
+      await git(repo, ["checkout", "-b", "main"]);
+      await git(repo, ["config", "user.name", "Paperclip Test"]);
+      await git(repo, ["config", "user.email", "test@paperclip.dev"]);
+      await writeFile(path.join(repo, "tracked.txt"), "base\n", "utf8");
+      await git(repo, ["add", "tracked.txt"]);
+      await git(repo, ["commit", "-m", "initial"]);
+    }
+    await writeFile(path.join(localRepo, ".git", "info", "exclude"), "\n/.paperclip-repositories/\n", { flag: "a" });
+
+    const started = await startSshEnvLabFixtureOrSkip(statePath, "SSH direct restore with project repositories test");
+    if (!started) return;
+    const config = await buildSshEnvLabFixtureConfig(started);
+    const spec = {
+      ...config,
+      remoteCwd: started.workspaceDir,
+    } as const;
+
+    const prepared = await prepareWorkspaceForSshExecution({
+      spec,
+      localDir: localRepo,
+      remoteDir: started.workspaceDir,
+    });
+    expect(prepared).toEqual({ gitBacked: true, repositories: [nestedRelative] });
+
+    await runSshCommand(
+      config,
+      [
+        `cd ${JSON.stringify(path.posix.join(started.workspaceDir, nestedRelative))}`,
+        `git config user.name "Paperclip SSH"`,
+        `git config user.email "ssh@paperclip.dev"`,
+        `printf "remote\\n" > tracked.txt`,
+        `git commit -am "remote nested update" >/dev/null`,
+      ].join(" && "),
+      { timeoutMs: 30_000, maxBuffer: 256 * 1024 },
+    );
+
+    await restoreWorkspaceFromSshExecution({
+      spec,
+      localDir: localRepo,
+      remoteDir: started.workspaceDir,
+      repositories: (prepared.repositories ?? []).map((repository) => ({ path: repository })),
+    });
+
+    await expect(stat(path.join(nestedRepo, ".git"))).resolves.toBeDefined();
+    expect(await git(nestedRepo, ["log", "-1", "--pretty=%s"])).toBe("remote nested update");
+    await expect(readFile(path.join(nestedRepo, "tracked.txt"), "utf8")).resolves.toBe("remote\n");
+    expect(await git(localRepo, ["status", "--short", "--untracked-files=all"])).toBe("");
+  }, SSH_FIXTURE_TEST_TIMEOUT_MS * 2);
+
+  it("fails closed when .paperclip-repositories holds something other than a git checkout", async () => {
+    const rootDir = await createFixtureRootDir();
+    const localRepo = path.join(rootDir, "local-workspace");
+    await mkdir(path.join(localRepo, ".paperclip-repositories", "not-a-repo"), { recursive: true });
+    await git(localRepo, ["init"]);
+    await git(localRepo, ["checkout", "-b", "main"]);
+    await git(localRepo, ["config", "user.name", "Paperclip Test"]);
+    await git(localRepo, ["config", "user.email", "test@paperclip.dev"]);
+    await writeFile(path.join(localRepo, "tracked.txt"), "base\n", "utf8");
+    await git(localRepo, ["add", "tracked.txt"]);
+    await git(localRepo, ["commit", "-m", "initial"]);
+
+    await expect(prepareWorkspaceForSshExecution({ spec: UNREACHABLE_SSH_SPEC, localDir: localRepo, remoteDir: "/nonexistent" }))
+      .rejects.toThrow("Project repository is not a Git checkout: .paperclip-repositories/not-a-repo");
+  }, SSH_FIXTURE_TEST_TIMEOUT_MS);
+
+  it("rejects inconsistent project repository restores before any SSH connection", async () => {
+    const localDir = await createFixtureRootDir();
+    const repositoryBaseline = { exclude: [".git", ".git/*", ".paperclip-runtime"], entries: new Map() };
+    const restore = (input: Partial<Parameters<typeof restoreWorkspaceFromSshExecution>[0]>) =>
+      restoreWorkspaceFromSshExecution({
+        spec: UNREACHABLE_SSH_SPEC,
+        localDir,
+        remoteDir: "/nonexistent",
+        baselineSnapshot: { exclude: [".git", ".git/*", ".paperclip-runtime", ".paperclip-repositories"], entries: new Map() },
+        restoreGitHistory: true,
+        ...input,
+      });
+
+    await expect(restore({ repositories: [{ path: "../outside", baselineSnapshot: repositoryBaseline }] }))
+      .rejects.toThrow("Invalid project repository path: ../outside");
+    await expect(restore({ repositories: [{ path: ".paperclip-repositories/frontend-0123456789ab" }] }))
+      .rejects.toThrow("Project repository has no workspace baseline: .paperclip-repositories/frontend-0123456789ab");
+    await expect(restore({
+      baselineSnapshot: { exclude: [".git", ".git/*", ".paperclip-runtime"], entries: new Map() },
+      repositories: [{ path: ".paperclip-repositories/frontend-0123456789ab", baselineSnapshot: repositoryBaseline }],
+    })).rejects.toThrow("Workspace baseline must exclude .paperclip-repositories");
+  }, SSH_FIXTURE_TEST_TIMEOUT_MS);
+
   it("preserves nested per-run files across sequential SSH restores with stale baselines", async () => {
     const rootDir = await createFixtureRootDir();
     const statePath = path.join(rootDir, "state.json");
diff --git a/packages/adapter-utils/src/ssh.ts b/packages/adapter-utils/src/ssh.ts
index 89fd456c5d4..68e61fc6390 100644
--- a/packages/adapter-utils/src/ssh.ts
+++ b/packages/adapter-utils/src/ssh.ts
@@ -9,6 +9,7 @@ import type { CommandManagedRuntimeRunner } from "./command-managed-runtime.js";
 import {
   createUnrelatedHistoryGraftCommit,
   GIT_SYNC_COMMIT_IDENTITY_ARGS,
+  PROJECT_REPOSITORIES_DIR,
   readSanitizedOriginRemoteUrl,
 } from "./git-workspace-sync.js";
 import type { RunProcessResult } from "./server-utils.js";
@@ -1071,6 +1072,91 @@ async function removeDeletedPathsOnSsh(input: {
   });
 }
 
+const PROJECT_REPOSITORY_NAME_PATTERN = /^[a-zA-Z0-9_-]+$/;
+
+async function isLocalGitRepositoryRoot(localDir: string): Promise<boolean> {
+  try {
+    const toplevel = await runLocalGit(localDir, ["rev-parse", "--show-toplevel"], {
+      timeout: 10_000,
+      maxBuffer: 16 * 1024,
+    });
+    const [directory, repository] = await Promise.all([
+      fs.realpath(localDir),
+      fs.realpath(toplevel.stdout.trim()),
+    ]);
+    return directory === repository;
+  } catch {
+    return false;
+  }
+}
+
+async function listLocalProjectRepositories(localDir: string): Promise<string[]> {
+  const root = path.join(localDir, PROJECT_REPOSITORIES_DIR);
+  const rootStat = await fs.lstat(root).catch((error: NodeJS.ErrnoException) => {
+    if (error.code === "ENOENT") return null;
+    throw error;
+  });
+  if (!rootStat) return [];
+  if (!rootStat.isDirectory() || rootStat.isSymbolicLink()) {
+    throw new Error("Invalid project repositories directory");
+  }
+  const repositories: string[] = [];
+  for (const entry of await fs.readdir(root, { withFileTypes: true })) {
+    if (!entry.isDirectory() || !PROJECT_REPOSITORY_NAME_PATTERN.test(entry.name)) {
+      throw new Error("Invalid project repository directory");
+    }
+    const relative = `${PROJECT_REPOSITORIES_DIR}/${entry.name}`;
+    if (!(await isLocalGitRepositoryRoot(path.join(localDir, relative)))) {
+      throw new Error(`Project repository is not a Git checkout: ${relative}`);
+    }
+    repositories.push(relative);
+  }
+  return repositories.sort();
+}
+
+async function transportGitWorkspaceToSsh(input: {
+  spec: SshRemoteExecutionSpec;
+  localDir: string;
+  remoteDir: string;
+  snapshot: LocalGitWorkspaceSnapshot;
+  exclude?: string[];
+  onProgress?: RuntimeProgressSink;
+  progressLabel: string;
+}): Promise<void> {
+  await importGitWorkspaceToSsh({
+    spec: input.spec,
+    localDir: input.localDir,
+    remoteDir: input.remoteDir,
+    snapshot: input.snapshot,
+    onProgress: input.onProgress,
+  });
+  await syncDirectoryToSsh({
+    spec: input.spec,
+    localDir: input.localDir,
+    remoteDir: input.remoteDir,
+    exclude: [".git", ".paperclip-runtime", ...(input.exclude ?? [])],
+    onProgress: input.onProgress,
+    progressLabel: input.progressLabel,
+  });
+  await removeDeletedPathsOnSsh({
+    spec: input.spec,
+    remoteDir: input.remoteDir,
+    deletedPaths: input.snapshot.deletedPaths,
+  });
+}
+
+async function excludeProjectRepositoriesOnSsh(spec: SshConnectionConfig, remoteDir: string): Promise<void> {
+  const pattern = `/${PROJECT_REPOSITORIES_DIR}/`;
+  const excludeFile = path.posix.join(remoteDir, ".git", "info", "exclude");
+  await runSshScript(
+    spec,
+    `mkdir -p ${shellQuote(path.posix.dirname(excludeFile))} && ` +
+      `{ grep -qxF ${shellQuote(pattern)} ${shellQuote(excludeFile)} 2>/dev/null || ` +
+      `printf '\\n%s\\n' ${shellQuote(pattern)} >> ${shellQuote(excludeFile)}; }`,
+    { timeoutMs: 30_000 },
+  );
+}
+
 async function allocateLoopbackPort(host: string): Promise<number> {
   return await new Promise<number>((resolve, reject) => {
     const server = net.createServer();
@@ -1560,32 +1646,38 @@ export async function prepareWorkspaceForSshExecution(input: {
   onProgress?: RuntimeProgressSink;
   workspaceFileMode?: "all";
   workspaceExclude?: string[];
-}): Promise<{ gitBacked: boolean }> {
+}): Promise<{ gitBacked: boolean; repositories?: string[] }> {
   const remoteDir = input.remoteDir ?? input.spec.remoteCwd;
   const gitSnapshot = input.workspaceFileMode === "all" ? null : await readLocalGitWorkspaceSnapshot(input.localDir);
 
   if (gitSnapshot) {
-    await importGitWorkspaceToSsh({
+    const repositories = await listLocalProjectRepositories(input.localDir);
+    await transportGitWorkspaceToSsh({
       spec: input.spec,
       localDir: input.localDir,
       remoteDir,
       snapshot: gitSnapshot,
-      onProgress: input.onProgress,
-    });
-    await syncDirectoryToSsh({
-      spec: input.spec,
-      localDir: input.localDir,
-      remoteDir,
-      exclude: [".git", ".paperclip-runtime"],
+      exclude: repositories.length > 0 ? [PROJECT_REPOSITORIES_DIR] : [],
       onProgress: input.onProgress,
       progressLabel: "workspace",
     });
-    await removeDeletedPathsOnSsh({
-      spec: input.spec,
-      remoteDir,
-      deletedPaths: gitSnapshot.deletedPaths,
-    });
-    return { gitBacked: true };
+    if (repositories.length > 0) {
+      await excludeProjectRepositoriesOnSsh(input.spec, remoteDir);
+    }
+    for (const relative of repositories) {
+      const localDir = path.join(input.localDir, relative);
+      const snapshot = await readLocalGitWorkspaceSnapshot(localDir);
+      if (!snapshot) throw new Error(`Cannot read the Git state of project repository: ${relative}`);
+      await transportGitWorkspaceToSsh({
+        spec: input.spec,
+        localDir,
+        remoteDir: path.posix.join(remoteDir, relative),
+        snapshot,
+        onProgress: input.onProgress,
+        progressLabel: relative,
+      });
+    }
+    return { gitBacked: true, ...(repositories.length > 0 ? { repositories } : {}) };
   }
 
   await clearRemoteDirectory({
@@ -1611,8 +1703,62 @@ export async function restoreWorkspaceFromSshExecution(input: {
   baselineSnapshot?: DirectorySnapshot;
   restoreGitHistory?: boolean;
   onProgress?: RuntimeProgressSink;
+  repositories?: Array<{ path: string; baselineSnapshot?: DirectorySnapshot }>;
 }): Promise<void> {
   const remoteDir = input.remoteDir ?? input.spec.remoteCwd;
+  const repositories = input.repositories ?? [];
+  for (const repository of repositories) {
+    if (
+      path.posix.dirname(repository.path) !== PROJECT_REPOSITORIES_DIR ||
+      !PROJECT_REPOSITORY_NAME_PATTERN.test(path.posix.basename(repository.path))
+    ) {
+      throw new Error(`Invalid project repository path: ${repository.path}`);
+    }
+    if (input.baselineSnapshot && !repository.baselineSnapshot) {
+      throw new Error(`Project repository has no workspace baseline: ${repository.path}`);
+    }
+  }
+  if (
+    input.baselineSnapshot &&
+    repositories.length > 0 &&
+    !input.baselineSnapshot.exclude.includes(PROJECT_REPOSITORIES_DIR)
+  ) {
+    throw new Error(`Workspace baseline must exclude ${PROJECT_REPOSITORIES_DIR} when project repositories are restored separately`);
+  }
+  for (const repository of repositories) {
+    await restoreWorkspaceRootFromSsh({
+      spec: input.spec,
+      localDir: path.join(input.localDir, repository.path),
+      remoteDir: path.posix.join(remoteDir, repository.path),
+      baselineSnapshot: repository.baselineSnapshot,
+      restoreGitHistory: input.restoreGitHistory,
+      onProgress: input.onProgress,
+      progressLabel: repository.path,
+    });
+  }
+  await restoreWorkspaceRootFromSsh({
+    spec: input.spec,
+    localDir: input.localDir,
+    remoteDir,
+    baselineSnapshot: input.baselineSnapshot,
+    restoreGitHistory: input.restoreGitHistory,
+    onProgress: input.onProgress,
+    progressLabel: "workspace",
+    hasProjectRepositories: repositories.length > 0,
+  });
+}
+
+async function restoreWorkspaceRootFromSsh(input: {
+  spec: SshRemoteExecutionSpec;
+  localDir: string;
+  remoteDir: string;
+  baselineSnapshot?: DirectorySnapshot;
+  restoreGitHistory?: boolean;
+  onProgress?: RuntimeProgressSink;
+  progressLabel: string;
+  hasProjectRepositories?: boolean;
+}): Promise<void> {
+  const remoteDir = input.remoteDir;
   if (input.baselineSnapshot) {
     const stagingDir = await fs.mkdtemp(path.join(os.tmpdir(), "paperclip-ssh-sync-back-"));
     const importedRef = input.restoreGitHistory
@@ -1635,7 +1781,7 @@ export async function restoreWorkspaceFromSshExecution(input: {
         localDir: stagingDir,
         exclude: input.baselineSnapshot.exclude,
         onProgress: input.onProgress,
-        progressLabel: "workspace",
+        progressLabel: input.progressLabel,
       });
       await mergeDirectoryWithBaseline({
         baseline: input.baselineSnapshot,
@@ -1666,6 +1812,7 @@ export async function restoreWorkspaceFromSshExecution(input: {
   const gitSnapshot = await readLocalGitWorkspaceSnapshot(input.localDir);
 
   if (gitSnapshot) {
+    const projectRepositoryEntries = input.hasProjectRepositories ? [PROJECT_REPOSITORIES_DIR] : [];
     await exportGitWorkspaceFromSsh({
       spec: input.spec,
       remoteDir,
@@ -1676,10 +1823,10 @@ export async function restoreWorkspaceFromSshExecution(input: {
       spec: input.spec,
       remoteDir,
       localDir: input.localDir,
-      exclude: [".git", ".paperclip-runtime"],
-      preserveLocalEntries: [".git"],
+      exclude: [".git", ".paperclip-runtime", ...projectRepositoryEntries],
+      preserveLocalEntries: [".git", ...projectRepositoryEntries],
       onProgress: input.onProgress,
-      progressLabel: "workspace",
+      progressLabel: input.progressLabel,
     });
     return;
   }
@@ -1690,7 +1837,7 @@ export async function restoreWorkspaceFromSshExecution(input: {
     localDir: input.localDir,
     exclude: [".paperclip-runtime"],
     onProgress: input.onProgress,
-    progressLabel: "workspace",
+    progressLabel: input.progressLabel,
   });
 }