diff --git a/src/Xamarin.Android.Build.Tasks/Tasks/ResolveLibraryProjectImports.cs b/src/Xamarin.Android.Build.Tasks/Tasks/ResolveLibraryProjectImports.cs
index f55838abac1..637667b72b8 100644
--- a/src/Xamarin.Android.Build.Tasks/Tasks/ResolveLibraryProjectImports.cs
+++ b/src/Xamarin.Android.Build.Tasks/Tasks/ResolveLibraryProjectImports.cs
@@ -44,6 +44,8 @@ public class ResolveLibraryProjectImports : AndroidTask
 		[Required]
 		public bool DesignTimeBuild { get; set; }
 
+		public bool AndroidApplication { get; set; }
+
 		[Output]
 		public ITaskItem [] Jars { get; set; }
 
@@ -442,7 +444,7 @@ void Extract (
 					resolvedAssetDirectories.Add (new TaskItem (Path.GetFullPath (assetsDir), new Dictionary<string, string> {
 						{ OriginalFile, aarFullPath },
 					}));
-				if (File.Exists (proguardFile)) {
+				if (AndroidApplication && File.Exists (proguardFile)) {
 					proguardConfigFiles.Add (new TaskItem (Path.GetFullPath (proguardFile), new Dictionary<string, string> {
 						{ OriginalFile, aarFullPath },
 					}));
diff --git a/src/Xamarin.Android.Build.Tasks/Tests/Xamarin.Android.Build.Tests/Utilities/AssertionExtensions.cs b/src/Xamarin.Android.Build.Tasks/Tests/Xamarin.Android.Build.Tests/Utilities/AssertionExtensions.cs
index 8552a37a22b..a6bc7f20c4b 100644
--- a/src/Xamarin.Android.Build.Tasks/Tests/Xamarin.Android.Build.Tests/Utilities/AssertionExtensions.cs
+++ b/src/Xamarin.Android.Build.Tasks/Tests/Xamarin.Android.Build.Tests/Utilities/AssertionExtensions.cs
@@ -54,6 +54,19 @@ public static void AssertTargetIsPartiallyBuilt (this BuildOutput output, string
 				Assert.IsTrue (output.IsTargetPartiallyBuilt (target), $"The target {target} should have been partially built.");
 		}
 
+		[DebuggerHidden]
+		public static void AssertEntryEquals (this ZipArchive zip, string zipPath, string archivePath, string expected)
+		{
+			zip.AssertContainsEntry (zipPath, archivePath);
+
+			var entry = zip.ReadEntry (archivePath);
+			using var stream = new MemoryStream ();
+			entry.Extract (stream);
+			stream.Position = 0;
+			using var reader = new StreamReader (stream);
+			Assert.AreEqual (expected, reader.ReadToEnd ().Trim ());
+		}
+
 		[DebuggerHidden]
 		public static void AssertContainsEntry (this ZipArchive zip, string zipPath, string archivePath)
 		{
diff --git a/src/Xamarin.Android.Build.Tasks/Tests/Xamarin.Android.Build.Tests/XASdkTests.cs b/src/Xamarin.Android.Build.Tasks/Tests/Xamarin.Android.Build.Tests/XASdkTests.cs
index fb071d6623e..2691ac568bf 100644
--- a/src/Xamarin.Android.Build.Tasks/Tests/Xamarin.Android.Build.Tests/XASdkTests.cs
+++ b/src/Xamarin.Android.Build.Tasks/Tests/Xamarin.Android.Build.Tests/XASdkTests.cs
@@ -79,7 +79,7 @@ public void DotNetBuildLibrary (bool isRelease, bool duplicateAar, bool useDesig
 						BinaryContent = () => XamarinAndroidApplicationProject.icon_binary_mdpi,
 					},
 					new AndroidItem.ProguardConfiguration ("proguard.txt") {
-						TextContent = () => @"-ignorewarnings",
+						TextContent = () => "# LibraryC",
 					},
 				}
 			};
@@ -97,7 +97,7 @@ public void DotNetBuildLibrary (bool isRelease, bool duplicateAar, bool useDesig
 			FileAssert.Exists (aarPath);
 			using (var aar = ZipHelper.OpenZip (aarPath)) {
 				aar.AssertContainsEntry (aarPath, "assets/bar/bar.txt");
-				aar.AssertContainsEntry (aarPath, "proguard.txt");
+				aar.AssertEntryEquals (aarPath, "proguard.txt", "# LibraryC");
 			}
 
 			var libB = new XASdkProject (outputType: "Library") {
@@ -139,7 +139,7 @@ public Foo ()
 						TextContent = () => ResourceData.JavaSourceTestExtension,
 					},
 					new AndroidItem.ProguardConfiguration ("proguard.txt") {
-						TextContent = () => @"-ignorewarnings",
+						TextContent = () => "# LibraryB",
 					},
 				}
 			};
@@ -185,6 +185,8 @@ public Foo ()
 				aar.AssertContainsEntry (aarPath, $"libs/{projectJarHash}.jar");
 				aar.AssertContainsEntry (aarPath, "jni/arm64-v8a/libfoo.so");
 				aar.AssertContainsEntry (aarPath, "jni/x86/libfoo.so");
+				// proguard.txt from Library C should not flow to Library B and "double"
+				aar.AssertEntryEquals (aarPath, "proguard.txt", "# LibraryB");
 			}
 
 			// Check EmbeddedResource files do not exist
diff --git a/src/Xamarin.Android.Build.Tasks/Xamarin.Android.EmbeddedResource.targets b/src/Xamarin.Android.Build.Tasks/Xamarin.Android.EmbeddedResource.targets
index a525915edbc..1b629e13c06 100644
--- a/src/Xamarin.Android.Build.Tasks/Xamarin.Android.EmbeddedResource.targets
+++ b/src/Xamarin.Android.Build.Tasks/Xamarin.Android.EmbeddedResource.targets
@@ -38,6 +38,7 @@ This file is used by all project types, including binding projects.
       Outputs="$(_AndroidStampDirectory)_ResolveLibraryProjectImports.stamp">
     <ResolveLibraryProjectImports
         ContinueOnError="$(DesignTimeBuild)"
+        AndroidApplication="$(AndroidApplication)"
         CacheFile="$(_AndroidLibraryProjectImportsCache)"
         DesignTimeBuild="$(DesignTimeBuild)"
         Assemblies="@(_MonoAndroidReferencePath);@(_MonoAndroidReferenceDependencyPaths)"