diff --git drush_make.generate.inc drush_make.generate.inc
index e9a355e..3c04d84 100644
--- drush_make.generate.inc
+++ drush_make.generate.inc
@@ -48,21 +48,39 @@ function _drush_generate_makefile($file) {
   foreach ($project_info as $item) {
     $name = $item->name;
     $type = $item->type;
-    if ($item->info['project'] != 'drupal' && $item->info['project'] == $name) {
+    if ($item->info['project'] != 'drupal') {
       if (($item->type == 'module') && (!$item->status)) {
         continue;
       }
-      $updatexml = _drush_generate_makefile_updatexml($name, $type, $item->info);
-      $projects[$name] = array('_type' => $type);
+      if ($item->info['project'] && ($item->info['project'] != $name)) {
+        $is_subproject = TRUE;
+        $project_name = $item->info['project'];
+        $updatexml = NULL;
+      }
+      else {
+        $is_subproject = FALSE;
+        $project_name = $name;
+        $updatexml = _drush_generate_makefile_updatexml($project_name, $type, $item->info);
+      }
+      // Only worry about a project when we're on the first subproject
+      if ($is_subproject && $projects[$project_name]) {
+        continue;
+      }
+
+      $projects[$project_name] = array('_type' => $type);
       if ($updatexml) {
-        $projects[$name]['type'] = $type;
-        $projects[$name]['custom_download'] = TRUE;
+        $projects[$project_name]['type'] = $type;
+        $projects[$project_name]['custom_download'] = TRUE;
+      }
+      // So far drupal_get_path can only work with modules, not projects
+      if (!$is_subproject) {
+        $projects[$project_name] += _drush_generate_makefile_check_location($name, $type);
       }
-      $projects[$name] += _drush_generate_makefile_check_location($name, $type);