diff --git a/CHANGELOG.md b/CHANGELOG.md
index 28d79a9d..fb869e3e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,11 @@
 # Changelog
 
+## 0.36.0 - TBD
+
+Bug Fixes
+
+- Pass append and prepend directories when compiling dependent libraries of a program. This prevents issues where the directories are not made available to any `include` directives within such libraries.
+
 ## 0.35.0 - August 25, 2022
 
 Features
diff --git a/cyclone.scm b/cyclone.scm
index d0465f39..7186b231 100644
--- a/cyclone.scm
+++ b/cyclone.scm
@@ -295,6 +295,8 @@
             (when (recompile? lib-dep append-dirs prepend-dirs)
               (let ((result (system (string-append 
                                       (calling-program) " " 
+                                      (dirs->args "-A" append-dirs) " "
+                                      (dirs->args "-I" prepend-dirs) " "
                                       (lib:import->filename lib-dep ".sld" append-dirs prepend-dirs)))))
                 (when (> result 0)
                   (error "Unable to compile library" lib-dep)))))
@@ -986,6 +988,17 @@
       (list #f)
       args)))
 
+;; Convert a list of directories to a string of arguments.
+;; EG: (dirs->args "-I" '("dir-1" "dir-2")) =>
+;;     " -I dir-1 -I dir-2 "
+(define (dirs->args prefix dirs)
+  (apply 
+    string-append
+    (map
+      (lambda (dir)
+        (string-append " " prefix " " dir " "))
+      dirs)))
+
 ;; Handle command line arguments
 (let* ((args (command-line-arguments))
        (non-opts