diff --git a/packages/pug-linker/index.js b/packages/pug-linker/index.js
index 7e82003ed..2d6d90255 100644
--- a/packages/pug-linker/index.js
+++ b/packages/pug-linker/index.js
@@ -55,6 +55,7 @@ function link(ast) {
       parent.declaredBlocks[name] = ast.declaredBlocks[name];
     });
     parent.nodes = mixins.concat(parent.nodes);
+    parent.hasExtends = true;
     return parent;
   }
   return ast;
@@ -123,7 +124,21 @@ function applyIncludes(ast, child) {
     }
   }, function after(node, replace) {
     if (node.type === 'Include') {
-      replace(applyYield(link(node.file.ast), node.block));
+      var childAST = link(node.file.ast);
+      if (childAST.hasExtends) {
+        childAST = removeBlocks(childAST);
+      }
+      replace(applyYield(childAST, node.block));
+    }
+  });
+}
+function removeBlocks(ast) {
+  return walk(ast, function (node, replace) {
+    if (node.type === 'NamedBlock') {
+      replace({
+        type: 'Block',
+        nodes: node.nodes
+      });
     }
   });
 }
diff --git a/packages/pug-linker/test/__snapshots__/index.test.js.snap b/packages/pug-linker/test/__snapshots__/index.test.js.snap
index a36cdebc8..bfbf2f6bd 100644
--- a/packages/pug-linker/test/__snapshots__/index.test.js.snap
+++ b/packages/pug-linker/test/__snapshots__/index.test.js.snap
@@ -370,60 +370,7 @@ Object {
 
 exports[`cases from pug include-extends-from-root.input.json 1`] = `
 Object {
-  "declaredBlocks": Object {
-    "content": Array [
-      Object {
-        "filename": "auxiliary/layout.pug",
-        "line": 6,
-        "mode": "replace",
-        "name": "content",
-        "nodes": Array [
-          Object {
-            "declaredBlocks": Object {},
-            "filename": "auxiliary/include-from-root.pug",
-            "line": 0,
-            "nodes": Array [
-              Object {
-                "attributeBlocks": Array [],
-                "attrs": Array [],
-                "block": Object {
-                  "filename": "auxiliary/include-from-root.pug",
-                  "line": 1,
-                  "nodes": Array [
-                    Object {
-                      "filename": "auxiliary/include-from-root.pug",
-                      "line": 1,
-                      "type": "Text",
-                      "val": "hello",
-                    },
-                  ],
-                  "type": "Block",
-                },
-                "filename": "auxiliary/include-from-root.pug",
-                "isInline": false,
-                "line": 1,
-                "name": "h1",
-                "selfClosing": false,
-                "type": "Tag",
-              },
-            ],
-            "type": "Block",
-          },
-        ],
-        "type": "NamedBlock",
-      },
-    ],
-    "head": Array [
-      Object {
-        "filename": "auxiliary/layout.pug",
-        "line": 4,
-        "mode": "replace",
-        "name": "head",
-        "nodes": Array [],
-        "type": "NamedBlock",
-      },
-    ],
-  },
+  "declaredBlocks": Object {},
   "filename": "include-extends-from-root.pug",
   "line": 0,
   "nodes": Array [
@@ -525,6 +472,7 @@ Object {
         ],
       },
       "filename": "auxiliary/layout.pug",
+      "hasExtends": true,
       "line": 0,
       "nodes": Array [
         Object {
@@ -565,12 +513,8 @@ Object {
                       "type": "Tag",
                     },
                     Object {
-                      "filename": "auxiliary/layout.pug",
-                      "line": 4,
-                      "mode": "replace",
-                      "name": "head",
                       "nodes": Array [],
-                      "type": "NamedBlock",
+                      "type": "Block",
                     },
                   ],
                   "type": "Block",
@@ -590,10 +534,6 @@ Object {
                   "line": 5,
                   "nodes": Array [
                     Object {
-                      "filename": "auxiliary/layout.pug",
-                      "line": 6,
-                      "mode": "replace",
-                      "name": "content",
                       "nodes": Array [
                         Object {
                           "declaredBlocks": Object {},
@@ -627,7 +567,7 @@ Object {
                           "type": "Block",
                         },
                       ],
-                      "type": "NamedBlock",
+                      "type": "Block",
                     },
                   ],
                   "type": "Block",
@@ -659,74 +599,7 @@ Object {
 
 exports[`cases from pug include-extends-of-common-template.input.json 1`] = `
 Object {
-  "declaredBlocks": Object {
-    "test": Array [
-      Object {
-        "filename": "auxiliary/empty-block.pug",
-        "line": 1,
-        "mode": "replace",
-        "name": "test",
-        "nodes": Array [
-          Object {
-            "attributeBlocks": Array [],
-            "attrs": Array [],
-            "block": Object {
-              "filename": "auxiliary/extends-empty-block-1.pug",
-              "line": 4,
-              "nodes": Array [
-                Object {
-                  "filename": "auxiliary/extends-empty-block-1.pug",
-                  "line": 4,
-                  "type": "Text",
-                  "val": "test1",
-                },
-              ],
-              "type": "Block",
-            },
-            "filename": "auxiliary/extends-empty-block-1.pug",
-            "isInline": false,
-            "line": 4,
-            "name": "div",
-            "selfClosing": false,
-            "type": "Tag",
-          },
-        ],
-        "type": "NamedBlock",
-      },
-      Object {
-        "filename": "auxiliary/empty-block.pug",
-        "line": 1,
-        "mode": "replace",
-        "name": "test",
-        "nodes": Array [
-          Object {
-            "attributeBlocks": Array [],
-            "attrs": Array [],
-            "block": Object {
-              "filename": "auxiliary/extends-empty-block-2.pug",
-              "line": 4,
-              "nodes": Array [
-                Object {
-                  "filename": "auxiliary/extends-empty-block-2.pug",
-                  "line": 4,
-                  "type": "Text",
-                  "val": "test2",
-                },
-              ],
-              "type": "Block",
-            },
-            "filename": "auxiliary/extends-empty-block-2.pug",
-            "isInline": false,
-            "line": 4,
-            "name": "div",
-            "selfClosing": false,
-            "type": "Tag",
-          },
-        ],
-        "type": "NamedBlock",
-      },
-    ],
-  },
+  "declaredBlocks": Object {},
   "filename": "include-extends-of-common-template.pug",
   "line": 0,
   "nodes": Array [
@@ -802,13 +675,10 @@ Object {
         ],
       },
       "filename": "auxiliary/empty-block.pug",
+      "hasExtends": true,
       "line": 0,
       "nodes": Array [
         Object {
-          "filename": "auxiliary/empty-block.pug",
-          "line": 1,
-          "mode": "replace",
-          "name": "test",
           "nodes": Array [
             Object {
               "attributeBlocks": Array [],
@@ -834,7 +704,7 @@ Object {
               "type": "Tag",
             },
           ],
-          "type": "NamedBlock",
+          "type": "Block",
         },
       ],
       "type": "Block",
@@ -911,13 +781,10 @@ Object {
         ],
       },
       "filename": "auxiliary/empty-block.pug",
+      "hasExtends": true,
       "line": 0,
       "nodes": Array [
         Object {
-          "filename": "auxiliary/empty-block.pug",
-          "line": 1,
-          "mode": "replace",
-          "name": "test",
           "nodes": Array [
             Object {
               "attributeBlocks": Array [],
@@ -943,7 +810,7 @@ Object {
               "type": "Tag",
             },
           ],
-          "type": "NamedBlock",
+          "type": "Block",
         },
       ],
       "type": "Block",
@@ -955,33 +822,7 @@ Object {
 
 exports[`cases from pug include-extends-relative.input.json 1`] = `
 Object {
-  "declaredBlocks": Object {
-    "content": Array [
-      Object {
-        "filename": "../cases-src/auxiliary/layout.pug",
-        "line": 6,
-        "mode": "replace",
-        "name": "content",
-        "nodes": Array [
-          Object {
-            "type": "Text",
-            "val": "h1 hello",
-          },
-        ],
-        "type": "NamedBlock",
-      },
-    ],
-    "head": Array [
-      Object {
-        "filename": "../cases-src/auxiliary/layout.pug",
-        "line": 4,
-        "mode": "replace",
-        "name": "head",
-        "nodes": Array [],
-        "type": "NamedBlock",
-      },
-    ],
-  },
+  "declaredBlocks": Object {},
   "filename": "include-extends-relative.pug",
   "line": 0,
   "nodes": Array [
@@ -1029,6 +870,7 @@ Object {
         ],
       },
       "filename": "../cases-src/auxiliary/layout.pug",
+      "hasExtends": true,
       "line": 0,
       "nodes": Array [
         Object {
@@ -1069,12 +911,8 @@ Object {
                       "type": "Tag",
                     },
                     Object {
-                      "filename": "../cases-src/auxiliary/layout.pug",
-                      "line": 4,
-                      "mode": "replace",
-                      "name": "head",
                       "nodes": Array [],
-                      "type": "NamedBlock",
+                      "type": "Block",
                     },
                   ],
                   "type": "Block",
@@ -1094,17 +932,13 @@ Object {
                   "line": 5,
                   "nodes": Array [
                     Object {
-                      "filename": "../cases-src/auxiliary/layout.pug",
-                      "line": 6,
-                      "mode": "replace",
-                      "name": "content",
                       "nodes": Array [
                         Object {
                           "type": "Text",
                           "val": "h1 hello",
                         },
                       ],
-                      "type": "NamedBlock",
+                      "type": "Block",
                     },
                   ],
                   "type": "Block",
@@ -1924,6 +1758,7 @@ Object {
     ],
   },
   "filename": "../fixtures/append/layout.pug",
+  "hasExtends": true,
   "line": 0,
   "nodes": Array [
     Object {
@@ -2228,6 +2063,7 @@ Object {
     ],
   },
   "filename": "../fixtures/append-without-block/layout.pug",
+  "hasExtends": true,
   "line": 0,
   "nodes": Array [
     Object {
@@ -2694,6 +2530,7 @@ Object {
     ],
   },
   "filename": "../fixtures/multi-append-prepend-block/root.pug",
+  "hasExtends": true,
   "line": 0,
   "nodes": Array [
     Object {
@@ -3086,6 +2923,7 @@ Object {
     ],
   },
   "filename": "../fixtures/prepend/layout.pug",
+  "hasExtends": true,
   "line": 0,
   "nodes": Array [
     Object {
@@ -3390,6 +3228,7 @@ Object {
     ],
   },
   "filename": "../fixtures/prepend-without-block/layout.pug",
+  "hasExtends": true,
   "line": 0,
   "nodes": Array [
     Object {
@@ -3586,6 +3425,7 @@ exports[`special cases extending-empty.input.json 1`] = `
 Object {
   "declaredBlocks": Object {},
   "filename": "../fixtures/empty.pug",
+  "hasExtends": true,
   "line": 0,
   "nodes": Array [],
   "type": "Block",
@@ -3681,6 +3521,7 @@ Object {
     ],
   },
   "filename": "../fixtures/layout.pug",
+  "hasExtends": true,
   "line": 0,
   "nodes": Array [
     Object {
@@ -3990,6 +3831,7 @@ Object {
     ],
   },
   "filename": "../fixtures/layout.pug",
+  "hasExtends": true,
   "line": 0,
   "nodes": Array [
     Object {