diff --git a/CHANGES.rst b/CHANGES.rst
index 62b20ed..53fa563 100644
--- a/CHANGES.rst
+++ b/CHANGES.rst
@@ -4,6 +4,8 @@ Changes in sphinx-automodapi
 0.15.0 (unreleased)
 -------------------
 
+- Fixed issue with ``:skip:`` introduced by ``:include:`` feature. [#142]
+
 0.14.0 (2021-12-22)
 -------------------
 
diff --git a/setup.cfg b/setup.cfg
index fdd19cc..0dfbcc6 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -43,6 +43,7 @@ filterwarnings =
     ignore:The `docutils\.parsers\.rst\.directive\.html` module will be removed:DeprecationWarning
     ignore:'contextfunction' is renamed to 'pass_context':DeprecationWarning
     ignore:'environmentfilter' is renamed to 'pass_environment':DeprecationWarning
+    ignore:distutils Version classes are deprecated:DeprecationWarning
 
 [flake8]
 max-line-length = 125
diff --git a/sphinx_automodapi/automodapi.py b/sphinx_automodapi/automodapi.py
index 1957194..28cff8a 100644
--- a/sphinx_automodapi/automodapi.py
+++ b/sphinx_automodapi/automodapi.py
@@ -411,12 +411,12 @@ def _mod_info(modname, toskip=[], include=[], onlylocals=True):
 
     hascls = hasfunc = hasother = False
 
-    skips = []
+    skips = toskip.copy()
     for localnm, fqnm, obj in zip(*find_mod_objs(modname, onlylocals=onlylocals)):
-        if localnm in toskip or (include and localnm not in include):
+        if include and localnm not in include and localnm not in skips:
             skips.append(localnm)
 
-        else:
+        elif localnm not in toskip:
             hascls = hascls or inspect.isclass(obj)
             hasfunc = hasfunc or inspect.isroutine(obj)
             hasother = hasother or (not inspect.isclass(obj) and

diff --git a/sphinx_automodapi/tests/example_module/stdlib.py b/sphinx_automodapi/tests/example_module/stdlib.py
new file mode 100644
index 0000000..626dc69
--- /dev/null
+++ b/sphinx_automodapi/tests/example_module/stdlib.py
@@ -0,0 +1,15 @@
+"""
+A module that imports objects from the standard library.
+"""
+from pathlib import Path
+from datetime import time
+
+
+__all__ = ['Path', 'time', 'add']
+
+
+def add(a, b):
+    """
+    Add two numbers
+    """
+    return a + b
diff --git a/sphinx_automodapi/tests/test_automodapi.py b/sphinx_automodapi/tests/test_automodapi.py
index cd0550e..72e52fd 100644
--- a/sphinx_automodapi/tests/test_automodapi.py
+++ b/sphinx_automodapi/tests/test_automodapi.py
@@ -327,6 +327,107 @@ def test_am_replacer_skip(tmpdir):
     assert result == am_replacer_skip_expected
 
 
+am_replacer_skip_stdlib_str = """
+This comes before
+
+.. automodapi:: sphinx_automodapi.tests.example_module.stdlib
+    :skip: time
+    :skip: Path
+
+This comes after
+"""
+
+
+am_replacer_skip_stdlib_expected = """
+This comes before
+
+
+sphinx_automodapi.tests.example_module.stdlib Module
+----------------------------------------------------
+
+.. automodule:: sphinx_automodapi.tests.example_module.stdlib
+
+Functions
+^^^^^^^^^
+
+.. automodsumm:: sphinx_automodapi.tests.example_module.stdlib
+    :functions-only:
+    :toctree: api
+    :skip: time,Path
+
+
+This comes after
+""".format(empty='')
+
+
+def test_am_replacer_skip_stdlib(tmpdir):
+    """
+    Tests using the ":skip:" option in an ".. automodapi::"
+    that skips objects imported from the standard library.
+    This is a regression test for #141
+    """
+
+    with open(tmpdir.join('index.rst').strpath, 'w') as f:
+        f.write(am_replacer_skip_stdlib_str.format(options=''))
+
+    run_sphinx_in_tmpdir(tmpdir)
+
+    with open(tmpdir.join('index.rst.automodapi').strpath) as f:
+        result = f.read()
+
+    assert result == am_replacer_skip_stdlib_expected
+
+
+am_replacer_include_stdlib_str = """
+This comes before
+
+.. automodapi:: sphinx_automodapi.tests.example_module.stdlib
+    :include: add
+    :allowed-package-names: pathlib, datetime, sphinx_automodapi
+
+This comes after
+"""
+
+am_replacer_include_stdlib_expected = """
+This comes before
+
+
+sphinx_automodapi.tests.example_module.stdlib Module
+----------------------------------------------------
+
+.. automodule:: sphinx_automodapi.tests.example_module.stdlib
+
+Functions
+^^^^^^^^^
+
+.. automodsumm:: sphinx_automodapi.tests.example_module.stdlib
+    :functions-only:
+    :toctree: api
+    :skip: Path,time
+    :allowed-package-names: pathlib,datetime,sphinx_automodapi
+
+
+This comes after
+""".format(empty='')
+
+
+def test_am_replacer_include_stdlib(tmpdir):
+    """
+    Tests using the ":include: option in an ".. automodapi::"
+    in the presence of objects imported from the standard library.
+    """
+
+    with open(tmpdir.join('index.rst').strpath, 'w') as f:
+        f.write(am_replacer_include_stdlib_str.format(options=''))
+
+    run_sphinx_in_tmpdir(tmpdir)
+
+    with open(tmpdir.join('index.rst.automodapi').strpath) as f:
+        result = f.read()
+
+    assert result == am_replacer_include_stdlib_expected
+
+
 am_replacer_include_str = """
 This comes before
 

:skip: no longer works with standard library objects
Prior to the 0.14 release, it was possible to use `:skip:` on standard library objects that were imported by a module:

```
.. automodapi:: sphinx_automodapi.tests.example_module.stdlib
    :skip: time
    :skip: Path
```

In 0.14, those `:skip:` directives are disappeared by code introduced to support `:include:`.  I opened a PR with a test showing the new failure: https://github.com/astropy/sphinx-automodapi/pull/140.  The test passes if I revert the commits from #127. 
sphinx_automodapi/tests/test_automodapi.py::test_am_replacer_skip_stdlib
sphinx_automodapi/tests/test_automodapi.py::test_am_replacer_noinh sphinx_automodapi/tests/test_automodapi.py::test_am_replacer_titleandhdrs_invalid sphinx_automodapi/tests/test_automodapi.py::test_am_replacer_nomain sphinx_automodapi/tests/test_automodapi.py::test_am_replacer_skip sphinx_automodapi/tests/test_automodapi.py::test_am_replacer_include_stdlib sphinx_automodapi/tests/test_automodapi.py::test_am_replacer_include sphinx_automodapi/tests/test_automodapi.py::test_am_replacer_invalidop sphinx_automodapi/tests/test_automodapi.py::test_am_replacer_cython