diff --git a/Fixtures/Traits/Example/Package.swift b/Fixtures/Traits/Example/Package.swift
index 6eaf1479afa..b5358cb9d3b 100644
--- a/Fixtures/Traits/Example/Package.swift
+++ b/Fixtures/Traits/Example/Package.swift
@@ -25,6 +25,7 @@ let package = Package(
         "BuildCondition1",
         "BuildCondition2",
         "BuildCondition3",
+        "ExtraTrait",
     ],
     dependencies: [
         .package(
@@ -101,6 +102,11 @@ let package = Package(
                     package: "Package10",
                     condition: .when(traits: ["Package10"])
                 ),
+                .product(
+                    name: "Package10Library2",
+                    package: "Package10",
+                    condition: .when(traits: ["Package10", "ExtraTrait"])
+                )
             ],
             swiftSettings: [
                 .define("DEFINE1", .when(traits: ["BuildCondition1"])),
diff --git a/Fixtures/Traits/Example/Sources/Example/Example.swift b/Fixtures/Traits/Example/Sources/Example/Example.swift
index 5f1d871df50..d1edafb6bb2 100644
--- a/Fixtures/Traits/Example/Sources/Example/Example.swift
+++ b/Fixtures/Traits/Example/Sources/Example/Example.swift
@@ -21,6 +21,10 @@ import Package9Library1
 #endif
 #if Package10
 import Package10Library1
+import Package10Library2
+#endif
+#if ExtraTrait
+import Package10Library2
 #endif
 
 @main
@@ -49,6 +53,10 @@ struct Example {
         #endif
         #if Package10
         Package10Library1.hello()
+        Package10Library2.hello()
+        #endif
+        #if ExtraTrait
+        Package10Library2.hello()
         #endif
         #if DEFINE1
         print("DEFINE1 enabled")
diff --git a/Fixtures/Traits/Package10/Package.swift b/Fixtures/Traits/Package10/Package.swift
index 4236e806cff..60767db5e7a 100644
--- a/Fixtures/Traits/Package10/Package.swift
+++ b/Fixtures/Traits/Package10/Package.swift
@@ -9,6 +9,10 @@ let package = Package(
             name: "Package10Library1",
             targets: ["Package10Library1"]
         ),
+        .library(
+            name: "Package10Library2",
+            targets: ["Package10Library2"]
+        ),
     ],
     traits: [
         "Package10Trait1",
@@ -18,6 +22,9 @@ let package = Package(
         .target(
             name: "Package10Library1"
         ),
+        .target(
+            name: "Package10Library2"
+        ),
         .plugin(
             name: "SymbolGraphExtract",
             capability: .command(
diff --git a/Fixtures/Traits/Package10/Sources/Package10Library2/Library.swift b/Fixtures/Traits/Package10/Sources/Package10Library2/Library.swift
new file mode 100644
index 00000000000..8d1dd343c75
--- /dev/null
+++ b/Fixtures/Traits/Package10/Sources/Package10Library2/Library.swift
@@ -0,0 +1,3 @@
+public func hello() {
+    print("Package10Library2 has been included.")
+}
\ No newline at end of file
diff --git a/Sources/PackageModel/Manifest/Manifest+Traits.swift b/Sources/PackageModel/Manifest/Manifest+Traits.swift
index 9f9364ea3a9..e5258a7a188 100644
--- a/Sources/PackageModel/Manifest/Manifest+Traits.swift
+++ b/Sources/PackageModel/Manifest/Manifest+Traits.swift
@@ -95,7 +95,7 @@ extension Manifest {
         _ parentPackage: PackageIdentifier? = nil
     ) throws {
         guard supportsTraits else {
-            if explicitlyEnabledTraits != ["default"] /*!explicitlyEnabledTraits.contains("default")*/ {
+            if explicitlyEnabledTraits != ["default"] {
                 throw TraitError.traitsNotSupported(
                     parent: parentPackage,
                     package: .init(self),
@@ -116,7 +116,7 @@ extension Manifest {
         let areDefaultsEnabled = enabledTraits.contains("default")
 
         // Ensure that disabling default traits is disallowed for packages that don't define any traits.
-        if !(explicitlyEnabledTraits == nil || areDefaultsEnabled) && !self.supportsTraits {
+        if !areDefaultsEnabled && !self.supportsTraits {
             // We throw an error when default traits are disabled for a package without any traits
             // This allows packages to initially move new API behind traits once.
             throw TraitError.traitsNotSupported(
@@ -449,15 +449,18 @@ extension Manifest {
 
         let traitsToEnable = self.traitGuardedTargetDependencies(for: target)[dependency] ?? []
 
-        let isEnabled = try traitsToEnable.allSatisfy { try self.isTraitEnabled(
+        // Check if any of the traits guarding this dependency is enabled;
+        // if so, the condition is met and the target dependency is considered
+        // to be in an enabled state.
+        let isEnabled = try traitsToEnable.contains(where: { try self.isTraitEnabled(
             .init(stringLiteral: $0),
             enabledTraits,
-        ) }
+        ) })
 
         return traitsToEnable.isEmpty || isEnabled
     }
     /// Determines whether a given package dependency is used by this manifest given a set of enabled traits.
-    public func isPackageDependencyUsed(_ dependency: PackageDependency, enabledTraits: Set<String>/* = ["default"]*/) throws -> Bool {
+    public func isPackageDependencyUsed(_ dependency: PackageDependency, enabledTraits: Set<String>) throws -> Bool {
         if self.pruneDependencies {
             let usedDependencies = try self.usedDependencies(withTraits: enabledTraits)
             let foundKnownPackage = usedDependencies.knownPackage.contains(where: {
@@ -478,8 +481,8 @@ extension Manifest {
 
             // if target deps is empty, default to returning true here.
             let isTraitGuarded = targetDependenciesForPackageDependency.isEmpty ? false : targetDependenciesForPackageDependency.compactMap({ $0.condition?.traits }).allSatisfy({
-                let condition = $0.subtracting(enabledTraits)
-                return !condition.isEmpty
+                let isGuarded = $0.intersection(enabledTraits).isEmpty
+                return isGuarded
             })
 
             let isUsedWithoutTraitGuarding = !targetDependenciesForPackageDependency.filter({ $0.condition?.traits == nil }).isEmpty
diff --git a/Tests/FunctionalTests/TraitTests.swift b/Tests/FunctionalTests/TraitTests.swift
index 9475ab9a5d8..050e05ca359 100644
--- a/Tests/FunctionalTests/TraitTests.swift
+++ b/Tests/FunctionalTests/TraitTests.swift
@@ -454,7 +454,7 @@ struct TraitTests {
             let json = try JSON(bytes: ByteString(encodingAsUTF8: dumpOutput))
             guard case .dictionary(let contents) = json else { Issue.record("unexpected result"); return }
             guard case .array(let traits)? = contents["traits"] else { Issue.record("unexpected result"); return }
-            #expect(traits.count == 12)
+            #expect(traits.count == 13)
         }
     }
 
@@ -653,4 +653,56 @@ struct TraitTests {
             }
         }
     }
+
+    @Test(
+        .IssueSwiftBuildLinuxRunnable,
+        .IssueProductTypeForObjectLibraries,
+        .tags(
+            Tag.Feature.Command.Run,
+        ),
+        arguments: SupportedBuildSystemOnAllPlatforms, BuildConfiguration.allCases,
+    )
+    func traits_whenManyTraitsEnableTargetDependency(
+        buildSystem: BuildSystemProvider.Kind,
+        configuration: BuildConfiguration,
+    ) async throws {
+        try await withKnownIssue(
+            """
+            Linux: https://github.com/swiftlang/swift-package-manager/issues/8416,
+            Windows: https://github.com/swiftlang/swift-build/issues/609
+            """,
+            isIntermittent: (ProcessInfo.hostOperatingSystem == .windows),
+        ) {
+        try await fixture(name: "Traits") { fixturePath in
+            // Test various combinations of traits that would
+            // enable the dependency on Package10Library2
+            let traitCombinations = ["ExtraTrait", "Package10", "ExtraTrait,Package10"]
+            // We expect no warnings to be produced. Specifically no unused dependency warnings.
+            let unusedDependencyRegex = try Regex("warning: '.*': dependency '.*' is not used by any target")
+
+            for traits in traitCombinations {
+                let (stdout, stderr) = try await executeSwiftRun(
+                    fixturePath.appending("Example"),
+                    "Example",
+                    configuration: configuration,
+                    extraArgs: ["--traits", traits],
+                    buildSystem: buildSystem,
+                )
+
+                var prefix = traits.contains("Package10") ? "Package10Library1 trait1 disabled\nPackage10Library1 trait2 enabled\nPackage10Library2 has been included.\n" : ""
+                prefix += traits.contains("ExtraTrait") ? "Package10Library2 has been included.\n" : ""
+                #expect(!stderr.contains(unusedDependencyRegex))
+                #expect(stdout == """
+                \(prefix)DEFINE1 disabled
+                DEFINE2 disabled
+                DEFINE3 disabled
+                
+                """)
+            }
+        }
+        } when: {
+            (ProcessInfo.hostOperatingSystem == .windows && (CiEnvironment.runningInSmokeTestPipeline || buildSystem == .swiftbuild))
+            || (buildSystem == .swiftbuild && ProcessInfo.hostOperatingSystem == .linux && CiEnvironment.runningInSelfHostedPipeline)
+        }
+    }
 }
diff --git a/Tests/WorkspaceTests/WorkspaceTests.swift b/Tests/WorkspaceTests/WorkspaceTests.swift
index 667d61aee2f..cdfd563f3ec 100644
--- a/Tests/WorkspaceTests/WorkspaceTests.swift
+++ b/Tests/WorkspaceTests/WorkspaceTests.swift
@@ -16257,6 +16257,113 @@ final class WorkspaceTests: XCTestCase {
         }
     }
 
+    func testManyTraitsEnableTargetDependency() async throws {
+        let sandbox = AbsolutePath("/tmp/ws/")
+        let fs = InMemoryFileSystem()
+
+        func createMockWorkspace(_ traitConfiguration: TraitConfiguration) async throws -> MockWorkspace {
+            try await MockWorkspace(
+                sandbox: sandbox,
+                fileSystem: fs,
+                roots: [
+                    MockPackage(
+                        name: "Cereal",
+                        targets: [
+                            MockTarget(
+                                name: "Wheat",
+                                dependencies: [
+                                    .product(
+                                        name: "Icing",
+                                        package: "Sugar",
+                                        condition: .init(traits: ["BreakfastOfChampions", "DontTellMom"])
+                                    ),
+                                ]
+                            ),
+                        ],
+                        products: [
+                            MockProduct(name: "YummyBreakfast", modules: ["Wheat"])
+                        ],
+                        dependencies: [
+                            .sourceControl(path: "./Sugar", requirement: .upToNextMajor(from: "1.0.0")),
+                        ],
+                        traits: ["BreakfastOfChampions", "DontTellMom"]
+                    ),
+                ],
+                packages: [
+                    MockPackage(
+                        name: "Sugar",
+                        targets: [
+                            MockTarget(name: "Icing"),
+                        ],
+                        products: [
+                            MockProduct(name: "Icing", modules: ["Icing"]),
+                        ],
+                        versions: ["1.0.0", "1.5.0"]
+                    ),
+                ],
+                traitConfiguration: traitConfiguration
+            )
+        }
+
+
+        let deps: [MockDependency] = [
+            .sourceControl(path: "./Sugar", requirement: .exact("1.0.0"), products: .specific(["Icing"])),
+        ]
+
+        let workspaceOfChampions = try await createMockWorkspace(.enabledTraits(["BreakfastOfChampions"]))
+        try await workspaceOfChampions.checkPackageGraph(roots: ["Cereal"], deps: deps) { graph, diagnostics in
+            XCTAssertNoDiagnostics(diagnostics)
+            PackageGraphTesterXCTest(graph) { result in
+                result.check(roots: "Cereal")
+                result.check(packages: "cereal", "sugar")
+                result.check(modules: "Wheat", "Icing")
+                result.check(products: "YummyBreakfast", "Icing")
+                result.checkTarget("Wheat") { result in
+                    result.check(dependencies: "Icing")
+                }
+            }
+        }
+
+        let dontTellMomAboutThisWorkspace = try await createMockWorkspace(.enabledTraits(["DontTellMom"]))
+        try await dontTellMomAboutThisWorkspace.checkPackageGraph(roots: ["Cereal"], deps: deps) { graph, diagnostics in
+            XCTAssertNoDiagnostics(diagnostics)
+            PackageGraphTesterXCTest(graph) { result in
+                result.check(roots: "Cereal")
+                result.check(packages: "cereal", "sugar")
+                result.check(modules: "Wheat", "Icing")
+                result.check(products: "YummyBreakfast", "Icing")
+                result.checkTarget("Wheat") { result in
+                    result.check(dependencies: "Icing")
+                }
+            }
+        }
+
+        let allEnabledTraitsWorkspace = try await createMockWorkspace(.enableAllTraits)
+        try await allEnabledTraitsWorkspace.checkPackageGraph(roots: ["Cereal"], deps: deps) { graph, diagnostics in
+            XCTAssertNoDiagnostics(diagnostics)
+            PackageGraphTesterXCTest(graph) { result in
+                result.check(roots: "Cereal")
+                result.check(packages: "cereal", "sugar")
+                result.check(modules: "Wheat", "Icing")
+                result.check(products: "YummyBreakfast", "Icing")
+                result.checkTarget("Wheat") { result in
+                    result.check(dependencies: "Icing")
+                }
+            }
+        }
+
+        let noSugarForBreakfastWorkspace = try await createMockWorkspace(.disableAllTraits)
+        try await noSugarForBreakfastWorkspace.checkPackageGraph(roots: ["Cereal"], deps: deps) { graph, diagnostics in
+            XCTAssertNoDiagnostics(diagnostics)
+            PackageGraphTesterXCTest(graph) { result in
+                result.check(roots: "Cereal")
+                result.check(packages: "cereal")
+                result.check(modules: "Wheat")
+                result.check(products: "YummyBreakfast")
+            }
+        }
+    }
+
     func makeRegistryClient(
         packageIdentity: PackageIdentity,
         packageVersion: Version,