diff --git a/src/wix/WixToolset.Sdk/tools/wix.props b/src/wix/WixToolset.Sdk/tools/wix.props
index af26f6944..a72392254 100644
--- a/src/wix/WixToolset.Sdk/tools/wix.props
+++ b/src/wix/WixToolset.Sdk/tools/wix.props
@@ -25,6 +25,18 @@
     <Configuration Condition=" '$(Configuration)' == '' ">Debug</Configuration>
   </PropertyGroup>
 
+  <!-- Default items -->
+  <ItemGroup Condition=" '$(EnableDefaultItems)' == 'true' ">
+    <Compile Include="**/*.wxs" Exclude="$(DefaultItemExcludes);$(DefaultExcludesInProjectFolder)" Condition=" '$(EnableDefaultCompileItems)' == 'true' " />
+    <EmbeddedResource Include="**/*.wxl" Exclude="$(DefaultItemExcludes);$(DefaultExcludesInProjectFolder)" Condition=" '$(EnableDefaultEmbeddedResourceItems)' == 'true' " />
+  </ItemGroup>
+  <ItemGroup Condition=" '$(EnableDefaultItems)' == 'true' And '$(EnableDefaultNoneItems)' == 'true' ">
+    <None Include="**/*" Exclude="$(DefaultItemExcludes);$(DefaultExcludesInProjectFolder)" />
+    <None Remove="**/*.wxs" />
+    <None Remove="**/*.wxl" />
+    <None Remove="**/*.wxi" />
+  </ItemGroup>
+
   <PropertyGroup>
     <AddAdditionalExplicitAssemblyReferences>false</AddAdditionalExplicitAssemblyReferences>
     <DisableTransitiveProjectReferences>true</DisableTransitiveProjectReferences>
diff --git a/src/wix/WixToolset.Sdk/tools/wix.targets b/src/wix/WixToolset.Sdk/tools/wix.targets
index a9c54269f..4de5835fe 100644
--- a/src/wix/WixToolset.Sdk/tools/wix.targets
+++ b/src/wix/WixToolset.Sdk/tools/wix.targets
@@ -31,11 +31,6 @@
     <WixTasksPath Condition=" '$(WixTasksPath)' == '' ">$(WixBinDir)WixToolset.BuildTasks.dll</WixTasksPath>
   </PropertyGroup>
 
-  <ItemGroup Condition=" '$(EnableDefaultItems)' == 'true' ">
-    <Compile Include="**/*.wxs" Exclude="$(DefaultItemExcludes);$(DefaultExcludesInProjectFolder)" Condition=" '$(EnableDefaultCompileItems)' == 'true' " />
-    <EmbeddedResource Include="**/*.wxl" Exclude="$(DefaultItemExcludes);$(DefaultExcludesInProjectFolder)" Condition=" '$(EnableDefaultEmbeddedResourceItems)' == 'true' " />
-  </ItemGroup>
-
   <ItemGroup>
     <AvailableItemName Include="BindPath;BindVariable;WixLibrary;WixExtension" />
   </ItemGroup>
diff --git a/src/wix/test/WixToolsetTest.Sdk/MsbuildFixture.cs b/src/wix/test/WixToolsetTest.Sdk/MsbuildFixture.cs
index 25fd61d9c..507a58436 100644
--- a/src/wix/test/WixToolsetTest.Sdk/MsbuildFixture.cs
+++ b/src/wix/test/WixToolsetTest.Sdk/MsbuildFixture.cs
@@ -582,6 +582,68 @@ public void CanBuildSimpleWixlib(BuildSystem buildSystem)
             }
         }
 
+        [TestMethod]
+        [DataRow(BuildSystem.DotNetCoreSdk)]
+        [DataRow(BuildSystem.MSBuild)]
+        [DataRow(BuildSystem.MSBuild64)]
+        public void CanBuildWixlibOnlyGoodFiles(BuildSystem buildSystem)
+        {
+            var sourceFolder = TestData.Get(@"TestData", "Wixlib", "WithBadFiles");
+
+            using (var fs = new TestDataFolderFileSystem())
+            {
+                fs.Initialize(sourceFolder);
+                var baseFolder = fs.BaseFolder;
+                var binFolder = Path.Combine(baseFolder, @"bin\");
+                var projectPath = Path.Combine(baseFolder, "OnlyGoodFiles.wixproj");
+
+                var result = MsbuildUtilities.BuildProject(buildSystem, projectPath, new[]
+                {
+                    MsbuildUtilities.GetQuotedPropertySwitch(buildSystem, "WixMSBuildProps", MsbuildFixture.WixPropsPath),
+                });
+                result.AssertSuccess();
+
+                var wixBuildCommands = MsbuildUtilities.GetToolCommandLines(result, "wix", "build", buildSystem);
+                WixAssert.Single(wixBuildCommands);
+
+                var path = Directory.EnumerateFiles(binFolder, @"*.*", SearchOption.AllDirectories)
+                    .Select(s => s.Substring(baseFolder.Length + 1))
+                    .Single();
+                WixAssert.StringEqual(@"bin\Release\OnlyGoodFiles.wixlib", path);
+            }
+        }
+
+        [TestMethod]
+        [DataRow(BuildSystem.DotNetCoreSdk)]
+        [DataRow(BuildSystem.MSBuild)]
+        [DataRow(BuildSystem.MSBuild64)]
+        public void CanBuildWixlibSkippingBadFiles(BuildSystem buildSystem)
+        {
+            var sourceFolder = TestData.Get(@"TestData", "Wixlib", "WithBadFiles");
+
+            using (var fs = new TestDataFolderFileSystem())
+            {
+                fs.Initialize(sourceFolder);
+                var baseFolder = fs.BaseFolder;
+                var binFolder = Path.Combine(baseFolder, @"bin\");
+                var projectPath = Path.Combine(baseFolder, "SkipBadFiles.wixproj");
+
+                var result = MsbuildUtilities.BuildProject(buildSystem, projectPath, new[]
+                {
+                    MsbuildUtilities.GetQuotedPropertySwitch(buildSystem, "WixMSBuildProps", MsbuildFixture.WixPropsPath),
+                });
+                result.AssertSuccess();
+
+                var wixBuildCommands = MsbuildUtilities.GetToolCommandLines(result, "wix", "build", buildSystem);
+                WixAssert.Single(wixBuildCommands);
+
+                var path = Directory.EnumerateFiles(binFolder, @"*.*", SearchOption.AllDirectories)
+                    .Select(s => s.Substring(baseFolder.Length + 1))
+                    .Single();
+                WixAssert.StringEqual(@"bin\Release\SkipBadFiles.wixlib", path);
+            }
+        }
+
         [TestMethod]
         [DataRow(BuildSystem.DotNetCoreSdk)]
         [DataRow(BuildSystem.MSBuild)]
diff --git a/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/Bad.wxl b/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/Bad.wxl
new file mode 100644
index 000000000..0e616bd18
--- /dev/null
+++ b/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/Bad.wxl
@@ -0,0 +1 @@
+Not a proper XML file, will break the build.
diff --git a/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/Bad.wxs b/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/Bad.wxs
new file mode 100644
index 000000000..0e616bd18
--- /dev/null
+++ b/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/Bad.wxs
@@ -0,0 +1 @@
+Not a proper XML file, will break the build.
diff --git a/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/Library.wxs b/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/Library.wxs
new file mode 100644
index 000000000..bcf79a1f0
--- /dev/null
+++ b/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/Library.wxs
@@ -0,0 +1,7 @@
+<Wix xmlns="http://wixtoolset.org/schemas/v4/wxs">
+  <Fragment>
+      <StandardDirectory Id="ProgramFilesFolder">
+          <Directory Id="WixLibFolder" />
+      </StandardDirectory>
+  </Fragment>
+</Wix>
diff --git a/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/OnlyGoodFiles.wixproj b/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/OnlyGoodFiles.wixproj
new file mode 100644
index 000000000..620c53146
--- /dev/null
+++ b/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/OnlyGoodFiles.wixproj
@@ -0,0 +1,15 @@
+<?xml version="1.0" encoding="utf-8"?>
+<Project>
+  <Import Project="$(WixMSBuildProps)" />
+
+  <PropertyGroup>
+    <OutputType>Library</OutputType>
+    <EnableDefaultItems>false</EnableDefaultItems>
+  </PropertyGroup>
+
+  <ItemGroup>
+    <Compile Include="Library.wxs" />
+  </ItemGroup>
+
+  <Import Project="$(WixTargetsPath)" />
+</Project>
diff --git a/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/SkipBadFiles.wixproj b/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/SkipBadFiles.wixproj
new file mode 100644
index 000000000..c406ccd94
--- /dev/null
+++ b/src/wix/test/WixToolsetTest.Sdk/TestData/Wixlib/WithBadFiles/SkipBadFiles.wixproj
@@ -0,0 +1,15 @@
+<?xml version="1.0" encoding="utf-8"?>
+<Project>
+  <Import Project="$(WixMSBuildProps)" />
+
+  <PropertyGroup>
+    <OutputType>Library</OutputType>
+  </PropertyGroup>
+
+  <ItemGroup>
+    <Compile Remove="Bad.wxs" />
+    <EmbeddedResource Remove="Bad.wxl" />
+  </ItemGroup>
+
+  <Import Project="$(WixTargetsPath)" />
+</Project>