diff --git a/build.zig b/build.zig
index 57708d7..ed41815 100644
--- a/build.zig
+++ b/build.zig
@@ -141,7 +141,7 @@ pub fn build(b: *std.Build) void {
     const test_includes_exe = b.addExecutable(.{
         .name = "test-includes",
         .root_module = b.createModule(.{
-            .root_source_file = b.path("examples/test_includes.zig"),
+            .root_source_file = b.path("src/tests/test_includes.zig"),
             .target = target,
             .optimize = optimize,
             .imports = &.{
diff --git a/src/examples/demo/build.zig.zon b/src/examples/demo/build.zig.zon
index 262c9be..f941c08 100644
--- a/src/examples/demo/build.zig.zon
+++ b/src/examples/demo/build.zig.zon
@@ -5,7 +5,7 @@
     .minimum_zig_version = "0.15.2",
     .dependencies = .{
         .pugz = .{
-            .path = "../..",
+            .path = "../../..",
         },
         .httpz = .{
             .url = "git+https://github.com/karlseguin/http.zig?ref=master#9ef2ffe8d611ff2e1081e5cf39cb4632c145c5b9",
diff --git a/src/examples/demo/src/main.zig b/src/examples/demo/src/main.zig
index 2131fde..e96b6d9 100644
--- a/src/examples/demo/src/main.zig
+++ b/src/examples/demo/src/main.zig
@@ -301,6 +301,18 @@ fn about(app: *App, _: *httpz.Request, res: *httpz.Response) !void {
     res.body = html;
 }
 
+fn includeDemo(app: *App, _: *httpz.Request, res: *httpz.Response) !void {
+    const html = app.view.render(res.arena, "pages/include-demo", .{
+        .title = "Include Demo",
+        .cartCount = "2",
+    }) catch |err| {
+        return renderError(res, err);
+    };
+
+    res.content_type = .HTML;
+    res.body = html;
+}
+
 fn notFound(app: *App, _: *httpz.Request, res: *httpz.Response) !void {
     res.status = 404;
 
@@ -389,6 +401,7 @@ pub fn main() !void {
     router.get("/products/:id", productDetail, .{});
     router.get("/cart", cart, .{});
     router.get("/about", about, .{});
+    router.get("/include-demo", includeDemo, .{});
 
     // Static files
     router.get("/css/*", serveStatic, .{});
@@ -410,6 +423,7 @@ pub fn main() !void {
         \\   GET /products/:id  - Product detail
         \\   GET /cart          - Shopping cart
         \\   GET /about         - About page
+        \\   GET /include-demo  - Include directive demo
         \\
         \\ Press Ctrl+C to stop.
         \\
diff --git a/src/examples/demo/views/includes/some_partial.pug b/src/examples/demo/views/includes/some_partial.pug
new file mode 100644
index 0000000..5c11181
--- /dev/null
+++ b/src/examples/demo/views/includes/some_partial.pug
@@ -0,0 +1,4 @@
+.info-box
+  h3 Included Partial
+  p This content comes from includes/some_partial.pug
+  p It demonstrates the include directive for reusable template fragments.
diff --git a/src/examples/demo/views/pages/about.pug b/src/examples/demo/views/pages/about.pug
index f02e18d..9e5d836 100644
--- a/src/examples/demo/views/pages/about.pug
+++ b/src/examples/demo/views/pages/about.pug
@@ -47,5 +47,7 @@ block content
                 a(href="https://github.com/ankitpatial/pugz") GitHub Repository
               li
                 a(href="/products") View Products
+              li
+                a(href="/include-demo") Include Demo
               li
                 a(href="/") Back to Home
diff --git a/src/examples/demo/views/pages/include-demo.pug b/src/examples/demo/views/pages/include-demo.pug
new file mode 100644
index 0000000..ac5626f
--- /dev/null
+++ b/src/examples/demo/views/pages/include-demo.pug
@@ -0,0 +1,20 @@
+extends layouts/base.pug
+
+block title
+  title Include Demo | Pugz Store
+
+block content
+  section.page-header
+    .container
+      h1 Include Demo
+      p Demonstrating the include directive
+
+  section.section
+    .container
+      h2 Content from this page
+      p The box below is included from a separate partial file.
+
+      include includes/some_partial.pug
+
+      h2 After the include
+      p This content comes after the included partial.
diff --git a/src/tests/test_includes.zig b/src/tests/test_includes.zig
index 0bd28c9..6d106db 100644
--- a/src/tests/test_includes.zig
+++ b/src/tests/test_includes.zig
@@ -6,6 +6,7 @@ pub fn main() !void {
     defer _ = gpa.deinit();
     const allocator = gpa.allocator();
 
+    // Test: Simple include from test_views
     var engine = pugz.ViewEngine.init(allocator, .{
         .views_dir = "test_views",
     }) catch |err| {
@@ -21,4 +22,14 @@ pub fn main() !void {
     defer allocator.free(html);
 
     std.debug.print("=== Rendered HTML ===\n{s}\n=== End ===\n", .{html});
+
+    // Verify output contains included content
+    if (std.mem.indexOf(u8, html, "Included Partial") != null and
+        std.mem.indexOf(u8, html, "info-box") != null)
+    {
+        std.debug.print("\nSUCCESS: Include directive works correctly!\n", .{});
+    } else {
+        std.debug.print("\nFAILURE: Include content not found!\n", .{});
+        return error.TestFailed;
+    }
 }
diff --git a/test_views/home.pug b/test_views/home.pug
new file mode 100644
index 0000000..60d8f98
--- /dev/null
+++ b/test_views/home.pug
@@ -0,0 +1,3 @@
+h1 Include Test
+include includes/some_partial.pug
+p After include
diff --git a/test_views/includes/some_partial.pug b/test_views/includes/some_partial.pug
new file mode 100644
index 0000000..a9ed83f
--- /dev/null
+++ b/test_views/includes/some_partial.pug
@@ -0,0 +1,3 @@
+.info-box
+  h3 Included Partial
+  p This content comes from includes/some_partial.pug