diff --git a/CHANGELOG.md b/CHANGELOG.md
index d7a0ab3534..40ae51bfc2 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -79,6 +79,14 @@ END_UNRELEASED_TEMPLATE
   Use the `bazel_binary_info` module to access it. The {flag}`--stamp` flag will
   add {flag}`--workspace_status` information.
 
+{#v1-8-1}
+## [1.8.1] - 2026-01-20
+
+{#v1-8-1-fixed}
+### Fixed
+* (pipstar) Extra resolution that refers back to the package being resolved works again.
+  Fixes [#3524](https://github.com/bazel-contrib/rules_python/issues/3524).
+
 {#v1-8-0}
 ## [1.8.0] - 2025-12-19
 
diff --git a/python/private/pypi/pep508_deps.bzl b/python/private/pypi/pep508_deps.bzl
index cdb449bdc2..ad6589cfac 100644
--- a/python/private/pypi/pep508_deps.bzl
+++ b/python/private/pypi/pep508_deps.bzl
@@ -115,7 +115,9 @@ def _resolve_extras(self_name, reqs, extras):
     # extras The empty string in the set is just a way to make the handling
     # of no extras and a single extra easier and having a set of {"", "foo"}
     # is equivalent to having {"foo"}.
-    extras = extras or [""]
+    #
+    # Use a dict as a set here to simplify operations.
+    extras = {x: None for x in (extras or [""])}
 
     self_reqs = []
     for req in reqs:
@@ -128,26 +130,36 @@ def _resolve_extras(self_name, reqs, extras):
             # easy to handle, lets do it.
             #
             # TODO @aignas 2023-12-08: add a test
-            extras = extras + req.extras
+            extras = extras | {x: None for x in req.extras}
         else:
             # process these in a separate loop
             self_reqs.append(req)
 
-    # A double loop is not strictly optimal, but always correct without recursion
-    for req in self_reqs:
-        if [True for extra in extras if evaluate(req.marker, env = {"extra": extra})]:
-            extras = extras + req.extras
-        else:
-            continue
+    for _ in range(10000):
+        # handles packages with up to 10000 recursive extras
+        new_extras = {}
+        for req in self_reqs:
+            if _evaluate_any(req, extras):
+                new_extras.update({x: None for x in req.extras})
+            else:
+                continue
 
-        # Iterate through all packages to ensure that we include all of the extras from previously
-        # visited packages.
-        for req_ in self_reqs:
-            if [True for extra in extras if evaluate(req.marker, env = {"extra": extra})]:
-                extras = extras + req_.extras
+        num_extras_before = len(extras)
+        extras = extras | new_extras
+        num_extras_after = len(new_extras)
+
+        if num_extras_before == num_extras_after:
+            break
 
     # Poor mans set
-    return sorted({x: None for x in extras})
+    return sorted(extras)
+
+def _evaluate_any(req, extras):
+    for extra in extras:
+        if evaluate(req.marker, env = {"extra": extra}):
+            return True
+
+    return False
 
 def _add_reqs(deps, deps_select, dep, reqs, *, extras):
     for req in reqs:
diff --git a/tests/pypi/pep508/deps_tests.bzl b/tests/pypi/pep508/deps_tests.bzl
index 679ba58396..f566845b70 100644
--- a/tests/pypi/pep508/deps_tests.bzl
+++ b/tests/pypi/pep508/deps_tests.bzl
@@ -90,6 +90,7 @@ def test_self_dependencies_can_come_in_any_order(env):
             "baz; extra == 'feat'",
             "foo[feat2]; extra == 'all'",
             "foo[feat]; extra == 'feat2'",
+            "foo[feat3]; extra == 'all'",
             "zdep; extra == 'all'",
         ],
         extras = ["all"],
@@ -100,6 +101,24 @@ def test_self_dependencies_can_come_in_any_order(env):
 
 _tests.append(test_self_dependencies_can_come_in_any_order)
 
+def test_self_include_deps_from_previously_visited(env):
+    got = deps(
+        "foo",
+        requires_dist = [
+            "bar",
+            "baz; extra == 'feat'",
+            "foo[dev]; extra == 'all'",
+            "foo[feat]; extra == 'feat2'",
+            "dev_dep; extra == 'dev'",
+        ],
+        extras = ["feat2"],
+    )
+
+    env.expect.that_collection(got.deps).contains_exactly(["bar", "baz"])
+    env.expect.that_dict(got.deps_select).contains_exactly({})
+
+_tests.append(test_self_include_deps_from_previously_visited)
+
 def _test_can_get_deps_based_on_specific_python_version(env):
     requires_dist = [
         "bar",