diff --git a/tools/qfcc/include/rua-lang.h b/tools/qfcc/include/rua-lang.h
index 034e8918c..37caef25c 100644
--- a/tools/qfcc/include/rua-lang.h
+++ b/tools/qfcc/include/rua-lang.h
@@ -83,6 +83,7 @@ rua_macro_t *rua_macro_arg (rua_macro_t *arg, void *scanner);
 void rua_start_pragma (void *scanner);
 void rua_start_text (void *scanner);
 void rua_start_expr (void *scanner);
+void rua_start_include (void *scanner);
 void rua_expand_on (void *scanner);
 void rua_expand_off (void *scanner);
 void rua_end_directive (void *scanner);
diff --git a/tools/qfcc/source/pre-parse.y b/tools/qfcc/source/pre-parse.y
index d21af382d..a69994c66 100644
--- a/tools/qfcc/source/pre-parse.y
+++ b/tools/qfcc/source/pre-parse.y
@@ -179,8 +179,8 @@ directive_list
 eod : EOD { rua_end_directive (scanner); } ;
 
 directive
-	: INCLUDE expand string extra_warn eod { rua_include_file ($3, scanner); }
-	| EMBED expand string extra_ignore eod { rua_embed_file ($3, scanner); }
+	: INCLUDE incexp string extra_warn eod { rua_include_file ($3, scanner); }
+	| EMBED incexp string extra_ignore eod { rua_embed_file ($3, scanner); }
 	| DEFINE ID		<macro> { $$ = rua_start_macro ($2, false, scanner); }
 	  body					{ rua_macro_finish ($body, scanner); }
 	  eod
@@ -244,6 +244,10 @@ body: /* empty */		{ $$ = $<macro>0; }
 
 body_token : TOKEN | ',' | '(' | ')' ;
 
+incexp
+	: { rua_start_include (scanner); }
+	;
+
 expand
 	: { rua_start_expr (scanner); }
 	;
diff --git a/tools/qfcc/source/qc-lex.l b/tools/qfcc/source/qc-lex.l
index 022c6fe0e..24023cbde 100644
--- a/tools/qfcc/source/qc-lex.l
+++ b/tools/qfcc/source/qc-lex.l
@@ -276,8 +276,8 @@ pp_vnumber	'({s}*{m}?{pp_number}){2,4}{s}*'{ULFD}?
 <TEXT>[\\]*				{ return PRE_TEXT; }
 <MACRO>##				{ return PRE_CONCAT; }
 <MACRO>#				{ return '#'; }
-<PREEXPR>{h_string}		{ return PRE_HSTRING; }
-<PREEXPR>{q_string}		{ return PRE_QSTRING; }
+<PREPROC>{h_string}		{ return PRE_HSTRING; }
+<PREPROC>{q_string}		{ return PRE_QSTRING; }
 <PREEXPR>defined		{ return PRE_DEFINED; }
 <PREEXPR>{ID}			{ return PRE_ID; }
 
@@ -1654,6 +1654,16 @@ rua_start_text (void *scanner)
 	yy_push_state (TEXT, scanner);
 }
 
+void
+rua_start_include (void *scanner)
+{
+	auto extra = qc_yyget_extra (scanner);
+	extra->expand = true;
+
+	yy_pop_state (scanner);
+	yy_push_state (PREPROC, scanner);
+}
+
 void
 rua_start_expr (void *scanner)
 {