diff --git a/packages/pre_commit_excludes/README.md b/packages/pre_commit_excludes/README.md
index 75ecf9a..2794a94 100644
--- a/packages/pre_commit_excludes/README.md
+++ b/packages/pre_commit_excludes/README.md
@@ -4,6 +4,8 @@
 [![PyPI - Python Version](https://img.shields.io/pypi/pyversions/pre-commit-excludes)](https://pypi.org/project/pre-commit-excludes/)
 [![PyPI - License](https://img.shields.io/pypi/l/pre-commit-excludes)](https://pypi.org/project/pre-commit-excludes/)
 
+## Remove Unnecessary Excludes
+
 `remove-unnecessary-excludes` finds lines in your exclude list that are no longer required and removes them from the supplied `.pre-commit-config.yaml`.
 The tool checks each exclude by running the affected hook without excludes and restores changes made by a failing hook when the exclude is still required.
 
@@ -12,8 +14,6 @@ The tool checks each exclude by running the affected hook without excludes and r
 > Each path must be on its own line in a multiline YAML block scalar; compact inline exclude patterns are not rewritten.
 > Keeping exclusions as plain `|`-separated paths also makes it easier for humans to maintain an overview of what is excluded.
 
-## Usage
-
 ```shell
 # Cleanup the entire config for all hooks
 uvx --from pre-commit-excludes remove-unnecessary-excludes .pre-commit-config.yaml --pre-commit-binary prek --git-binary git --all
@@ -24,3 +24,38 @@ uvx --from pre-commit-excludes remove-unnecessary-excludes .pre-commit-config.ya
 # Skip excludes that you want to keep
 uvx --from pre-commit-excludes remove-unnecessary-excludes .pre-commit-config.yaml --pre-commit-binary prek --git-binary git --all --skip-exclude "check-json:tests/invalid.json"
 ```
+
+## Restrict Folder Excludes
+
+`restrict-folder-excludes` restricts excluded folders in the `.pre-commit-config.yaml` exclude list from a very broad folder exclude to more fine granular excludes.
+
+```shell
+# Restrict all excluded folders for all hooks
+uvx --from pre-commit-excludes restrict-folder-excludes .pre-commit-config.yaml --all
+
+# Restrict all excluded folders for specific hooks such as typos and ruff-check and skip the tests folder for check-json
+uvx --from pre-commit-excludes restrict-folder-excludes .pre-commit-config.yaml --hook typos --hook ruff-check --skip-exclude "check-json:tests"
+```
+
+Example for the command above
+
+```yaml
+# Before
+exclude: |
+  (?x)^(
+    foo|
+    bar
+  )
+
+# After
+exclude: |
+  (?x)^(
+    foo/a|
+    foo/b|
+    foo/c|
+    foo/foo.txt|
+    foo/README.md|
+    bar/a|
+    bar/bar.txt
+  )
+```
diff --git a/packages/pre_commit_excludes/pre_commit_excludes/hook_utils.py b/packages/pre_commit_excludes/pre_commit_excludes/hook_utils.py
index ab850d3..c2e6298 100644
--- a/packages/pre_commit_excludes/pre_commit_excludes/hook_utils.py
+++ b/packages/pre_commit_excludes/pre_commit_excludes/hook_utils.py
@@ -9,10 +9,11 @@
 
 from ruamel.yaml import YAML
 from ruamel.yaml.comments import CommentedMap
+from ruamel.yaml.scalarstring import LiteralScalarString
 from ruamel.yaml.util import load_yaml_guess_indent
 
 if TYPE_CHECKING:
-    from collections.abc import Iterator, Mapping
+    from collections.abc import Callable, Iterator, Mapping, MutableMapping
 
 
 @dataclass(frozen=True)
@@ -128,11 +129,11 @@ def get_hooks_to_cleanup(hooks: list[Hook], selected_hooks: list[str] | None) ->
     return [hook for hook in hooks if hook.id in selected_hooks]
 
 
-def get_relative_excludes_by_hook(hooks: list[Hook], root_directory: Path) -> dict[str, set[str]]:
+def get_relative_excludes_by_hook(hooks: list[Hook], root_directory: Path) -> dict[str, list[str]]:
     """Return hook excludes as config-relative POSIX paths grouped by hook ID."""
-    relative_excludes: dict[str, set[str]] = {}
+    relative_excludes: dict[str, list[str]] = {}
     for hook in hooks:
-        relative_excludes.setdefault(hook.id, set()).update(
+        relative_excludes.setdefault(hook.id, []).extend(
             exclude.relative_to(root_directory).as_posix() for exclude in hook.exclude_paths
         )
     return relative_excludes
@@ -156,3 +157,20 @@ def load_round_trip_config(config_file: Path) -> tuple[CommentedMap, YAML]:
     if indent is not None:
         yaml.indent(sequence=indent, offset=block_sequence_indent)
     return (config if isinstance(config, CommentedMap) else CommentedMap()), yaml
+
+
+def update_config_hook_excludes(
+    config_file: Path,
+    update_exclude: Callable[[MutableMapping[str, Any]], str | None],
+) -> None:
+    """Apply exclude replacements to hooks and write the config if it changed."""
+    config, yaml = load_round_trip_config(config_file)
+    changed = False
+    for hook_config in get_hook_configs_from_all_repos(config):
+        updated_exclude = update_exclude(hook_config)
+        if updated_exclude is not None and updated_exclude != hook_config.get("exclude"):
+            hook_config["exclude"] = LiteralScalarString(updated_exclude)
+            changed = True
+
+    if changed:
+        yaml.dump(config, config_file)
diff --git a/packages/pre_commit_excludes/pre_commit_excludes/remove_unnecessary_excludes.py b/packages/pre_commit_excludes/pre_commit_excludes/remove_unnecessary_excludes.py
index 45eacdc..d8e3722 100644
--- a/packages/pre_commit_excludes/pre_commit_excludes/remove_unnecessary_excludes.py
+++ b/packages/pre_commit_excludes/pre_commit_excludes/remove_unnecessary_excludes.py
@@ -4,22 +4,22 @@
 import re
 import subprocess
 import sys
+from collections.abc import MutableMapping
 from dataclasses import dataclass
 from pathlib import Path
+from typing import Any
 
-from ruamel.yaml.comments import CommentedMap
 from ruamel.yaml.scalarstring import LiteralScalarString
 
 from pre_commit_excludes.args import SkippedExclude, create_default_parser
 from pre_commit_excludes.hook_utils import (
     Hook,
-    get_hook_configs_from_all_repos,
     get_hooks_to_cleanup,
     get_relative_excludes_by_hook,
     get_skipped_excludes_relative_to_config,
     load_config,
     load_hooks,
-    load_round_trip_config,
+    update_config_hook_excludes,
     write_config,
 )
 
@@ -56,7 +56,7 @@ def run_pre_commit(
     ).returncode
 
 
-def undo_changes(exclude_path: Path, git_binary) -> None:
+def undo_changes(exclude_path: Path, git_binary: Path) -> None:
     subprocess.run([git_binary, "restore", exclude_path], check=True)
 
 
@@ -122,29 +122,20 @@ def _remove_excludes_from_block(block: str, excludes: set[str]) -> str:
     return "\n".join(retained_lines) + trailing_newline
 
 
-def _remove_excludes_from_hooks(config: CommentedMap, excludes_by_hook: dict[str, set[str]]) -> bool:
-    changed = False
-    hooks_to_update = [
-        hook
-        for hook in get_hook_configs_from_all_repos(config)
-        if hook.get("id") in excludes_by_hook and isinstance(hook.get("exclude"), LiteralScalarString)
-    ]
-    for hook in hooks_to_update:
-        hook_id = hook["id"]
-        exclude = hook["exclude"]
-        updated_exclude = _remove_excludes_from_block(exclude, excludes_by_hook[hook_id])
-        if updated_exclude != exclude:
-            hook["exclude"] = LiteralScalarString(updated_exclude)
-            changed = True
-    return changed
-
-
 def remove_excludes_from_config(config_file: Path, hooks_to_update: list[Hook]) -> None:
     """Remove matching exclude lines from hooks in a pre-commit config."""
-    config, yaml = load_round_trip_config(config_file)
-    relative_excludes = get_relative_excludes_by_hook(hooks_to_update, config_file.parent)
-    if _remove_excludes_from_hooks(config, relative_excludes):
-        yaml.dump(config, config_file)
+    relative_excludes = {
+        hook_id: set(excludes)
+        for hook_id, excludes in get_relative_excludes_by_hook(hooks_to_update, config_file.parent).items()
+    }
+
+    def remove_excludes_from_hook(hook_config: MutableMapping[str, Any]) -> str | None:
+        hook_id = hook_config.get("id")
+        if hook_id not in relative_excludes or not isinstance(hook_config.get("exclude"), LiteralScalarString):
+            return None
+        return _remove_excludes_from_block(hook_config["exclude"], relative_excludes[hook_id])
+
+    update_config_hook_excludes(config_file, remove_excludes_from_hook)
 
 
 def parse_arguments() -> argparse.Namespace:
diff --git a/packages/pre_commit_excludes/pre_commit_excludes/restrict_folder_excludes.py b/packages/pre_commit_excludes/pre_commit_excludes/restrict_folder_excludes.py
new file mode 100644
index 0000000..3f29621
--- /dev/null
+++ b/packages/pre_commit_excludes/pre_commit_excludes/restrict_folder_excludes.py
@@ -0,0 +1,80 @@
+"""Restrict folder excludes from a .pre-commit-config.yaml."""
+
+import argparse
+import sys
+from collections.abc import Iterator, MutableMapping
+from pathlib import Path
+from typing import Any
+
+from pre_commit_excludes.args import create_default_parser
+from pre_commit_excludes.hook_utils import (
+    Hook,
+    SkippedExclude,
+    get_hooks_to_cleanup,
+    get_relative_excludes_by_hook,
+    get_skipped_excludes_relative_to_config,
+    load_hooks,
+    update_config_hook_excludes,
+)
+
+
+def _iter_restricted_excludes(hook: Hook, skipped_excludes: set[SkippedExclude]) -> Iterator[Path]:
+    for exclude in hook.exclude_paths:
+        if SkippedExclude(hook.id, exclude) in skipped_excludes or exclude.is_file():
+            yield exclude
+        else:
+            yield from exclude.glob("*")
+
+
+def restrict_folder_excludes(hooks_to_restrict: list[Hook], skipped_excludes: set[SkippedExclude]) -> list[Hook]:
+    """Replace directory excludes with excludes for each direct child in the directory."""
+    return [Hook(hook.id, list(_iter_restricted_excludes(hook, skipped_excludes))) for hook in hooks_to_restrict]
+
+
+def update_config_with_stricter_excludes(config_file: Path, restricted_hooks: list[Hook]) -> None:
+    """Update the exclude blocks for the restricted hooks in a pre-commit config."""
+    excludes_by_hook = get_relative_excludes_by_hook(restricted_hooks, config_file.parent)
+
+    def update_exclude(hook_config: MutableMapping[str, Any]) -> str | None:
+        hook_id = hook_config.get("id")
+        if hook_id not in excludes_by_hook:
+            return None
+
+        excludes = excludes_by_hook[hook_id]
+        return (
+            "\n".join(
+                [
+                    "(?x)^(",
+                    *(
+                        f"  {exclude}{'|' if index < len(excludes) - 1 else ''}"
+                        for index, exclude in enumerate(excludes)
+                    ),
+                    ")",
+                ]
+            )
+            + "\n"
+        )
+
+    update_config_hook_excludes(config_file, update_exclude)
+
+
+def parse_arguments() -> argparse.Namespace:
+    parser = create_default_parser(__doc__)
+    return parser.parse_args()
+
+
+def main() -> int:
+    args = parse_arguments()
+
+    hooks_with_excludes = load_hooks(args.config.parent, args.config)
+    hooks_to_restrict = hooks_with_excludes if args.all else get_hooks_to_cleanup(hooks_with_excludes, args.hook)
+    skipped_excludes = get_skipped_excludes_relative_to_config(args.skip_exclude, args.config.parent)
+
+    restricted_hooks = restrict_folder_excludes(hooks_to_restrict, skipped_excludes)
+    update_config_with_stricter_excludes(args.config, restricted_hooks)
+
+    return 0
+
+
+if __name__ == "__main__":
+    sys.exit(main())
diff --git a/packages/pre_commit_excludes/pyproject.toml b/packages/pre_commit_excludes/pyproject.toml
index 2b69b10..bd3793c 100644
--- a/packages/pre_commit_excludes/pyproject.toml
+++ b/packages/pre_commit_excludes/pyproject.toml
@@ -34,6 +34,7 @@ classifiers = [
 
 [project.scripts]
 remove-unnecessary-excludes = "pre_commit_excludes.remove_unnecessary_excludes:main"
+restrict-folder-excludes = "pre_commit_excludes.restrict_folder_excludes:main"
 
 [project.urls]
 Homepage = "https://github.com/hofbi/dev-tools"
diff --git a/tests/pre_commit_excludes/test_hook_utils.py b/tests/pre_commit_excludes/test_hook_utils.py
index 43f1eee..b9ed89c 100644
--- a/tests/pre_commit_excludes/test_hook_utils.py
+++ b/tests/pre_commit_excludes/test_hook_utils.py
@@ -156,7 +156,7 @@ def test_find_non_existing_paths_for_existing_files_should_return_empty_list(fs:
     assert hook_instance.find_non_existing_paths() == []
 
 
-def test_get_relative_excludes_by_hook_should_group_posix_paths_by_hook_id() -> None:
+def test_get_relative_excludes_by_hook_should_group_ordered_posix_paths_by_hook_id() -> None:
     hooks = [
         Hook("ruff", [Path("Repo/generated/foo.py")]),
         Hook("ruff", [Path("Repo/generated/bar.py")]),
@@ -164,8 +164,8 @@ def test_get_relative_excludes_by_hook_should_group_posix_paths_by_hook_id() ->
     ]
 
     assert get_relative_excludes_by_hook(hooks, Path("Repo")) == {
-        "ruff": {"generated/foo.py", "generated/bar.py"},
-        "black": {"generated/foo.py"},
+        "ruff": ["generated/foo.py", "generated/bar.py"],
+        "black": ["generated/foo.py"],
     }
 
 
diff --git a/tests/pre_commit_excludes/test_restrict_folder_excludes.py b/tests/pre_commit_excludes/test_restrict_folder_excludes.py
new file mode 100644
index 0000000..08aeca2
--- /dev/null
+++ b/tests/pre_commit_excludes/test_restrict_folder_excludes.py
@@ -0,0 +1,100 @@
+from __future__ import annotations
+
+from pathlib import Path
+from typing import TYPE_CHECKING
+
+from pre_commit_excludes.hook_utils import Hook, SkippedExclude
+from pre_commit_excludes.restrict_folder_excludes import restrict_folder_excludes, update_config_with_stricter_excludes
+
+if TYPE_CHECKING:
+    from pyfakefs.fake_filesystem import FakeFilesystem
+
+
+def test_restrict_folder_excludes_for_folder_should_replace_folder_with_direct_children(fs: FakeFilesystem) -> None:
+    exclude_folder = Path("Repo/excluded")
+    first_file = exclude_folder / "foo.py"
+    nested_folder = exclude_folder / "nested"
+    second_file = nested_folder / "bar.py"
+    fs.create_file(first_file)
+    fs.create_file(second_file)
+
+    hooks = [Hook("ruff", [exclude_folder])]
+    restricted_hooks = restrict_folder_excludes(hooks, set())
+
+    assert len(restricted_hooks) == 1
+    assert restricted_hooks[0].id == "ruff"
+    assert restricted_hooks[0].exclude_paths == [first_file, nested_folder]
+    assert hooks[0].exclude_paths == [exclude_folder]
+
+
+def test_restrict_folder_excludes_for_file_should_keep_file(fs: FakeFilesystem) -> None:
+    exclude_file = Path("Repo/excluded.py")
+    fs.create_file(exclude_file)
+
+    restricted_hooks = restrict_folder_excludes([Hook("ruff", [exclude_file])], set())
+
+    assert restricted_hooks[0].exclude_paths == [exclude_file]
+
+
+def test_restrict_folder_excludes_for_skipped_folder_should_keep_folder(fs: FakeFilesystem) -> None:
+    exclude_folder = Path("Repo/excluded")
+    fs.create_file(exclude_folder / "foo.py")
+    skipped_excludes = {SkippedExclude("ruff", exclude_folder)}
+
+    restricted_hooks = restrict_folder_excludes([Hook("ruff", [exclude_folder])], skipped_excludes)
+
+    assert restricted_hooks[0].exclude_paths == [exclude_folder]
+
+
+def test_restrict_folder_excludes_should_only_skip_matching_hook_and_path(fs: FakeFilesystem) -> None:
+    shared_exclude_folder = Path("Repo/excluded")
+    excluded_file = shared_exclude_folder / "foo.py"
+    fs.create_file(excluded_file)
+    hooks = [Hook("ruff", [shared_exclude_folder]), Hook("black", [shared_exclude_folder])]
+
+    restricted_hooks = restrict_folder_excludes(hooks, {SkippedExclude("ruff", shared_exclude_folder)})
+
+    assert restricted_hooks[0].exclude_paths == [shared_exclude_folder]
+    assert restricted_hooks[1].exclude_paths == [excluded_file]
+
+
+def test_update_config_with_stricter_excludes_should_update_matching_hooks(fs: FakeFilesystem) -> None:
+    config_file = Path("Repo/.pre-commit-config.yaml")
+    fs.create_file(
+        config_file,
+        contents="""# Keep this comment.
+repos:
+  - repo: local
+    hooks:
+      - id: ruff
+        exclude: |
+          (?x)^(
+            generated|
+            keep
+          )
+      - id: black
+        exclude: 'unchanged.py'
+""",
+    )
+
+    update_config_with_stricter_excludes(
+        config_file,
+        [Hook("ruff", [Path("Repo/generated/foo.py"), Path("Repo/generated/bar.py")])],
+    )
+
+    assert (
+        config_file.read_text(encoding="utf-8")
+        == """# Keep this comment.
+repos:
+  - repo: local
+    hooks:
+      - id: ruff
+        exclude: |
+          (?x)^(
+            generated/foo.py|
+            generated/bar.py
+          )
+      - id: black
+        exclude: 'unchanged.py'
+"""
+    )