diff --git a/docs/manifest-format.md b/docs/manifest-format.md
index 0752a8c..45fd615 100644
--- a/docs/manifest-format.md
+++ b/docs/manifest-format.md
@@ -485,6 +485,9 @@
 Manifest files stored in `$TOP_DIR/.repo/local_manifests/*.xml` will
 be loaded in alphabetical order.
 
+Projects from local manifest files are added into
+local::<local manifest filename> group.
+
 The legacy `$TOP_DIR/.repo/local_manifest.xml` path is no longer supported.
 
 
diff --git a/git_superproject.py b/git_superproject.py
index dad6a3d..3c4144d 100644
--- a/git_superproject.py
+++ b/git_superproject.py
@@ -28,6 +28,7 @@
 
 from git_command import git_require, GitCommand
 from git_refs import R_HEADS
+from manifest_xml import LOCAL_MANIFEST_GROUP_PREFIX
 
 _SUPERPROJECT_GIT_NAME = 'superproject.git'
 _SUPERPROJECT_MANIFEST_NAME = 'superproject_override.xml'
@@ -268,6 +269,9 @@
       path = project.relpath
       if not path:
         continue
+      # Skip the project if it comes from local manifest.
+      if any(s.startswith(LOCAL_MANIFEST_GROUP_PREFIX) for s in project.groups):
+        continue
       commit_id = commit_ids.get(path)
       if commit_id:
         project.SetRevisionId(commit_id)
diff --git a/manifest_xml.py b/manifest_xml.py
index 9cbdcd1..30e9658 100644
--- a/manifest_xml.py
+++ b/manifest_xml.py
@@ -34,6 +34,9 @@
 LOCAL_MANIFEST_NAME = 'local_manifest.xml'
 LOCAL_MANIFESTS_DIR_NAME = 'local_manifests'
 
+# Add all projects from local manifest into a group.
+LOCAL_MANIFEST_GROUP_PREFIX = 'local:'
+
 # ContactInfo has the self-registered bug url, supplied by the manifest authors.
 ContactInfo = collections.namedtuple('ContactInfo', 'bugurl')
 
@@ -679,7 +682,9 @@
               # Since local manifests are entirely managed by the user, allow
               # them to point anywhere the user wants.
               nodes.append(self._ParseManifestXml(
-                  local, self.repodir, restrict_includes=False))
+                  local, self.repodir,
+                  parent_groups=f'{LOCAL_MANIFEST_GROUP_PREFIX}:{local_file[:-4]}',
+                  restrict_includes=False))
         except OSError:
           pass
 
diff --git a/tests/test_git_superproject.py b/tests/test_git_superproject.py
index 707f7da..ba61a3d 100644
--- a/tests/test_git_superproject.py
+++ b/tests/test_git_superproject.py
@@ -139,9 +139,9 @@
     manifest_path = self._superproject._WriteManfiestFile()
     self.assertIsNotNone(manifest_path)
     with open(manifest_path, 'r') as fp:
-      manifest_xml = fp.read()
+      manifest_xml_data = fp.read()
     self.assertEqual(
-        sort_attributes(manifest_xml),
+        sort_attributes(manifest_xml_data),
         '<?xml version="1.0" ?><manifest>'
         '<remote fetch="http://localhost" name="default-remote"/>'
         '<default remote="default-remote" revision="refs/heads/main"/>'
@@ -166,9 +166,9 @@
           manifest_path = self._superproject.UpdateProjectsRevisionId(projects)
           self.assertIsNotNone(manifest_path)
           with open(manifest_path, 'r') as fp:
-            manifest_xml = fp.read()
+            manifest_xml_data = fp.read()
           self.assertEqual(
-              sort_attributes(manifest_xml),
+              sort_attributes(manifest_xml_data),
               '<?xml version="1.0" ?><manifest>'
               '<remote fetch="http://localhost" name="default-remote"/>'
               '<default remote="default-remote" revision="refs/heads/main"/>'
@@ -178,6 +178,54 @@
               '<superproject name="superproject"/>'
               '</manifest>')
 
+  def test_superproject_update_project_revision_id_from_local_manifest_group(self):
+    """Test update of commit ids of a manifest that have local manifest no superproject group."""
+    local_group = manifest_xml.LOCAL_MANIFEST_GROUP_PREFIX + ':local'
+    manifest = self.getXmlManifest("""
+<manifest>
+  <remote name="default-remote" fetch="http://localhost" />
+  <remote name="goog" fetch="http://localhost2" />
+  <default remote="default-remote" revision="refs/heads/main" />
+  <superproject name="superproject"/>
+  <project path="vendor/x" name="platform/vendor/x" remote="goog"
+           groups=\"""" + local_group + """
+         " revision="master-with-vendor" clone-depth="1" />
+  <project path="art" name="platform/art" groups="notdefault,platform-""" + self.platform + """
+  " /></manifest>
+""")
+    self.maxDiff = None
+    self._superproject = git_superproject.Superproject(manifest, self.repodir)
+    self.assertEqual(len(self._superproject._manifest.projects), 2)
+    projects = self._superproject._manifest.projects
+    data = ('160000 commit 2c2724cb36cd5a9cec6c852c681efc3b7c6b86ea\tart\x00'
+            '160000 commit e9d25da64d8d365dbba7c8ee00fe8c4473fe9a06\tbootable/recovery\x00')
+    with mock.patch.object(self._superproject, '_Init', return_value=True):
+      with mock.patch.object(self._superproject, '_Fetch', return_value=True):
+        with mock.patch.object(self._superproject,
+                               '_LsTree',
+                               return_value=data):
+          # Create temporary directory so that it can write the file.
+          os.mkdir(self._superproject._superproject_path)
+          manifest_path = self._superproject.UpdateProjectsRevisionId(projects)
+          self.assertIsNotNone(manifest_path)
+          with open(manifest_path, 'r') as fp:
+            manifest_xml_data = fp.read()
+          # Verify platform/vendor/x's project revision hasn't changed.
+          self.assertEqual(
+              sort_attributes(manifest_xml_data),
+              '<?xml version="1.0" ?><manifest>'
+              '<remote fetch="http://localhost" name="default-remote"/>'
+              '<remote fetch="http://localhost2" name="goog"/>'
+              '<default remote="default-remote" revision="refs/heads/main"/>'
+              '<project groups="notdefault,platform-' + self.platform + '" '
+              'name="platform/art" path="art" '
+              'revision="2c2724cb36cd5a9cec6c852c681efc3b7c6b86ea"/>'
+              '<project clone-depth="1" groups="' + local_group + '" '
+              'name="platform/vendor/x" path="vendor/x" remote="goog" '
+              'revision="master-with-vendor"/>'
+              '<superproject name="superproject"/>'
+              '</manifest>')
+
 
 if __name__ == '__main__':
   unittest.main()