diff --git a/docs/tar.md b/docs/tar.md
index e33da2457..d7f94ba5b 100644
--- a/docs/tar.md
+++ b/docs/tar.md
@@ -61,7 +61,7 @@ Rule that executes BSD `tar`. Most users should use the [`tar`](#tar) macro, rat
 | <a id="tar_rule-mode"></a>mode |  A mode indicator from the following list, copied from the tar manpage:<br><br>       - create: Create a new archive containing the specified items.        - append: Like <code>create</code>, but new entries are appended to the archive.             Note that this only works on uncompressed archives stored in regular files.             The -f option is required.        - list: List  archive contents to stdout.        - update: Like <code>append</code>, but new entries are added only if they have a             modification date newer than the corresponding entry in the archive. 	       Note that this only works on uncompressed archives stored in 	       regular files. The -f option	is required.        - extract: Extract to disk from the archive. If a file with the same name 	       appears more than once in the archive, each copy	 will  be  extracted,            with  later  copies  overwriting  (replacing) earlier copies.   | String | optional | "create" |
 | <a id="tar_rule-mtree"></a>mtree |  An mtree specification file   | <a href="https://bazel.build/docs/build-ref.html#labels">Label</a> | required |  |
 | <a id="tar_rule-out"></a>out |  Resulting tar file to write. If absent, <code>[name].tar</code> is written.   | <a href="https://bazel.build/docs/build-ref.html#labels">Label</a> | optional |  |
-| <a id="tar_rule-srcs"></a>srcs |  Files and directories that are placed into the tar   | <a href="https://bazel.build/docs/build-ref.html#labels">List of labels</a> | required |  |
+| <a id="tar_rule-srcs"></a>srcs |  Files, directories, or other targets whose default outputs are placed into the tar.<br><br>        If any of the srcs are binaries with runfiles, those are copied into the resulting tar as well.   | <a href="https://bazel.build/docs/build-ref.html#labels">List of labels</a> | required |  |
 
 
 <a id="tar"></a>
diff --git a/lib/private/BUILD.bazel b/lib/private/BUILD.bazel
index 115aea46b..faa70c77e 100644
--- a/lib/private/BUILD.bazel
+++ b/lib/private/BUILD.bazel
@@ -267,6 +267,13 @@ bzl_library(
     deps = [":repo_utils"],
 )
 
+bzl_library(
+    name = "tar",
+    srcs = ["tar.bzl"],
+    visibility = ["//lib:__subpackages__"],
+    deps = ["@aspect_bazel_lib//lib:paths"],
+)
+
 bzl_library(
     name = "copy_common",
     srcs = ["copy_common.bzl"],
@@ -320,9 +327,3 @@ bzl_library(
     srcs = ["strings.bzl"],
     visibility = ["//lib:__subpackages__"],
 )
-
-bzl_library(
-    name = "tar",
-    srcs = ["tar.bzl"],
-    visibility = ["//lib:__subpackages__"],
-)
diff --git a/lib/private/tar.bzl b/lib/private/tar.bzl
index bc3c160ab..f3e9e2038 100644
--- a/lib/private/tar.bzl
+++ b/lib/private/tar.bzl
@@ -1,10 +1,17 @@
 "Implementation of tar rule"
+
+load("@aspect_bazel_lib//lib:paths.bzl", "to_rlocation_path")
+
 _tar_attrs = {
     "args": attr.string_list(
         doc = "Additional flags permitted by BSD tar; see the man page.",
     ),
     "srcs": attr.label_list(
-        doc = "Files and directories that are placed into the tar",
+        doc = """\
+        Files, directories, or other targets whose default outputs are placed into the tar.
+
+        If any of the srcs are binaries with runfiles, those are copied into the resulting tar as well.
+        """,
         mandatory = True,
         allow_files = True,
     ),
@@ -67,6 +74,23 @@ def _add_compress_options(compress, args):
     if compress == "zstd":
         args.add("--zstd")
 
+def _runfile_path(ctx, file, runfiles_dir):
+    return "/".join([runfiles_dir, to_rlocation_path(ctx, file)])
+
+def _calculate_runfiles_dir(default_info):
+    manifest = default_info.files_to_run.runfiles_manifest
+
+    # Newer versions of Bazel put the manifest besides the runfiles with the suffix .runfiles_manifest.
+    # For example, the runfiles directory is named my_binary.runfiles then the manifest is beside the
+    # runfiles directory and named my_binary.runfiles_manifest
+    # Older versions of Bazel put the manifest file named MANIFEST in the runfiles directory
+    # See similar logic:
+    # https://github.com/aspect-build/rules_js/blob/c50bd3f797c501fb229cf9ab58e0e4fc11464a2f/js/private/bash.bzl#L63
+    if manifest.short_path.endswith("_manifest") or manifest.short_path.endswith("/MANIFEST"):
+        # Trim last 9 characters, as that's the length in both cases
+        return manifest.short_path[:-9]
+    fail("manifest path {} seems malformed".format(manifest.short_path))
+
 def _tar_impl(ctx):
     bsdtar = ctx.toolchains["@aspect_bazel_lib//lib:tar_toolchain_type"]
     inputs = ctx.files.srcs[:]
@@ -89,7 +113,10 @@ def _tar_impl(ctx):
 
     ctx.actions.run(
         executable = bsdtar.tarinfo.binary,
-        inputs = depset(direct = inputs, transitive = [bsdtar.default.files]),
+        inputs = depset(direct = inputs, transitive = [bsdtar.default.files] + [
+            src[DefaultInfo].default_runfiles.files
+            for src in ctx.attr.srcs
+        ]),
         outputs = [out],
         arguments = [args],
         mnemonic = "Tar",
@@ -99,17 +126,17 @@ def _tar_impl(ctx):
 
 def _default_mtree_line(file):
     # Functions passed to map_each cannot take optional arguments.
-    return _mtree_line(file)
+    return _mtree_line(file.short_path, file.path, "dir" if file.is_directory else "file")
 
-def _mtree_line(file, uid = "0", gid = "0", time = "1672560000", mode = "0755"):
+def _mtree_line(file, content, type, uid = "0", gid = "0", time = "1672560000", mode = "0755"):
     return " ".join([
-        file.short_path,
+        file,
         "uid=" + uid,
         "gid=" + gid,
         "time=" + time,
         "mode=" + mode,
-        "type=" + ("dir" if file.is_directory else "file"),
-        "content=" + file.path,
+        "type=" + type,
+        "content=" + content,
     ])
 
 def _mtree_impl(ctx):
@@ -118,6 +145,20 @@ def _mtree_impl(ctx):
     content = ctx.actions.args()
     content.set_param_file_format("multiline")
     content.add_all(ctx.files.srcs, map_each = _default_mtree_line)
+
+    for s in ctx.attr.srcs:
+        default_info = s[DefaultInfo]
+        if not default_info.files_to_run.runfiles_manifest:
+            continue
+
+        runfiles_dir = _calculate_runfiles_dir(default_info)
+        for file in depset(transitive = [s.default_runfiles.files]).to_list():
+            destination = _runfile_path(ctx, file, runfiles_dir)
+            content.add("{} uid=0 gid=0 mode=0755 time=1672560000 type=file content={}".format(
+                destination,
+                file.path,
+            ))
+
     ctx.actions.write(out, content = content)
 
     return DefaultInfo(files = depset([out]), runfiles = ctx.runfiles([out]))
diff --git a/lib/private/tar_toolchain.bzl b/lib/private/tar_toolchain.bzl
index 6ab88cf50..fa4edb2fd 100644
--- a/lib/private/tar_toolchain.bzl
+++ b/lib/private/tar_toolchain.bzl
@@ -9,7 +9,6 @@ BSDTAR_PLATFORMS = {
             "@platforms//cpu:x86_64",
         ],
     ),
-    # TODO(alexeagle): download from somewhere
     "linux_arm64": struct(
         compatible_with = [
             "@platforms//os:linux",
diff --git a/lib/tests/tar/BUILD.bazel b/lib/tests/tar/BUILD.bazel
index 0a3ecab31..c4981c051 100644
--- a/lib/tests/tar/BUILD.bazel
+++ b/lib/tests/tar/BUILD.bazel
@@ -1,6 +1,7 @@
 load("@aspect_bazel_lib//lib:tar.bzl", "mtree_spec", "tar")
 load("@aspect_bazel_lib//lib:testing.bzl", "assert_archive_contains")
 load("@bazel_skylib//:bzl_library.bzl", "bzl_library")
+load("@bazel_skylib//rules:diff_test.bzl", "diff_test")
 load("@bazel_skylib//rules:write_file.bzl", "write_file")
 load(":asserts.bzl", "assert_tar_listing")
 
@@ -152,3 +153,38 @@ bzl_library(
         "@bazel_skylib//rules:write_file",
     ],
 )
+
+# Case 6: Runfiles
+sh_binary(
+    name = "cat_src_file",
+    srcs = ["cat_src_file.sh"],
+    data = ["src_file"],
+    deps = ["@bazel_tools//tools/bash/runfiles"],
+)
+
+tar(
+    name = "tar_runfiles",
+    srcs = [":cat_src_file"],
+)
+
+genrule(
+    name = "run_program_with_runfiles",
+    srcs = [":tar_runfiles"],
+    outs = ["cat_src_file_output"],
+    cmd = """\
+      export DIR=$$(mktemp -d)
+      $(BSDTAR_BIN) --extract --file $(execpath :tar_runfiles) --directory $$DIR
+      (
+        cd $$DIR
+        ./lib/tests/tar/cat_src_file
+      ) > $@
+    """,
+    toolchains = ["@bsd_tar_toolchains//:resolved_toolchain"],
+)
+
+diff_test(
+    name = "test_runfiles",
+    timeout = "short",
+    file1 = "src_file",
+    file2 = "cat_src_file_output",
+)
diff --git a/lib/tests/tar/asserts.bzl b/lib/tests/tar/asserts.bzl
index c0d9e6fff..a3ce57e9f 100644
--- a/lib/tests/tar/asserts.bzl
+++ b/lib/tests/tar/asserts.bzl
@@ -26,4 +26,5 @@ def assert_tar_listing(name, actual, expected):
         name = name,
         file1 = actual_listing,
         file2 = expected_listing,
+        timeout = "short",
     )
diff --git a/lib/tests/tar/cat_src_file.sh b/lib/tests/tar/cat_src_file.sh
new file mode 100755
index 000000000..ce6c37328
--- /dev/null
+++ b/lib/tests/tar/cat_src_file.sh
@@ -0,0 +1,15 @@
+#!/usr/bin/env bash
+# A trivial program that only works when runfiles are resolved at runtime.
+
+# --- begin runfiles.bash initialization v3 ---
+# Copy-pasted from the Bazel Bash runfiles library v3.
+set -uo pipefail; set +e; f=bazel_tools/tools/bash/runfiles/runfiles.bash
+source "${RUNFILES_DIR:-/dev/null}/$f" 2>/dev/null || \
+  source "$(grep -sm1 "^$f " "${RUNFILES_MANIFEST_FILE:-/dev/null}" | cut -f2- -d' ')" 2>/dev/null || \
+  source "$0.runfiles/$f" 2>/dev/null || \
+  source "$(grep -sm1 "^$f " "$0.runfiles_manifest" | cut -f2- -d' ')" 2>/dev/null || \
+  source "$(grep -sm1 "^$f " "$0.exe.runfiles_manifest" | cut -f2- -d' ')" 2>/dev/null || \
+  { echo>&2 "ERROR: cannot find $f"; exit 1; }; f=; set -e
+# --- end runfiles.bash initialization v3 ---
+
+cat $(rlocation aspect_bazel_lib/lib/tests/tar/src_file)