diff --git a/launch/launch/actions/include_launch_description.py b/launch/launch/actions/include_launch_description.py
index d022d5ee5..184abf4d1 100644
--- a/launch/launch/actions/include_launch_description.py
+++ b/launch/launch/actions/include_launch_description.py
@@ -161,14 +161,18 @@ def execute(self, context: LaunchContext) -> List[LaunchDescriptionEntity]:
             for arg_name, arg_value in self.launch_arguments
         ]
         declared_launch_arguments = (
-            launch_description.get_launch_arguments_with_include_launch_description_actions())
+            launch_description.get_launch_arguments_with_include_launch_description_actions(
+                only_search_local=True)
+            )
         for argument, ild_actions in declared_launch_arguments:
             if argument._conditionally_included or argument.default_value is not None:
                 continue
             argument_names = my_argument_names
             if ild_actions is not None:
                 for ild_action in ild_actions:
-                    argument_names.extend(ild_action._try_get_arguments_names_without_context())
+                    argument_names.extend(
+                        ild_action._try_get_arguments_names_without_context()
+                    )
             if argument.name not in argument_names:
                 raise RuntimeError(
                     "Included launch description missing required argument '{}' "
diff --git a/launch/launch/launch_description.py b/launch/launch/launch_description.py
index ac67de064..bc7d30379 100644
--- a/launch/launch/launch_description.py
+++ b/launch/launch/launch_description.py
@@ -91,7 +91,7 @@ def get_launch_arguments(self, conditional_inclusion=False) -> List[DeclareLaunc
         ]
 
     def get_launch_arguments_with_include_launch_description_actions(
-        self, conditional_inclusion=False
+        self, conditional_inclusion=False, only_search_local=False
     ) -> List[Tuple[DeclareLaunchArgument, List['IncludeLaunchDescription']]]:
         """
         Return a list of launch arguments with its associated include launch descriptions actions.
@@ -128,7 +128,8 @@ def get_launch_arguments_with_include_launch_description_actions(
             Tuple[DeclareLaunchArgument, List[IncludeLaunchDescription]]] = []
         from .actions import ResetLaunchConfigurations
 
-        def process_entities(entities, *, _conditional_inclusion, nested_ild_actions=None):
+        def process_entities(entities, *, _conditional_inclusion, nested_ild_actions=None,
+                             only_search_local=False):
             for entity in entities:
                 if isinstance(entity, DeclareLaunchArgument):
                     # Avoid duplicate entries with the same name.
@@ -139,6 +140,9 @@ def process_entities(entities, *, _conditional_inclusion, nested_ild_actions=Non
                     entity._conditionally_included = _conditional_inclusion
                     entity._conditionally_included |= entity.condition is not None
                     declared_launch_arguments.append((entity, nested_ild_actions))
+                if only_search_local:
+                    if isinstance(entity, IncludeLaunchDescription):
+                        continue
                 if isinstance(entity, ResetLaunchConfigurations):
                     # Launch arguments after this cannot be set directly by top level arguments
                     return
@@ -151,14 +155,17 @@ def process_entities(entities, *, _conditional_inclusion, nested_ild_actions=Non
                     process_entities(
                         entity.describe_sub_entities(),
                         _conditional_inclusion=False,
-                        nested_ild_actions=next_nested_ild_actions)
+                        nested_ild_actions=next_nested_ild_actions,
+                        only_search_local=only_search_local)
                     for conditional_sub_entity in entity.describe_conditional_sub_entities():
                         process_entities(
                             conditional_sub_entity[1],
                             _conditional_inclusion=True,
-                            nested_ild_actions=next_nested_ild_actions)
+                            nested_ild_actions=next_nested_ild_actions,
+                            only_search_local=only_search_local)
 
-        process_entities(self.entities, _conditional_inclusion=conditional_inclusion)
+        process_entities(self.entities, _conditional_inclusion=conditional_inclusion,
+                         only_search_local=only_search_local)
 
         return declared_launch_arguments