diff --git a/sqlmesh/utils/jinja.py b/sqlmesh/utils/jinja.py
index 9764e625a4..74d498be38 100644
--- a/sqlmesh/utils/jinja.py
+++ b/sqlmesh/utils/jinja.py
@@ -330,13 +330,16 @@ def build_environment(self, **kwargs: t.Any) -> Environment:
                 if macro.is_top_level and macro_name not in root_macros:
                     root_macros[macro_name] = macro_wrapper
 
+        top_level_packages = self.top_level_packages.copy()
+
         if self.root_package_name is not None:
             package_macros[self.root_package_name].update(root_macros)
+            top_level_packages.append(self.root_package_name)
 
         env = environment()
 
         builtin_globals = self._create_builtin_globals(kwargs)
-        for top_level_package_name in self.top_level_packages:
+        for top_level_package_name in top_level_packages:
             # Make sure that the top-level package doesn't fully override the same builtin package.
             package_macros[top_level_package_name] = AttributeDict(
                 {
diff --git a/tests/fixtures/dbt/sushi_test/dbt_packages/my_macros/dbt_project.yml b/tests/fixtures/dbt/sushi_test/dbt_packages/my_macros/dbt_project.yml
new file mode 100644
index 0000000000..f0386b4e57
--- /dev/null
+++ b/tests/fixtures/dbt/sushi_test/dbt_packages/my_macros/dbt_project.yml
@@ -0,0 +1,17 @@
+name: 'my_macros'
+version: '1.0.0'
+config-version: 2
+
+profile: 'my_macros'
+
+model-paths: ["models"]
+analysis-paths: ["analyses"]
+test-paths: ["tests"]
+seed-paths: ["seeds"]
+macro-paths: ["macros"]
+snapshot-paths: ["snapshots"]
+
+target-path: "target"
+clean-targets:
+  - "target"
+  - "dbt_packages"
diff --git a/tests/fixtures/dbt/sushi_test/dbt_packages/my_macros/macros/log_value_alt.sql b/tests/fixtures/dbt/sushi_test/dbt_packages/my_macros/macros/log_value_alt.sql
new file mode 100644
index 0000000000..a88f316d3e
--- /dev/null
+++ b/tests/fixtures/dbt/sushi_test/dbt_packages/my_macros/macros/log_value_alt.sql
@@ -0,0 +1,3 @@
+{% macro log_value_alt(v) %}
+    {{ log("Entered value is: " ~ v) }}
+{% endmacro %}
diff --git a/tests/fixtures/dbt/sushi_test/dbt_packages/my_package/dbt_project.yml b/tests/fixtures/dbt/sushi_test/dbt_packages/my_package/dbt_project.yml
new file mode 100644
index 0000000000..9c4797ebe0
--- /dev/null
+++ b/tests/fixtures/dbt/sushi_test/dbt_packages/my_package/dbt_project.yml
@@ -0,0 +1,17 @@
+name: 'my_project'
+version: '1.0.0'
+config-version: 2
+
+profile: 'my_project'
+
+model-paths: ["models"]
+analysis-paths: ["analyses"]
+test-paths: ["tests"]
+seed-paths: ["seeds"]
+macro-paths: ["macros"]
+snapshot-paths: ["snapshots"]
+
+target-path: "target"
+clean-targets:
+  - "target"
+  - "dbt_packages"
diff --git a/tests/fixtures/dbt/sushi_test/dbt_packages/my_package/models/dummy_model.sql b/tests/fixtures/dbt/sushi_test/dbt_packages/my_package/models/dummy_model.sql
new file mode 100644
index 0000000000..ff815fe55d
--- /dev/null
+++ b/tests/fixtures/dbt/sushi_test/dbt_packages/my_package/models/dummy_model.sql
@@ -0,0 +1,4 @@
+{{ log_value_alt(1) }}
+
+SELECT
+  1 AS c
diff --git a/tests/fixtures/dbt/sushi_test/dbt_project.yml b/tests/fixtures/dbt/sushi_test/dbt_project.yml
index ea0041d107..2a25389e43 100644
--- a/tests/fixtures/dbt/sushi_test/dbt_project.yml
+++ b/tests/fixtures/dbt/sushi_test/dbt_project.yml
@@ -8,7 +8,10 @@ model-paths: ["models"]
 analysis-paths: ["analyses"]
 test-paths: ["tests"]
 seed-paths: ["seeds"]
-macro-paths: ["macros"]
+macro-paths: [
+  "macros",
+  "dbt_packages/my_macros/macros",
+]
 snapshot-paths: ["snapshots"]
 
 target-path: "target"  # directory which will store compiled SQL files