diff --git a/kintsugi.gemspec b/kintsugi.gemspec
index 89c89d4..97e7360 100644
--- a/kintsugi.gemspec
+++ b/kintsugi.gemspec
@@ -23,7 +23,7 @@ Gem::Specification.new do |spec|
   spec.require_paths = ["lib"]
 
   spec.add_dependency "tty-prompt", "~> 0"
-  spec.add_dependency "xcodeproj", ">= 1.26.0", "<= 1.27.0"
+  spec.add_dependency "xcodeproj", ">= 1.26.0", "<= 1.28.1"
 
   spec.add_development_dependency "git", "~> 1.11"
   spec.add_development_dependency "rake", "~> 13.0"
diff --git a/spec/kintsugi_integration_spec.rb b/spec/kintsugi_integration_spec.rb
index a769df3..fb859a5 100644
--- a/spec/kintsugi_integration_spec.rb
+++ b/spec/kintsugi_integration_spec.rb
@@ -185,10 +185,100 @@ def create_new_project_at_path(path)
   project
 end
 
+def find_exception_set_hash(plist)
+  plist["objects"].values.find do |object|
+    object["isa"] == "PBXFileSystemSynchronizedBuildFileExceptionSet"
+  end
+end
+
+def write_exception_set_asset_tags(project_path, asset_tags)
+  pbxproj_path = File.join(project_path, "project.pbxproj")
+  plist = Xcodeproj::Plist.read_from_path(pbxproj_path)
+  find_exception_set_hash(plist)["assetTagsByRelativePath"] = asset_tags
+  File.open(pbxproj_path, "w") do |file|
+    Nanaimo::Writer::PBXProjWriter
+      .new(Nanaimo::Plist.new(plist, :ascii), pretty: true, output: file, strict: false).write
+  end
+end
+
+def read_exception_set_asset_tags(project_path)
+  plist = Xcodeproj::Plist.read_from_path(File.join(project_path, "project.pbxproj"))
+  exception_set = find_exception_set_hash(plist)
+  exception_set && exception_set["assetTagsByRelativePath"]
+end
+
 describe Kintsugi, :kintsugi do
   %w[rebase cherry-pick merge].each do |git_command|
     ["foo.xcodeproj", "foo with space.xcodeproj"].each do |project_name|
       it_behaves_like("tests", git_command, project_name)
     end
   end
+
+  context "when merging a project with on-demand resource asset tags" do
+    let(:temporary_directories_paths) { [] }
+    let(:git_directory_path) { Dir.mktmpdir.tap { |path| temporary_directories_paths << path } }
+    let(:git) { Git.init(git_directory_path) }
+
+    before do
+      git.config("user.email", "you@example.com")
+      git.config("user.name", "Your Name")
+    end
+
+    after do
+      temporary_directories_paths.each do |directory_path|
+        FileUtils.remove_entry(directory_path)
+      end
+    end
+
+    it "keeps 'assetTagsByRelativePath' of an exception set when resolving with driver" do
+      git.config("merge.kintsugi.name", "Kintsugi driver")
+      git.config("merge.kintsugi.driver", "#{__dir__}/../bin/kintsugi driver %O %A %B %P")
+      File.write(File.join(git_directory_path, ".gitattributes"), "*.pbxproj merge=kintsugi")
+
+      asset_tags = {"OnDemandAssets/Level1.imageset" => ["level1"]}
+
+      project = create_new_project_at_path(File.join(git_directory_path, "foo.xcodeproj"))
+      target = project.new_target("com.apple.product-type.library.static", "foo", :ios)
+      group = project.new(Xcodeproj::Project::PBXFileSystemSynchronizedRootGroup)
+      group.source_tree = "<group>"
+      group.path = "SyncedSources"
+      exception_set =
+        project.new(Xcodeproj::Project::PBXFileSystemSynchronizedBuildFileExceptionSet)
+      exception_set.target = target
+      exception_set.membership_exceptions = ["Excluded.swift"]
+      group.exceptions << exception_set
+      project.main_group.children << group
+      target.file_system_synchronized_groups << group
+      project.save
+      # `assetTagsByRelativePath` is written to the file directly because not all xcodeproj
+      # versions in the supported range model this attribute, and those that don't drop it when
+      # a project is saved, which is exactly what this test guards against.
+      write_exception_set_asset_tags(project.path, asset_tags)
+
+      git.add(all: true)
+      git.commit("Initial project")
+
+      project = Xcodeproj::Project.open(project.path)
+      project.new_target("com.apple.product-type.library.static", "bar", :ios)
+      project.save
+      write_exception_set_asset_tags(project.path, asset_tags)
+      git.add(all: true)
+      git.commit("Add target bar")
+      first_commit_hash = git.revparse("HEAD")
+
+      git.checkout("HEAD^")
+      project = Xcodeproj::Project.open(project.path)
+      project.new_target("com.apple.product-type.library.static", "baz", :ios)
+      project.save
+      write_exception_set_asset_tags(project.path, asset_tags)
+      git.add(all: true)
+      git.commit("Add target baz")
+
+      `git -C #{git_directory_path} merge #{first_commit_hash} &> /dev/null`
+
+      project = Xcodeproj::Project.open(project.path)
+      expect(project.targets.map(&:display_name)).to contain_exactly("foo", "bar", "baz")
+      expect(read_exception_set_asset_tags(project.path)).to eq(asset_tags)
+    end
+  end
 end