diff --git a/src/datacustomcode/scan.py b/src/datacustomcode/scan.py
index 5e50c5d..afcddea 100644
--- a/src/datacustomcode/scan.py
+++ b/src/datacustomcode/scan.py
@@ -264,7 +264,17 @@ def scan_file_for_imports(file_path: str) -> Set[str]:
         tree = ast.parse(code)
         visitor = ImportVisitor()
         visitor.visit(tree)
-        return visitor.imports
+
+        # Filter out local modules
+        file_dir = os.path.dirname(file_path)
+        filtered_imports = set()
+        for package in visitor.imports:
+            # Check if a .py file exists in the same directory
+            local_module_path = os.path.join(file_dir, f"{package}.py")
+            if not os.path.exists(local_module_path):
+                filtered_imports.add(package)
+
+        return filtered_imports
 
 
 def write_requirements_file(file_path: str) -> str:
diff --git a/tests/test_scan.py b/tests/test_scan.py
index 2acbc25..9b908b2 100644
--- a/tests/test_scan.py
+++ b/tests/test_scan.py
@@ -927,3 +927,65 @@ def test_excluded_packages(self):
             assert "pyspark" not in imports
         finally:
             os.unlink(temp_path)
+
+    def test_local_module_exclusion(self):
+        """Test that local modules (files in the same directory) are excluded."""
+        # Create a temporary directory with multiple Python files
+        temp_dir = tempfile.mkdtemp()
+
+        try:
+            # Create a local module file
+            utility_path = os.path.join(temp_dir, "utility.py")
+            with open(utility_path, "w") as f:
+                f.write(
+                    textwrap.dedent(
+                        """
+                    def helper_function():
+                        return "helper"
+                    """
+                    )
+                )
+
+            # Create another local module
+            helpers_path = os.path.join(temp_dir, "helpers.py")
+            with open(helpers_path, "w") as f:
+                f.write(
+                    textwrap.dedent(
+                        """
+                    def another_helper():
+                        return "another"
+                    """
+                    )
+                )
+
+            # Test script imports both local modules and external packages
+            main_content = textwrap.dedent(
+                """
+                from utility import helper_function
+                from helpers import another_helper
+                import pandas as pd
+                import numpy as np
+                """
+            )
+            main_path = os.path.join(temp_dir, "main.py")
+            with open(main_path, "w") as f:
+                f.write(main_content)
+
+            # Scan for imports
+            imports = scan_file_for_imports(main_path)
+
+            # External packages should be included
+            assert "pandas" in imports
+            assert "numpy" in imports
+
+            # Local modules should be excluded
+            assert "utility" not in imports
+            assert "helpers" not in imports
+
+        finally:
+            # Clean up
+            for file in ["utility.py", "helpers.py", "main.py"]:
+                file_path = os.path.join(temp_dir, file)
+                if os.path.exists(file_path):
+                    os.unlink(file_path)
+            os.rmdir(temp_dir)