diff --git a/src/databricks/labs/lsql/cli.py b/src/databricks/labs/lsql/cli.py
index 0ac30416..fc50fe56 100644
--- a/src/databricks/labs/lsql/cli.py
+++ b/src/databricks/labs/lsql/cli.py
@@ -1,4 +1,5 @@
 import webbrowser
+from collections.abc import Iterable
 from pathlib import Path
 
 from databricks.labs.blueprint.cli import App
@@ -43,12 +44,15 @@ def create_dashboard(
 
 
 @lsql.command(is_unauthenticated=True)
-def fmt(folder: Path = Path.cwd(), *, normalize_case: str = "true"):
+def fmt(folder: Path = Path.cwd(), *, normalize_case: str = "true", exclude: Iterable[str] = ()):
     """Format SQL files in a folder"""
     logger.debug("Formatting SQL files ...")
     folder = Path(folder)
+    exclusions = list(Path(folder, excluded) for excluded in exclude)
     should_normalize_case = normalize_case in STRING_AFFIRMATIVES
     for sql_file in folder.glob("**/*.sql"):
+        if any(sql_file.is_relative_to(exclusion) for exclusion in exclusions):
+            continue
         sql = sql_file.read_text()
         formatted_sql = QueryTile.format(sql, normalize_case=should_normalize_case)
         sql_file.write_text(formatted_sql)
diff --git a/tests/unit/samples/with-line-comments.sql b/tests/unit/samples/with-line-comments.sql
new file mode 100644
index 00000000..8752d537
--- /dev/null
+++ b/tests/unit/samples/with-line-comments.sql
@@ -0,0 +1,2 @@
+-- a comment
+SELECT * FROM xyz_table
\ No newline at end of file
diff --git a/tests/unit/test_cli.py b/tests/unit/test_cli.py
index a4488511..c7a608b8 100644
--- a/tests/unit/test_cli.py
+++ b/tests/unit/test_cli.py
@@ -1,9 +1,13 @@
+import json
+import sys
 from pathlib import Path
+from unittest import mock
 from unittest.mock import create_autospec
 
 from databricks.sdk import WorkspaceClient
 
 from databricks.labs.lsql import cli
+from databricks.labs.lsql.cli import lsql
 
 
 def test_cli_create_dashboard_invokes_deploy_dashboard():
@@ -13,3 +17,15 @@ def test_cli_create_dashboard_invokes_deploy_dashboard():
     cli.create_dashboard(ws, dashboard_path, open_browser="f")
 
     ws.lakeview.create.assert_called_once()
+
+
+def test_cli_fmt_excludes_directories():
+    path = Path(__file__).parent.parent.parent
+    json_command = json.dumps(
+        {
+            "command": "fmt",
+            "flags": {"log_level": "disabled", "folder": path.as_posix(), "exclude": ["tests/unit/samples/"]},
+        }
+    )
+    with mock.patch.object(sys, "argv", [..., json_command]):
+        lsql()