diff --git a/compiler/damlc/daml-opts/daml-opts/DA/Daml/Options.hs b/compiler/damlc/daml-opts/daml-opts/DA/Daml/Options.hs
index c40c5a8e3e9d..d469d92060cb 100644
--- a/compiler/damlc/daml-opts/daml-opts/DA/Daml/Options.hs
+++ b/compiler/damlc/daml-opts/daml-opts/DA/Daml/Options.hs
@@ -63,7 +63,7 @@ toCompileOpts options@Options{..} reportProgress =
       , optDefer = Ghcide.IdeDefer False
       }
   where
-    toRenaming aliases = ModRenaming False [(GHC.mkModuleName mod, GHC.mkModuleName alias) | (mod, alias) <- aliases]
+    toRenaming aliases = ModRenaming True [(GHC.mkModuleName mod, GHC.mkModuleName alias) | (mod, alias) <- aliases]
     locateInPkgDb :: String -> PackageConfig -> GHC.Module -> IO (Maybe FilePath)
     locateInPkgDb ext pkgConfig mod
       | (importDir : _) <- importDirs pkgConfig = do
diff --git a/daml-assistant/integration-tests/src/DA/Daml/Assistant/IntegrationTests.hs b/daml-assistant/integration-tests/src/DA/Daml/Assistant/IntegrationTests.hs
index ef15e1ac1607..e1f01624d0c6 100644
--- a/daml-assistant/integration-tests/src/DA/Daml/Assistant/IntegrationTests.hs
+++ b/daml-assistant/integration-tests/src/DA/Daml/Assistant/IntegrationTests.hs
@@ -177,7 +177,7 @@ packagingTests = testGroup "packaging"
         writeFileUTF8 (projectB </> "daml" </> "B.daml") $ unlines
             [ "daml 1.2"
             , "module B where"
-            , "import A"
+            , "import C"
             , "import Foo.Bar.Baz"
             , "b : ()"
             , "b = a"
@@ -194,7 +194,11 @@ packagingTests = testGroup "packaging"
             , "  - daml-prim"
             , "  - daml-stdlib"
             , "  - " <> aDar
+            , "build-options:"
+            , "- '--package=(\"a-1.0\", [(\"A\", \"C\")])'"
             ]
+            -- the last option checks that module aliases work and modules imported without aliases
+            -- are still exposed.
         withCurrentDirectory projectB $ callCommandQuiet "daml build"
         assertBool "b.dar was not created." =<< doesFileExist bDar
     , testCaseSteps "Dependency on a package with source: A.daml" $ \step -> withTempDir $ \tmpDir -> do