diff --git a/pungi/gather_dnf.py b/pungi/gather_dnf.py
index 328d69c8..1d6c510a 100644
--- a/pungi/gather_dnf.py
+++ b/pungi/gather_dnf.py
@@ -227,10 +227,27 @@ class Gather(GatherBase):
         if not package_list:
             return []
 
+        # The list can contain packages from lookaside and outside of
+        # lookaside. If the package is in both, we want to prefer the version
+        # from lookaside. This can be achieved by removing any package that is
+        # also in lookaside from the list.
+        lookaside_pkgs = set()
+        for pkg in package_list:
+            if pkg.repoid in self.opts.lookaside_repos:
+                lookaside_pkgs.add("{0.name}-{0.evr}".format(pkg))
+
         if self.opts.greedy_method == "all":
             return list(package_list)
 
-        all_pkgs = list(package_list)
+        all_pkgs = []
+        for pkg in package_list:
+            # Remove packages that are also in lookaside
+            if (
+                "{0.name}-{0.evr}".format(pkg) not in lookaside_pkgs
+                or pkg.repoid in self.opts.lookaside_repos
+            ):
+                all_pkgs.append(pkg)
+
         native_pkgs = self.q_native_binary_packages.filter(pkg=all_pkgs).apply()
         multilib_pkgs = self.q_multilib_binary_packages.filter(pkg=all_pkgs).apply()
 
diff --git a/tests/test_gather.py b/tests/test_gather.py
index 25dfc399..60085b89 100644
--- a/tests/test_gather.py
+++ b/tests/test_gather.py
@@ -22,6 +22,7 @@ os.environ['PATH'] = '%s:%s' % (BINDIR, os.environ['PATH'])
 
 from pungi.wrappers.pungi import PungiWrapper
 try:
+    from dnf import __version__ as dnf_version
     from pungi.dnf_wrapper import DnfWrapper, Conf
     from pungi.gather_dnf import Gather, GatherOptions, PkgFlag
     HAS_DNF = True
@@ -1810,7 +1811,10 @@ class DNFDepsolvingTestCase(DepsolvingBase, unittest.TestCase):
         conf = Conf(base_arch)
         conf.persistdir = persistdir
         conf.cachedir = self.cachedir
-        conf.modulesdir = os.path.join(persistdir, 'modules.d')
+        if int(dnf_version.split('.')[0]) < 3:
+            conf.modulesdir = os.path.join(persistdir, 'modules.d')
+        else:
+            conf.modulesdir._set(os.path.join(persistdir, 'modules.d'))
         if exclude:
             conf.exclude = exclude
         dnf = DnfWrapper(conf)