diff --git a/CHANGELOG.md b/CHANGELOG.md
index 59dfbe4..387b55b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -41,6 +41,7 @@
 * (toolchain) Omit third-party python packages from coverage reports from
   stage2 bootstrap template.
 * (bzlmod) Properly handle relative path URLs in parse_simpleapi_html.bzl
+* (gazelle) Correctly resolve deps that have top-level module overlap with a gazelle_python.yaml dep module
 
 ### Added
 * Nothing yet
diff --git a/gazelle/python/testdata/dependency_resolution_order/BUILD.in b/gazelle/python/testdata/dependency_resolution_order/BUILD.in
index 71a5c5a..aaf45f4 100644
--- a/gazelle/python/testdata/dependency_resolution_order/BUILD.in
+++ b/gazelle/python/testdata/dependency_resolution_order/BUILD.in
@@ -1 +1,2 @@
 # gazelle:resolve py bar //somewhere/bar
+# gazelle:resolve py third_party.foo //third_party/foo
diff --git a/gazelle/python/testdata/dependency_resolution_order/BUILD.out b/gazelle/python/testdata/dependency_resolution_order/BUILD.out
index eebe6c3..58fd266 100644
--- a/gazelle/python/testdata/dependency_resolution_order/BUILD.out
+++ b/gazelle/python/testdata/dependency_resolution_order/BUILD.out
@@ -1,6 +1,7 @@
 load("@rules_python//python:defs.bzl", "py_library")
 
 # gazelle:resolve py bar //somewhere/bar
+# gazelle:resolve py third_party.foo //third_party/foo
 
 py_library(
     name = "dependency_resolution_order",
@@ -9,6 +10,9 @@
     deps = [
         "//baz",
         "//somewhere/bar",
+        "//third_party",
+        "//third_party/foo",
+        "@gazelle_python_test//other_pip_dep",
         "@gazelle_python_test//some_foo",
     ],
 )
diff --git a/gazelle/python/testdata/dependency_resolution_order/__init__.py b/gazelle/python/testdata/dependency_resolution_order/__init__.py
index d9c6504..e2d0a8a 100644
--- a/gazelle/python/testdata/dependency_resolution_order/__init__.py
+++ b/gazelle/python/testdata/dependency_resolution_order/__init__.py
@@ -18,6 +18,14 @@
 import baz
 import foo
 
+# Ensure that even though @gazelle_python_test//other_pip_dep provides "third_party",
+# we can still override "third_party.foo.bar"
+import third_party.foo.bar
+
+from third_party import baz
+
+import third_party
+
 _ = sys
 _ = bar
 _ = baz
diff --git a/gazelle/python/testdata/dependency_resolution_order/gazelle_python.yaml b/gazelle/python/testdata/dependency_resolution_order/gazelle_python.yaml
index 8615181..e62ad33 100644
--- a/gazelle/python/testdata/dependency_resolution_order/gazelle_python.yaml
+++ b/gazelle/python/testdata/dependency_resolution_order/gazelle_python.yaml
@@ -15,4 +15,5 @@
 manifest:
   modules_mapping:
     foo: some_foo
+    third_party: other_pip_dep
   pip_deps_repository_name: gazelle_python_test
diff --git a/gazelle/python/testdata/dependency_resolution_order/third_party/BUILD.in b/gazelle/python/testdata/dependency_resolution_order/third_party/BUILD.in
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/gazelle/python/testdata/dependency_resolution_order/third_party/BUILD.in
diff --git a/gazelle/python/testdata/dependency_resolution_order/third_party/BUILD.out b/gazelle/python/testdata/dependency_resolution_order/third_party/BUILD.out
new file mode 100644
index 0000000..2c130d7
--- /dev/null
+++ b/gazelle/python/testdata/dependency_resolution_order/third_party/BUILD.out
@@ -0,0 +1,7 @@
+load("@rules_python//python:defs.bzl", "py_library")
+
+py_library(
+    name = "third_party",
+    srcs = ["baz.py"],
+    visibility = ["//:__subpackages__"],
+)
diff --git a/gazelle/python/testdata/dependency_resolution_order/third_party/baz.py b/gazelle/python/testdata/dependency_resolution_order/third_party/baz.py
new file mode 100644
index 0000000..e01d49c
--- /dev/null
+++ b/gazelle/python/testdata/dependency_resolution_order/third_party/baz.py
@@ -0,0 +1,17 @@
+# Copyright 2024 The Bazel Authors. All rights reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+import os
+
+_ = os
diff --git a/gazelle/pythonconfig/pythonconfig.go b/gazelle/pythonconfig/pythonconfig.go
index 166b575..a24a90e 100644
--- a/gazelle/pythonconfig/pythonconfig.go
+++ b/gazelle/pythonconfig/pythonconfig.go
@@ -282,23 +282,16 @@
 	for currentCfg := c; currentCfg != nil; currentCfg = currentCfg.parent {
 		if currentCfg.gazelleManifest != nil {
 			gazelleManifest := currentCfg.gazelleManifest
-			for {
-				if distributionName, ok := gazelleManifest.ModulesMapping[modName]; ok {
-					var distributionRepositoryName string
-					if gazelleManifest.PipDepsRepositoryName != "" {
-						distributionRepositoryName = gazelleManifest.PipDepsRepositoryName
-					} else if gazelleManifest.PipRepository != nil {
-						distributionRepositoryName = gazelleManifest.PipRepository.Name
-					}
+			if distributionName, ok := gazelleManifest.ModulesMapping[modName]; ok {
+				var distributionRepositoryName string
+				if gazelleManifest.PipDepsRepositoryName != "" {
+					distributionRepositoryName = gazelleManifest.PipDepsRepositoryName
+				} else if gazelleManifest.PipRepository != nil {
+					distributionRepositoryName = gazelleManifest.PipRepository.Name
+				}
 
-					lbl := currentCfg.FormatThirdPartyDependency(distributionRepositoryName, distributionName)
-					return lbl.String(), true
-				}
-				i := strings.LastIndex(modName, ".")
-				if i == -1 {
-					break
-				}
-				modName = modName[:i]
+				lbl := currentCfg.FormatThirdPartyDependency(distributionRepositoryName, distributionName)
+				return lbl.String(), true
 			}
 		}
 	}