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Unless I'm mistaken, there is an error in this test. The input document has base URI {some root}/input-xinclude-recursive-1.xml This includes {some root}/xinclude/input-xinclude-recursive-2.xml which includes {some root}/xinclude/para.xml So the base URI of the root of this document is {some root}/input-xinclude-recursive-1.xml and the included paragraph, after Base URI fixup is {some root}/xinclude/para.xml Using a relative URI gives xml:base="xinclude/para.xml". The test expects: contains(@xml:base, 'doc/xinclude/para.xml') to be true. I believe it should read: contains(@xml:base, 'xinclude/para.xml')