diff --git a/eng/common/pipelines/templates/steps/save-package-properties.yml b/eng/common/pipelines/templates/steps/save-package-properties.yml
index 172191c272dc..5ac89da9cdee 100644
--- a/eng/common/pipelines/templates/steps/save-package-properties.yml
+++ b/eng/common/pipelines/templates/steps/save-package-properties.yml
@@ -14,6 +14,9 @@ parameters:
   - name: ScriptDirectory
     type: string
     default: eng/common/scripts
+  - name: ExcludePaths
+    type: object
+    default: []
 
 steps:
   # There will be transitory period for every language repo where the <language> - pullrequest build definition will run
@@ -26,10 +29,12 @@ steps:
       - task: Powershell@2
         displayName: Generate PR Diff
         inputs:
-          filePath: ${{ parameters.ScriptDirectory }}/Generate-PR-Diff.ps1
-          arguments: >
+          targetType: inline
+          script: >
+            ${{ parameters.ScriptDirectory }}/Generate-PR-Diff.ps1
             -TargetPath '${{ parameters.TargetPath }}'
             -ArtifactPath '${{ parameters.DiffDirectory }}'
+            -ExcludePaths ('${{ convertToJson(parameters.ExcludePaths) }}' | ConvertFrom-Json)
           pwsh: true
 
       # When running in PR mode, we want the detected changed services to be attached to the build as tags.
diff --git a/eng/common/scripts/Generate-PR-Diff.ps1 b/eng/common/scripts/Generate-PR-Diff.ps1
index 355ef612540f..e010e176399d 100644
--- a/eng/common/scripts/Generate-PR-Diff.ps1
+++ b/eng/common/scripts/Generate-PR-Diff.ps1
@@ -16,7 +16,10 @@ Param (
   [Parameter(Mandatory = $True)]
   [string] $ArtifactPath,
   [Parameter(Mandatory = $True)]
-  [string] $TargetPath
+  [string] $TargetPath,
+  [Parameter(Mandatory=$false)]
+  [AllowEmptyCollection()]
+  [array] $ExcludePaths
 )
 
 . (Join-Path $PSScriptRoot "Helpers" "git-helpers.ps1")
@@ -45,13 +48,21 @@ $changedFiles = @()
 $changedServices = @()
 
 $changedFiles = Get-ChangedFiles -DiffPath $TargetPath
+
 if ($changedFiles) {
   $changedServices = Get-ChangedServices -ChangedFiles $changedFiles
 }
 
+# ExcludePaths is an object array with the default of [] which evaluates to null.
+# If the value is null, set it to empty list to ensure that the empty list is
+# stored in the json
+if (-not $ExcludePaths) {
+  $ExcludePaths = @()
+}
 $result = [PSCustomObject]@{
   "ChangedFiles"    = $changedFiles
   "ChangedServices" = $changedServices
+  "ExcludePaths"    = $ExcludePaths
   "PRNumber"        = if ($env:SYSTEM_PULLREQUEST_PULLREQUESTNUMBER) { $env:SYSTEM_PULLREQUEST_PULLREQUESTNUMBER } else { "-1" }
 }
 
diff --git a/eng/common/scripts/Package-Properties.ps1 b/eng/common/scripts/Package-Properties.ps1
index 1784521252df..bc7b5738e2d3 100644
--- a/eng/common/scripts/Package-Properties.ps1
+++ b/eng/common/scripts/Package-Properties.ps1
@@ -162,6 +162,14 @@ function Get-PrPkgProperties([string]$InputDiffJson) {
     $allPackageProperties = Get-AllPkgProperties
     $diff = Get-Content $InputDiffJson | ConvertFrom-Json
     $targetedFiles = $diff.ChangedFiles
+    # The exclude paths and the targeted files paths aren't full OS paths, they're
+    # GitHub paths meaning they're relative to the repo root and slashes are forward
+    # slashes "/". The ExcludePaths need to have a trailing slash added in order
+    # correctly test for string matches without overmatching. For example, if a pr
+    # had files sdk/foo/file1 and sdk/foobar/file2 with the exclude of anything in
+    # sdk/foo, it should only exclude things under sdk/foo. The TrimEnd is just in
+    # case one of the paths ends with a slash, it doesn't add a second one.
+    $excludePaths = $diff.ExcludePaths | ForEach-Object { $_.TrimEnd("/") + "/" }
 
     $additionalValidationPackages = @()
     $lookup = @{}
@@ -172,6 +180,16 @@ function Get-PrPkgProperties([string]$InputDiffJson) {
         $lookup[$lookupKey] = $pkg
 
         foreach ($file in $targetedFiles) {
+            $shouldExclude = $false
+            foreach ($exclude in $excludePaths) {
+                if ($file.StartsWith($exclude,'CurrentCultureIgnoreCase')) {
+                    $shouldExclude = $true
+                    break
+                }
+            }
+            if ($shouldExclude) {
+                continue
+            }
             $filePath = (Join-Path $RepoRoot $file)
             $shouldInclude = $filePath -like (Join-Path "$pkgDirectory" "*")
             if ($shouldInclude) {