diff --git a/MANIFEST.in b/MANIFEST.in
index c4f12dc68a..092612cb21 100644
--- a/MANIFEST.in
+++ b/MANIFEST.in
@@ -2,7 +2,7 @@ recursive-include setuptools *.py *.exe *.xml *.tmpl
 recursive-include tests *.py
 recursive-include setuptools/tests *.html
 recursive-include docs *.py *.txt *.rst *.conf *.css *.css_t Makefile indexsidebar.html
-recursive-include setuptools/_vendor *.py *.txt
+recursive-include setuptools/_vendor *
 recursive-include pkg_resources *.py *.txt
 recursive-include pkg_resources/tests/data *
 recursive-include tools *
diff --git a/newsfragments/4480.bugfix.rst b/newsfragments/4480.bugfix.rst
new file mode 100644
index 0000000000..a43949fa7d
--- /dev/null
+++ b/newsfragments/4480.bugfix.rst
@@ -0,0 +1 @@
+Include all vendored files in the sdist.
\ No newline at end of file
diff --git a/setuptools/tests/test_setuptools.py b/setuptools/tests/test_setuptools.py
index 9b7285459a..566af6980e 100644
--- a/setuptools/tests/test_setuptools.py
+++ b/setuptools/tests/test_setuptools.py
@@ -318,7 +318,6 @@ def test_wheel_includes_cli_scripts(setuptools_wheel):
     assert any('cli-64.exe' in member for member in contents)
 
 
-@pytest.mark.xfail(reason="#4480")
 def test_wheel_includes_vendored_metadata(setuptools_wheel):
     with ZipFile(setuptools_wheel) as zipfile:
         contents = [f.replace(os.sep, '/') for f in zipfile.namelist()]