diff --git a/R/bundlePackageRenv.R b/R/bundlePackageRenv.R
index 2ae9484d..7769e44d 100644
--- a/R/bundlePackageRenv.R
+++ b/R/bundlePackageRenv.R
@@ -9,9 +9,18 @@ snapshotRenvDependencies <- function(bundleDir,
   )
   defer(options(old))
 
+  dependenciesLimit <- getOption("renv.config.dependencies.limit")
+  if (is.null(dependenciesLimit)) {
+    maxFiles <- getOption("rsconnect.max.bundle.files", 10000)
+    oldlim <- options(
+      renv.config.dependencies.limit = maxFiles
+    )
+    defer(options(oldlim))
+  }
+
   # analyze code dependencies ourselves rather than relying on the scan during renv::snapshot, as
   # that will add renv to renv.lock as a dependency.
-  deps <- renv::dependencies(bundleDir)
+  deps <- renv::dependencies(bundleDir, root = bundleDir)
   renv::snapshot(bundleDir, packages = deps$Package, prompt = FALSE)
   defer(removeRenv(bundleDir))
 
diff --git a/tests/testthat/_snaps/bundlePackageRenv.md b/tests/testthat/_snaps/bundlePackageRenv.md
index 240a8d82..29b9b130 100644
--- a/tests/testthat/_snaps/bundlePackageRenv.md
+++ b/tests/testthat/_snaps/bundlePackageRenv.md
@@ -1,3 +1,8 @@
+# large directories are analyzed
+
+    Code
+      deps <- snapshotRenvDependencies(app_dir)
+
 # errors if library and project are inconsistent
 
     Code
diff --git a/tests/testthat/test-bundlePackageRenv.R b/tests/testthat/test-bundlePackageRenv.R
index 7e9d9d28..f2b7f642 100644
--- a/tests/testthat/test-bundlePackageRenv.R
+++ b/tests/testthat/test-bundlePackageRenv.R
@@ -56,6 +56,20 @@ test_that("works with BioC packages", {
   expect_equal(Biobase$Repository, biocRepos(".")[[1]])
 })
 
+# https://github.com/rstudio/rsconnect/issues/968
+test_that("large directories are analyzed", {
+  app_dir <- local_temp_app(list("foo.R" = "library(foreign)"))
+  data_dir <- file.path(app_dir, "data")
+  dir.create(data_dir)
+  for (each in seq_len(1001)) {
+    writeLines(character(0), file.path(data_dir, paste0(each, ".txt")))
+  }
+  expect_snapshot(
+    deps <- snapshotRenvDependencies(app_dir)
+  )
+  expect_contains(deps$Package, "foreign")
+})
+
 # parseRenvDependencies ---------------------------------------------------
 
 test_that("gets DESCRIPTION from renv & system libraries", {