diff --git a/CHANGELOG.md b/CHANGELOG.md
index c62677ff..b7428127 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,10 @@
 
 ## Next Version
 
+### Added
+
+- Added support for local Swift packages in Xcode 15 #1465 @kinnarr
+
 ## 2.40.1
 
 ### Fixed
diff --git a/Package.resolved b/Package.resolved
index 3ae8a3da..dada9ec1 100644
--- a/Package.resolved
+++ b/Package.resolved
@@ -86,8 +86,8 @@
       "kind" : "remoteSourceControl",
       "location" : "https://github.com/tuist/XcodeProj.git",
       "state" : {
-        "revision" : "6e60fb55271c80f83a186c9b1b4982fd991cfc0a",
-        "version" : "8.13.0"
+        "revision" : "447c159b0c5fb047a024fd8d942d4a76cf47dde0",
+        "version" : "8.16.0"
       }
     },
     {
diff --git a/Package.swift b/Package.swift
index 47483494..6f4793cc 100644
--- a/Package.swift
+++ b/Package.swift
@@ -16,7 +16,7 @@ let package = Package(
         .package(url: "https://github.com/yonaskolb/JSONUtilities.git", from: "4.2.0"),
         .package(url: "https://github.com/kylef/Spectre.git", from: "0.9.2"),
         .package(url: "https://github.com/onevcat/Rainbow.git", from: "4.0.0"),
-        .package(url: "https://github.com/tuist/XcodeProj.git", exact: "8.13.0"),
+        .package(url: "https://github.com/tuist/XcodeProj.git", exact: "8.16.0"),
         .package(url: "https://github.com/jakeheis/SwiftCLI.git", from: "6.0.3"),
         .package(url: "https://github.com/mxcl/Version", from: "2.0.0"),
         .package(url: "https://github.com/SwiftDocOrg/GraphViz.git", exact: "0.2.0"),
diff --git a/Sources/XcodeGenKit/PBXProjGenerator.swift b/Sources/XcodeGenKit/PBXProjGenerator.swift
index 82e87f2c..64d72967 100644
--- a/Sources/XcodeGenKit/PBXProjGenerator.swift
+++ b/Sources/XcodeGenKit/PBXProjGenerator.swift
@@ -22,6 +22,7 @@ public class PBXProjGenerator {
     var targetFileReferences: [String: PBXFileReference] = [:]
     var sdkFileReferences: [String: PBXFileReference] = [:]
     var packageReferences: [String: XCRemoteSwiftPackageReference] = [:]
+    var localPackageReferences: [String: XCLocalSwiftPackageReference] = [:]
 
     var carthageFrameworksByPlatform: [String: Set<PBXFileElement>] = [:]
     var frameworkFiles: [PBXFileElement] = []
@@ -30,7 +31,6 @@ public class PBXProjGenerator {
     var generated = false
 
     private var projects: [ProjectReference: PBXProj] = [:]
-    lazy private var localPackageReferences: [String] = project.packages.compactMap { $0.value.isLocal ? $0.key : nil }
 
     public init(project: Project, projectDirectory: Path? = nil) {
         self.project = project
@@ -170,6 +170,10 @@ public class PBXProjGenerator {
                 packageReferences[name] = packageReference
                 addObject(packageReference)
             case let .local(path, group):
+                let packageReference = XCLocalSwiftPackageReference(relativePath: path)
+                localPackageReferences[name] = packageReference
+                addObject(packageReference)
+                
                 try sourceGenerator.createLocalPackage(path: Path(path), group: group.map { Path($0) })
             }
         }
@@ -310,7 +314,8 @@ public class PBXProjGenerator {
         }
         pbxProject.knownRegions = knownRegions.sorted()
 
-        pbxProject.packages = packageReferences.sorted { $0.key < $1.key }.map { $1 }
+        pbxProject.remotePackages = packageReferences.sorted { $0.key < $1.key }.map { $1 }
+        pbxProject.localPackages = localPackageReferences.sorted { $0.key < $1.key }.map { $1 }
 
         let allTargets: [PBXTarget] = targetObjects.valueArray + targetAggregateObjects.valueArray
         pbxProject.targets = allTargets
@@ -945,7 +950,7 @@ public class PBXProjGenerator {
 
                 // If package's reference is none and there is no specified package in localPackages,
                 // then ignore the package specified as dependency.
-                if packageReference == nil, !localPackageReferences.contains(dependency.reference) {
+                if packageReference == nil, localPackageReferences[dependency.reference] == nil {
                     continue
                 }
 
@@ -1469,7 +1474,7 @@ public class PBXProjGenerator {
     func makePackagePluginDependency(for target: ProjectTarget) -> [PBXTargetDependency] {
         target.buildToolPlugins.compactMap { buildToolPlugin in
             let packageReference = packageReferences[buildToolPlugin.package]
-            if packageReference == nil, !localPackageReferences.contains(buildToolPlugin.package) {
+            if packageReference == nil, localPackageReferences[buildToolPlugin.package] == nil {
                 return nil
             }
 
diff --git a/Tests/Fixtures/SPM/SPM.xcodeproj/project.pbxproj b/Tests/Fixtures/SPM/SPM.xcodeproj/project.pbxproj
index 1d15e475..2e33e2c0 100644
--- a/Tests/Fixtures/SPM/SPM.xcodeproj/project.pbxproj
+++ b/Tests/Fixtures/SPM/SPM.xcodeproj/project.pbxproj
@@ -251,6 +251,8 @@
 				5BA91390AE78D2EE15C60091 /* XCRemoteSwiftPackageReference "Codability" */,
 				348C81C327DB1710B742C370 /* XCRemoteSwiftPackageReference "Prefire" */,
 				E3887F3CB2C069E70D98092F /* XCRemoteSwiftPackageReference "SwiftRoaring" */,
+				630A8CE9F2BE39704ED9D461 /* XCLocalSwiftPackageReference "FooFeature" */,
+				C6539B364583AE96C18CE377 /* XCLocalSwiftPackageReference "../../.." */,
 			);
 			projectDirPath = "";
 			projectRoot = "";
@@ -662,6 +664,17 @@
 		};
 /* End XCRemoteSwiftPackageReference section */
 
+/* Begin XCLocalSwiftPackageReference section */
+		630A8CE9F2BE39704ED9D461 /* XCLocalSwiftPackageReference "FooFeature" */ = {
+			isa = XCLocalSwiftPackageReference;
+			relativePath = FooFeature;
+		};
+		C6539B364583AE96C18CE377 /* XCLocalSwiftPackageReference "../../.." */ = {
+			isa = XCLocalSwiftPackageReference;
+			relativePath = ../../..;
+		};
+/* End XCLocalSwiftPackageReference section */
+
 /* Begin XCSwiftPackageProductDependency section */
 		15DB49096E2978F6BCA8D604 /* FooUI */ = {
 			isa = XCSwiftPackageProductDependency;