diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index 95fc1f4cc..cce901c59 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -2,6 +2,13 @@
 CHANGELOG
 =========
 
+Next Release (TBD)
+==================
+
+* Fix packaging multiple local directories as dependencies
+  (`#1047 <https://github.com/aws/chalice/pull/1047>`__)
+
+
 1.6.2
 =====
 
diff --git a/chalice/deploy/packager.py b/chalice/deploy/packager.py
index 9372c40df..3a94ad55e 100644
--- a/chalice/deploy/packager.py
+++ b/chalice/deploy/packager.py
@@ -743,8 +743,8 @@ def download_all_dependencies(self, requirements_filename, directory):
                 raise NoSuchPackageError(str(package_name))
             raise PackageDownloadError(error)
         stdout = out.decode()
-        match = re.search(self._LINK_IS_DIR_PATTERN, stdout)
-        if match:
+        matches = re.finditer(self._LINK_IS_DIR_PATTERN, stdout)
+        for match in matches:
             wheel_package_path = str(match.group(1))
             # Looks odd we do not check on the error status of building the
             # wheel here. We can assume this is a valid package path since
diff --git a/tests/unit/deploy/test_packager.py b/tests/unit/deploy/test_packager.py
index 2d60f1ab5..cff183731 100644
--- a/tests/unit/deploy/test_packager.py
+++ b/tests/unit/deploy/test_packager.py
@@ -208,6 +208,36 @@ def test_download_wheels_no_wheels(self, pip_factory):
         runner.download_manylinux_wheels('cp36m', [], 'directory')
         assert len(pip.calls) == 0
 
+    def test_does_find_local_directory(self, pip_factory):
+        pip, runner = pip_factory()
+        pip.add_return((0,
+                        (b"Processing ../local-dir\n"
+                         b"  Link is a directory,"
+                         b" ignoring download_dir"),
+                        b''))
+        runner.download_all_dependencies('requirements.txt', 'directory')
+        assert len(pip.calls) == 2
+        assert pip.calls[1].args == ['wheel', '--no-deps', '--wheel-dir',
+                                     'directory', '../local-dir']
+
+    def test_does_find_multiple_local_directories(self, pip_factory):
+        pip, runner = pip_factory()
+        pip.add_return((0,
+                        (b"Processing ../local-dir-1\n"
+                         b"  Link is a directory,"
+                         b" ignoring download_dir"
+                         b"\nsome pip output...\n"
+                         b"Processing ../local-dir-2\n"
+                         b"  Link is a directory,"
+                         b" ignoring download_dir"),
+                        b''))
+        runner.download_all_dependencies('requirements.txt', 'directory')
+        assert len(pip.calls) == 3
+        assert pip.calls[1].args == ['wheel', '--no-deps', '--wheel-dir',
+                                     'directory', '../local-dir-1']
+        assert pip.calls[2].args == ['wheel', '--no-deps', '--wheel-dir',
+                                     'directory', '../local-dir-2']
+
     def test_raise_no_such_package_error(self, pip_factory):
         pip, runner = pip_factory()
         pip.add_return((1, b'',