diff --git a/docs/changes/README.md b/docs/changes/README.md
index 7fa1d570e..0845b35c9 100644
--- a/docs/changes/README.md
+++ b/docs/changes/README.md
@@ -13,6 +13,7 @@
 - Remove runtime dependencies on Commons Codec and Commons IO by using JDK APIs. ([#2136](https://github.com/GradleUp/shadow/pull/2136))
 - **POTENTIALLY BREAKING:** Remove `Serializable` from `DependencyFilter`. ([#2144](https://github.com/GradleUp/shadow/pull/2144))
 - Bump default R8 from `9.1.31` to `9.2.23`. ([#2157](https://github.com/GradleUp/shadow/pull/2157))
+- Allow repackaging Service file classes with R8. ([#2174](https://github.com/GradleUp/shadow/pull/2174))
 
 ### Deprecated
 
diff --git a/src/functionalTest/kotlin/com/github/jengelman/gradle/plugins/shadow/transformers/ServiceFileTransformerTest.kt b/src/functionalTest/kotlin/com/github/jengelman/gradle/plugins/shadow/transformers/ServiceFileTransformerTest.kt
index 4874bd783..5dba0720a 100644
--- a/src/functionalTest/kotlin/com/github/jengelman/gradle/plugins/shadow/transformers/ServiceFileTransformerTest.kt
+++ b/src/functionalTest/kotlin/com/github/jengelman/gradle/plugins/shadow/transformers/ServiceFileTransformerTest.kt
@@ -45,37 +45,19 @@ class ServiceFileTransformerTest : BaseTransformerTest() {
   @Test
   fun serviceResourceTransformerWithRelocation() {
     val one = buildJarOne {
+      insert("com/example/Driver.class", createEmptyClassBytes("com/example/Driver"))
+      insert("foo/FooDriver.class", createEmptyClassBytes("foo/FooDriver"))
       insert(
-        "META-INF/services/java.sql.Driver",
-        """
-        |oracle.jdbc.OracleDriver
-        |org.apache.hive.jdbc.HiveDriver
-        """
-          .trimMargin(),
-      )
-      insert(
-        "META-INF/services/org.apache.axis.components.compiler.Compiler",
-        "org.apache.axis.components.compiler.Javac",
-      )
-      insert(
-        "META-INF/services/org.apache.commons.logging.LogFactory",
-        "org.apache.commons.logging.impl.LogFactoryImpl",
+        "META-INF/services/com.example.Driver",
+        "foo.FooDriver",
       )
     }
     val two = buildJarTwo {
+      insert("bar/BarDriver.class", createEmptyClassBytes("bar/BarDriver"))
       insert(
-        "META-INF/services/java.sql.Driver",
-        """
-        |org.apache.derby.jdbc.AutoloadedDriver
-        |com.mysql.jdbc.Driver
-        """
-          .trimMargin(),
-      )
-      insert(
-        "META-INF/services/org.apache.axis.components.compiler.Compiler",
-        "org.apache.axis.components.compiler.Jikes",
+        "META-INF/services/com.example.Driver",
+        "bar.BarDriver",
       )
-      insert("META-INF/services/org.apache.commons.logging.LogFactory", "org.mortbay.log.Factory")
     }
 
     projectScript.appendText(
@@ -85,10 +67,9 @@ class ServiceFileTransformerTest : BaseTransformerTest() {
       |}
       |$shadowJarTask {
       |  mergeServiceFiles()
-      |  relocate("org.apache", "myapache") {
-      |    exclude 'org.apache.axis.components.compiler.Jikes'
-      |    exclude 'org.apache.commons.logging.LogFactory'
-      |  }
+      |  relocate("com.example", "relocated.com.example")
+      |  relocate("foo", "relocated.foo")
+      |  relocate("bar", "relocated.bar")
       |}
       """
         .trimMargin()
@@ -97,29 +78,24 @@ class ServiceFileTransformerTest : BaseTransformerTest() {
     runWithSuccess(shadowJarPath)
 
     assertThat(outputShadowedJar).useAll {
-      getContent("META-INF/services/java.sql.Driver")
-        .isEqualTo(
-          """
-          |oracle.jdbc.OracleDriver
-          |myapache.hive.jdbc.HiveDriver
-          |myapache.derby.jdbc.AutoloadedDriver
-          |com.mysql.jdbc.Driver
-          """
-            .trimMargin()
-        )
-      getContent("META-INF/services/myapache.axis.components.compiler.Compiler")
-        .isEqualTo(
-          """
-          |myapache.axis.components.compiler.Javac
-          |org.apache.axis.components.compiler.Jikes
-          """
-            .trimMargin()
-        )
-      getContent("META-INF/services/org.apache.commons.logging.LogFactory")
+      containsOnly(
+        "relocated/",
+        "relocated/bar/",
+        "relocated/bar/BarDriver.class",
+        "relocated/com/",
+        "relocated/com/example/",
+        "relocated/com/example/Driver.class",
+        "relocated/foo/",
+        "relocated/foo/FooDriver.class",
+        "META-INF/services/",
+        "META-INF/services/relocated.com.example.Driver",
+        *manifestEntries,
+      )
+      getContent("META-INF/services/relocated.com.example.Driver")
         .isEqualTo(
           """
-          |myapache.commons.logging.impl.LogFactoryImpl
-          |org.mortbay.log.Factory
+          |relocated.foo.FooDriver
+          |relocated.bar.BarDriver
           """
             .trimMargin()
         )
@@ -168,22 +144,23 @@ class ServiceFileTransformerTest : BaseTransformerTest() {
 
     assertThat(outputShadowedJar).useAll {
       containsOnly(
-        "bar/",
-        "bar/BarDriver.class",
-        "com/",
-        "com/example/",
-        "com/example/Driver.class",
-        "foo/",
-        "foo/FooDriver.class",
+        "relocated/",
+        "relocated/bar/",
+        "relocated/bar/BarDriver.class",
+        "relocated/com/",
+        "relocated/com/example/",
+        "relocated/com/example/Driver.class",
+        "relocated/foo/",
+        "relocated/foo/FooDriver.class",
         "META-INF/services/",
-        "META-INF/services/com.example.Driver",
+        "META-INF/services/relocated.com.example.Driver",
         *manifestEntries,
       )
-      getContent("META-INF/services/com.example.Driver")
+      getContent("META-INF/services/relocated.com.example.Driver")
         .isEqualTo(
           """
-          |foo.FooDriver
-          |bar.BarDriver
+          |relocated.foo.FooDriver
+          |relocated.bar.BarDriver
           |"""
             .trimMargin()
         )
diff --git a/src/main/kotlin/com/github/jengelman/gradle/plugins/shadow/internal/R8Minimizer.kt b/src/main/kotlin/com/github/jengelman/gradle/plugins/shadow/internal/R8Minimizer.kt
index 36cbe19bf..2e0b515d3 100644
--- a/src/main/kotlin/com/github/jengelman/gradle/plugins/shadow/internal/R8Minimizer.kt
+++ b/src/main/kotlin/com/github/jengelman/gradle/plugins/shadow/internal/R8Minimizer.kt
@@ -208,13 +208,13 @@ private fun serviceProguardRules(inputJar: File): List<String> {
       .forEach { entry ->
         val serviceClass = entry.name.removePrefix(SERVICES_PATH).replace('/', '.')
         if (serviceClass.isJavaTypeName()) {
-          rules += "-keep class $serviceClass { *; }"
+          rules += "-keep,allowrepackage class $serviceClass { *; }"
         }
         jarFile.getInputStream(entry).bufferedReader().useLines { lines ->
           lines
             .map { it.substringBefore('#').trim() }
             .filter { it.isNotEmpty() && it.isJavaTypeName() }
-            .forEach { provider -> rules += "-keep class $provider { *; }" }
+            .forEach { provider -> rules += "-keep,allowrepackage class $provider { *; }" }
         }
       }
   }