diff --git a/markdown_include/include.py b/markdown_include/include.py
index 00f2131..f3b8a1c 100644
--- a/markdown_include/include.py
+++ b/markdown_include/include.py
@@ -148,7 +148,7 @@ def run(self, lines):
                                     )
 
                                 wanted_lines.extend(
-                                    original_text[current_start - 1 : current_end]
+                                    original_text[current_start - 1: current_end]
                                 )
                             else:
                                 wanted_line = int(block.strip())
@@ -174,19 +174,18 @@ def run(self, lines):
                         link = LINK_SYNTAX.search(text[i])
                         if link:
                             raw_path = link.group(2)
-                            if not raw_path.startswith(
-                                "http"
-                            ) and not raw_path.startswith("/"):
+                            if not raw_path.startswith("http") and not raw_path.startswith(
+                                    "/") and not raw_path.startswith("#"):
                                 path_ = f"{os.path.dirname(relative_filename)}{os.path.sep}{raw_path}"
                                 text[i] = (
-                                    text[i][: link.start(2)]
-                                    + path_
-                                    + text[i][link.end(2) :]
+                                        text[i][: link.start(2)]
+                                        + path_
+                                        + text[i][link.end(2):]
                                 )
 
                         text[i] = text[i].rstrip("\r\n")
                     text_to_insert = "\r\n".join(text)
-                    line = line[: m.start()] + text_to_insert.strip() + line[m.end() :]
+                    line = line[: m.start()] + text_to_insert.strip() + line[m.end():]
                     del lines[loc]
                     lines[loc:loc] = line.splitlines()
                     m = INC_SYNTAX.search(line)
diff --git a/tests/resources/docs/template/template_frag_link.md b/tests/resources/docs/template/template_frag_link.md
new file mode 100644
index 0000000..fba0929
--- /dev/null
+++ b/tests/resources/docs/template/template_frag_link.md
@@ -0,0 +1 @@
+[some link](#template)
\ No newline at end of file
diff --git a/tests/test_include.py b/tests/test_include.py
index 0f740f3..a628b7e 100644
--- a/tests/test_include.py
+++ b/tests/test_include.py
@@ -48,6 +48,14 @@ def test_abs_url_link(markdown_include):
 
     assert html == "<p><a href=\"/template\">some link</a></p>"
 
+
+def test_frag_url_link(markdown_include):
+    source = "{!docs/template/template_frag_link.md!}"
+    html = markdown.markdown(source, extensions=[markdown_include])
+
+    assert html == "<p><a href=\"#template\">some link</a></p>"
+
+
 def test_relative_path_img_url_link(markdown_include):
     source = "{!with_img_link.md!}"
     html = markdown.markdown(source, extensions=[markdown_include])