diff --git a/src/Uno.Sdk/targets/Uno.Common.WinAppSdk.targets b/src/Uno.Sdk/targets/Uno.Common.WinAppSdk.targets
index d22adceb6e27..7fc4a675cc11 100644
--- a/src/Uno.Sdk/targets/Uno.Common.WinAppSdk.targets
+++ b/src/Uno.Sdk/targets/Uno.Common.WinAppSdk.targets
@@ -5,7 +5,10 @@
 		<SupportedOSPlatformVersion Condition=" $(SupportedOSPlatformVersion) == '' ">$(TargetPlatformMinVersion)</SupportedOSPlatformVersion>
 		<RuntimeIdentifiers Condition=" $(RuntimeIdentifiers) == '' ">win-x86;win-x64;win-arm64</RuntimeIdentifiers>
 		<EnableCoreMrtTooling Condition=" $(EnableCoreMrtTooling) == '' AND '$(BuildingInsideVisualStudio)' != 'true' ">false</EnableCoreMrtTooling>
-		<EnableMsixTooling Condition=" $(EnableMsixTooling) == '' ">true</EnableMsixTooling>
+
+		<!-- Set EnableMsixTooling to true only for executables - setting this on class libraries prevents assets from being correctly copied to windows target -->
+		<EnableMsixTooling Condition=" $(EnableMsixTooling) == '' AND ('$(OutputType)' == 'WinExe' OR '$(OutputType)' == 'Exe') ">true</EnableMsixTooling>
+
 		<EnableWindowsTargeting Condition=" $(EnableWindowsTargeting) == '' ">true</EnableWindowsTargeting>
 	</PropertyGroup>