diff --git a/changelog/62082.fixed b/changelog/62082.fixed
new file mode 100644
index 00000000000..02e5f5ff407
--- /dev/null
+++ b/changelog/62082.fixed
@@ -0,0 +1 @@
+Ignore extend declarations in sls files that are excluded.
diff --git a/salt/state.py b/salt/state.py
index 8dddf2233cc..22f791e4d9c 100644
--- a/salt/state.py
+++ b/salt/state.py
@@ -1685,6 +1685,25 @@ class State:
                     else:
                         name = ids[0][0]
 
+                sls_excludes = []
+                # excluded sls are plain list items or dicts with an "sls" key
+                for exclude in high.get("__exclude__", []):
+                    if isinstance(exclude, str):
+                        sls_excludes.append(exclude)
+                    elif exclude.get("sls"):
+                        sls_excludes.append(exclude["sls"])
+
+                if body.get("__sls__") in sls_excludes:
+                    log.debug(
+                        "Cannot extend ID '%s' in '%s:%s' because '%s:%s' is excluded.",
+                        name,
+                        body.get("__env__", "base"),
+                        body.get("__sls__", "base"),
+                        body.get("__env__", "base"),
+                        body.get("__sls__", "base"),
+                    )
+                    continue
+
                 for state, run in body.items():
                     if state.startswith("__"):
                         continue