diff --git a/__snapshots__/python-file-with-version.js b/__snapshots__/python-file-with-version.js
index f4bb91fb9..4744614b8 100644
--- a/__snapshots__/python-file-with-version.js
+++ b/__snapshots__/python-file-with-version.js
@@ -3,6 +3,11 @@ __version__ = '0.6.0'
 
 `
 
+exports['src/project/__init__.py updateContent updates version in src/project/__init__.py 1'] = `
+__version__ = '0.6.0'
+
+`
+
 exports['version.py updateContent updates version in version.py 1'] = `
 # Copyright 2020 Google LLC
 #
diff --git a/__snapshots__/python.js b/__snapshots__/python.js
index a23ff5906..fde537330 100644
--- a/__snapshots__/python.js
+++ b/__snapshots__/python.js
@@ -168,6 +168,9 @@ version = "0.123.5"
 filename: project/__init__.py
 __version__ = '0.123.5'
 
+filename: src/project/__init__.py
+__version__ = '0.123.5'
+
 filename: src/version.py
 # Copyright 2020 Google LLC
 #
@@ -743,6 +746,9 @@ version = "0.123.5"
 filename: project/__init__.py
 __version__ = '0.123.5'
 
+filename: src/project/__init__.py
+__version__ = '0.123.5'
+
 filename: src/version.py
 # Copyright 2020 Google LLC
 #
diff --git a/src/releasers/python.ts b/src/releasers/python.ts
index a9d9660c3..dcd64ba48 100644
--- a/src/releasers/python.ts
+++ b/src/releasers/python.ts
@@ -107,6 +107,7 @@ export class Python extends ReleasePR {
           : `file ${chalk.green('pyproject.toml')} did not exist`
       );
     }
+    // TODO: figure out refactor that makes logic for updating __init__.py, version.py, __version__.py etc., configurable
     updates.push(
       new PythonFileWithVersion({
         path: this.addPath(`${projectName}/__init__.py`),
@@ -115,6 +116,14 @@ export class Python extends ReleasePR {
         packageName: packageName.name,
       })
     );
+    updates.push(
+      new PythonFileWithVersion({
+        path: this.addPath(`src/${projectName}/__init__.py`),
+        changelogEntry,
+        version: candidate.version,
+        packageName: packageName.name,
+      })
+    );
     // There should be only one version.py, but foreach in case that is incorrect
     const versionPyFilesSearch = this.gh.findFilesByFilename(
       'version.py',
diff --git a/test/fixtures/manifest/repo/python/src/foolib/__init__.py b/test/fixtures/manifest/repo/python/src/foolib/__init__.py
new file mode 100644
index 000000000..5a5df3bef
--- /dev/null
+++ b/test/fixtures/manifest/repo/python/src/foolib/__init__.py
@@ -0,0 +1 @@
+__version__ = '1.2.3'
diff --git a/test/manifest.ts b/test/manifest.ts
index 122709a26..a8b88c6cc 100644
--- a/test/manifest.ts
+++ b/test/manifest.ts
@@ -152,6 +152,7 @@ describe('Manifest', () => {
         'python/HISTORY.md',
         'package-lock.json',
         'python/foolib/__init__.py',
+        'python/src/foolib/__init__.py',
         'npm-shrinkwrap.json',
         'samples/package.json',
         'CHANGELOG.md',
diff --git a/test/releasers/python.ts b/test/releasers/python.ts
index c9f2d6ca6..417dc57f4 100644
--- a/test/releasers/python.ts
+++ b/test/releasers/python.ts
@@ -134,6 +134,12 @@ describe('Python', () => {
             version: expectedVersion,
             packageName: pkgName,
           }),
+          new PythonFileWithVersion({
+            path: `src/${pkgName}/__init__.py`,
+            changelogEntry: perUpdateChangelog,
+            version: expectedVersion,
+            packageName: pkgName,
+          }),
           new PythonFileWithVersion({
             path: 'src/version.py',
             changelogEntry: perUpdateChangelog,
@@ -195,6 +201,12 @@ describe('Python', () => {
             version: expectedVersion,
             packageName: pkgName,
           }),
+          new PythonFileWithVersion({
+            path: `src/${pkgName}/__init__.py`,
+            changelogEntry: perUpdateChangelog,
+            version: expectedVersion,
+            packageName: pkgName,
+          }),
           new PythonFileWithVersion({
             path: 'src/version.py',
             changelogEntry: perUpdateChangelog,
@@ -237,6 +249,7 @@ describe('Python', () => {
       stubFilesToUpdate(releasePR.gh, [
         'pyproject.toml',
         'project/__init__.py',
+        'src/project/__init__.py',
         'setup.py',
         'src/version.py',
         'setup.cfg',
@@ -304,6 +317,7 @@ describe('Python', () => {
       stubFilesToUpdate(releasePR.gh, [
         'pyproject.toml',
         'project/__init__.py',
+        'src/project/__init__.py',
         'setup.py',
         'src/version.py',
         'setup.cfg',
diff --git a/test/updaters/fixtures/src/project/__init__.py b/test/updaters/fixtures/src/project/__init__.py
new file mode 100644
index 000000000..b50da94dd
--- /dev/null
+++ b/test/updaters/fixtures/src/project/__init__.py
@@ -0,0 +1 @@
+__version__ = '3.2.1'
diff --git a/test/updaters/python-file-with-version.ts b/test/updaters/python-file-with-version.ts
index fd66282bb..b530a6473 100644
--- a/test/updaters/python-file-with-version.ts
+++ b/test/updaters/python-file-with-version.ts
@@ -57,3 +57,22 @@ describe('project/__init__.py', () => {
     });
   });
 });
+
+describe('src/project/__init__.py', () => {
+  describe('updateContent', () => {
+    it('updates version in src/project/__init__.py', async () => {
+      const oldContent = readFileSync(
+        resolve(fixturesPath, './src/project/__init__.py'),
+        'utf8'
+      ).replace(/\r\n/g, '\n');
+      const version = new PythonFileWithVersion({
+        path: 'src/project/__init__.py',
+        changelogEntry: '',
+        version: '0.6.0',
+        packageName: '',
+      });
+      const newContent = version.updateContent(oldContent);
+      snapshot(newContent);
+    });
+  });
+});