diff --git a/CHANGELOG.md b/CHANGELOG.md
index c5c97512..79403fe4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -17,6 +17,7 @@
 - Fixed error message output for `minimumXcodeGenVersion`. [#967](https://github.com/yonaskolb/XcodeGen/pull/967) @joshwalker
 - Remove force-unwrapping causing crash for `LegacyTarget`s [#982](https://github.com/yonaskolb/XcodeGen/pull/982) @jcolicchio
 - Fixed a race condition in an internal JSON decoder, which would occasionally fail with an error like `Parsing project spec failed: Error Domain=Unspecified error Code=0`. [#995](https://github.com/yonaskolb/XcodeGen/pull/995) @elliottwilliams
+- Fixed issue where frameworks with `MACH_O_TYPE: staticlib` were being incorrectly embedded. [#1003](https://github.com/yonaskolb/XcodeGen/pull/1003) @mrabiciu
 
 #### Internal
 - Updated to Yams 4.0.0 [#984](https://github.com/yonaskolb/XcodeGen/pull/984) @swiftty
diff --git a/Sources/ProjectSpec/Linkage.swift b/Sources/ProjectSpec/Linkage.swift
index fec8023e..cceda53e 100644
--- a/Sources/ProjectSpec/Linkage.swift
+++ b/Sources/ProjectSpec/Linkage.swift
@@ -7,10 +7,10 @@ public enum Linkage {
     case none
 }
 
-extension PBXProductType {
+extension Target {
 
     public var defaultLinkage: Linkage {
-        switch self {
+        switch type {
         case .none,
              .appExtension,
              .application,
@@ -36,8 +36,12 @@ extension PBXProductType {
              .xpcService:
             return .none
         case .framework, .xcFramework:
-            // TODO: This should check `MACH_O_TYPE` in case this is a "Static Framework"
-            return .dynamic
+            // Check the MACH_O_TYPE for "Static Framework"
+            if settings.buildSettings.machOType == "staticlib" {
+                return .static
+            } else {
+                return .dynamic
+            }
         case .dynamicLibrary:
             return .dynamic
         case .staticLibrary, .staticFramework:
@@ -45,3 +49,10 @@ extension PBXProductType {
         }
     }
 }
+
+private extension BuildSettings {
+
+    var machOType: String? {
+        self["MACH_O_TYPE"] as? String
+    }
+}
diff --git a/Sources/ProjectSpec/XCProjExtensions.swift b/Sources/ProjectSpec/XCProjExtensions.swift
index 089bb405..c6e194c2 100644
--- a/Sources/ProjectSpec/XCProjExtensions.swift
+++ b/Sources/ProjectSpec/XCProjExtensions.swift
@@ -54,17 +54,16 @@ extension PBXProductType {
     }
 
     /// Function to determine when a dependendency should be embedded into the target
-    public func shouldEmbed(_ dependencyType: PBXProductType) -> Bool {
-        switch dependencyType {
-        case .staticLibrary, .staticFramework:
-            // Some dependendencies should not be embed, independently of the target type
+    public func shouldEmbed(_ dependencyTarget: Target) -> Bool {
+        switch dependencyTarget.defaultLinkage {
+        case .static:
+            // Static dependencies should never embed
             return false
-
-        default:
+        case .dynamic, .none:
             if isApp {
-                // If target is an app, all dependencies should be embed (except for the ones mentioned above)
+                // If target is an app, all dependencies should be embed (unless they're static)
                 return true
-            } else if isTest, [.framework, .bundle].contains(dependencyType) {
+            } else if isTest, [.framework, .bundle].contains(dependencyTarget.type) {
                 // If target is test, some dependencies should be embed (depending on their type)
                 return true
             } else {
diff --git a/Sources/XcodeGenKit/PBXProjGenerator.swift b/Sources/XcodeGenKit/PBXProjGenerator.swift
index 52060d93..5be56cce 100644
--- a/Sources/XcodeGenKit/PBXProjGenerator.swift
+++ b/Sources/XcodeGenKit/PBXProjGenerator.swift
@@ -690,7 +690,7 @@ public class PBXProjGenerator {
         }
 
         func processTargetDependency(_ dependency: Dependency, dependencyTarget: Target, embedFileReference: PBXFileElement?) {
-            let dependencyLinkage = dependencyTarget.type.defaultLinkage
+            let dependencyLinkage = dependencyTarget.defaultLinkage
             let link = dependency.link ??
                 ((dependencyLinkage == .dynamic && target.type != .staticLibrary) ||
                     (dependencyLinkage == .static && target.type.isExecutable))
@@ -707,7 +707,7 @@ public class PBXProjGenerator {
                 }
             }
 
-            let embed = dependency.embed ?? target.type.shouldEmbed(dependencyTarget.type)
+            let embed = dependency.embed ?? target.type.shouldEmbed(dependencyTarget)
             if embed {
                 let embedFile = addObject(
                     PBXBuildFile(
diff --git a/Tests/XcodeGenKitTests/ProjectGeneratorTests.swift b/Tests/XcodeGenKitTests/ProjectGeneratorTests.swift
index 81c12d34..0a189ea5 100644
--- a/Tests/XcodeGenKitTests/ProjectGeneratorTests.swift
+++ b/Tests/XcodeGenKitTests/ProjectGeneratorTests.swift
@@ -786,6 +786,102 @@ class ProjectGeneratorTests: XCTestCase {
                     try expect(copyFilesPhases.count) == expectedCopyFilesPhasesCount
                 }
             }
+            
+            $0.it("ensures static frameworks are not embedded by default") {
+                
+                let app = Target(
+                    name: "App",
+                    type: .application,
+                    platform: .iOS,
+                    dependencies: [
+                        Dependency(type: .target, reference: "DynamicFramework"),
+                        Dependency(type: .target, reference: "DynamicFrameworkNotEmbedded", embed: false),
+                        Dependency(type: .target, reference: "StaticFramework"),
+                        Dependency(type: .target, reference: "StaticFrameworkExplicitlyEmbedded", embed: true),
+                        Dependency(type: .target, reference: "StaticFramework2"),
+                        Dependency(type: .target, reference: "StaticFramework2ExplicitlyEmbedded", embed: true),
+                        Dependency(type: .target, reference: "StaticLibrary"),
+                    ]
+                )
+
+                let targets = [
+                    app,
+                    Target(
+                        name: "DynamicFramework",
+                        type: .framework,
+                        platform: .iOS
+                    ),
+                    Target(
+                        name: "DynamicFrameworkNotEmbedded",
+                        type: .framework,
+                        platform: .iOS
+                    ),
+                    Target(
+                        name: "StaticFramework",
+                        type: .framework,
+                        platform: .iOS,
+                        settings: Settings(buildSettings: ["MACH_O_TYPE": "staticlib"])
+                    ),
+                    Target(
+                        name: "StaticFrameworkExplicitlyEmbedded",
+                        type: .framework,
+                        platform: .iOS,
+                        settings: Settings(buildSettings: ["MACH_O_TYPE": "staticlib"])
+                    ),
+                    Target(
+                        name: "StaticFramework2",
+                        type: .staticFramework,
+                        platform: .iOS
+                    ),
+                    Target(
+                        name: "StaticFramework2ExplicitlyEmbedded",
+                        type: .staticFramework,
+                        platform: .iOS
+                    ),
+                    Target(
+                        name: "StaticLibrary",
+                        type: .staticLibrary,
+                        platform: .iOS
+                    ),
+                ]
+                                
+                let expectedLinkedFiles = Set([
+                    "DynamicFramework.framework",
+                    "DynamicFrameworkNotEmbedded.framework",
+                    "StaticFramework.framework",
+                    "StaticFrameworkExplicitlyEmbedded.framework",
+                    "StaticFramework2.framework",
+                    "StaticFramework2ExplicitlyEmbedded.framework",
+                    "libStaticLibrary.a",
+                ])
+                
+                let expectedEmbeddedFrameworks = Set([
+                    "DynamicFramework.framework",
+                    "StaticFrameworkExplicitlyEmbedded.framework",
+                    "StaticFramework2ExplicitlyEmbedded.framework"
+                ])
+                                
+                let project = Project(
+                    name: "test",
+                    targets: targets
+                )
+                let pbxProject = try project.generatePbxProj()
+
+                let appTarget = try unwrap(pbxProject.nativeTargets.first(where: { $0.name == app.name }))
+                let buildPhases = appTarget.buildPhases
+                let frameworkPhases = pbxProject.frameworksBuildPhases.filter { buildPhases.contains($0) }
+                let copyFilesPhases = pbxProject.copyFilesBuildPhases.filter { buildPhases.contains($0) }
+                let embedFrameworkPhase = copyFilesPhases.first { $0.dstSubfolderSpec == .frameworks }
+
+                // Ensure all targets are linked
+                let linkFrameworks = (frameworkPhases[0].files ?? []).compactMap { $0.file?.nameOrPath }
+                let linkPackages = (frameworkPhases[0].files ?? []).compactMap { $0.product?.productName }
+                try expect(Set(linkFrameworks + linkPackages)) == expectedLinkedFiles
+
+                // Ensure only dynamic frameworks are embedded (unless there's an explicit override)
+                let embeddedFrameworks = Set((embedFrameworkPhase?.files ?? []).compactMap { $0.file?.nameOrPath })
+                try expect(embeddedFrameworks) == expectedEmbeddedFrameworks
+            }
 
             $0.it("copies files only on install in the Embed Frameworks step") {
                 let app = Target(