diff --git a/bin/install_uninstall.ml b/bin/install_uninstall.ml
index 2c6c7d65068..04e9bb0d3d8 100644
--- a/bin/install_uninstall.ml
+++ b/bin/install_uninstall.ml
@@ -340,7 +340,8 @@ module File_ops_real (W : sig
             | Dune_package -> process_dune_package ~get_location:conf.get_location
           in
           copy_special_file ~src ~package ~ic ~oc ~f)
-    | None -> Dune_rules.Artifact_substitution.copy_file ~conf ~src ~dst ~chmod ()
+    | None ->
+      Dune_rules.Artifact_substitution.copy_file ~conf ~executable ~src ~dst ~chmod ()
   ;;
 
   let remove_file_if_exists dst =
diff --git a/doc/changes/8361.md b/doc/changes/8361.md
new file mode 100644
index 00000000000..0e9f85ccd09
--- /dev/null
+++ b/doc/changes/8361.md
@@ -0,0 +1,2 @@
+- Stop signing source files with substitutions. Sign only binaries instead
+  (#8361, fixes #8360, @anmonteiro)
diff --git a/src/dune_rules/artifact_substitution.ml b/src/dune_rules/artifact_substitution.ml
index f18e27685ca..8bd104a53c6 100644
--- a/src/dune_rules/artifact_substitution.ml
+++ b/src/dune_rules/artifact_substitution.ml
@@ -649,7 +649,15 @@ let replace_if_different ~delete_dst_if_it_is_a_directory ~src ~dst =
   if not up_to_date then Path.rename src dst
 ;;
 
-let copy_file ~conf ?chmod ?(delete_dst_if_it_is_a_directory = false) ~src ~dst () =
+let copy_file
+  ~conf
+  ?(executable = false)
+  ?chmod
+  ?(delete_dst_if_it_is_a_directory = false)
+  ~src
+  ~dst
+  ()
+  =
   (* We create a temporary file in the same directory to ensure it's on the same
      partition as [dst] (otherwise, [Path.rename temp_file dst] won't work). The
      prefix ".#" is used because Dune ignores such files and so creating this
@@ -664,7 +672,9 @@ let copy_file ~conf ?chmod ?(delete_dst_if_it_is_a_directory = false) ~src ~dst
       let open Fiber.O in
       Path.parent dst |> Option.iter ~f:Path.mkdir_p;
       let* has_subst = copy_file_non_atomic ~conf ?chmod ~src ~dst:temp_file () in
-      let+ () = run_sign_hook conf ~has_subst temp_file in
+      let+ () =
+        if executable then run_sign_hook conf ~has_subst temp_file else Fiber.return ()
+      in
       replace_if_different ~delete_dst_if_it_is_a_directory ~src:temp_file ~dst)
     ~finally:(fun () ->
       Path.unlink_no_err temp_file;
diff --git a/src/dune_rules/artifact_substitution.mli b/src/dune_rules/artifact_substitution.mli
index c3fc8b2f4ab..364d1e0c7ea 100644
--- a/src/dune_rules/artifact_substitution.mli
+++ b/src/dune_rules/artifact_substitution.mli
@@ -57,6 +57,7 @@ val decode : string -> t option
     and then atomically renamed to [dst]. *)
 val copy_file
   :  conf:conf
+  -> ?executable:bool
   -> ?chmod:(int -> int)
   -> ?delete_dst_if_it_is_a_directory:bool
   -> src:Path.t