diff --git a/cli/args/mod.rs b/cli/args/mod.rs
index a7e75745a9..be8eccd6c3 100644
--- a/cli/args/mod.rs
+++ b/cli/args/mod.rs
@@ -1740,7 +1740,7 @@ fn resolve_node_modules_folder(
     return Ok(None);
   } else if let Some(state) = &*NPM_PROCESS_STATE {
     return Ok(state.local_node_modules_path.as_ref().map(PathBuf::from));
-  } else if workspace.package_jsons().next().is_some() {
+  } else if root_folder.pkg_json.is_some() {
     let node_modules_dir = resolve_from_root(root_folder, cwd);
     if let Ok(deno_dir) = deno_dir_provider.get_or_create() {
       // `deno_dir.root` can be symlink in macOS
diff --git a/cli/lsp/config.rs b/cli/lsp/config.rs
index 854e552503..d204dce646 100644
--- a/cli/lsp/config.rs
+++ b/cli/lsp/config.rs
@@ -1393,7 +1393,7 @@ impl ConfigData {
       .unwrap_or_default();
     let byonm = match node_modules_dir {
       Some(mode) => mode == NodeModulesDirMode::Manual,
-      None => member_dir.workspace.package_jsons().next().is_some(),
+      None => member_dir.workspace.root_pkg_json().is_some(),
     };
     if byonm {
       lsp_log!("  Enabled 'bring your own node_modules'.");
diff --git a/tests/specs/workspaces/auto_install_pkg_json_member_only/__test__.jsonc b/tests/specs/workspaces/auto_install_pkg_json_member_only/__test__.jsonc
new file mode 100644
index 0000000000..15c10d573f
--- /dev/null
+++ b/tests/specs/workspaces/auto_install_pkg_json_member_only/__test__.jsonc
@@ -0,0 +1,4 @@
+{
+  "args": "run -A pkg_json/main.ts",
+  "output": "pkg_json/main.out"
+}
diff --git a/tests/specs/workspaces/auto_install_pkg_json_member_only/deno.json b/tests/specs/workspaces/auto_install_pkg_json_member_only/deno.json
new file mode 100644
index 0000000000..0c1e5e08e1
--- /dev/null
+++ b/tests/specs/workspaces/auto_install_pkg_json_member_only/deno.json
@@ -0,0 +1,4 @@
+{
+  "lock": false,
+  "workspace": ["pkg_json"]
+}
diff --git a/tests/specs/workspaces/auto_install_pkg_json_member_only/pkg_json/main.out b/tests/specs/workspaces/auto_install_pkg_json_member_only/pkg_json/main.out
new file mode 100644
index 0000000000..392591008d
--- /dev/null
+++ b/tests/specs/workspaces/auto_install_pkg_json_member_only/pkg_json/main.out
@@ -0,0 +1,3 @@
+Download http://localhost:4260/chalk
+Download http://localhost:4260/chalk/chalk-5.0.1.tgz
+Hi
diff --git a/tests/specs/workspaces/auto_install_pkg_json_member_only/pkg_json/main.ts b/tests/specs/workspaces/auto_install_pkg_json_member_only/pkg_json/main.ts
new file mode 100644
index 0000000000..009e10e7ea
--- /dev/null
+++ b/tests/specs/workspaces/auto_install_pkg_json_member_only/pkg_json/main.ts
@@ -0,0 +1,3 @@
+import chalk from "chalk";
+
+console.log(chalk.green("Hi"));
diff --git a/tests/specs/workspaces/auto_install_pkg_json_member_only/pkg_json/package.json b/tests/specs/workspaces/auto_install_pkg_json_member_only/pkg_json/package.json
new file mode 100644
index 0000000000..c58c3ac3c8
--- /dev/null
+++ b/tests/specs/workspaces/auto_install_pkg_json_member_only/pkg_json/package.json
@@ -0,0 +1,5 @@
+{
+  "dependencies": {
+    "chalk": "*"
+  }
+}