diff --git a/.changeset/hungry-mirrors-thank.md b/.changeset/hungry-mirrors-thank.md
new file mode 100644
index 0000000000..110dc6ffcc
--- /dev/null
+++ b/.changeset/hungry-mirrors-thank.md
@@ -0,0 +1,6 @@
+---
+"@pnpm/hooks.read-package-hook": patch
+"pnpm": patch
+---
+
+Link overrides should be able to use absolute path [#7749](https://github.com/pnpm/pnpm/pull/7749).
diff --git a/hooks/read-package-hook/src/createVersionsOverrider.ts b/hooks/read-package-hook/src/createVersionsOverrider.ts
index 6e0930ca70..fe9c8f6f6e 100644
--- a/hooks/read-package-hook/src/createVersionsOverrider.ts
+++ b/hooks/read-package-hook/src/createVersionsOverrider.ts
@@ -17,7 +17,8 @@ export function createVersionsOverrider (
       .map((override) => {
         let linkTarget: string | undefined
         if (override.newPref.startsWith('link:')) {
-          linkTarget = path.join(rootDir, override.newPref.substring(5))
+          const pkgPath = override.newPref.substring(5)
+          linkTarget = path.isAbsolute(pkgPath) ? pkgPath : path.join(rootDir, pkgPath)
         }
         let linkFileTarget: string | undefined
         if (override.newPref.startsWith('file:')) {
diff --git a/hooks/read-package-hook/test/createVersionOverrider.test.ts b/hooks/read-package-hook/test/createVersionOverrider.test.ts
index e5825a4510..e391b16679 100644
--- a/hooks/read-package-hook/test/createVersionOverrider.test.ts
+++ b/hooks/read-package-hook/test/createVersionOverrider.test.ts
@@ -1,5 +1,6 @@
 import path from 'path'
 import { createVersionsOverrider } from '../lib/createVersionsOverrider'
+import normalizePath from 'normalize-path'
 
 test('createVersionsOverrider() matches sub-ranges', () => {
   const overrider = createVersionsOverrider({
@@ -148,6 +149,27 @@ test('createVersionsOverrider() overrides dependencies with links', () => {
   })
 })
 
+test('createVersionsOverrider() overrides dependencies with absolute links', () => {
+  const qarAbsolutePath = path.resolve(process.cwd(), './qar')
+  const overrider = createVersionsOverrider({
+    qar: `link:${qarAbsolutePath}`,
+  }, process.cwd())
+
+  expect(overrider({
+    name: 'foo',
+    version: '1.2.0',
+    dependencies: {
+      qar: '3.0.0',
+    },
+  }, path.resolve('pkg'))).toStrictEqual({
+    name: 'foo',
+    version: '1.2.0',
+    dependencies: {
+      qar: `link:${normalizePath(path.relative(path.resolve('pkg'), qarAbsolutePath))}`,
+    },
+  })
+})
+
 test('createVersionsOverrider() overrides dependency of pkg matched by name and version', () => {
   const overrider = createVersionsOverrider({
     'yargs@^7.1.0>yargs-parser': '^20.0.0',