diff --git a/.changeset/brave-ants-double.md b/.changeset/brave-ants-double.md
new file mode 100644
index 0000000000..bb8465eef8
--- /dev/null
+++ b/.changeset/brave-ants-double.md
@@ -0,0 +1,5 @@
+---
+"dependency-path": major
+---
+
+Add a unique prefix to any directory name inside the virtual store that has non-lowercase characters. This is important to avoid conflicts in case insensitive filesystems.
diff --git a/packages/dependency-path/src/index.ts b/packages/dependency-path/src/index.ts
index b18c1e2026..892f6604c4 100644
--- a/packages/dependency-path/src/index.ts
+++ b/packages/dependency-path/src/index.ts
@@ -132,7 +132,7 @@ export function parse (dependencyPath: string) {
 
 export function depPathToFilename (depPath: string, lockfileDir: string) {
   const filename = depPathToFilenameUnescaped(depPath, lockfileDir).replace(/\//g, '+')
-  if (filename.length > 120) {
+  if (filename.length > 120 || filename !== filename.toLowerCase() && !filename.startsWith('local+')) {
     return `${filename.substring(0, 50)}_${crypto.createHash('md5').update(filename).digest('hex')}`
   }
   return filename
diff --git a/packages/dependency-path/test/index.ts b/packages/dependency-path/test/index.ts
index 7aac57faab..d5b9e975f4 100644
--- a/packages/dependency-path/test/index.ts
+++ b/packages/dependency-path/test/index.ts
@@ -128,4 +128,5 @@ test('depPathToFilename()', () => {
   expect(filename).not.toContain(':')
 
   expect(depPathToFilename('abcd/'.repeat(200), process.cwd())).toBe('abcd+abcd+abcd+abcd+abcd+abcd+abcd+abcd+abcd+abcd+_27524303f1ddd808db67f175ff83606e')
+  expect(depPathToFilename('/JSONSteam/1.0.0', process.cwd())).toBe('JSONSteam@1.0.0_4b2567ab922fbdf01171f59fab8f6fef')
 })
diff --git a/packages/supi/test/install/misc.ts b/packages/supi/test/install/misc.ts
index cf37352675..fc911da4ec 100644
--- a/packages/supi/test/install/misc.ts
+++ b/packages/supi/test/install/misc.ts
@@ -1261,7 +1261,32 @@ test('installing dependencies with the same name in different case', async () =>
       },
       rootDir: path.resolve('project-1'),
     },
-  ], await testDefaults({ fastUnpack: false, hoistPattern: '*' }))
+  ], await testDefaults({ fastUnpack: false }))
 
   // if it did not fail, it is fine
-})
\ No newline at end of file
+})
+
+test('two dependencies have the same version and name. The only difference is the casing in the name', async () => {
+  prepareEmpty()
+
+  await mutateModules([
+    {
+      buildIndex: 0,
+      mutation: 'install',
+      manifest: {
+        dependencies: {
+          a: 'npm:JSONStream@1.0.3',
+          b: 'npm:jsonstream@1.0.3',
+        },
+      },
+      rootDir: process.cwd(),
+    },
+  ], await testDefaults({
+    fastUnpack: false,
+    registries: {
+      default: 'https://registry.npmjs.org/',
+    },
+  }))
+
+  expect((await fs.readdir(path.resolve('node_modules/.pnpm'))).length).toBe(5)
+})