diff --git a/.changeset/fine-waves-stay.md b/.changeset/fine-waves-stay.md
new file mode 100644
index 0000000000..64d35f1078
--- /dev/null
+++ b/.changeset/fine-waves-stay.md
@@ -0,0 +1,5 @@
+---
+"@pnpm/local-resolver": minor
+---
+
+Added `preserveAbsolutePaths` option to `resolveFromLocal`. When using `file:/path/to/package`, the absolute path will be preserved instead of being turned into a relative path.
diff --git a/config/config/src/Config.ts b/config/config/src/Config.ts
index 6642c6ab68..f9c2dd6207 100644
--- a/config/config/src/Config.ts
+++ b/config/config/src/Config.ts
@@ -225,6 +225,7 @@ export interface Config extends OptionsFromRootManifest {
   initType: 'commonjs' | 'module'
   dangerouslyAllowAllBuilds: boolean
   ci: boolean
+  preserveAbsolutePaths?: boolean
 }
 
 export interface ConfigWithDeprecatedSettings extends Config {
diff --git a/config/config/src/types.ts b/config/config/src/types.ts
index 5369faabe6..6c90dd73cc 100644
--- a/config/config/src/types.ts
+++ b/config/config/src/types.ts
@@ -81,6 +81,7 @@ export const types = Object.assign({
   'prefer-offline': Boolean,
   'prefer-symlinked-executables': Boolean,
   'prefer-workspace-packages': Boolean,
+  'preserve-absolute-paths': Boolean,
   production: [null, true],
   'public-hoist-pattern': Array,
   'publish-branch': String,
diff --git a/pkg-manager/client/src/index.ts b/pkg-manager/client/src/index.ts
index 875f75b453..76afa56d8f 100644
--- a/pkg-manager/client/src/index.ts
+++ b/pkg-manager/client/src/index.ts
@@ -30,6 +30,7 @@ export type ClientOptions = {
   gitShallowHosts?: string[]
   resolveSymlinksInInjectedDirs?: boolean
   includeOnlyPackageFiles?: boolean
+  preserveAbsolutePaths?: boolean
 } & ResolverFactoryOptions & AgentOptions
 
 export interface Client {
diff --git a/resolving/default-resolver/src/index.ts b/resolving/default-resolver/src/index.ts
index f92de230b1..2f16ba82db 100644
--- a/resolving/default-resolver/src/index.ts
+++ b/resolving/default-resolver/src/index.ts
@@ -47,6 +47,9 @@ export function createResolver (
 ): { resolve: DefaultResolver, clearCache: () => void } {
   const { resolveFromNpm, resolveFromJsr, clearCache } = createNpmResolver(fetchFromRegistry, getAuthHeader, pnpmOpts)
   const resolveFromGit = createGitResolver(pnpmOpts)
+  const _resolveFromLocal = resolveFromLocal.bind(null, {
+    preserveAbsolutePaths: pnpmOpts.preserveAbsolutePaths,
+  })
   const _resolveNodeRuntime = resolveNodeRuntime.bind(null, { fetchFromRegistry, offline: pnpmOpts.offline, rawConfig: pnpmOpts.rawConfig })
   return {
     resolve: async (wantedDependency, opts) => {
@@ -55,7 +58,7 @@ export function createResolver (
         (wantedDependency.bareSpecifier && (
           await resolveFromTarball(fetchFromRegistry, wantedDependency as { bareSpecifier: string }) ??
           await resolveFromGit(wantedDependency as { bareSpecifier: string }) ??
-          await resolveFromLocal(wantedDependency as { bareSpecifier: string }, opts)
+          await _resolveFromLocal(wantedDependency as { bareSpecifier: string }, opts)
         )) ??
         await _resolveNodeRuntime(wantedDependency)
       if (!resolution) {
diff --git a/resolving/local-resolver/src/index.ts b/resolving/local-resolver/src/index.ts
index 952b5c8a1c..036dc17bf9 100644
--- a/resolving/local-resolver/src/index.ts
+++ b/resolving/local-resolver/src/index.ts
@@ -21,13 +21,17 @@ export interface LocalResolveResult extends ResolveResult {
  * Resolves a package hosted on the local filesystem
  */
 export async function resolveFromLocal (
+  ctx: {
+    preserveAbsolutePaths?: boolean
+  },
   wantedDependency: WantedLocalDependency,
   opts: {
     lockfileDir?: string
     projectDir: string
   }
 ): Promise<LocalResolveResult | null> {
-  const spec = parseBareSpecifier(wantedDependency, opts.projectDir, opts.lockfileDir ?? opts.projectDir)
+  const preserveAbsolutePaths = ctx.preserveAbsolutePaths ?? false
+  const spec = parseBareSpecifier(wantedDependency, opts.projectDir, opts.lockfileDir ?? opts.projectDir, { preserveAbsolutePaths })
   if (spec == null) return null
   if (spec.type === 'file') {
     return {
diff --git a/resolving/local-resolver/src/parseBareSpecifier.ts b/resolving/local-resolver/src/parseBareSpecifier.ts
index ee92e5d067..148965debc 100644
--- a/resolving/local-resolver/src/parseBareSpecifier.ts
+++ b/resolving/local-resolver/src/parseBareSpecifier.ts
@@ -37,10 +37,11 @@ class PathIsUnsupportedProtocolError extends PnpmError {
 export function parseBareSpecifier (
   wd: WantedLocalDependency,
   projectDir: string,
-  lockfileDir: string
+  lockfileDir: string,
+  opts: { preserveAbsolutePaths: boolean }
 ): LocalPackageSpec | null {
   if (wd.bareSpecifier.startsWith('link:') || wd.bareSpecifier.startsWith('workspace:')) {
-    return fromLocal(wd, projectDir, lockfileDir, 'directory')
+    return fromLocal(wd, projectDir, lockfileDir, 'directory', opts)
   }
   if (wd.bareSpecifier.endsWith('.tgz') ||
     wd.bareSpecifier.endsWith('.tar.gz') ||
@@ -50,7 +51,7 @@ export function parseBareSpecifier (
     isFilespec.test(wd.bareSpecifier)
   ) {
     const type = isFilename.test(wd.bareSpecifier) ? 'file' : 'directory'
-    return fromLocal(wd, projectDir, lockfileDir, type)
+    return fromLocal(wd, projectDir, lockfileDir, type, opts)
   }
   if (wd.bareSpecifier.startsWith('path:')) {
     throw new PathIsUnsupportedProtocolError(wd.bareSpecifier, 'path:')
@@ -62,7 +63,8 @@ function fromLocal (
   { bareSpecifier, injected }: WantedLocalDependency,
   projectDir: string,
   lockfileDir: string,
-  type: 'file' | 'directory'
+  type: 'file' | 'directory',
+  opts: { preserveAbsolutePaths: boolean }
 ): LocalPackageSpec {
   const spec = bareSpecifier.replace(/\\/g, '/')
     .replace(/^(?:file|link|workspace):\/*([A-Z]:)/i, '$1') // drive name paths on windows
@@ -91,14 +93,24 @@ function fromLocal (
     }
   }
 
+  function normalizeRelativeOrAbsolute (relativeTo: string, fromPath: string) {
+    let specPath
+    if (opts.preserveAbsolutePaths && isAbsolute(spec)) {
+      specPath = path.resolve(fromPath)
+    } else {
+      specPath = path.relative(relativeTo, fromPath)
+    }
+    return normalize(specPath)
+  }
+
   injected = protocol === 'file:'
   const dependencyPath = injected
-    ? normalize(path.relative(lockfileDir, fetchSpec))
+    ? normalizeRelativeOrAbsolute(lockfileDir, fetchSpec)
     : normalize(path.resolve(fetchSpec))
   const id = (
     !injected && (type === 'directory' || projectDir === lockfileDir)
-      ? `${protocol}${normalize(path.relative(projectDir, fetchSpec))}`
-      : `${protocol}${normalize(path.relative(lockfileDir, fetchSpec))}`
+      ? `${protocol}${normalizeRelativeOrAbsolute(projectDir, fetchSpec)}`
+      : `${protocol}${normalizeRelativeOrAbsolute(lockfileDir, fetchSpec)}`
   ) as PkgResolutionId
 
   return {
diff --git a/resolving/local-resolver/test/index.ts b/resolving/local-resolver/test/index.ts
index 115cf7c654..84b4151350 100644
--- a/resolving/local-resolver/test/index.ts
+++ b/resolving/local-resolver/test/index.ts
@@ -8,7 +8,7 @@ import { logger } from '@pnpm/logger'
 const TEST_DIR = path.dirname(require.resolve('@pnpm/tgz-fixtures/tgz/pnpm-local-resolver-0.1.1.tgz'))
 
 test('resolve directory', async () => {
-  const resolveResult = await resolveFromLocal({ bareSpecifier: '..' }, { projectDir: __dirname })
+  const resolveResult = await resolveFromLocal({}, { bareSpecifier: '..' }, { projectDir: __dirname })
   expect(resolveResult!.id).toEqual('link:..')
   expect(resolveResult!.normalizedBareSpecifier).toEqual('link:..')
   expect(resolveResult!['manifest']!.name).toEqual('@pnpm/local-resolver')
@@ -19,7 +19,7 @@ test('resolve directory', async () => {
 test('resolve directory specified using absolute path', async () => {
   const linkedDir = path.join(__dirname, '..')
   const normalizedLinkedDir = normalize(linkedDir)
-  const resolveResult = await resolveFromLocal({ bareSpecifier: `link:${linkedDir}` }, { projectDir: __dirname })
+  const resolveResult = await resolveFromLocal({}, { bareSpecifier: `link:${linkedDir}` }, { projectDir: __dirname })
   expect(resolveResult!.id).toEqual('link:..')
   expect(resolveResult!.normalizedBareSpecifier).toEqual(`link:${normalizedLinkedDir}`)
   expect(resolveResult!['manifest']!.name).toEqual('@pnpm/local-resolver')
@@ -27,8 +27,34 @@ test('resolve directory specified using absolute path', async () => {
   expect((resolveResult!.resolution as DirectoryResolution).type).toEqual('directory')
 })
 
+test('resolve directory specified using absolute path with preserveAbsolutePaths', async () => {
+  const linkedDir = path.join(__dirname, '..')
+  const normalizedLinkedDir = normalize(linkedDir)
+  const resolveResult = await resolveFromLocal({ preserveAbsolutePaths: true }, { bareSpecifier: `link:${linkedDir}` }, { projectDir: __dirname })
+  expect(resolveResult!.id).toEqual(`link:${normalizedLinkedDir}`)
+  expect(resolveResult!.normalizedBareSpecifier).toEqual(`link:${normalizedLinkedDir}`)
+  expect(resolveResult!['manifest']!.name).toEqual('@pnpm/local-resolver')
+  expect((resolveResult!.resolution as DirectoryResolution).directory).toEqual(normalizedLinkedDir)
+  expect((resolveResult!.resolution as DirectoryResolution).type).toEqual('directory')
+})
+
+test('resolve directory specified using absolute path with preserveAbsolutePaths and file: scheme', async () => {
+  const linkedDir = path.join(__dirname, '..')
+  const normalizedLinkedDir = normalize(linkedDir)
+  const resolveResult = await resolveFromLocal(
+    { preserveAbsolutePaths: true },
+    { bareSpecifier: `file:${linkedDir}` },
+    { projectDir: __dirname }
+  )
+  expect(resolveResult!.id).toEqual(`file:${normalizedLinkedDir}`)
+  expect(resolveResult!.normalizedBareSpecifier).toEqual(`file:${normalizedLinkedDir}`)
+  expect(resolveResult!['manifest']!.name).toEqual('@pnpm/local-resolver')
+  expect((resolveResult!.resolution as DirectoryResolution).directory).toEqual(normalizedLinkedDir)
+  expect((resolveResult!.resolution as DirectoryResolution).type).toEqual('directory')
+})
+
 test('resolve injected directory', async () => {
-  const resolveResult = await resolveFromLocal({ injected: true, bareSpecifier: '..' }, { projectDir: __dirname })
+  const resolveResult = await resolveFromLocal({}, { injected: true, bareSpecifier: '..' }, { projectDir: __dirname })
   expect(resolveResult!.id).toEqual('file:..')
   expect(resolveResult!.normalizedBareSpecifier).toEqual('file:..')
   expect(resolveResult!['manifest']!.name).toEqual('@pnpm/local-resolver')
@@ -37,7 +63,7 @@ test('resolve injected directory', async () => {
 })
 
 test('resolve workspace directory', async () => {
-  const resolveResult = await resolveFromLocal({ bareSpecifier: 'workspace:..' }, { projectDir: __dirname })
+  const resolveResult = await resolveFromLocal({}, { bareSpecifier: 'workspace:..' }, { projectDir: __dirname })
   expect(resolveResult!.id).toEqual('link:..')
   expect(resolveResult!.normalizedBareSpecifier).toEqual('link:..')
   expect(resolveResult!['manifest']!.name).toEqual('@pnpm/local-resolver')
@@ -46,7 +72,7 @@ test('resolve workspace directory', async () => {
 })
 
 test('resolve directory specified using the file: protocol', async () => {
-  const resolveResult = await resolveFromLocal({ bareSpecifier: 'file:..' }, { projectDir: __dirname })
+  const resolveResult = await resolveFromLocal({}, { bareSpecifier: 'file:..' }, { projectDir: __dirname })
   expect(resolveResult!.id).toEqual('file:..')
   expect(resolveResult!.normalizedBareSpecifier).toEqual('file:..')
   expect(resolveResult!['manifest']!.name).toEqual('@pnpm/local-resolver')
@@ -55,7 +81,7 @@ test('resolve directory specified using the file: protocol', async () => {
 })
 
 test('resolve directory specified using the link: protocol', async () => {
-  const resolveResult = await resolveFromLocal({ bareSpecifier: 'link:..' }, { projectDir: __dirname })
+  const resolveResult = await resolveFromLocal({}, { bareSpecifier: 'link:..' }, { projectDir: __dirname })
   expect(resolveResult!.id).toEqual('link:..')
   expect(resolveResult!.normalizedBareSpecifier).toEqual('link:..')
   expect(resolveResult!['manifest']!.name).toEqual('@pnpm/local-resolver')
@@ -65,7 +91,7 @@ test('resolve directory specified using the link: protocol', async () => {
 
 test('resolve file', async () => {
   const wantedDependency = { bareSpecifier: './pnpm-local-resolver-0.1.1.tgz' }
-  const resolveResult = await resolveFromLocal(wantedDependency, { projectDir: TEST_DIR })
+  const resolveResult = await resolveFromLocal({}, wantedDependency, { projectDir: TEST_DIR })
 
   expect(resolveResult).toEqual({
     id: 'file:pnpm-local-resolver-0.1.1.tgz',
@@ -80,7 +106,7 @@ test('resolve file', async () => {
 
 test("resolve file when lockfile directory differs from the package's dir", async () => {
   const wantedDependency = { bareSpecifier: './pnpm-local-resolver-0.1.1.tgz' }
-  const resolveResult = await resolveFromLocal(wantedDependency, {
+  const resolveResult = await resolveFromLocal({}, wantedDependency, {
     lockfileDir: path.join(TEST_DIR, '..'),
     projectDir: TEST_DIR,
   })
@@ -98,7 +124,7 @@ test("resolve file when lockfile directory differs from the package's dir", asyn
 
 test('resolve tarball specified with file: protocol', async () => {
   const wantedDependency = { bareSpecifier: 'file:./pnpm-local-resolver-0.1.1.tgz' }
-  const resolveResult = await resolveFromLocal(wantedDependency, { projectDir: TEST_DIR })
+  const resolveResult = await resolveFromLocal({}, wantedDependency, { projectDir: TEST_DIR })
 
   expect(resolveResult).toEqual({
     id: 'file:pnpm-local-resolver-0.1.1.tgz',
@@ -114,7 +140,7 @@ test('resolve tarball specified with file: protocol', async () => {
 test('fail when resolving tarball specified with the link: protocol', async () => {
   try {
     const wantedDependency = { bareSpecifier: 'link:./pnpm-local-resolver-0.1.1.tgz' }
-    await resolveFromLocal(wantedDependency, { projectDir: TEST_DIR })
+    await resolveFromLocal({}, wantedDependency, { projectDir: TEST_DIR })
     fail()
   } catch (err: any) { // eslint-disable-line
     expect(err).toBeDefined()
@@ -126,14 +152,14 @@ test('fail when resolving from not existing directory an injected dependency', a
   const wantedDependency = { bareSpecifier: 'file:./dir-does-not-exist' }
   const projectDir = __dirname
   await expect(
-    resolveFromLocal(wantedDependency, { projectDir })
+    resolveFromLocal({}, wantedDependency, { projectDir })
   ).rejects.toThrow(`Could not install from "${path.join(projectDir, 'dir-does-not-exist')}" as it does not exist.`)
 })
 
 test('do not fail when resolving from not existing directory', async () => {
   jest.spyOn(logger, 'warn')
   const wantedDependency = { bareSpecifier: 'link:./dir-does-not-exist' }
-  const resolveResult = await resolveFromLocal(wantedDependency, { projectDir: __dirname })
+  const resolveResult = await resolveFromLocal({}, wantedDependency, { projectDir: __dirname })
   expect(resolveResult?.manifest).toStrictEqual({
     name: 'dir-does-not-exist',
     version: '0.0.0',
@@ -147,7 +173,7 @@ test('do not fail when resolving from not existing directory', async () => {
 
 test('throw error when the path: protocol is used', async () => {
   try {
-    await resolveFromLocal({ bareSpecifier: 'path:..' }, { projectDir: __dirname })
+    await resolveFromLocal({}, { bareSpecifier: 'path:..' }, { projectDir: __dirname })
     fail()
   } catch (err: any) { // eslint-disable-line
     expect(err).toBeDefined()
diff --git a/resolving/npm-resolver/src/index.ts b/resolving/npm-resolver/src/index.ts
index b16c94481f..198e569579 100644
--- a/resolving/npm-resolver/src/index.ts
+++ b/resolving/npm-resolver/src/index.ts
@@ -74,6 +74,7 @@ export interface ResolverFactoryOptions {
   timeout?: number
   registries: Registries
   saveWorkspaceProtocol?: boolean | 'rolling'
+  preserveAbsolutePaths?: boolean
 }
 
 export interface NpmResolveResult extends ResolveResult {
diff --git a/store/store-connection-manager/src/createNewStoreController.ts b/store/store-connection-manager/src/createNewStoreController.ts
index b5481498bf..4e8ef5eed9 100644
--- a/store/store-connection-manager/src/createNewStoreController.ts
+++ b/store/store-connection-manager/src/createNewStoreController.ts
@@ -34,6 +34,7 @@ export type CreateNewStoreControllerOptions = CreateResolverOptions & Pick<Confi
 | 'offline'
 | 'packageImportMethod'
 | 'preferOffline'
+| 'preserveAbsolutePaths'
 | 'registries'
 | 'registrySupportsTimeField'
 | 'resolutionMode'
@@ -92,6 +93,7 @@ export async function createNewStoreController (
     resolveSymlinksInInjectedDirs: opts.resolveSymlinksInInjectedDirs,
     includeOnlyPackageFiles: !opts.deployAllFiles,
     saveWorkspaceProtocol: opts.saveWorkspaceProtocol,
+    preserveAbsolutePaths: opts.preserveAbsolutePaths,
   })
   await fs.mkdir(opts.storeDir, { recursive: true })
   return {