diff --git a/.changeset/lemon-impalas-wave.md b/.changeset/lemon-impalas-wave.md
new file mode 100644
index 0000000000..db6df02c96
--- /dev/null
+++ b/.changeset/lemon-impalas-wave.md
@@ -0,0 +1,7 @@
+---
+"@pnpm/npm-resolver": minor
+"@pnpm/types": minor
+"pnpm": minor
+---
+
+When `publishConfig.directory` is set, only symlink it to other workspace projects if `publishConfig.linkDirectory` is set to `true`. Otherwise, only use it for publishing [#5115](https://github.com/pnpm/pnpm/issues/5115).
diff --git a/packages/core/test/install/multipleImporters.ts b/packages/core/test/install/multipleImporters.ts
index ebea3e08f8..f7c17252c0 100644
--- a/packages/core/test/install/multipleImporters.ts
+++ b/packages/core/test/install/multipleImporters.ts
@@ -1532,7 +1532,87 @@ test('do not update dependency that has the same name as a dependency in the wor
   ])
 })
 
-test('symlink local package from the location described in its publishConfig.directory', async () => {
+test('symlink local package from the location described in its publishConfig.directory when linkDirectory is true', async () => {
+  preparePackages([
+    {
+      location: 'project-1',
+      package: { name: 'project-1' },
+    },
+    {
+      location: 'project-1/dist',
+      package: { name: 'project-1-dist' },
+    },
+    {
+      location: 'project-2',
+      package: { name: 'project-2' },
+    },
+  ])
+
+  const project1Manifest = {
+    name: 'project-1',
+    version: '1.0.0',
+    publishConfig: {
+      directory: 'dist',
+      linkDirectory: true,
+    },
+  }
+  const project2Manifest = {
+    name: 'project-2',
+    version: '1.0.0',
+
+    dependencies: {
+      'project-1': 'workspace:*',
+    },
+  }
+  const importers: MutatedProject[] = [
+    {
+      buildIndex: 0,
+      manifest: project1Manifest,
+      mutation: 'install',
+      rootDir: path.resolve('project-1'),
+    },
+    {
+      buildIndex: 0,
+      manifest: project2Manifest,
+      mutation: 'install',
+      rootDir: path.resolve('project-2'),
+    },
+  ]
+  const workspacePackages = {
+    'project-1': {
+      '1.0.0': {
+        dir: path.resolve('project-1'),
+        manifest: project1Manifest,
+      },
+    },
+    'project-2': {
+      '1.0.0': {
+        dir: path.resolve('project-2'),
+        manifest: project2Manifest,
+      },
+    },
+  }
+  await mutateModules(importers, await testDefaults({ workspacePackages }))
+
+  {
+    const linkedManifest = await loadJsonFile<{ name: string }>('project-2/node_modules/project-1/package.json')
+    expect(linkedManifest.name).toBe('project-1-dist')
+  }
+
+  const project = assertProject(process.cwd())
+  const lockfile = await project.readLockfile()
+  expect(lockfile.importers['project-1'].publishDirectory).toBe('dist')
+
+  await rimraf('node_modules')
+  await mutateModules(importers, await testDefaults({ frozenLockfile: true, workspacePackages }))
+
+  {
+    const linkedManifest = await loadJsonFile<{ name: string }>('project-2/node_modules/project-1/package.json')
+    expect(linkedManifest.name).toBe('project-1-dist')
+  }
+})
+
+test('do not symlink local package from the location described in its publishConfig.directory', async () => {
   preparePackages([
     {
       location: 'project-1',
@@ -1593,20 +1673,6 @@ test('symlink local package from the location described in its publishConfig.dir
   }
   await mutateModules(importers, await testDefaults({ workspacePackages }))
 
-  {
-    const linkedManifest = await loadJsonFile<{ name: string }>('project-2/node_modules/project-1/package.json')
-    expect(linkedManifest.name).toBe('project-1-dist')
-  }
-
-  const project = assertProject(process.cwd())
-  const lockfile = await project.readLockfile()
-  expect(lockfile.importers['project-1'].publishDirectory).toBe('dist')
-
-  await rimraf('node_modules')
-  await mutateModules(importers, await testDefaults({ frozenLockfile: true, workspacePackages }))
-
-  {
-    const linkedManifest = await loadJsonFile<{ name: string }>('project-2/node_modules/project-1/package.json')
-    expect(linkedManifest.name).toBe('project-1-dist')
-  }
+  const linkedManifest = await loadJsonFile<{ name: string }>('project-2/node_modules/project-1/package.json')
+  expect(linkedManifest.name).toBe('project-1')
 })
diff --git a/packages/npm-resolver/src/index.ts b/packages/npm-resolver/src/index.ts
index 238d3b21c5..d23e534559 100644
--- a/packages/npm-resolver/src/index.ts
+++ b/packages/npm-resolver/src/index.ts
@@ -328,7 +328,10 @@ function resolveFromLocalPackage (
 }
 
 function resolveLocalPackageDir (localPackage: LocalPackage) {
-  if (localPackage.manifest.publishConfig?.directory == null) return localPackage.dir
+  if (
+    localPackage.manifest.publishConfig?.directory == null ||
+    localPackage.manifest.publishConfig?.linkDirectory !== true
+  ) return localPackage.dir
   return path.join(localPackage.dir, localPackage.manifest.publishConfig.directory)
 }
 
diff --git a/packages/types/src/package.ts b/packages/types/src/package.ts
index d739d509ee..cdecea1b3e 100644
--- a/packages/types/src/package.ts
+++ b/packages/types/src/package.ts
@@ -56,6 +56,7 @@ export interface DependenciesMeta {
 
 export interface PublishConfig extends Record<string, unknown> {
   directory?: string
+  linkDirectory?: boolean
   executableFiles?: string[]
 }