diff --git a/.changeset/strange-actors-rescue.md b/.changeset/strange-actors-rescue.md
new file mode 100644
index 0000000000..eb40768ec2
--- /dev/null
+++ b/.changeset/strange-actors-rescue.md
@@ -0,0 +1,7 @@
+---
+"@pnpm/headless": patch
+"@pnpm/core": patch
+"pnpm": patch
+---
+
+When `hoisted-workspace-packages` is `true` don't hoist the root package even if it has a name. Otherwise we would create a circular symlink.
diff --git a/pkg-manager/core/src/install/link.ts b/pkg-manager/core/src/install/link.ts
index 2c2d35a488..c4616a461a 100644
--- a/pkg-manager/core/src/install/link.ts
+++ b/pkg-manager/core/src/install/link.ts
@@ -228,7 +228,7 @@ export async function linkPackages (
       virtualStoreDir: opts.virtualStoreDir,
       hoistedWorkspacePackages: opts.hoistWorkspacePackages
         ? projects.reduce((hoistedWorkspacePackages, project) => {
-          if (project.manifest.name) {
+          if (project.manifest.name && project.id !== '.') {
             hoistedWorkspacePackages[project.id] = {
               dir: project.rootDir,
               name: project.manifest.name,
diff --git a/pkg-manager/core/test/install/hoist.ts b/pkg-manager/core/test/install/hoist.ts
index a66e82367f..2d128c8283 100644
--- a/pkg-manager/core/test/install/hoist.ts
+++ b/pkg-manager/core/test/install/hoist.ts
@@ -903,6 +903,7 @@ test('hoistWorkspacePackages should hoist all workspace projects', async () => {
   await projects['root'].has('.pnpm/node_modules/@pnpm.e2e/bar')
   await projects['root'].has('.pnpm/node_modules/package')
   await projects['root'].has('.pnpm/node_modules/package2')
+  await projects['root'].hasNot('.pnpm/node_modules/root')
   await projects['root'].hasNot('@pnpm.e2e/foobar')
   await projects['root'].hasNot('@pnpm.e2e/foo')
   await projects['root'].hasNot('@pnpm.e2e/bar')
@@ -921,4 +922,5 @@ test('hoistWorkspacePackages should hoist all workspace projects', async () => {
   }))
   await projects['root'].has('.pnpm/node_modules/package')
   await projects['root'].has('.pnpm/node_modules/package2')
+  await projects['root'].hasNot('.pnpm/node_modules/root')
 })
diff --git a/pkg-manager/headless/src/index.ts b/pkg-manager/headless/src/index.ts
index 2eaad11a11..404b7aecef 100644
--- a/pkg-manager/headless/src/index.ts
+++ b/pkg-manager/headless/src/index.ts
@@ -427,7 +427,7 @@ export async function headlessInstall (opts: HeadlessOptions): Promise<Installat
         virtualStoreDir,
         hoistedWorkspacePackages: opts.hoistWorkspacePackages
           ? Object.values(opts.allProjects).reduce((hoistedWorkspacePackages, project) => {
-            if (project.manifest.name) {
+            if (project.manifest.name && project.id !== '.') {
               hoistedWorkspacePackages[project.id] = {
                 dir: project.rootDir,
                 name: project.manifest.name,