diff --git a/src/install/PackageManager.zig b/src/install/PackageManager.zig
index 308f1b9a22..591e9db5a7 100644
--- a/src/install/PackageManager.zig
+++ b/src/install/PackageManager.zig
@@ -195,7 +195,6 @@ pub const Subcommand = enum {
     // TODO: make all subcommands find root and chdir
     pub fn shouldChdirToRoot(this: Subcommand) bool {
         return switch (this) {
-            .link => false,
             else => true,
         };
     }
@@ -599,6 +598,7 @@ pub fn init(
 
     var workspace_name_hash: ?PackageNameHash = null;
     var root_package_json_name_at_time_of_init: []const u8 = "";
+    var found_workspace_root = false;
 
     // Step 1. Find the nearest package.json directory
     //
@@ -680,7 +680,6 @@ pub fn init(
         const child_cwd = strings.withoutSuffixComptime(original_package_json_path, std.fs.path.sep_str ++ "package.json");
 
         // Check if this is a workspace; if so, use root package
-        var found = false;
         if (subcommand.shouldChdirToRoot()) {
             if (!created_package_json) {
                 while (std.fs.path.dirname(this_cwd)) |parent| : (this_cwd = parent) {
@@ -696,7 +695,7 @@ pub fn init(
                     ) catch {
                         continue;
                     };
-                    defer if (!found) json_file.close();
+                    defer if (!found_workspace_root) json_file.close();
                     const json_stat_size = try json_file.getEndPos();
                     const json_buf = try ctx.allocator.alloc(u8, json_stat_size + 64);
                     defer ctx.allocator.free(json_buf);
@@ -746,7 +745,7 @@ pub fn init(
 
                             if (strings.eqlLong(maybe_workspace_path, path, true)) {
                                 fs.top_level_dir = try bun.default_allocator.dupeZ(u8, parent);
-                                found = true;
+                                found_workspace_root = true;
                                 child_json.close();
                                 if (comptime Environment.isWindows) {
                                     try json_file.seekTo(0);
@@ -772,6 +771,10 @@ pub fn init(
     cwd_buf[fs.top_level_dir.len] = 0;
     fs.top_level_dir = cwd_buf[0..fs.top_level_dir.len :0];
     root_package_json_path = try bun.getFdPathZ(.fromStdFile(root_package_json_file), &root_package_json_path_buf);
+    // Update original_package_json_path to point to the workspace root when found
+    if (found_workspace_root) {
+        original_package_json_path = root_package_json_path;
+    }
 
     const entries_option = try fs.fs.readDirectory(fs.top_level_dir, null, 0, true);
     if (entries_option.* == .err) {
diff --git a/test/regression/issue/24190.test.ts b/test/regression/issue/24190.test.ts
new file mode 100644
index 0000000000..95a8889ab2
--- /dev/null
+++ b/test/regression/issue/24190.test.ts
@@ -0,0 +1,67 @@
+import { expect, test } from "bun:test";
+import { bunEnv, bunExe, tempDir } from "harness";
+
+test("bun link <package> within workspace that depends on sibling workspace", async () => {
+  using dir = tempDir("bun-link-workspace", {
+    "work/package.json": JSON.stringify({ workspaces: ["foo", "bar"] }),
+    "work/foo/package.json": JSON.stringify({ name: "foo", dependencies: { bar: "workspace:*" } }),
+    "work/bar/package.json": JSON.stringify({ name: "bar" }),
+    "dep/package.json": JSON.stringify({ name: "dep" }),
+  });
+
+  // First, run `bun install` in the workspace root to set up the workspace
+  await using installProc = Bun.spawn({
+    cmd: [bunExe(), "install"],
+    cwd: `${dir}/work`,
+    env: bunEnv,
+    stderr: "pipe",
+    stdout: "pipe",
+  });
+
+  const [installStdout, installStderr, installExitCode] = await Promise.all([
+    installProc.stdout.text(),
+    installProc.stderr.text(),
+    installProc.exited,
+  ]);
+
+  expect(installExitCode).toBe(0);
+
+  // Register the dep package as a linked package
+  await using linkProc = Bun.spawn({
+    cmd: [bunExe(), "link"],
+    cwd: `${dir}/dep`,
+    env: bunEnv,
+    stderr: "pipe",
+    stdout: "pipe",
+  });
+
+  const [linkStdout, linkStderr, linkExitCode] = await Promise.all([
+    linkProc.stdout.text(),
+    linkProc.stderr.text(),
+    linkProc.exited,
+  ]);
+
+  expect(linkStderr).not.toContain("Workspace dependency");
+  expect(linkStderr).not.toContain("not found");
+  expect(linkExitCode).toBe(0);
+
+  // Now try to link the dep package from within the foo workspace
+  // This should not fail with "Workspace dependency 'bar' not found"
+  await using linkDepProc = Bun.spawn({
+    cmd: [bunExe(), "link", "dep"],
+    cwd: `${dir}/work/foo`,
+    env: bunEnv,
+    stderr: "pipe",
+    stdout: "pipe",
+  });
+
+  const [linkDepStdout, linkDepStderr, linkDepExitCode] = await Promise.all([
+    linkDepProc.stdout.text(),
+    linkDepProc.stderr.text(),
+    linkDepProc.exited,
+  ]);
+
+  expect(linkDepStderr).not.toContain("Workspace dependency");
+  expect(linkDepStderr).not.toContain("not found");
+  expect(linkDepExitCode).toBe(0);
+});