diff --git a/internal/linker/index.js b/internal/linker/index.js
index 7568f02f0d..35b4cdf1c5 100644
--- a/internal/linker/index.js
+++ b/internal/linker/index.js
@@ -136,9 +136,9 @@ function symlink(target, p) {
         }
     });
 }
-function resolveWorkspaceNodeModules(workspace, startCwd, isExecroot, execroot, runfiles) {
+function resolveWorkspaceNodeModules(externalWorkspace, startCwd, isExecroot, execroot, runfiles) {
     return __awaiter(this, void 0, void 0, function* () {
-        const targetManifestPath = `${workspace}/node_modules`;
+        const targetManifestPath = `${externalWorkspace}/node_modules`;
         if (isExecroot) {
             return `${execroot}/external/${targetManifestPath}`;
         }
@@ -319,10 +319,10 @@ function main(args, runfiles) {
             });
         }
         for (const packagePath of Object.keys(roots)) {
-            const workspace = roots[packagePath];
-            let workspaceNodeModules = yield resolveWorkspaceNodeModules(workspace, startCwd, isExecroot, execroot, runfiles);
+            const externalWorkspace = roots[packagePath];
+            let workspaceNodeModules = yield resolveWorkspaceNodeModules(externalWorkspace, startCwd, isExecroot, execroot, runfiles);
             if (yield exists(workspaceNodeModules)) {
-                log_verbose(`resolved ${workspace} workspace node modules path to ${workspaceNodeModules}`);
+                log_verbose(`resolved ${externalWorkspace} external workspace node modules path to ${workspaceNodeModules}`);
             }
             else {
                 workspaceNodeModules = undefined;
@@ -345,14 +345,14 @@ function main(args, runfiles) {
             if (!isExecroot) {
                 const runfilesPackagePath = path.posix.join(startCwd, packagePath);
                 yield mkdirp(`${runfilesPackagePath}`);
-                yield symlinkWithUnlink(execrootNodeModules, `${runfilesPackagePath}/node_modules`);
+                yield symlinkWithUnlink(!packagePath && workspaceNodeModules ? workspaceNodeModules : execrootNodeModules, `${runfilesPackagePath}/node_modules`);
             }
             if (process.env['RUNFILES']) {
                 const stat = yield gracefulLstat(process.env['RUNFILES']);
                 if (stat && stat.isDirectory()) {
-                    const runfilesPackagePath = path.posix.join(process.env['RUNFILES'], packagePath);
+                    const runfilesPackagePath = path.posix.join(process.env['RUNFILES'], workspace, packagePath);
                     yield mkdirp(`${runfilesPackagePath}`);
-                    yield symlinkWithUnlink(execrootNodeModules, `${runfilesPackagePath}/node_modules`);
+                    yield symlinkWithUnlink(!packagePath && workspaceNodeModules ? workspaceNodeModules : execrootNodeModules, `${runfilesPackagePath}/node_modules`);
                 }
             }
         }
diff --git a/internal/linker/link_node_modules.ts b/internal/linker/link_node_modules.ts
index 5ad836b8a3..dcf7381727 100644
--- a/internal/linker/link_node_modules.ts
+++ b/internal/linker/link_node_modules.ts
@@ -164,9 +164,9 @@ async function symlink(target: string, p: string): Promise<boolean> {
 
 /** Determines an absolute path to the given workspace if it contains node modules. */
 async function resolveWorkspaceNodeModules(
-    workspace: string, startCwd: string, isExecroot: boolean, execroot: string|undefined,
+    externalWorkspace: string, startCwd: string, isExecroot: boolean, execroot: string|undefined,
     runfiles: Runfiles) {
-  const targetManifestPath = `${workspace}/node_modules`;
+  const targetManifestPath = `${externalWorkspace}/node_modules`;
 
   if (isExecroot) {
     // Under execroot, the npm workspace will be under an external folder from the startCwd
@@ -471,11 +471,11 @@ export async function main(args: string[], runfiles: Runfiles) {
   // Symlink all node_modules roots defined. These are 3rd party deps in external npm workspaces
   // lined to node_modules folders at the root or in sub-directories
   for (const packagePath of Object.keys(roots)) {
-    const workspace = roots[packagePath];
+    const externalWorkspace = roots[packagePath];
     let workspaceNodeModules: string | undefined = await resolveWorkspaceNodeModules(
-      workspace, startCwd, isExecroot, execroot, runfiles);
+      externalWorkspace, startCwd, isExecroot, execroot, runfiles);
     if (await exists(workspaceNodeModules)) {
-      log_verbose(`resolved ${workspace} workspace node modules path to ${workspaceNodeModules}`);
+      log_verbose(`resolved ${externalWorkspace} external workspace node modules path to ${workspaceNodeModules}`);
     } else {
       // There are no third party node_modules to symlink to
       workspaceNodeModules = undefined;      
@@ -511,21 +511,25 @@ export async function main(args: string[], runfiles: Runfiles) {
       await mkdirp(`${packagePathBin}`);
       await symlinkWithUnlink(execrootNodeModules, `${packagePathBin}/node_modules`);
     }
-    
+
     // Start CWD symlink -> execroot node_modules
     if (!isExecroot) {
       const runfilesPackagePath = path.posix.join(startCwd, packagePath);
       await mkdirp(`${runfilesPackagePath}`);
-      await symlinkWithUnlink(execrootNodeModules, `${runfilesPackagePath}/node_modules`);
+      // Don't link to the root execroot node_modules if there is a workspace node_modules.
+      // Bazel will delete that symlink on rebuild in the ibazel run context.
+      await symlinkWithUnlink(!packagePath && workspaceNodeModules ? workspaceNodeModules : execrootNodeModules, `${runfilesPackagePath}/node_modules`);
     }
 
     // RUNFILES symlink -> execroot node_modules
     if (process.env['RUNFILES']) {
       const stat = await gracefulLstat(process.env['RUNFILES']);
       if (stat && stat.isDirectory()) {
-        const runfilesPackagePath = path.posix.join(process.env['RUNFILES'], packagePath);
+        const runfilesPackagePath = path.posix.join(process.env['RUNFILES'], workspace, packagePath);
         await mkdirp(`${runfilesPackagePath}`);
-        await symlinkWithUnlink(execrootNodeModules, `${runfilesPackagePath}/node_modules`);
+        // Don't link to the root execroot node_modules if there is a workspace node_modules.
+        // Bazel will delete that symlink on rebuild in the ibazel run context.
+        await symlinkWithUnlink(!packagePath && workspaceNodeModules ? workspaceNodeModules : execrootNodeModules, `${runfilesPackagePath}/node_modules`);
       }
     }
   }
diff --git a/internal/linker/test/link_node_modules.spec.ts b/internal/linker/test/link_node_modules.spec.ts
index b26b16b128..4dcdbc1ef4 100644
--- a/internal/linker/test/link_node_modules.spec.ts
+++ b/internal/linker/test/link_node_modules.spec.ts
@@ -593,6 +593,7 @@ describe('link_node_modules', () => {
 
     // No first-party packages
     writeManifest({
+      workspace: workspace,
       bin: BIN_DIR,
       roots: {'': 'npm'},
     });
diff --git a/internal/node/launcher.sh b/internal/node/launcher.sh
index 8d651df258..007b7279c4 100644
--- a/internal/node/launcher.sh
+++ b/internal/node/launcher.sh
@@ -285,6 +285,12 @@ if [[ "${RUNFILES_ROOT}" ]]; then
   # (e.g., /private/.../execroot/build_bazel_rules_nodejs/bazel-out/darwin-fastbuild/bin/internal/linker/test/multi_linker/test.sh.runfiles/build_bazel_rules_nodejs/node_modules)
   export BAZEL_PATCH_ROOTS="${BAZEL_PATCH_ROOTS},${RUNFILES_ROOT}/${BAZEL_WORKSPACE}/node_modules"
 fi
+if [[ "${RUNFILES}" ]]; then
+  # If in runfiles, guard the RUNFILES root itself
+  export BAZEL_PATCH_ROOTS="${BAZEL_PATCH_ROOTS},${RUNFILES}"
+  # If RUNFILES is set, guard the RUNFILES node_modules as well
+  export BAZEL_PATCH_ROOTS="${BAZEL_PATCH_ROOTS},${RUNFILES}/${BAZEL_WORKSPACE}/node_modules"
+fi
 if [[ -n "${BAZEL_NODE_MODULES_ROOTS:-}" ]]; then
   # BAZEL_NODE_MODULES_ROOTS is in the format "<path>:<workspace>,<path>:<workspace>"
   # (e.g., "internal/linker/test:npm_internal_linker_test,:npm")
diff --git a/internal/node/test/env.spec.js b/internal/node/test/env.spec.js
index 46ad198756..88d92cbaae 100644
--- a/internal/node/test/env.spec.js
+++ b/internal/node/test/env.spec.js
@@ -10,9 +10,12 @@ function normPath(p) {
     // On Windows, we normalize to lowercase for so path mismatches such as 'C:/Users' and
     // 'c:/users' don't break the specs.
     result = result.toLowerCase();
-    if (/[a-zA-Z]\:/.test(result)) {
+    if (/^[a-z]\:/.test(result)) {
       // Handle c:/ and /c/ mismatch
       result = `/${result[0]}${result.slice(2)}`;
+    } else if (/^[a-z];[a-z]\:/.test(result)) {
+      // Handle c;b:/ and /c/b/ mismatch
+      result = `/${result[0]}/${result[2]}${result.slice(4)}`;
     }
   }
   return result;
@@ -40,11 +43,14 @@ describe('launcher.sh environment', function() {
     expectPathsToMatch(process.cwd(), `${process.env['RUNFILES_DIR']}/build_bazel_rules_nodejs`);
     expectPathsToMatch(process.env['PWD'], `${process.env['RUNFILES_DIR']}/build_bazel_rules_nodejs`);
     expectPathsToMatch(process.env['BAZEL_NODE_MODULES_ROOTS'], ':npm');
+    console.log(process.env['RUNFILES'])
     const expectedRoots = [
       `${execroot}`,
       `${execroot}/node_modules`,
       `${runfilesRoot}`,
       `${runfilesRoot}/build_bazel_rules_nodejs/node_modules`,
+      `${process.env['RUNFILES']}`,
+      `${process.env['RUNFILES']}/${process.env['BAZEL_WORKSPACE']}/node_modules`,
       `${execroot}/external/npm/node_modules`,
       `${runfilesRoot}/npm/node_modules`,
       `${runfilesRoot}/build_bazel_rules_nodejs/external/npm/node_modules`,
@@ -71,6 +77,8 @@ describe('launcher.sh environment', function() {
        const expectedRoots = [
          `${execroot}`,
          `${execroot}/node_modules`,
+         `${env['RUNFILES']}`,
+         `${env['RUNFILES']}/${env['BAZEL_WORKSPACE']}/node_modules`,
        ]
        expectPathsToMatch(env['BAZEL_PATCH_ROOTS'].split(','), expectedRoots);
      });
@@ -92,6 +100,8 @@ describe('launcher.sh environment', function() {
        const expectedRoots = [
          `${execroot}`,
          `${execroot}/node_modules`,
+         `${env['RUNFILES']}`,
+         `${env['RUNFILES']}/${env['BAZEL_WORKSPACE']}/node_modules`,
          `${execroot}/external/npm/node_modules`,
        ]
        expectPathsToMatch(env['BAZEL_PATCH_ROOTS'].split(','), expectedRoots);