diff --git a/workspaces/arborist/lib/edge.js b/workspaces/arborist/lib/edge.js
index 83a9c18cb6aac..8a5e060ec1427 100644
--- a/workspaces/arborist/lib/edge.js
+++ b/workspaces/arborist/lib/edge.js
@@ -110,7 +110,7 @@ class Edge {
 
     // NOTE: this condition means we explicitly do not support overriding
     // bundled or shrinkwrapped dependencies
-    if (node.hasShrinkwrap || node.inShrinkwrap || node.inBundle) {
+    if (node.hasShrinkwrap || node.inShrinkwrap || node.inDepBundle) {
       return depValid(node, this.rawSpec, this.#accept, this.#from)
     }
 
diff --git a/workspaces/arborist/test/arborist/build-ideal-tree.js b/workspaces/arborist/test/arborist/build-ideal-tree.js
index aa632426c03e1..7a87f3ea50826 100644
--- a/workspaces/arborist/test/arborist/build-ideal-tree.js
+++ b/workspaces/arborist/test/arborist/build-ideal-tree.js
@@ -4571,3 +4571,82 @@ t.test('skip invalid peerOptional edges in problemEdges when save=false (#8726)'
     'shared stays at 1.1.0 - peerOptional mismatch is not treated as a problem')
   t.ok(tree.children.get('util'), 'util is in the tree')
 })
+
+t.test('overrides with bundledDependencies', async t => {
+  t.test('does not infinite loop with bundledDependencies and overrides', async t => {
+    // https://github.com/npm/cli/issues/9227
+    const registry = createRegistry(t, false)
+
+    const bPacks = registry.packuments([
+      { version: '1.0.0', dependencies: { bar: '1.0.0' } },
+    ], 'b')
+    const cPacks = registry.packuments([
+      { version: '1.0.0', dependencies: { bar: '1.0.0' } },
+    ], 'c')
+    const barPacks = registry.packuments(['1.0.0', '2.0.0'], 'bar')
+    await registry.package({ manifest: registry.manifest({ name: 'b', packuments: bPacks }) })
+    await registry.package({ manifest: registry.manifest({ name: 'c', packuments: cPacks }) })
+    await registry.package({ manifest: registry.manifest({ name: 'bar', packuments: barPacks }), times: 2 })
+
+    const path = t.testdir({
+      'package.json': JSON.stringify({
+        name: 'root',
+        dependencies: { b: '1.0.0', c: '1.0.0' },
+        bundledDependencies: true,
+        overrides: { bar: '2.0.0' },
+      }),
+    })
+
+    const tree = await buildIdeal(path)
+    t.equal(tree.children.get('bar').version, '2.0.0', 'override applied')
+  })
+
+  t.test('overrides apply to deps the root will bundle and edges are valid', async t => {
+    const registry = createRegistry(t, false)
+
+    const fooPacks = registry.packuments([
+      { version: '1.0.0', dependencies: { bar: '1.0.0' } },
+    ], 'foo')
+    const barPacks = registry.packuments(['1.0.0', '2.0.0'], 'bar')
+    await registry.package({ manifest: registry.manifest({ name: 'foo', packuments: fooPacks }) })
+    await registry.package({ manifest: registry.manifest({ name: 'bar', packuments: barPacks }) })
+
+    const path = t.testdir({
+      'package.json': JSON.stringify({
+        name: 'root',
+        dependencies: { foo: '1.0.0' },
+        bundledDependencies: ['foo'],
+        overrides: { bar: '2.0.0' },
+      }),
+    })
+
+    const tree = await buildIdeal(path)
+    t.equal(tree.children.get('bar').version, '2.0.0', 'override installed correct version')
+
+    const fooBarEdge = tree.edgesOut.get('foo').to.edgesOut.get('bar')
+    t.equal(fooBarEdge.valid, true, 'overridden edge is valid')
+  })
+
+  t.test('overrides do not apply inside a dependency that bundles', async t => {
+    const registry = createRegistry(t, false)
+
+    const depPacks = registry.packuments([{
+      version: '1.0.0',
+      dependencies: { bar: '1.0.0' },
+      bundleDependencies: ['bar'],
+    }], 'dep')
+    await registry.package({ manifest: registry.manifest({ name: 'dep', packuments: depPacks }) })
+
+    const path = t.testdir({
+      'package.json': JSON.stringify({
+        name: 'root',
+        dependencies: { dep: '1.0.0' },
+        overrides: { bar: '2.0.0' },
+      }),
+    })
+
+    const tree = await buildIdeal(path)
+    t.equal(tree.edgesOut.get('dep').valid, true, 'dep edge is valid')
+    t.notOk(tree.children.get('bar'), 'bar stays inside dep bundle')
+  })
+})
diff --git a/workspaces/arborist/test/edge.js b/workspaces/arborist/test/edge.js
index e3f6204da9556..739adbbffe258 100644
--- a/workspaces/arborist/test/edge.js
+++ b/workspaces/arborist/test/edge.js
@@ -1332,3 +1332,81 @@ t.test('edge with overrides should not crash when target has no overrides', t =>
   t.ok(edge.valid, 'edge should be valid')
   t.end()
 })
+
+t.test('overrides and bundled/shrinkwrapped deps in satisfiedBy', t => {
+  const makeNode = (name, version, extras = {}) => ({
+    name,
+    packageName: name,
+    version,
+    package: { name, version },
+    edgesOut: new Map(),
+    edgesIn: new Set(),
+    explain: () => `${name}@${version}`,
+    isTop: false,
+    parent: top,
+    resolve: () => undefined,
+    addEdgeOut (edge) {
+      this.edgesOut.set(edge.name, edge)
+    },
+    addEdgeIn (edge) {
+      this.edgesIn.add(edge)
+    },
+    deleteEdgeIn (edge) {
+      this.edgesIn.delete(edge)
+    },
+    hasShrinkwrap: false,
+    inShrinkwrap: false,
+    inBundle: false,
+    inDepBundle: false,
+    ...extras,
+  })
+
+  const overrides = new OverrideSet({ overrides: { bar: '2.x' } })
+  a.overrides = overrides
+
+  const makeOverriddenEdge = () => {
+    const edge = new Edge({
+      from: a,
+      type: 'prod',
+      name: 'bar',
+      spec: '1.x',
+      overrides: overrides.getEdgeRule({ name: 'bar', spec: '1.x' }),
+    })
+    reset(a)
+    a.overrides = overrides
+    return edge
+  }
+
+  t.test('node bundled by root uses overridden spec', t => {
+    const edge = makeOverriddenEdge()
+    const node = makeNode('bar', '2.0.0', { inBundle: true, inDepBundle: false })
+    t.ok(edge.satisfiedBy(node), 'bar@2.0.0 bundled by root satisfies override 2.x')
+
+    const nodeOld = makeNode('bar', '1.0.0', { inBundle: true, inDepBundle: false })
+    t.notOk(edge.satisfiedBy(nodeOld), 'bar@1.0.0 bundled by root does not satisfy override 2.x')
+    t.end()
+  })
+
+  t.test('node bundled inside a dependency uses rawSpec', t => {
+    const edge = makeOverriddenEdge()
+    const node = makeNode('bar', '1.0.0', { inBundle: true, inDepBundle: true })
+    t.ok(edge.satisfiedBy(node), 'bar@1.0.0 in dep bundle satisfies rawSpec 1.x')
+
+    const nodeNew = makeNode('bar', '2.0.0', { inBundle: true, inDepBundle: true })
+    t.notOk(edge.satisfiedBy(nodeNew), 'bar@2.0.0 in dep bundle does not satisfy rawSpec 1.x')
+    t.end()
+  })
+
+  t.test('node inside a shrinkwrap uses rawSpec', t => {
+    const edge = makeOverriddenEdge()
+    const node = makeNode('bar', '1.0.0', { inShrinkwrap: true })
+    t.ok(edge.satisfiedBy(node), 'bar@1.0.0 in shrinkwrap satisfies rawSpec 1.x')
+
+    const nodeNew = makeNode('bar', '2.0.0', { inShrinkwrap: true })
+    t.notOk(edge.satisfiedBy(nodeNew), 'bar@2.0.0 in shrinkwrap does not satisfy rawSpec 1.x')
+    t.end()
+  })
+
+  delete a.overrides
+  t.end()
+})