diff --git a/workspaces/libnpmexec/lib/index.js b/workspaces/libnpmexec/lib/index.js
index 502082c6b0dcc..3681653d8217d 100644
--- a/workspaces/libnpmexec/lib/index.js
+++ b/workspaces/libnpmexec/lib/index.js
@@ -72,12 +72,12 @@ const missingFromTree = async ({ spec, tree, flatOptions, isNpxTree, shallow })
     // non-registry spec, or a specific tag, or name only in npx tree.  Look up
     // manifest and check resolved to see if it's in the tree.
     const manifest = await getManifest(spec, flatOptions)
-    if (spec.type === 'directory') {
+    if (spec.type === 'directory' && !isNpxTree) {
       return { manifest }
     }
     const nodesByManifest = tree.inventory.query('packageName', manifest.name)
     for (const node of nodesByManifest) {
-      if (node.package.resolved === manifest._resolved) {
+      if (node.package.resolved === manifest._resolved || node.realpath === manifest._resolved) {
         // we have a package by the same name and the same resolved destination, nothing to add.
         return { node }
       }
diff --git a/workspaces/libnpmexec/test/local.js b/workspaces/libnpmexec/test/local.js
index 5b0133105393d..23035b01769e3 100644
--- a/workspaces/libnpmexec/test/local.js
+++ b/workspaces/libnpmexec/test/local.js
@@ -278,6 +278,59 @@ t.test('no npxCache', async t => {
   }), /Must provide a valid npxCache path/)
 })
 
+t.test('local file system path - skips reify on subsequent runs', async t => {
+  let reifyCount = 0
+  const Arborist = require('@npmcli/arborist')
+  const { exec, chmod, readOutput, rmOutput, path } = setup(t, {
+    mocks: {
+      'ci-info': { isCI: true },
+      '@npmcli/arborist': class extends Arborist {
+        async reify (...args) {
+          reifyCount++
+          return super.reify(...args)
+        }
+      },
+    },
+    testdir: {
+      a: {
+        'package.json': {
+          name: 'a',
+          bin: {
+            a: './index.js',
+          },
+        },
+        'index.js': { key: 'a', value: 'LOCAL PKG' },
+      },
+    },
+  })
+
+  await chmod('a/index.js')
+
+  // First run should reify (cold cache)
+  await exec({
+    args: [`file:${resolve(path, 'a')}`, 'resfile'],
+  })
+
+  t.match(await readOutput('a'), {
+    value: 'LOCAL PKG',
+    args: ['resfile'],
+  })
+  t.equal(reifyCount, 1, 'first run should reify')
+
+  await rmOutput('a')
+
+  // Second run should skip reify (cached)
+  await exec({
+    args: [`file:${resolve(path, 'a')}`, 'resfile'],
+  })
+
+  t.match(await readOutput('a'), {
+    value: 'LOCAL PKG',
+    args: ['resfile'],
+  })
+  t.equal(reifyCount, 1, 'second run should not reify')
+})
+
 t.test('local file system path', async t => {
   const { exec, chmod, readOutput, path } = setup(t, {
     mocks: {