3 files changed, 12 insertions, 4 deletions
diff --git a/cli/args/config_file.rs b/cli/args/config_file.rs
index 8b52d7825..ed31a47a6 100644
--- a/cli/args/config_file.rs
+++ b/cli/args/config_file.rs
@@ -668,12 +668,13 @@ pub struct ConfigFileJson {
   pub bench: Option<Value>,
   pub lock: Option<Value>,
   pub exclude: Option<Value>,
+  pub node_modules_dir: Option<bool>,
 }
 
 #[derive(Clone, Debug)]
 pub struct ConfigFile {
   pub specifier: ModuleSpecifier,
-  pub json: ConfigFileJson,
+  json: ConfigFileJson,
 }
 
 impl ConfigFile {
@@ -865,6 +866,10 @@ impl ConfigFile {
     self.json.import_map.clone()
   }
 
+  pub fn node_modules_dir(&self) -> Option<bool> {
+    self.json.node_modules_dir
+  }
+
   pub fn to_import_map_value(&self) -> Value {
     let mut value = serde_json::Map::with_capacity(2);
     if let Some(imports) = &self.json.imports {
diff --git a/cli/args/flags.rs b/cli/args/flags.rs
index fa28241a3..63ec2b947 100644
--- a/cli/args/flags.rs
+++ b/cli/args/flags.rs
@@ -2431,7 +2431,7 @@ fn local_npm_arg() -> Arg {
     .value_parser(value_parser!(bool))
     .default_missing_value("true")
     .require_equals(true)
-    .help("Creates a local node_modules folder")
+    .help("Enables or disables the use of a local node_modules folder for npm packages")
 }
 
 fn unsafely_ignore_certificate_errors_arg() -> Arg {
diff --git a/cli/args/mod.rs b/cli/args/mod.rs
index 53dad9cae..fef27f464 100644
--- a/cli/args/mod.rs
+++ b/cli/args/mod.rs
@@ -1184,14 +1184,17 @@ fn resolve_local_node_modules_folder(
   maybe_config_file: Option<&ConfigFile>,
   maybe_package_json: Option<&PackageJson>,
 ) -> Result<Option<PathBuf>, AnyError> {
-  let path = if flags.node_modules_dir == Some(false) {
+  let use_node_modules_dir = flags
+    .node_modules_dir
+    .or_else(|| maybe_config_file.and_then(|c| c.node_modules_dir()));
+  let path = if use_node_modules_dir == Some(false) {
     return Ok(None);
   } else if let Some(state) = &*NPM_PROCESS_STATE {
     return Ok(state.local_node_modules_path.as_ref().map(PathBuf::from));
   } else if let Some(package_json_path) = maybe_package_json.map(|c| &c.path) {
     // always auto-discover the local_node_modules_folder when a package.json exists
     package_json_path.parent().unwrap().join("node_modules")
-  } else if flags.node_modules_dir.is_none() {
+  } else if use_node_modules_dir.is_none() {
     return Ok(None);
   } else if let Some(config_path) = maybe_config_file
     .as_ref()