diff --git a/packages/nuxt/src/core/nitro.ts b/packages/nuxt/src/core/nitro.ts
index be20faa9253..8b896e1d526 100644
--- a/packages/nuxt/src/core/nitro.ts
+++ b/packages/nuxt/src/core/nitro.ts
@@ -18,6 +18,7 @@ export async function initNitro (nuxt: Nuxt) {
   const _nitroConfig = ((nuxt.options as any).nitro || {}) as NitroConfig
   const nitroConfig: NitroConfig = defu(_nitroConfig, <NitroConfig>{
     rootDir: nuxt.options.rootDir,
+    workspaceDir: nuxt.options.workspaceDir,
     srcDir: join(nuxt.options.srcDir, 'server'),
     dev: nuxt.options.dev,
     preset: nuxt.options.dev ? 'nitro-dev' : undefined,
diff --git a/packages/nuxt/src/core/nuxt.ts b/packages/nuxt/src/core/nuxt.ts
index 3091af2522c..de2f18acc49 100644
--- a/packages/nuxt/src/core/nuxt.ts
+++ b/packages/nuxt/src/core/nuxt.ts
@@ -211,6 +211,7 @@ export async function loadNuxt (opts: LoadNuxtOptions): Promise<Nuxt> {
         .map(i => new RegExp(`(^|\\/)${escapeRE(i.cwd!.split('node_modules/').pop()!)}(\\/|$)(?!node_modules\\/)`))
     }
   }])
+  options.modulesDir.push(resolve(options.workspaceDir, 'node_modules'))
   options.modulesDir.push(resolve(pkgDir, 'node_modules'))
   options.build.transpile.push('@nuxt/ui-templates')
   options.alias['vue-demi'] = resolve(options.appDir, 'compat/vue-demi')
diff --git a/packages/schema/build.config.ts b/packages/schema/build.config.ts
index 539d2739bfc..80bbf5fb7b2 100644
--- a/packages/schema/build.config.ts
+++ b/packages/schema/build.config.ts
@@ -26,7 +26,6 @@ export default defineBuildConfig({
     'hookable',
     'nitropack',
     'webpack',
-    'pkg-types',
     'webpack-bundle-analyzer',
     'rollup-plugin-visualizer',
     'vite',
diff --git a/packages/schema/package.json b/packages/schema/package.json
index 8478ab70e61..ab89f40ae6d 100644
--- a/packages/schema/package.json
+++ b/packages/schema/package.json
@@ -26,6 +26,7 @@
     "defu": "^6.1.0",
     "jiti": "^1.15.0",
     "pathe": "^0.3.7",
+    "pkg-types": "^0.3.5",
     "postcss-import-resolver": "^2.0.0",
     "scule": "^0.3.2",
     "std-env": "^3.2.1",
diff --git a/packages/schema/src/config/_common.ts b/packages/schema/src/config/_common.ts
index 8418727e0fe..77e8b706454 100644
--- a/packages/schema/src/config/_common.ts
+++ b/packages/schema/src/config/_common.ts
@@ -4,6 +4,7 @@ import createRequire from 'create-require'
 import { pascalCase } from 'scule'
 import jiti from 'jiti'
 import defu from 'defu'
+import { findWorkspaceDir } from 'pkg-types'
 
 import { RuntimeConfig } from '../types/config'
 
@@ -37,7 +38,7 @@ export default defineUntypedSchema({
   theme: null,
 
   /**
-   * Define the workspace directory of your application.
+   * Define the root directory of your application.
    *
    * This property can be overwritten (for example, running `nuxt ./my-app/`
    * will set the `rootDir` to the absolute path of `./my-app/` from the
@@ -51,6 +52,19 @@ export default defineUntypedSchema({
     $resolve: val => typeof val === 'string' ? resolve(val) : process.cwd()
   },
 
+  /**
+   * Define the workspace directory of your application.
+   *
+   * Often this is used when in a monorepo setup. Nuxt will attempt to detect
+   * your workspace directory automatically, but you can override it here.
+   *
+   * It is normally not needed to configure this option.
+   * @version 3
+   */
+  workspaceDir: {
+    $resolve: async (val, get) => val ? resolve(await get('rootDir'), val) : await findWorkspaceDir(await get('rootDir')).catch(() => get('rootDir'))
+  },
+
   /**
    * Define the source directory of your Nuxt application.
    *
diff --git a/yarn.lock b/yarn.lock
index edc82feff6d..2f1c981f591 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1819,6 +1819,7 @@ __metadata:
     defu: ^6.1.0
     jiti: ^1.15.0
     pathe: ^0.3.7
+    pkg-types: ^0.3.5
     postcss-import-resolver: ^2.0.0
     scule: ^0.3.2
     std-env: ^3.2.1