diff --git a/.changeset/calm-windows-study.md b/.changeset/calm-windows-study.md
new file mode 100644
index 00000000000..6c55568e134
--- /dev/null
+++ b/.changeset/calm-windows-study.md
@@ -0,0 +1,7 @@
+---
+"@pnpm/filter-lockfile": patch
+"@pnpm/headless": patch
+"pnpm": patch
+---
+
+Auto install peer dependencies when auto-install-peers is set to true and the lockfile is up to date [#5213](https://github.com/pnpm/pnpm/issues/5213).
diff --git a/packages/filter-lockfile/src/filterLockfileByImportersAndEngine.ts b/packages/filter-lockfile/src/filterLockfileByImportersAndEngine.ts
index 6a7313710d9..ea2b563aa09 100644
--- a/packages/filter-lockfile/src/filterLockfileByImportersAndEngine.ts
+++ b/packages/filter-lockfile/src/filterLockfileByImportersAndEngine.ts
@@ -161,10 +161,7 @@ function pkgAllDeps (
         ...pkgSnapshot.dependencies,
         ...(opts.include.optionalDependencies ? pkgSnapshot.optionalDependencies : {}),
       })
-      .map(([pkgName, ref]) => {
-        if (pkgSnapshot.peerDependencies?.[pkgName]) return null
-        return dp.refToRelative(ref, pkgName)
-      })
+      .map(([pkgName, ref]) => dp.refToRelative(ref, pkgName))
       .filter((nodeId) => nodeId !== null) as string[]
 
     pkgAllDeps(ctx, nextRelDepPaths, installable, opts)
diff --git a/packages/headless/test/fixtures/reinstall-peer-deps/.npmrc b/packages/headless/test/fixtures/reinstall-peer-deps/.npmrc
new file mode 100644
index 00000000000..3e775efb0f4
--- /dev/null
+++ b/packages/headless/test/fixtures/reinstall-peer-deps/.npmrc
@@ -0,0 +1 @@
+auto-install-peers=true
diff --git a/packages/headless/test/fixtures/reinstall-peer-deps/package.json b/packages/headless/test/fixtures/reinstall-peer-deps/package.json
new file mode 100644
index 00000000000..98bc0383993
--- /dev/null
+++ b/packages/headless/test/fixtures/reinstall-peer-deps/package.json
@@ -0,0 +1,7 @@
+{
+  "name": "reinstall-peer-deps",
+  "version": "1.0.0",
+  "devDependencies": {
+    "@pnpm.e2e/abc": "1.0.0"
+  }
+}
diff --git a/packages/headless/test/fixtures/reinstall-peer-deps/pnpm-lock.yaml b/packages/headless/test/fixtures/reinstall-peer-deps/pnpm-lock.yaml
new file mode 100644
index 00000000000..662599cd849
--- /dev/null
+++ b/packages/headless/test/fixtures/reinstall-peer-deps/pnpm-lock.yaml
@@ -0,0 +1,37 @@
+lockfileVersion: 5.4
+
+specifiers:
+  '@pnpm.e2e/abc': 1.0.0
+devDependencies:
+  '@pnpm.e2e/abc': 1.0.0_glqo5zmflraj4jc2fza4v4hjou
+
+packages:
+
+  /@pnpm.e2e/abc/1.0.0_glqo5zmflraj4jc2fza4v4hjou:
+    resolution: {integrity: sha512-/BCMmCRQ58DLWtF5iU97Lbf0s+llpWHvvZvQfFnCYFBpa1pfYnlJW1k6+Z4UzcUdYrUvyDmYPwxGVvPStAUw1w==}
+    peerDependencies:
+      '@pnpm.e2e/peer-a': ^1.0.0
+      '@pnpm.e2e/peer-b': ^1.0.0
+      '@pnpm.e2e/peer-c': ^1.0.0
+    dependencies:
+      '@pnpm.e2e/dep-of-pkg-with-1-dep': 100.0.0
+      '@pnpm.e2e/peer-a': 1.0.1
+      '@pnpm.e2e/peer-b': 1.0.0
+      '@pnpm.e2e/peer-c': 1.0.1
+    dev: true
+
+  /@pnpm.e2e/dep-of-pkg-with-1-dep/100.0.0:
+    resolution: {integrity: sha512-KUmwlEiE3pzpmPCfrLkoOO7fmL4Tft+dcm6YQlUfOUJvHO73xlcKVoA/xOHP/ayUO8GiPlIqWRbKHrsxvXGE8g==}
+    dev: true
+
+  /@pnpm.e2e/peer-a/1.0.1:
+    resolution: {integrity: sha512-eKxesosmflSp5xnW1gyRhMZ75RLI7SupTZNe1SK6EPDDgNmswNxbwdpyUDFUDWa3yHd5WSQbRDH2IysqMWIs2g==}
+    dev: true
+
+  /@pnpm.e2e/peer-b/1.0.0:
+    resolution: {integrity: sha512-jvRKPPRU2qx/AxfcpyO/aSX8TQclpXUXOnUbSLxgBi+P4+InCRkK2u+jFQbcc+b8rIFzR0jr7YCIYLIjRDPPcw==}
+    dev: true
+
+  /@pnpm.e2e/peer-c/1.0.1:
+    resolution: {integrity: sha512-6ag+AQOLJgsioiG8aInnOJGautKz7lNf3zKQ8FJHOb4b3yIclmUofTaDwth9ydp9W56qzwbHWXjkdrqfW5JViQ==}
+    dev: true
diff --git a/packages/headless/test/index.ts b/packages/headless/test/index.ts
index 75885bd6a7d..a7498c11af8 100644
--- a/packages/headless/test/index.ts
+++ b/packages/headless/test/index.ts
@@ -528,6 +528,16 @@ test('installation of a dependency that has a resolved peer in subdeps', async (
   expect(project.requireModule('pnpm-default-reporter')).toBeTruthy()
 })
 
+test('install peer dependencies that are in prod dependencies', async () => {
+  const prefix = f.prepare('reinstall-peer-deps')
+
+  await headless(await testDefaults({ lockfileDir: prefix }))
+
+  const project = assertProject(prefix)
+
+  await project.has('.pnpm/@pnpm.e2e+peer-a@1.0.1/node_modules/@pnpm.e2e/peer-a')
+})
+
 test('installing with hoistPattern=*', async () => {
   const prefix = f.prepare('simple-shamefully-flatten')
   const reporter = jest.fn()