diff --git a/.changeset/twenty-wolves-destroy.md b/.changeset/twenty-wolves-destroy.md
new file mode 100644
index 00000000000..004117a0716
--- /dev/null
+++ b/.changeset/twenty-wolves-destroy.md
@@ -0,0 +1,6 @@
+---
+"@pnpm/resolve-dependencies": patch
+"pnpm": patch
+---
+
+Don't crash when auto-install-peers is true and the project has many complex circular dependencies.
diff --git a/packages/core/test/install/autoInstallPeers.ts b/packages/core/test/install/autoInstallPeers.ts
index b92df5be05f..855f71b2ff2 100644
--- a/packages/core/test/install/autoInstallPeers.ts
+++ b/packages/core/test/install/autoInstallPeers.ts
@@ -341,3 +341,9 @@ test('auto install peer deps in a workspace. test #2', async () => {
     },
   ], await testDefaults({ autoInstallPeers: true }))
 })
+
+// This test may be removed if autoInstallPeers will become true by default
+test('installation on a package with many complex circular dependencies does not fail when auto install peers is on', async () => {
+  prepareEmpty()
+  await addDependenciesToPackage({}, ['webpack@4.46.0'], await testDefaults({ autoInstallPeers: true }))
+})
diff --git a/packages/resolve-dependencies/src/resolveDependencies.ts b/packages/resolve-dependencies/src/resolveDependencies.ts
index d61faa091ef..3b82b5719b9 100644
--- a/packages/resolve-dependencies/src/resolveDependencies.ts
+++ b/packages/resolve-dependencies/src/resolveDependencies.ts
@@ -158,7 +158,7 @@ export interface ResolutionContext {
   virtualStoreDir: string
   updateMatching?: (pkgName: string) => boolean
   workspacePackages?: WorkspacePackages
-  missingPeersOfChildrenByPkgId: Record<string, { parentNodeId: string, missingPeersOfChildren: MissingPeersOfChildren }>
+  missingPeersOfChildrenByPkgId: Record<string, { parentImporterId: string, missingPeersOfChildren: MissingPeersOfChildren }>
 }
 
 export type MissingPeers = Record<string, string>
@@ -1278,7 +1278,7 @@ async function resolveDependency (
   let missingPeersOfChildren!: MissingPeersOfChildren | undefined
   if (!nodeIdContains(options.parentPkg.nodeId, depPath)) {
     if (ctx.missingPeersOfChildrenByPkgId[pkgResponse.body.id]) {
-      if (!options.parentPkg.nodeId.startsWith(ctx.missingPeersOfChildrenByPkgId[pkgResponse.body.id].parentNodeId)) {
+      if (!options.parentPkg.nodeId.startsWith(ctx.missingPeersOfChildrenByPkgId[pkgResponse.body.id].parentImporterId)) {
         missingPeersOfChildren = ctx.missingPeersOfChildrenByPkgId[pkgResponse.body.id].missingPeersOfChildren
       }
     } else {
@@ -1289,7 +1289,7 @@ async function resolveDependency (
         get: pShare(p.promise),
       }
       ctx.missingPeersOfChildrenByPkgId[pkgResponse.body.id] = {
-        parentNodeId: options.parentPkg.nodeId,
+        parentImporterId: options.parentPkg.nodeId.substring(0, options.parentPkg.nodeId.indexOf('>', 1) + 1),
         missingPeersOfChildren,
       }
     }