diff --git a/packages/webpack-cli/lib/utils/package-exists.js b/packages/webpack-cli/lib/utils/package-exists.js
index 532b619c8b2..5f17b718415 100644
--- a/packages/webpack-cli/lib/utils/package-exists.js
+++ b/packages/webpack-cli/lib/utils/package-exists.js
@@ -1,9 +1,24 @@
+const fs = require("fs");
+const path = require("path");
+
 function packageExists(packageName) {
-    try {
-        return require.resolve(packageName);
-    } catch (error) {
-        return false;
+    if (process.versions.pnp) {
+        return true;
     }
+
+    let dir = __dirname;
+
+    do {
+        try {
+            if (fs.statSync(path.join(dir, "node_modules", packageName)).isDirectory()) {
+                return true;
+            }
+        } catch (_error) {
+            // Nothing
+        }
+    } while (dir !== (dir = path.dirname(dir)));
+
+    return false;
 }
 
 module.exports = packageExists;
diff --git a/packages/webpack-cli/lib/utils/prompt-installation.js b/packages/webpack-cli/lib/utils/prompt-installation.js
index 10794efe224..e870019335a 100644
--- a/packages/webpack-cli/lib/utils/prompt-installation.js
+++ b/packages/webpack-cli/lib/utils/prompt-installation.js
@@ -51,7 +51,7 @@ async function promptInstallation(packageName, preMessage) {
             process.exit(2);
         }
 
-        return utils.packageExists(packageName);
+        return packageName;
     }
 
     process.exit(2);