diff --git a/packages/monorepo/src/projects/typescript/monorepo-ts.ts b/packages/monorepo/src/projects/typescript/monorepo-ts.ts
index 747307a04..a62e52cf4 100644
--- a/packages/monorepo/src/projects/typescript/monorepo-ts.ts
+++ b/packages/monorepo/src/projects/typescript/monorepo-ts.ts
@@ -514,6 +514,7 @@ export class MonorepoTsProject
     this.validateSubProjects();
     this.updateWorkspace();
     this.installNonNodeDependencies();
+    this.resolveLocalBunDependencies();
 
     // Disable node warnings if configured
     if (this._options.disableNodeWarnings) {
@@ -689,6 +690,45 @@ export class MonorepoTsProject
       subProject.tasks.addEnvironment("NODE_NO_WARNINGS", "1")
     );
   }
+
+  /**
+   * Resolve all local workspace dependencies to keep bun happy.
+   */
+  private resolveLocalBunDependencies(): void {
+    if (this.package.packageManager !== NodePackageManager.BUN) {
+      return;
+    }
+
+    const nodeSubProjectNames = new Set(
+      this.subprojects
+        .filter((s) => NodePackageUtils.isNodeProject(s))
+        .map((s) => (s as NodeProject).package.packageName)
+    );
+
+    this.subprojects.forEach((subProject) => {
+      if (NodePackageUtils.isNodeProject(subProject)) {
+        subProject.deps.all
+          .filter((dep) => nodeSubProjectNames.has(dep.name))
+          .forEach((d) => {
+            switch (d.type) {
+              case DependencyType.RUNTIME:
+                subProject.addDeps(`${d.name}@workspace:*`);
+                break;
+              case DependencyType.BUILD:
+                subProject.addDevDeps(`${d.name}@workspace:*`);
+                break;
+              case DependencyType.PEER:
+                subProject.addPeerDeps(`${d.name}@workspace:*`);
+                break;
+              default:
+                console.warn(
+                  `Cannot update local dependency due to unsupported type: ${d.type}`
+                );
+            }
+          });
+      }
+    });
+  }
 }
 
 /**
diff --git a/packages/pdk/_scripts/exec-command.js b/packages/pdk/_scripts/exec-command.js
index 62634b0f0..1e8780dbb 100755
--- a/packages/pdk/_scripts/exec-command.js
+++ b/packages/pdk/_scripts/exec-command.js
@@ -6,6 +6,7 @@ const { sync } = require("find-up");
 
 process.argv.splice(0, 2);
 const isSynth = process.argv.filter(p => !p.startsWith("--")).length === 0;
+const isInstall = process.argv[0] === "install";
 
 if (process.argv[0] == "new") {
   execa.commandSync(`npx --yes projen@latest new --from @aws/pdk ${process.argv.slice(1).join(" ")}`, { stdio: "inherit" });
@@ -27,7 +28,7 @@ const engines = JSON.parse(
 ).engines;
 
 if (engines) {
-  let pkgMgrCmd = engines.pnpm ? "pnpm" : engines.yarn ? "yarn" : engines.bun ? "bun" : "npm run";
+  let pkgMgrCmd = engines.pnpm ? "pnpm" : engines.yarn ? "yarn" : engines.bun ? `bun${isInstall ? '' : ' run'}` : "npm run";
 
   // Deploy is a pnpm command, but it's more likely users want to run the deploy task
   if (engines.pnpm && process.argv[0] === "deploy") {