diff --git a/packages/kbn-pm/dist/index.js b/packages/kbn-pm/dist/index.js
index 15ea3b68f1182..314bcf31e6d05 100644
--- a/packages/kbn-pm/dist/index.js
+++ b/packages/kbn-pm/dist/index.js
@@ -110627,7 +110627,9 @@ __webpack_require__.r(__webpack_exports__);
  * to Kibana itself.
  */
 
-const isKibanaDep = depVersion => depVersion.includes('../../packages/');
+const isKibanaDep = depVersion => // For ../kibana-extra/ directory (legacy only)
+depVersion.includes('../../kibana/packages/') || // For plugins/ directory
+depVersion.includes('../../packages/');
 /**
  * This prepares the dependencies for an _external_ project.
  */
diff --git a/packages/kbn-pm/src/production/prepare_project_dependencies.ts b/packages/kbn-pm/src/production/prepare_project_dependencies.ts
index af0575b95e51a..9817770166480 100644
--- a/packages/kbn-pm/src/production/prepare_project_dependencies.ts
+++ b/packages/kbn-pm/src/production/prepare_project_dependencies.ts
@@ -25,7 +25,11 @@ import { Project } from '../utils/project';
  * to the Kibana root directory or `../kibana-extra/{plugin}` relative
  * to Kibana itself.
  */
-const isKibanaDep = (depVersion: string) => depVersion.includes('../../packages/');
+const isKibanaDep = (depVersion: string) =>
+  // For ../kibana-extra/ directory (legacy only)
+  depVersion.includes('../../kibana/packages/') ||
+  // For plugins/ directory
+  depVersion.includes('../../packages/');
 
 /**
  * This prepares the dependencies for an _external_ project.