diff --git a/libraries/rush-lib/src/logic/installManager/WorkspaceInstallManager.ts b/libraries/rush-lib/src/logic/installManager/WorkspaceInstallManager.ts
index 97b1cf4c5d..b7e0b53b6b 100644
--- a/libraries/rush-lib/src/logic/installManager/WorkspaceInstallManager.ts
+++ b/libraries/rush-lib/src/logic/installManager/WorkspaceInstallManager.ts
@@ -228,9 +228,9 @@ export class WorkspaceInstallManager extends BaseInstallManager {
 
         // If we enable disableCrossSubspaceChecking, it will only check dependencies within the subspace.
         if (this.rushConfiguration.experimentsConfiguration.configuration.disableCrossSubspaceChecking) {
-          referencedLocalProject = subspace
-            .getProjects()
-            .filter((project) => project.packageName === name)[0];
+          if (referencedLocalProject && subspace.contains(referencedLocalProject)) {
+            referencedLocalProject = undefined;
+          }
         }
 
         // Validate that local projects are referenced with workspace notation. If not, and it is not a