diff --git a/src/ini.zig b/src/ini.zig
index bcdb70e16b4d6..96229711f4c22 100644
--- a/src/ini.zig
+++ b/src/ini.zig
@@ -574,7 +574,7 @@ pub const IniTestingAPIs = struct {
 
         const install = allocator.create(bun.Schema.Api.BunInstall) catch bun.outOfMemory();
         install.* = std.mem.zeroes(bun.Schema.Api.BunInstall);
-        loadNpmrc(allocator, install, env, false, &log, &source) catch {
+        loadNpmrc(allocator, install, env, false, ".npmrc", &log, &source) catch {
             return log.toJS(globalThis, allocator, "error");
         };
 
@@ -878,35 +878,36 @@ pub fn loadNpmrcFromFile(
     install: *bun.Schema.Api.BunInstall,
     env: *bun.DotEnv.Loader,
     auto_loaded: bool,
+    npmrc_path: [:0]const u8,
 ) void {
     var log = bun.logger.Log.init(allocator);
     defer log.deinit();
-    const npmrc_file = switch (bun.sys.openat(bun.FD.cwd(), ".npmrc", bun.O.RDONLY, 0)) {
+    const npmrc_file = switch (bun.sys.openat(bun.FD.cwd(), npmrc_path, bun.O.RDONLY, 0)) {
         .result => |fd| fd,
         .err => |err| {
             if (auto_loaded) return;
             Output.prettyErrorln("{}\nwhile opening .npmrc \"{s}\"", .{
                 err,
-                ".npmrc",
+                npmrc_path,
             });
             Global.exit(1);
         },
     };
     defer _ = bun.sys.close(npmrc_file);
 
-    const source = switch (bun.sys.File.toSource(".npmrc", allocator)) {
+    const source = switch (bun.sys.File.toSource(npmrc_path, allocator)) {
         .result => |s| s,
         .err => |e| {
             Output.prettyErrorln("{}\nwhile reading .npmrc \"{s}\"", .{
                 e,
-                ".npmrc",
+                npmrc_path,
             });
             Global.exit(1);
         },
     };
     defer allocator.free(source.contents);
 
-    loadNpmrc(allocator, install, env, auto_loaded, &log, &source) catch {
+    loadNpmrc(allocator, install, env, auto_loaded, npmrc_path, &log, &source) catch {
         if (log.errors == 1)
             Output.warn("Encountered an error while reading <b>.npmrc<r>:\n", .{})
         else
@@ -920,10 +921,11 @@ pub fn loadNpmrc(
     install: *bun.Schema.Api.BunInstall,
     env: *bun.DotEnv.Loader,
     auto_loaded: bool,
+    npmrc_path: [:0]const u8,
     log: *bun.logger.Log,
     source: *const bun.logger.Source,
 ) !void {
-    var parser = bun.ini.Parser.init(allocator, ".npmrc", source.contents, env);
+    var parser = bun.ini.Parser.init(allocator, npmrc_path, source.contents, env);
     defer parser.deinit();
     parser.parse(parser.arena.allocator()) catch |e| {
         if (e == error.ParserError) {
@@ -933,13 +935,13 @@ pub fn loadNpmrc(
         if (auto_loaded) {
             Output.warn("{}\nwhile reading .npmrc \"{s}\"", .{
                 e,
-                ".npmrc",
+                npmrc_path,
             });
             return;
         }
         Output.prettyErrorln("{}\nwhile reading .npmrc \"{s}\"", .{
             e,
-            ".npmrc",
+            npmrc_path,
         });
         Global.exit(1);
     };
diff --git a/src/install/install.zig b/src/install/install.zig
index e49e57fcfa385..72efc9d97bdfa 100644
--- a/src/install/install.zig
+++ b/src/install/install.zig
@@ -8492,6 +8492,31 @@ pub const PackageManager = struct {
         try env.load(entries_option.entries, &[_][]u8{}, .production, false);
 
         initializeStore();
+        if (bun.getenvZ("XDG_CONFIG_HOME") orelse bun.getenvZ(bun.DotEnv.home_env)) |data_dir| {
+            var buf: bun.PathBuffer = undefined;
+            var parts = [_]string{
+                "./.npmrc",
+            };
+
+            bun.ini.loadNpmrcFromFile(
+                ctx.allocator,
+                ctx.install orelse brk: {
+                    const install_ = ctx.allocator.create(Api.BunInstall) catch bun.outOfMemory();
+                    install_.* = std.mem.zeroes(Api.BunInstall);
+                    ctx.install = install_;
+                    break :brk install_;
+                },
+                env,
+                true,
+                Path.joinAbsStringBufZ(
+                    data_dir,
+                    &buf,
+                    &parts,
+                    .auto,
+                ),
+            );
+        }
+
         bun.ini.loadNpmrcFromFile(
             ctx.allocator,
             ctx.install orelse brk: {
@@ -8502,6 +8527,7 @@ pub const PackageManager = struct {
             },
             env,
             true,
+            ".npmrc",
         );
 
         var cpu_count = @as(u32, @truncate(((try std.Thread.getCpuCount()) + 1)));
diff --git a/test/cli/install/registry/bun-install-registry.test.ts b/test/cli/install/registry/bun-install-registry.test.ts
index e33965d1a6e1a..75254b29c5c68 100644
--- a/test/cli/install/registry/bun-install-registry.test.ts
+++ b/test/cli/install/registry/bun-install-registry.test.ts
@@ -189,6 +189,97 @@ registry = http://localhost:${port}/
     await Bun.$`${bunExe()} install`.cwd(packageDir).throws(true);
   });
 
+  it("works with home config", async () => {
+    console.log("package dir", packageDir);
+    await Bun.$`rm -rf ${packageDir}/bunfig.toml`;
+
+    const homeDir = `${packageDir}/home_dir`;
+    await Bun.$`mkdir -p ${homeDir}`;
+    console.log("home dir", homeDir);
+
+    const ini = /* ini */ `
+  registry=http://localhost:${port}/
+  `;
+
+    await Bun.$`echo ${ini} > ${homeDir}/.npmrc`;
+    await Bun.$`echo ${JSON.stringify({
+      name: "foo",
+      dependencies: {
+        "no-deps": "1.0.0",
+      },
+    })} > package.json`.cwd(packageDir);
+    await Bun.$`${bunExe()} install`
+      .env({
+        ...process.env,
+        XDG_CONFIG_HOME: `${homeDir}`,
+      })
+      .cwd(packageDir)
+      .throws(true);
+  });
+
+  it("works with two configs", async () => {
+    await Bun.$`rm -rf ${packageDir}/bunfig.toml`;
+
+    console.log("package dir", packageDir);
+    const packageIni = /* ini */ `
+  @types:registry=http://localhost:${port}/
+  `;
+    await Bun.$`echo ${packageIni} > ${packageDir}/.npmrc`;
+
+    const homeDir = `${packageDir}/home_dir`;
+    await Bun.$`mkdir -p ${homeDir}`;
+    console.log("home dir", homeDir);
+    const homeIni = /* ini */ `
+    registry = http://localhost:${port}/
+    `;
+    await Bun.$`echo ${homeIni} > ${homeDir}/.npmrc`;
+
+    await Bun.$`echo ${JSON.stringify({
+      name: "foo",
+      dependencies: {
+        "no-deps": "1.0.0",
+        "@types/no-deps": "1.0.0",
+      },
+    })} > package.json`.cwd(packageDir);
+    await Bun.$`${bunExe()} install`
+      .env({
+        ...process.env,
+        XDG_CONFIG_HOME: `${homeDir}`,
+      })
+      .cwd(packageDir)
+      .throws(true);
+  });
+
+  it("package config overrides home config", async () => {
+    await Bun.$`rm -rf ${packageDir}/bunfig.toml`;
+
+    console.log("package dir", packageDir);
+    const packageIni = /* ini */ `
+  @types:registry=http://localhost:${port}/
+  `;
+    await Bun.$`echo ${packageIni} > ${packageDir}/.npmrc`;
+
+    const homeDir = `${packageDir}/home_dir`;
+    await Bun.$`mkdir -p ${homeDir}`;
+    console.log("home dir", homeDir);
+    const homeIni = /* ini */ "@types:registry=https://registry.npmjs.org/";
+    await Bun.$`echo ${homeIni} > ${homeDir}/.npmrc`;
+
+    await Bun.$`echo ${JSON.stringify({
+      name: "foo",
+      dependencies: {
+        "@types/no-deps": "1.0.0",
+      },
+    })} > package.json`.cwd(packageDir);
+    await Bun.$`${bunExe()} install`
+      .env({
+        ...process.env,
+        XDG_CONFIG_HOME: `${homeDir}`,
+      })
+      .cwd(packageDir)
+      .throws(true);
+  });
+
   it("default registry from env variable", async () => {
     const ini = /* ini */ `
 registry=\${LOL}