3 files changed, 50 insertions, 3 deletions

diff --git a/src/install/extract_tarball.zig b/src/install/extract_tarball.zig
index 2bcad3a53..d0dff72c5 100644
--- a/src/install/extract_tarball.zig
+++ b/src/install/extract_tarball.zig
@@ -374,8 +374,10 @@ fn extract(this: *const ExtractTarball, tgz_bytes: []const u8) !Install.ExtractD
     }
 
     const ret_json_path = try FileSystem.instance.dirname_store.append(@TypeOf(json_path), json_path);
+    const url = try FileSystem.instance.dirname_store.append(@TypeOf(this.url.slice()), this.url.slice());
+
     return .{
-        .url = this.url.slice(),
+        .url = url,
         .resolved = resolved,
         .json_path = ret_json_path,
         .json_buf = json_buf,
diff --git a/src/install/install.zig b/src/install/install.zig
index 7c58190da..131adb00e 100644
--- a/src/install/install.zig
+++ b/src/install/install.zig
@@ -6089,7 +6089,7 @@ pub const PackageManager = struct {
 
                 var value = input;
                 var alias: ?string = null;
-                if (strings.isNPMPackageName(input)) {
+                if (!Dependency.isTarball(input) and strings.isNPMPackageName(input)) {
                     alias = input;
                     value = input[input.len..];
                 } else if (input.len > 1) {
diff --git a/test/cli/install/bun-add.test.ts b/test/cli/install/bun-add.test.ts
index eff7fa843..3e3e919c3 100644
--- a/test/cli/install/bun-add.test.ts
+++ b/test/cli/install/bun-add.test.ts
@@ -1,7 +1,7 @@
 import { file, spawn } from "bun";
 import { afterAll, afterEach, beforeAll, beforeEach, expect, it } from "bun:test";
 import { bunExe, bunEnv as env } from "harness";
-import { access, mkdir, mkdtemp, readlink, realpath, rm, writeFile } from "fs/promises";
+import { access, mkdir, mkdtemp, readlink, realpath, rm, writeFile, copyFile } from "fs/promises";
 import { join, relative } from "path";
 import { tmpdir } from "os";
 import {
@@ -1627,3 +1627,48 @@ it("should add dependency alongside peerDependencies", async () => {
   });
   await access(join(package_dir, "bun.lockb"));
 });
+
+it("should add local tarball dependency", async () => {
+  const urls: string[] = [];
+  setHandler(dummyRegistry(urls));
+  await writeFile(
+    join(package_dir, "package.json"),
+    JSON.stringify({
+      name: "foo",
+      version: "0.0.1",
+    }),
+  );
+  const tarball = "baz-0.0.3.tgz";
+  const absolutePath = join(__dirname, tarball);
+  await copyFile(absolutePath, join(package_dir, tarball));
+  const { stdout, stderr, exited } = spawn({
+    cmd: [bunExe(), "add", tarball],
+    cwd: package_dir,
+    stdout: null,
+    stdin: "pipe",
+    stderr: "pipe",
+    env,
+  });
+  expect(stderr).toBeDefined();
+  const err = await new Response(stderr).text();
+  expect(err).toContain("Saved lockfile");
+  expect(stdout).toBeDefined();
+  const out = await new Response(stdout).text();
+  expect(out.replace(/\s*\[[0-9\.]+m?s\]\s*$/, "").split(/\r?\n/)).toEqual([
+    "",
+    " installed baz@baz-0.0.3.tgz with binaries:",
+    "  - baz-run",
+    "",
+    "",
+    " 1 packages installed",
+  ]);
+  expect(await exited).toBe(0);
+  expect(urls.sort()).toBeEmpty();
+  expect(requested).toBe(0);
+  expect(await readdirSorted(join(package_dir, "node_modules", "baz"))).toEqual(["index.js", "package.json"]);
+  const package_json = await file(join(package_dir, "node_modules", "baz", "package.json")).json();
+  expect(package_json.name).toBe("baz");
+  expect(package_json.version).toBe("0.0.3");
+  expect(await file(join(package_dir, "package.json")).text()).toInclude('"baz-0.0.3.tgz"'),
+    await access(join(package_dir, "bun.lockb"));
+});