diff --git a/smoke-tests/test/install-links.js b/smoke-tests/test/install-links.js
new file mode 100644
index 0000000000000..4ae659f51ea66
--- /dev/null
+++ b/smoke-tests/test/install-links.js
@@ -0,0 +1,52 @@
+const t = require('tap')
+const { join } = require('path')
+const setup = require('./fixtures/setup.js')
+
+t.test('workspaces + file deps + non-deduping abbrev', async t => {
+  const abbrevs = ['1.0.3', '1.0.4', '1.0.5', '1.0.6']
+
+  const { npm, registry, paths } = await setup(t, {
+    debug: true,
+    testdir: {
+      a: {
+        'package.json': { name: 'a', dependencies: { abbrev: abbrevs[0], b: 'file:./b' } },
+      },
+      b: {
+        'package.json': { name: 'b', dependencies: { abbrev: abbrevs[1] } },
+      },
+      packages: abbrevs.reduce((acc, v) => {
+        acc[`abbrev-${v}`] = { 'package.json': { name: 'abbrev', version: v } }
+        return acc
+      }, {}),
+    },
+  })
+
+  await npm('init', '-y')
+  await npm('init', '-y', '--workspace=workspaces/ws-a')
+  await npm('init', '-y', '--workspace=workspaces/ws-b')
+
+  // set root deps
+  await npm('pkg', 'set', `dependencies.ws-a=1.0.0`)
+  await npm('pkg', 'set', `dependencies.a=file:../a`)
+
+  // set workspace a deps
+  await npm('pkg', 'set', `dependencies.abbrev=${abbrevs[2]}`, '--workspace=ws-a')
+  await npm('pkg', 'set', `dependencies.ws-b=1.0.0`, '--workspace=ws-a')
+
+  // set workspace b deps
+  await npm('pkg', 'set', `dependencies.abbrev=${abbrevs[3]}`, '--workspace=ws-b')
+
+  await registry.package({
+    manifest: registry.manifest({ name: 'abbrev', versions: abbrevs }),
+    tarballs: abbrevs.reduce((acc, v) => {
+      acc[v] = join(paths.root, 'packages', `abbrev-${v}`)
+      return acc
+    }, {}),
+    times: 2,
+
+  })
+
+  // this should not fail and all 4 abbrevs should get installed
+  // with no mocks remaining
+  await npm('install', '--install-links=true')
+})
diff --git a/workspaces/arborist/lib/arborist/build-ideal-tree.js b/workspaces/arborist/lib/arborist/build-ideal-tree.js
index afcb67903da6d..6c4401f8fd2c8 100644
--- a/workspaces/arborist/lib/arborist/build-ideal-tree.js
+++ b/workspaces/arborist/lib/arborist/build-ideal-tree.js
@@ -28,6 +28,7 @@ const Shrinkwrap = require('../shrinkwrap.js')
 const { defaultLockfileVersion } = Shrinkwrap
 const Node = require('../node.js')
 const Link = require('../link.js')
+const Edge = require('../edge.js')
 const addRmPkgDeps = require('../add-rm-pkg-deps.js')
 const optionalSet = require('../optional-set.js')
 const { checkEngine, checkPlatform } = require('npm-install-checks')
@@ -1045,14 +1046,18 @@ This is a one-time fix-up, please be patient...
   // loads a node from an edge, and then loads its peer deps (and their
   // peer deps, on down the line) into a virtual root parent.
   async [_nodeFromEdge] (edge, parent_, secondEdge, required) {
+    let from = edge.from
+    if (from.installLinks && from.linksIn.size) {
+      from = from.linksIn.values().next().value
+    }
     // create a virtual root node with the same deps as the node that
     // is requesting this one, so that we can get all the peer deps in
     // a context where they're likely to be resolvable.
     // Note that the virtual root will also have virtual copies of the
     // targets of any child Links, so that they resolve appropriately.
-    const parent = parent_ || this[_virtualRoot](edge.from)
+    const parent = parent_ || this[_virtualRoot](from)
 
-    const spec = npa.resolve(edge.name, edge.spec, edge.from.path)
+    const spec = npa.resolve(edge.name, edge.spec, from.path)
     const first = await this[_nodeFromSpec](edge.name, spec, parent, edge)
 
     // we might have a case where the parent has a peer dependency on
@@ -1110,11 +1115,10 @@ This is a one-time fix-up, please be patient...
       legacyPeerDeps: this.legacyPeerDeps,
       overrides: node.overrides,
     })
-
     // also need to set up any targets from any link deps, so that
     // they are properly reflected in the virtual environment
     for (const child of node.children.values()) {
-      if (child.isLink) {
+      if (child.isLink && (child.isWorkspace || !child.installLinks)) {
         new Node({
           path: child.realpath,
           sourceReference: child.target,
@@ -1228,8 +1232,8 @@ This is a one-time fix-up, please be patient...
     const isWorkspace = this.idealTree.workspaces && this.idealTree.workspaces.has(spec.name)
 
     // spec is a directory, link it unless installLinks is set or it's a workspace
-    if (spec.type === 'directory' && (isWorkspace || !installLinks)) {
-      return this[_linkFromSpec](name, spec, parent, edge)
+    if (spec.type === 'directory') {
+      return this[_linkFromSpec](name, spec, parent)
     }
 
     // if the spec matches a workspace name, then see if the workspace node will
@@ -1263,7 +1267,7 @@ This is a one-time fix-up, please be patient...
       })
   }
 
-  [_linkFromSpec] (name, spec, parent, edge) {
+  [_linkFromSpec] (name, spec, parent) {
     const realpath = spec.fetchSpec
     const { installLinks, legacyPeerDeps } = this
     return rpj(realpath + '/package.json').catch(() => ({})).then(pkg => {
@@ -1410,6 +1414,29 @@ This is a one-time fix-up, please be patient...
         continue
       }
 
+      // XXX: maybe we need to replace the link with its target
+      // at this stage so it gets treated as a regular node at
+      // reified correctly inside node_modules?
+      // if (link.installLinks && !link.isWorkspace) {
+      //   // console.log(link)edg
+      //   // console.log(link.name)
+      //   // console.log(link.parent)
+      //   // console.log(link.path)
+      //   // console.log(link.realpath)
+      //   // console.log(link.pkg)
+      //   const target = link.target
+      //   link.replaceWith(target)
+      //   this.addTracker('idealTree', target.name, target.location)
+      //   this[_depsQueue].push(target)
+      //   continue
+      // }
+      // if installLinks is set then we want to install deps no matter what
+      if (link.installLinks) {
+        this.addTracker('idealTree', link.target.name, link.target.location)
+        this[_depsQueue].push(link.target)
+        continue
+      }
+
       const tree = this.idealTree.target
       const external = !link.target.isDescendantOf(tree)
 
diff --git a/workspaces/arborist/lib/arborist/reify.js b/workspaces/arborist/lib/arborist/reify.js
index c3cbf02b31080..526d84d2c2e4c 100644
--- a/workspaces/arborist/lib/arborist/reify.js
+++ b/workspaces/arborist/lib/arborist/reify.js
@@ -668,7 +668,7 @@ module.exports = cls => class Reifier extends cls {
     const nm = resolve(node.parent.path, 'node_modules')
     await this[_validateNodeModules](nm)
 
-    if (node.isLink) {
+    if (node.isLink && (node.isWorkspace || !node.installLinks)) {
       await rm(node.path, { recursive: true, force: true })
       await this[_symlink](node)
     } else {
@@ -687,6 +687,7 @@ module.exports = cls => class Reifier extends cls {
         Arborist: this.constructor,
         resolved: node.resolved,
         integrity: node.integrity,
+        where: dirname(node.path),
       })
     }
   }
diff --git a/workspaces/arborist/lib/dep-valid.js b/workspaces/arborist/lib/dep-valid.js
index 9c1bc7d3f23e9..4d2d9d0fe8d5f 100644
--- a/workspaces/arborist/lib/dep-valid.js
+++ b/workspaces/arborist/lib/dep-valid.js
@@ -108,6 +108,7 @@ const depValid = (child, requested, requestor) => {
 
 const linkValid = (child, requested, requestor) => {
   const isLink = !!child.isLink
+  
   // if we're installing links and the node is a link, then it's invalid because we want
   // a real node to be there.  Except for workspaces. They are always links.
   if (requestor.installLinks && !child.isWorkspace) {
diff --git a/workspaces/arborist/lib/diff.js b/workspaces/arborist/lib/diff.js
index 0387773c29754..8a597f2c9e531 100644
--- a/workspaces/arborist/lib/diff.js
+++ b/workspaces/arborist/lib/diff.js
@@ -6,7 +6,7 @@
 // for a given branch of the tree being mutated.
 
 const { depth } = require('treeverse')
-const { existsSync } = require('fs')
+const { existsSync, lstatSync } = require('fs')
 
 const ssri = require('ssri')
 
@@ -114,6 +114,21 @@ const getAction = ({ actual, ideal }) => {
     return ideal.inDepBundle ? null : 'ADD'
   }
 
+  if (actual.isLink) {
+    let stat
+    try {
+      stat = lstatSync(actual.path)
+    } catch {}
+
+    if (stat) {
+      if (ideal.installLinks && stat.isSymbolicLink()) {
+        return 'CHANGE'
+      } else if (!ideal.installLinks && !stat.isSymbolicLink()) {
+        return 'CHANGE'
+      }
+    }
+  }
+
   // always ignore the root node
   if (ideal.isRoot && actual.isRoot) {
     return null