diff --git a/.changeset/seven-cooks-drop.md b/.changeset/seven-cooks-drop.md
new file mode 100644
index 0000000000000..77cb50af056cc
--- /dev/null
+++ b/.changeset/seven-cooks-drop.md
@@ -0,0 +1,6 @@
+---
+"@medusajs/medusa": patch
+"@medusajs/framework": patch
+---
+
+fix: Flaky behavior of Yalc
diff --git a/packages/core/framework/src/build-tools/compiler.ts b/packages/core/framework/src/build-tools/compiler.ts
index fe1d254f328fe..a0f821eb204bb 100644
--- a/packages/core/framework/src/build-tools/compiler.ts
+++ b/packages/core/framework/src/build-tools/compiler.ts
@@ -1,7 +1,7 @@
 import path from "path"
 import { getConfigFile } from "@medusajs/utils"
 import type { AdminOptions, ConfigModule, Logger } from "@medusajs/types"
-import { rm, access, constants, copyFile, writeFile } from "fs/promises"
+import { rm, access, constants, copyFile, writeFile, mkdir } from "fs/promises"
 import type tsStatic from "typescript"
 
 /**
@@ -140,6 +140,16 @@ export class Compiler {
     await rm(path, { recursive: true }).catch(() => {})
   }
 
+  /**
+   * Ensures a directory exists
+   */
+  async #ensureDir(path: string, clean?: boolean) {
+    if (clean) {
+      await this.#clean(path)
+    }
+    await mkdir(path, { recursive: true })
+  }
+
   /**
    * Loads the medusa config file and prints the error to
    * the console (in case of any errors). Otherwise, the
@@ -463,6 +473,7 @@ export class Compiler {
    * a file has changed.
    */
   async developPluginBackend(onFileChange?: () => void) {
+    await this.#ensureDir(this.#pluginsDistFolder, true)
     await this.#createPluginOptionsFile()
     const ts = await this.#loadTSCompiler()
 
diff --git a/packages/medusa/src/commands/plugin/develop.ts b/packages/medusa/src/commands/plugin/develop.ts
index 91eb1d1af574b..623d8a64a9d32 100644
--- a/packages/medusa/src/commands/plugin/develop.ts
+++ b/packages/medusa/src/commands/plugin/develop.ts
@@ -1,4 +1,5 @@
-import * as yalc from "yalc"
+import path from "path"
+import { execFile } from "child_process"
 import { logger } from "@medusajs/framework/logger"
 import { Compiler } from "@medusajs/framework/build-tools"
 
@@ -7,13 +8,43 @@ export default async function developPlugin({
 }: {
   directory: string
 }) {
+  let isBusy = false
   const compiler = new Compiler(directory, logger)
+  const yalcBin = path.join(path.dirname(require.resolve("yalc")), "yalc.js")
+
   await compiler.developPluginBackend(async () => {
-    await yalc.publishPackage({
-      push: true,
-      workingDir: directory,
-      changed: true,
-      replace: true,
-    })
+    /**
+     * Here we avoid multiple publish calls when the filesystem is
+     * changed too quickly. This might result in stale content in
+     * some edge cases. However, not preventing multiple publishes
+     * at the same time will result in race conditions and the old
+     * output might appear in the published package.
+     */
+    if (isBusy) {
+      return
+    }
+    isBusy = true
+
+    /**
+     * Yalc is meant to be used a binary and not as a long-lived
+     * module import. Therefore we will have to execute it like
+     * a command to get desired outcome. Otherwise, yalc behaves
+     * flaky.
+     */
+    execFile(
+      yalcBin,
+      ["publish", "--push", "--no-scripts"],
+      {
+        cwd: directory,
+      },
+      (error, stdout, stderr) => {
+        isBusy = false
+        if (error) {
+          console.log(error)
+        }
+        console.log(stdout)
+        console.error(stderr)
+      }
+    )
   })
 }