diff --git a/.gitignore b/.gitignore
index a36d0955..3e40daae 100644
--- a/.gitignore
+++ b/.gitignore
@@ -3,6 +3,7 @@
 npm-debug.log
 node_modules
 !test/fixtures/**/node_modules
+**/.netlify/edge-functions-serve
 /core
 .eslintcache
 .npmrc
diff --git a/node/bundler.test.ts b/node/bundler.test.ts
index 8e6347be..1156501f 100644
--- a/node/bundler.test.ts
+++ b/node/bundler.test.ts
@@ -472,6 +472,44 @@ test('Loads npm modules from bare specifiers', async () => {
   await rm(vendorDirectory.path, { force: true, recursive: true })
 })
 
+test('Loads npm modules in a monorepo setup', async () => {
+  const systemLogger = vi.fn()
+  const { basePath: rootPath, cleanup, distPath } = await useFixture('monorepo_npm_module')
+  const basePath = join(rootPath, 'packages', 'frontend')
+  const sourceDirectory = join(basePath, 'functions')
+  const declarations: Declaration[] = [
+    {
+      function: 'func1',
+      path: '/func1',
+    },
+  ]
+  const vendorDirectory = await tmp.dir()
+
+  await bundle([sourceDirectory], distPath, declarations, {
+    basePath,
+    importMapPaths: [join(basePath, 'import_map.json')],
+    rootPath,
+    vendorDirectory: vendorDirectory.path,
+    systemLogger,
+  })
+
+  expect(
+    systemLogger.mock.calls.find((call) => call[0] === 'Could not track dependencies in edge function:'),
+  ).toBeUndefined()
+
+  const manifestFile = await readFile(resolve(distPath, 'manifest.json'), 'utf8')
+  const manifest = JSON.parse(manifestFile)
+  const bundlePath = join(distPath, manifest.bundles[0].asset)
+  const { func1 } = await runESZIP(bundlePath, vendorDirectory.path)
+
+  expect(func1).toBe(
+    `<parent-1><child-1>JavaScript</child-1></parent-1>, <parent-2><child-2><grandchild-1>APIs<cwd>${process.cwd()}</cwd></grandchild-1></child-2></parent-2>, <parent-3><child-2><grandchild-1>Markup<cwd>${process.cwd()}</cwd></grandchild-1></child-2></parent-3>`,
+  )
+
+  await cleanup()
+  await rm(vendorDirectory.path, { force: true, recursive: true })
+})
+
 test('Loads JSON modules', async () => {
   const { basePath, cleanup, distPath } = await useFixture('imports_json')
   const sourceDirectory = join(basePath, 'functions')
diff --git a/node/bundler.ts b/node/bundler.ts
index 6a75d521..cc8dc653 100644
--- a/node/bundler.ts
+++ b/node/bundler.ts
@@ -33,6 +33,7 @@ export interface BundleOptions {
   internalSrcFolder?: string
   onAfterDownload?: OnAfterDownloadHook
   onBeforeDownload?: OnBeforeDownloadHook
+  rootPath?: string
   systemLogger?: LogFunction
   userLogger?: LogFunction
   vendorDirectory?: string
@@ -53,6 +54,7 @@ export const bundle = async (
     internalSrcFolder,
     onAfterDownload,
     onBeforeDownload,
+    rootPath,
     userLogger,
     systemLogger,
     vendorDirectory,
@@ -105,6 +107,7 @@ export const bundle = async (
     functions,
     importMap,
     logger,
+    rootPath: rootPath ?? basePath,
     vendorDirectory,
   })
 
@@ -250,6 +253,7 @@ interface VendorNPMOptions {
   functions: EdgeFunction[]
   importMap: ImportMap
   logger: Logger
+  rootPath: string
   vendorDirectory: string | undefined
 }
 
@@ -258,6 +262,7 @@ const safelyVendorNPMSpecifiers = async ({
   functions,
   importMap,
   logger,
+  rootPath,
   vendorDirectory,
 }: VendorNPMOptions) => {
   try {
@@ -268,6 +273,7 @@ const safelyVendorNPMSpecifiers = async ({
       importMap,
       logger,
       referenceTypes: false,
+      rootPath,
     })
   } catch (error) {
     logger.system(error)
diff --git a/node/npm_dependencies.ts b/node/npm_dependencies.ts
index 419b3389..b69a0b2b 100644
--- a/node/npm_dependencies.ts
+++ b/node/npm_dependencies.ts
@@ -12,6 +12,7 @@ import tmp from 'tmp-promise'
 
 import { ImportMap } from './import_map.js'
 import { Logger } from './logger.js'
+import { pathsBetween } from './utils/fs.js'
 
 const TYPESCRIPT_EXTENSIONS = new Set(['.ts', '.cts', '.mts'])
 
@@ -89,24 +90,29 @@ const banner = {
   `,
 }
 
+interface GetNPMSpecifiersOptions {
+  basePath: string
+  functions: string[]
+  importMap: ParsedImportMap
+  referenceTypes: boolean
+  rootPath: string
+}
+
 /**
  * Parses a set of functions and returns a list of specifiers that correspond
  * to npm modules.
- *
- * @param basePath Root of the project
- * @param functions Functions to parse
- * @param importMap Import map to apply when resolving imports
- * @param referenceTypes Whether to detect typescript declarations and reference them in the output
  */
-const getNPMSpecifiers = async (
-  basePath: string,
-  functions: string[],
-  importMap: ParsedImportMap,
-  referenceTypes: boolean,
-) => {
+const getNPMSpecifiers = async ({
+  basePath,
+  functions,
+  importMap,
+  referenceTypes,
+  rootPath,
+}: GetNPMSpecifiersOptions) => {
   const baseURL = pathToFileURL(basePath)
   const { reasons } = await nodeFileTrace(functions, {
-    base: basePath,
+    base: rootPath,
+    processCwd: basePath,
     readFile: async (filePath: string) => {
       // If this is a TypeScript file, we need to compile in before we can
       // parse it.
@@ -203,6 +209,7 @@ interface VendorNPMSpecifiersOptions {
   importMap: ImportMap
   logger: Logger
   referenceTypes: boolean
+  rootPath?: string
 }
 
 export const vendorNPMSpecifiers = async ({
@@ -211,24 +218,26 @@ export const vendorNPMSpecifiers = async ({
   functions,
   importMap,
   referenceTypes,
+  rootPath = basePath,
 }: VendorNPMSpecifiersOptions) => {
   // The directories that esbuild will use when resolving Node modules. We must
   // set these manually because esbuild will be operating from a temporary
   // directory that will not live inside the project root, so the normal
   // resolution logic won't work.
-  const nodePaths = [path.join(basePath, 'node_modules')]
+  const nodePaths = pathsBetween(basePath, rootPath).map((directory) => path.join(directory, 'node_modules'))
 
   // We need to create some files on disk, which we don't want to write to the
   // project directory. If a custom directory has been specified, we use it.
   // Otherwise, create a random temporary directory.
   const temporaryDirectory = directory ? { path: directory } : await tmp.dir()
 
-  const { npmSpecifiers, npmSpecifiersWithExtraneousFiles } = await getNPMSpecifiers(
+  const { npmSpecifiers, npmSpecifiersWithExtraneousFiles } = await getNPMSpecifiers({
     basePath,
     functions,
-    importMap.getContentsWithURLObjects(),
+    importMap: importMap.getContentsWithURLObjects(),
     referenceTypes,
-  )
+    rootPath,
+  })
 
   // If we found no specifiers, there's nothing left to do here.
   if (Object.keys(npmSpecifiers).length === 0) {
diff --git a/node/server/server.test.ts b/node/server/server.test.ts
index 5367f034..cfafc2ab 100644
--- a/node/server/server.test.ts
+++ b/node/server/server.test.ts
@@ -1,5 +1,6 @@
 import { readFile } from 'fs/promises'
 import { join } from 'path'
+import process from 'process'
 
 import getPort from 'get-port'
 import fetch from 'node-fetch'
@@ -105,3 +106,65 @@ test('Starts a server and serves requests for edge functions', async () => {
     `/// <reference types="${join('..', '..', 'node_modules', '@types', 'pt-committee__identidade', 'index.d.ts')}" />`,
   )
 })
+
+test('Serves edge functions in a monorepo setup', async () => {
+  const rootPath = join(fixturesDir, 'monorepo_npm_module')
+  const basePath = join(rootPath, 'packages', 'frontend')
+  const paths = {
+    user: join(basePath, 'functions'),
+  }
+  const port = await getPort()
+  const importMapPaths = [join(basePath, 'import_map.json')]
+  const servePath = join(basePath, '.netlify', 'edge-functions-serve')
+  const server = await serve({
+    basePath,
+    bootstrapURL: 'https://edge.netlify.com/bootstrap/index-combined.ts',
+    importMapPaths,
+    port,
+    rootPath,
+    servePath,
+  })
+
+  const functions = [
+    {
+      name: 'func1',
+      path: join(paths.user, 'func1.ts'),
+    },
+  ]
+  const options = {
+    getFunctionsConfig: true,
+  }
+
+  const { features, functionsConfig, graph, success, npmSpecifiersWithExtraneousFiles } = await server(
+    functions,
+    {
+      very_secret_secret: 'i love netlify',
+    },
+    options,
+  )
+  expect(features).toEqual({ npmModules: true })
+  expect(success).toBe(true)
+  expect(functionsConfig).toEqual([{ path: '/func1' }])
+  expect(npmSpecifiersWithExtraneousFiles).toEqual(['child-1'])
+
+  for (const key in functions) {
+    const graphEntry = graph?.modules.some(
+      // @ts-expect-error TODO: Module graph is currently not typed
+      ({ kind, mediaType, local }) => kind === 'esm' && mediaType === 'TypeScript' && local === functions[key].path,
+    )
+
+    expect(graphEntry).toBe(true)
+  }
+
+  const response1 = await fetch(`http://0.0.0.0:${port}/func1`, {
+    headers: {
+      'x-nf-edge-functions': 'func1',
+      'x-ef-passthrough': 'passthrough',
+      'X-NF-Request-ID': uuidv4(),
+    },
+  })
+  expect(response1.status).toBe(200)
+  expect(await response1.text()).toBe(
+    `<parent-1><child-1>JavaScript</child-1></parent-1>, <parent-2><child-2><grandchild-1>APIs<cwd>${process.cwd()}</cwd></grandchild-1></child-2></parent-2>, <parent-3><child-2><grandchild-1>Markup<cwd>${process.cwd()}</cwd></grandchild-1></child-2></parent-3>`,
+  )
+})
diff --git a/node/server/server.ts b/node/server/server.ts
index b036037f..0e103b4f 100644
--- a/node/server/server.ts
+++ b/node/server/server.ts
@@ -29,6 +29,7 @@ interface PrepareServerOptions {
   importMap: ImportMap
   logger: Logger
   port: number
+  rootPath?: string
 }
 
 interface StartServerOptions {
@@ -58,6 +59,7 @@ const prepareServer = ({
   importMap: baseImportMap,
   logger,
   port,
+  rootPath,
 }: PrepareServerOptions) => {
   const processRef: ProcessRef = {}
   const startServer = async (
@@ -94,6 +96,7 @@ const prepareServer = ({
       importMap,
       logger,
       referenceTypes: true,
+      rootPath,
     })
 
     if (vendor) {
@@ -179,27 +182,106 @@ interface ServeOptions {
   formatExportTypeError?: FormatFunction
   formatImportError?: FormatFunction
   port: number
+  rootPath?: string
   servePath: string
   userLogger?: LogFunction
   systemLogger?: LogFunction
 }
 
 export const serve = async ({
+  /**
+   * Path that is common to all functions. Works as the root directory in the
+   * generated bundle.
+   */
   basePath,
+
+  /**
+   * URL of the bootstrap layer to use.
+   */
   bootstrapURL,
+
+  /**
+   * Path to an SSL certificate to run the Deno server with.
+   */
   certificatePath,
+
+  /**
+   * Whether to print verbose information about the server process.
+   */
   debug,
+
+  /**
+   * Path of an import map file to be generated using the built-in specifiers
+   * and any npm modules found during the bundling process.
+   */
   distImportMapPath,
+
+  /**
+   * Debug settings to use with Deno's `--inspect` and `--inspect-brk` flags.
+   */
   inspectSettings,
+
+  /**
+   * Map of feature flags.
+   */
   featureFlags,
+
+  /**
+   * Callback function to be triggered whenever a function has a default export
+   * with the wrong type.
+   */
   formatExportTypeError,
+
+  /**
+   * Callback function to be triggered whenever an error occurs while importing
+   * a function.
+   */
   formatImportError,
+
+  /**
+   * Paths to any additional import map files.
+   */
   importMapPaths = [],
+
+  /**
+   * Callback function to be triggered after the Deno CLI has been downloaded.
+   */
   onAfterDownload,
+
+  /**
+   * Callback function to be triggered before we attempt to download the Deno
+   * CLI.
+   */
   onBeforeDownload,
+
+  /**
+   * Port where the server should listen on.
+   */
   port,
+
+  /**
+   * Root path of the project. Defines a boundary outside of which files or npm
+   * modules cannot be included from. This is usually the same as `basePath`,
+   * with monorepos being the main exception, where `basePath` maps to the
+   * package path and `rootPath` is the repository root.
+   */
+  rootPath,
+
+  /**
+   * Path to write ephemeral files that need to be generated for the server to
+   * operate.
+   */
   servePath,
+
+  /**
+   * Custom logging function to be used for user-facing messages. Defaults to
+   * `console.log`.
+   */
   userLogger,
+
+  /**
+   * Custom logging function to be used for system-level messages.
+   */
   systemLogger,
 }: ServeOptions) => {
   const logger = getLogger(systemLogger, userLogger, debug)
@@ -253,6 +335,7 @@ export const serve = async ({
     importMap,
     logger,
     port,
+    rootPath,
   })
 
   return server
diff --git a/node/utils/fs.ts b/node/utils/fs.ts
new file mode 100644
index 00000000..afff29d4
--- /dev/null
+++ b/node/utils/fs.ts
@@ -0,0 +1,15 @@
+import path from 'path'
+
+/**
+ * Returns all the directories obtained by traversing `inner` and its parents
+ * all the way to `outer`, inclusive.
+ */
+export const pathsBetween = (inner: string, outer: string, paths: string[] = []): string[] => {
+  const parent = path.dirname(inner)
+
+  if (inner === outer || inner === parent) {
+    return [...paths, outer]
+  }
+
+  return [inner, ...pathsBetween(parent, outer)]
+}
diff --git a/test/fixtures/monorepo_npm_module/node_modules/child-1/files/file1.txt b/test/fixtures/monorepo_npm_module/node_modules/child-1/files/file1.txt
new file mode 100644
index 00000000..6dcd8e41
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/child-1/files/file1.txt
@@ -0,0 +1 @@
+One
\ No newline at end of file
diff --git a/test/fixtures/monorepo_npm_module/node_modules/child-1/files/file2.txt b/test/fixtures/monorepo_npm_module/node_modules/child-1/files/file2.txt
new file mode 100644
index 00000000..5673baa5
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/child-1/files/file2.txt
@@ -0,0 +1 @@
+Two
\ No newline at end of file
diff --git a/test/fixtures/monorepo_npm_module/node_modules/child-1/index.js b/test/fixtures/monorepo_npm_module/node_modules/child-1/index.js
new file mode 100644
index 00000000..35544be1
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/child-1/index.js
@@ -0,0 +1,15 @@
+import { readFileSync } from "fs"
+import { join } from "path"
+
+export default (input) => {
+  try {
+    const filePath = input === "one" ? 'file1.txt' : 'file2.txt'
+    const fileContents = readFileSync(join(__dirname, "files", filePath))
+  
+    console.log(fileContents)
+  } catch {
+    // no-op
+  }
+
+  return `<child-1>${input}</child-1>`
+}
\ No newline at end of file
diff --git a/test/fixtures/monorepo_npm_module/node_modules/child-1/package.json b/test/fixtures/monorepo_npm_module/node_modules/child-1/package.json
new file mode 100644
index 00000000..4b3a6414
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/child-1/package.json
@@ -0,0 +1,5 @@
+{
+  "name": "child-1",
+  "version": "1.0.0",
+  "main": "index.js"
+}
\ No newline at end of file
diff --git a/test/fixtures/monorepo_npm_module/node_modules/child-2/index.js b/test/fixtures/monorepo_npm_module/node_modules/child-2/index.js
new file mode 100644
index 00000000..8505c750
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/child-2/index.js
@@ -0,0 +1,3 @@
+import grandchild1 from "grandchild-1"
+
+export default (input) => `<child-2>${grandchild1(input)}</child-2>`
\ No newline at end of file
diff --git a/test/fixtures/monorepo_npm_module/node_modules/child-2/package.json b/test/fixtures/monorepo_npm_module/node_modules/child-2/package.json
new file mode 100644
index 00000000..1e4b084c
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/child-2/package.json
@@ -0,0 +1,8 @@
+{
+  "name": "child-2",
+  "version": "1.0.0",
+  "main": "index.js",
+  "dependencies": {
+    "grandchild-1": "1.0.0"
+  }
+}
\ No newline at end of file
diff --git a/test/fixtures/monorepo_npm_module/node_modules/grandchild-1/index.js b/test/fixtures/monorepo_npm_module/node_modules/grandchild-1/index.js
new file mode 100644
index 00000000..59c1e941
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/grandchild-1/index.js
@@ -0,0 +1,3 @@
+import { cwd } from "process"
+
+export default (input) => `<grandchild-1>${input}<cwd>${cwd()}</cwd></grandchild-1>`
\ No newline at end of file
diff --git a/test/fixtures/monorepo_npm_module/node_modules/grandchild-1/package.json b/test/fixtures/monorepo_npm_module/node_modules/grandchild-1/package.json
new file mode 100644
index 00000000..bb88071d
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/grandchild-1/package.json
@@ -0,0 +1,5 @@
+{
+  "name": "grandchild-1",
+  "version": "1.0.0",
+  "main": "index.js"
+}
\ No newline at end of file
diff --git a/test/fixtures/monorepo_npm_module/node_modules/parent-1/index.js b/test/fixtures/monorepo_npm_module/node_modules/parent-1/index.js
new file mode 100644
index 00000000..c3bcbb5e
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/parent-1/index.js
@@ -0,0 +1,3 @@
+import child1 from "child-1"
+
+export default (input) => `<parent-1>${child1(input)}</parent-1>`
\ No newline at end of file
diff --git a/test/fixtures/monorepo_npm_module/node_modules/parent-1/package.json b/test/fixtures/monorepo_npm_module/node_modules/parent-1/package.json
new file mode 100644
index 00000000..b18a38c6
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/parent-1/package.json
@@ -0,0 +1,8 @@
+{
+  "name": "parent-1",
+  "version": "1.0.0",
+  "main": "index.js",
+  "dependencies": {
+    "child-1": "1.0.0"
+  }
+}
\ No newline at end of file
diff --git a/test/fixtures/monorepo_npm_module/node_modules/parent-2/index.js b/test/fixtures/monorepo_npm_module/node_modules/parent-2/index.js
new file mode 100644
index 00000000..984b0b18
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/parent-2/index.js
@@ -0,0 +1,4 @@
+import child2 from "child-2"
+
+export default (input) => `<parent-2>${child2(input)}</parent-2>`
+
diff --git a/test/fixtures/monorepo_npm_module/node_modules/parent-2/package.json b/test/fixtures/monorepo_npm_module/node_modules/parent-2/package.json
new file mode 100644
index 00000000..adb0cc33
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/parent-2/package.json
@@ -0,0 +1,5 @@
+{
+  "name": "parent-2",
+  "version": "1.0.0",
+  "main": "index.js"
+}
\ No newline at end of file
diff --git a/test/fixtures/monorepo_npm_module/node_modules/parent-3/index.js b/test/fixtures/monorepo_npm_module/node_modules/parent-3/index.js
new file mode 100644
index 00000000..f447613f
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/parent-3/index.js
@@ -0,0 +1,4 @@
+import child2 from "child-2"
+
+export default (input) => `<parent-3>${child2(input)}</parent-3>`
+
diff --git a/test/fixtures/monorepo_npm_module/node_modules/parent-3/package.json b/test/fixtures/monorepo_npm_module/node_modules/parent-3/package.json
new file mode 100644
index 00000000..82b794a5
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/node_modules/parent-3/package.json
@@ -0,0 +1,8 @@
+{
+  "name": "parent-3",
+  "version": "1.0.0",
+  "main": "index.js",
+  "dependencies": {
+    "child-2": "1.0.0"
+  }
+}
\ No newline at end of file
diff --git a/test/fixtures/monorepo_npm_module/package.json b/test/fixtures/monorepo_npm_module/package.json
new file mode 100644
index 00000000..3dbc1ca5
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/package.json
@@ -0,0 +1,3 @@
+{
+  "type": "module"
+}
diff --git a/test/fixtures/monorepo_npm_module/packages/frontend/functions/func1.ts b/test/fixtures/monorepo_npm_module/packages/frontend/functions/func1.ts
new file mode 100644
index 00000000..98e72e81
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/packages/frontend/functions/func1.ts
@@ -0,0 +1,18 @@
+import parent1 from 'parent-1'
+import parent3 from './lib/util.ts'
+import { echo, parent2 } from 'alias:helper'
+import { HTMLRewriter } from 'html-rewriter'
+
+await Promise.resolve()
+
+new HTMLRewriter()
+
+export default async () => {
+  const text = [parent1('JavaScript'), parent2('APIs'), parent3('Markup')].join(', ')
+
+  return new Response(echo(text))
+}
+
+export const config = {
+  path: '/func1',
+}
diff --git a/test/fixtures/monorepo_npm_module/packages/frontend/functions/lib/util.ts b/test/fixtures/monorepo_npm_module/packages/frontend/functions/lib/util.ts
new file mode 100644
index 00000000..4ff7cd8a
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/packages/frontend/functions/lib/util.ts
@@ -0,0 +1,3 @@
+import parent3 from 'parent-3'
+
+export default parent3
diff --git a/test/fixtures/monorepo_npm_module/packages/frontend/helper.ts b/test/fixtures/monorepo_npm_module/packages/frontend/helper.ts
new file mode 100644
index 00000000..c302d8dd
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/packages/frontend/helper.ts
@@ -0,0 +1,6 @@
+import parent2 from 'parent-2'
+
+export const greet = (name: string) => `Hello, ${name}!`
+export const echo = (name: string) => name
+export const yell = (message: string) => message.toUpperCase()
+export { parent2 }
diff --git a/test/fixtures/monorepo_npm_module/packages/frontend/import_map.json b/test/fixtures/monorepo_npm_module/packages/frontend/import_map.json
new file mode 100644
index 00000000..5ef2121b
--- /dev/null
+++ b/test/fixtures/monorepo_npm_module/packages/frontend/import_map.json
@@ -0,0 +1,6 @@
+{
+  "imports": {
+    "alias:helper": "./helper.ts",
+    "html-rewriter": "https://ghuc.cc/worker-tools/html-rewriter/index.ts"
+  }
+}
diff --git a/test/integration/test.js b/test/integration/test.js
index 0439adfe..cce7a87c 100644
--- a/test/integration/test.js
+++ b/test/integration/test.js
@@ -97,6 +97,10 @@ const runAssertions = ({ basePath, bundleOutput }) => {
 }
 
 const cleanup = async () => {
+  if (process.env.CI) {
+    return
+  }
+
   console.log(`Cleaning up temporary files...`)
 
   for (const folder of pathsToCleanup) {