diff --git a/scripts/functions-discover-tests/fixtures/yarn-workspaces/firebase.json b/scripts/functions-discover-tests/fixtures/yarn-workspaces/firebase.json
new file mode 100644
index 00000000000..8189bc54b80
--- /dev/null
+++ b/scripts/functions-discover-tests/fixtures/yarn-workspaces/firebase.json
@@ -0,0 +1,5 @@
+{
+  "functions": {
+    "source": "packages/functions"
+  }
+}
\ No newline at end of file
diff --git a/scripts/functions-discover-tests/fixtures/yarn-workspaces/install.sh b/scripts/functions-discover-tests/fixtures/yarn-workspaces/install.sh
new file mode 100755
index 00000000000..9e1c5a2ab0d
--- /dev/null
+++ b/scripts/functions-discover-tests/fixtures/yarn-workspaces/install.sh
@@ -0,0 +1,5 @@
+#!/bin/bash
+set -euxo pipefail # bash strict mode
+IFS=$'\n\t'
+
+yarn install
\ No newline at end of file
diff --git a/scripts/functions-discover-tests/fixtures/yarn-workspaces/package.json b/scripts/functions-discover-tests/fixtures/yarn-workspaces/package.json
new file mode 100644
index 00000000000..01514ba5512
--- /dev/null
+++ b/scripts/functions-discover-tests/fixtures/yarn-workspaces/package.json
@@ -0,0 +1,5 @@
+{
+  "name": "yarn-workspace",
+  "private": true,
+  "workspaces": ["packages/functions", "packages/a"]
+}
\ No newline at end of file
diff --git a/scripts/functions-discover-tests/fixtures/yarn-workspaces/packages/a/index.js b/scripts/functions-discover-tests/fixtures/yarn-workspaces/packages/a/index.js
new file mode 100644
index 00000000000..f0dc690cd82
--- /dev/null
+++ b/scripts/functions-discover-tests/fixtures/yarn-workspaces/packages/a/index.js
@@ -0,0 +1 @@
+exports.msg = "Hello world!";
diff --git a/scripts/functions-discover-tests/fixtures/yarn-workspaces/packages/a/package.json b/scripts/functions-discover-tests/fixtures/yarn-workspaces/packages/a/package.json
new file mode 100644
index 00000000000..2330fc5f4c0
--- /dev/null
+++ b/scripts/functions-discover-tests/fixtures/yarn-workspaces/packages/a/package.json
@@ -0,0 +1,4 @@
+{
+  "name": "a",
+  "version": "0.0.1"
+}
diff --git a/scripts/functions-discover-tests/fixtures/yarn-workspaces/packages/functions/index.js b/scripts/functions-discover-tests/fixtures/yarn-workspaces/packages/functions/index.js
new file mode 100644
index 00000000000..53008415880
--- /dev/null
+++ b/scripts/functions-discover-tests/fixtures/yarn-workspaces/packages/functions/index.js
@@ -0,0 +1,11 @@
+const functions = require("firebase-functions");
+const { onRequest } = require("firebase-functions/v2/https");
+const { msg } = require("a");
+
+exports.hellov1 = functions.https.onRequest((request, response) => {
+  response.send(msg);
+});
+
+exports.hellov2 = onRequest((request, response) => {
+  response.send(msg);
+});
diff --git a/scripts/functions-discover-tests/fixtures/yarn-workspaces/packages/functions/package.json b/scripts/functions-discover-tests/fixtures/yarn-workspaces/packages/functions/package.json
new file mode 100644
index 00000000000..b2e02c8e3f7
--- /dev/null
+++ b/scripts/functions-discover-tests/fixtures/yarn-workspaces/packages/functions/package.json
@@ -0,0 +1,12 @@
+{
+  "name": "simple",
+  "version": "0.0.1",
+  "dependencies": {
+    "firebase-functions": "4.0.0",
+    "firebase-admin": "^11.2.0",
+    "a": "latest"
+  },
+  "engines": {
+    "node": "16"
+  }
+}
diff --git a/scripts/functions-discover-tests/run.sh b/scripts/functions-discover-tests/run.sh
index d5b26c2d79b..0cd21daaec0 100755
--- a/scripts/functions-discover-tests/run.sh
+++ b/scripts/functions-discover-tests/run.sh
@@ -8,6 +8,9 @@ IFS=$'\n\t'
 # Unlock internal commands for discovering functions in a project.
 firebase experiments:enable internaltesting
 
+# Install yarn
+npm i -g yarn
+
 for dir in ./scripts/functions-discover-tests/fixtures/*; do
   (cd $dir && ./install.sh)
 done
diff --git a/scripts/functions-discover-tests/tests.ts b/scripts/functions-discover-tests/tests.ts
index ec15ddc2984..769a0e5ec04 100644
--- a/scripts/functions-discover-tests/tests.ts
+++ b/scripts/functions-discover-tests/tests.ts
@@ -57,6 +57,16 @@ describe("Function discovery test", function (this) {
         },
       ],
     },
+    {
+      name: "yarn-workspaces",
+      projectDir: "yarn-workspaces",
+      expects: [
+        {
+          codebase: "default",
+          endpoints: ["hellov1", "hellov2"],
+        },
+      ],
+    },
   ];
 
   for (const tc of testCases) {
diff --git a/src/deploy/functions/runtimes/node/index.ts b/src/deploy/functions/runtimes/node/index.ts
index 8405aa84aa5..84cec2703a8 100644
--- a/src/deploy/functions/runtimes/node/index.ts
+++ b/src/deploy/functions/runtimes/node/index.ts
@@ -65,9 +65,9 @@ export class Delegate {
   // Using a caching interface because we (may/will) eventually depend on the SDK version
   // to decide whether to use the JS export method of discovery or the HTTP container contract
   // method of discovery.
-  _sdkVersion = "";
+  _sdkVersion: string | undefined = undefined;
   get sdkVersion() {
-    if (!this._sdkVersion) {
+    if (this._sdkVersion === undefined) {
       this._sdkVersion = versioning.getFunctionsSDKVersion(this.sourceDir) || "";
     }
     return this._sdkVersion;
diff --git a/src/deploy/functions/runtimes/node/versioning.ts b/src/deploy/functions/runtimes/node/versioning.ts
index 93630ed2d73..1ea2fd7de48 100644
--- a/src/deploy/functions/runtimes/node/versioning.ts
+++ b/src/deploy/functions/runtimes/node/versioning.ts
@@ -1,4 +1,6 @@
-import * as _ from "lodash";
+import * as fs from "fs";
+import * as path from "path";
+
 import * as clc from "colorette";
 import * as semver from "semver";
 import * as spawn from "cross-spawn";
@@ -7,17 +9,6 @@ import * as utils from "../../../../utils";
 import { logger } from "../../../../logger";
 import { track } from "../../../../track";
 
-interface NpmListResult {
-  name: string;
-  dependencies: {
-    "firebase-functions": {
-      version: string;
-      from: string;
-      resolved: string;
-    };
-  };
-}
-
 interface NpmShowResult {
   "dist-tags": {
     latest: string;
@@ -34,30 +25,66 @@ export const FUNCTIONS_SDK_VERSION_TOO_OLD_WARNING =
   clc.bold("npm i --save firebase-functions@latest") +
   " in the functions folder.";
 
+/**
+ * Exported for testing purposes only.
+ *
+ * @internal
+ */
+export function findModuleVersion(name: string, resolvedPath: string): string | undefined {
+  let searchPath = path.dirname(resolvedPath);
+  // eslint-disable-next-line no-constant-condition
+  while (true) {
+    if (searchPath === "/" || path.basename(searchPath) === "node_modules") {
+      logger.debug(
+        `Failed to find version of module ${name}: reached end of search path ${searchPath}`
+      );
+      return;
+    }
+    const maybePackageJson = path.join(searchPath, "package.json");
+    if (fs.existsSync(maybePackageJson)) {
+      const pkg = require(maybePackageJson);
+      if (pkg.name === name) {
+        return pkg.version;
+      }
+      logger.debug(
+        `Failed to find version of module ${name}: instead found ${pkg.name} at ${searchPath}`
+      );
+      return;
+    }
+    searchPath = path.dirname(searchPath);
+  }
+}
+
 /**
  * Returns the version of firebase-functions SDK specified by package.json and package-lock.json.
  * @param sourceDir Source directory of functions code
  * @return version string (e.g. "3.1.2"), or void if firebase-functions is not in package.json
  * or if we had trouble getting the version.
  */
-export function getFunctionsSDKVersion(sourceDir: string): string | void {
+export function getFunctionsSDKVersion(sourceDir: string): string | undefined {
   try {
-    const child = spawn.sync("npm", ["list", "firebase-functions", "--json=true"], {
-      cwd: sourceDir,
-      encoding: "utf8",
-    });
-    if (child.error) {
-      logger.debug("getFunctionsSDKVersion encountered error:", child.error.stack);
-      return;
-    }
-    const output: NpmListResult = JSON.parse(child.stdout);
-    return _.get(output, ["dependencies", "firebase-functions", "version"]);
+    return findModuleVersion(
+      "firebase-functions",
+      // Find the entry point of the firebase-function module. require.resolve works for project directories using
+      //   npm, yarn (1), or yarn (1) workspaces. Does not support yarn (2) since GCF doesn't support it anyway:
+      //   https://issuetracker.google.com/issues/213632942.
+      require.resolve("firebase-functions", { paths: [sourceDir] })
+    );
   } catch (e: any) {
+    if (e.code === "MODULE_NOT_FOUND") {
+      utils.logLabeledWarning(
+        "functions",
+        "Couldn't find firebase-functions package in your source code. Have you run 'npm install'?"
+      );
+    }
     logger.debug("getFunctionsSDKVersion encountered error:", e);
     return;
   }
 }
 
+/**
+ * Get latest version of the Firebase Functions SDK.
+ */
 export function getLatestSDKVersion(): string | undefined {
   const child = spawn.sync("npm", ["show", "firebase-functions", "--json=true"], {
     encoding: "utf8",
@@ -70,10 +97,10 @@ export function getLatestSDKVersion(): string | undefined {
     return;
   }
   const output: NpmShowResult = JSON.parse(child.stdout);
-  if (_.isEmpty(output)) {
+  if (Object.keys(output).length === 0) {
     return;
   }
-  return _.get(output, ["dist-tags", "latest"]);
+  return output["dist-tags"]?.["latest"];
 }
 
 /**