diff --git a/src/cargo/ops/cargo_package/mod.rs b/src/cargo/ops/cargo_package/mod.rs
index 71d43bc0198..fe750adb9f7 100644
--- a/src/cargo/ops/cargo_package/mod.rs
+++ b/src/cargo/ops/cargo_package/mod.rs
@@ -239,18 +239,17 @@ fn do_package<'a>(
     let deps = local_deps(pkgs.iter().map(|(p, f)| ((*p).clone(), f.clone())));
     let just_pkgs: Vec<_> = pkgs.iter().map(|p| p.0).collect();
 
-    // The publish registry doesn't matter unless there are local dependencies,
-    // so only try to get one if we need it. If they explicitly passed a
-    // registry on the CLI, we check it no matter what.
-    let sid = if deps.has_no_dependencies() && opts.reg_or_index.is_none() {
-        None
-    } else {
-        let sid = get_registry(ws.gctx(), &just_pkgs, opts.reg_or_index.clone())?;
-        debug!("packaging for registry {}", sid);
-        Some(sid)
-    };
-
     let mut local_reg = if ws.gctx().cli_unstable().package_workspace {
+        // The publish registry doesn't matter unless there are local dependencies,
+        // so only try to get one if we need it. If they explicitly passed a
+        // registry on the CLI, we check it no matter what.
+        let sid = if deps.has_no_dependencies() && opts.reg_or_index.is_none() {
+            None
+        } else {
+            let sid = get_registry(ws.gctx(), &just_pkgs, opts.reg_or_index.clone())?;
+            debug!("packaging for registry {}", sid);
+            Some(sid)
+        };
         let reg_dir = ws.build_dir().join("package").join("tmp-registry");
         sid.map(|sid| TmpRegistry::new(ws.gctx(), reg_dir, sid))
             .transpose()?
@@ -407,9 +406,14 @@ fn local_deps<T>(packages: impl Iterator<Item = (Package, T)>) -> LocalDependenc
     for (pkg, _payload) in packages.values() {
         graph.add(pkg.package_id());
         for dep in pkg.dependencies() {
-            // Ignore local dev-dependencies because they aren't needed for intra-workspace
-            // lockfile generation or verification as they get stripped on publish.
-            if dep.kind() == DepKind::Development || !dep.source_id().is_path() {
+            // We're only interested in local (i.e. living in this workspace) dependencies.
+            if !dep.source_id().is_path() {
+                continue;
+            }
+
+            // If local dev-dependencies don't have a version specified, they get stripped
+            // on publish so we should ignore them.
+            if dep.kind() == DepKind::Development && !dep.specified_req() {
                 continue;
             };
 
diff --git a/tests/testsuite/package.rs b/tests/testsuite/package.rs
index ed12768cf1e..e519fa18bcf 100644
--- a/tests/testsuite/package.rs
+++ b/tests/testsuite/package.rs
@@ -5806,6 +5806,77 @@ features = ["foo"]
     );
 }
 
+#[cargo_test]
+fn workspace_with_local_dev_deps() {
+    let crates_io = registry::init();
+    let p = project()
+        .file(
+            "Cargo.toml",
+            r#"
+            [workspace]
+            members = ["main", "dev_dep"]
+            resolver = "3"
+
+            [workspace.dependencies]
+            dev_dep = { path = "dev_dep", version = "0.0.1" }
+        "#,
+        )
+        .file(
+            "main/Cargo.toml",
+            r#"
+            [package]
+            name = "main"
+            version = "0.0.1"
+            edition = "2024"
+            authors = []
+            license = "MIT"
+            description = "main"
+
+            [dev-dependencies]
+            dev_dep.workspace = true
+        "#,
+        )
+        .file(
+            "dev_dep/Cargo.toml",
+            r#"
+            [package]
+            name = "dev_dep"
+            version = "0.0.1"
+            edition = "2024"
+            authors = []
+            license = "MIT"
+            description = "main"
+        "#,
+        )
+        .file("main/src/lib.rs", "")
+        .file("dev_dep/src/lib.rs", "")
+        .build();
+
+    p.cargo("package -Zpackage-workspace")
+        .masquerade_as_nightly_cargo(&["package-workspace"])
+        .replace_crates_io(crates_io.index_url())
+        .with_stdout_data("")
+        .with_stderr_data(str![[r#"
+[WARNING] manifest has no documentation, homepage or repository.
+See https://doc.rust-lang.org/cargo/reference/manifest.html#package-metadata for more info.
+[PACKAGING] dev_dep v0.0.1 ([ROOT]/foo/dev_dep)
+[PACKAGED] 4 files, [FILE_SIZE]B ([FILE_SIZE]B compressed)
+[WARNING] manifest has no documentation, homepage or repository.
+See https://doc.rust-lang.org/cargo/reference/manifest.html#package-metadata for more info.
+[PACKAGING] main v0.0.1 ([ROOT]/foo/main)
+[UPDATING] crates.io index
+[PACKAGED] 4 files, [FILE_SIZE]B ([FILE_SIZE]B compressed)
+[VERIFYING] dev_dep v0.0.1 ([ROOT]/foo/dev_dep)
+[COMPILING] dev_dep v0.0.1 ([ROOT]/foo/target/package/dev_dep-0.0.1)
+[FINISHED] `dev` profile [unoptimized + debuginfo] target(s) in [ELAPSED]s
+[VERIFYING] main v0.0.1 ([ROOT]/foo/main)
+[COMPILING] main v0.0.1 ([ROOT]/foo/target/package/main-0.0.1)
+[FINISHED] `dev` profile [unoptimized + debuginfo] target(s) in [ELAPSED]s
+
+"#]])
+        .run();
+}
+
 fn workspace_with_local_deps_packaging_one_fails_project() -> Project {
     project()
         .file(