diff --git a/doc/api/esm.md b/doc/api/esm.md
index 0fa6a37d89b6a1..d966c92f2a5490 100644
--- a/doc/api/esm.md
+++ b/doc/api/esm.md
@@ -1307,18 +1307,21 @@ The resolver can throw the following errors:
 > 11. While _parentURL_ is not the file system root,
 >     1. Let _packageURL_ be the URL resolution of _"node\_modules/"_
 >        concatenated with _packageSpecifier_, relative to _parentURL_.
->     2. Set _parentURL_ to the parent folder URL of _parentURL_.
->     3. If the folder at _packageURL_ does not exist, then
->        1. Continue the next loop iteration.
->     4. Let _pjson_ be the result of **READ\_PACKAGE\_JSON**(_packageURL_).
->     5. If _pjson_ is not **null** and _pjson_._exports_ is not **null** or
+>     2. Let _ceilingURL_ be the URL resolution of _"node\_ceiling"_,
+>        relative to _parentURL_.
+>     3. Set _parentURL_ to the parent folder URL of _parentURL_.
+>     4. If the folder at _packageURL_ does not exist, then
+>        1. If the file at _ceilingURL_ exists, then break out of the loop.
+>        2. Otherwise, continue the next loop iteration.
+>     5. Let _pjson_ be the result of **READ\_PACKAGE\_JSON**(_packageURL_).
+>     6. If _pjson_ is not **null** and _pjson_._exports_ is not **null** or
 >        **undefined**, then
 >        1. Return the result of **PACKAGE\_EXPORTS\_RESOLVE**(_packageURL_,
 >           _packageSubpath_, _pjson.exports_, _defaultConditions_).
->     6. Otherwise, if _packageSubpath_ is equal to _"."_, then
+>     7. Otherwise, if _packageSubpath_ is equal to _"."_, then
 >        1. If _pjson.main_ is a string, then
 >           1. Return the URL resolution of _main_ in _packageURL_.
->     7. Otherwise,
+>     8. Otherwise,
 >        1. Return the URL resolution of _packageSubpath_ in _packageURL_.
 > 12. Throw a _Module Not Found_ error.
 
@@ -1503,6 +1506,10 @@ _internal_, _conditions_)
 >       _scopeURL_.
 >    4. if the file at _pjsonURL_ exists, then
 >       1. Return _scopeURL_.
+>    5. Let _ceilingURL_ be the resolution of _"node\_ceiling"_ within
+>       _scopeURL_.
+>    6. if the file at _ceilingURL_ exists, then
+>       1. Return **null**.
 > 3. Return **null**.
 
 **READ\_PACKAGE\_JSON**(_packageURL_)
diff --git a/doc/api/modules.md b/doc/api/modules.md
index 3cc81bf844901b..e89b819e826933 100644
--- a/doc/api/modules.md
+++ b/doc/api/modules.md
@@ -226,10 +226,16 @@ LOAD_AS_DIRECTORY(X)
 
 LOAD_NODE_MODULES(X, START)
 1. let DIRS = NODE_MODULES_PATHS(START)
-2. for each DIR in DIRS:
-   a. LOAD_PACKAGE_EXPORTS(X, DIR)
-   b. LOAD_AS_FILE(DIR/X)
-   c. LOAD_AS_DIRECTORY(DIR/X)
+2. let FOUND_ROOT = false
+3. let FOUND_CEILING = false
+4. for each DIR in DIRS:
+   a. If FOUND_ROOT is false
+      1. If path resolve(DIR, "../../node_modules") = DIR, let FOUND_ROOT = true
+      2. If FOUND_CEILING is true, CONTINUE
+   b. LOAD_PACKAGE_EXPORTS(X, DIR)
+   c. LOAD_AS_FILE(DIR/X)
+   d. LOAD_AS_DIRECTORY(DIR/X)
+   e. If FOUND_ROOT is false && FOUND_CEILING is false && path resolve(DIR, "../node_ceiling") is a file, let FOUND_CEILING = true
 
 NODE_MODULES_PATHS(START)
 1. let PARTS = path split(START)
@@ -493,7 +499,9 @@ Node.js will not append `node_modules` to a path already ending in
 `node_modules`.
 
 If it is not found there, then it moves to the parent directory, and so
-on, until the root of the file system is reached.
+on, until the root of the file system is reached. If a `node_ceiling`
+file is found in a directory, Node.js stops moving to the parent directory
+before the root of the file system is reached.
 
 For example, if the file at `'/home/ry/projects/foo.js'` called
 `require('bar.js')`, then Node.js would look in the following locations, in
diff --git a/doc/api/packages.md b/doc/api/packages.md
index 2dce76f8539c43..b29dbb6f461604 100644
--- a/doc/api/packages.md
+++ b/doc/api/packages.md
@@ -48,7 +48,7 @@ changes:
 A package is a folder tree described by a `package.json` file. The package
 consists of the folder containing the `package.json` file and all subfolders
 until the next folder containing another `package.json` file, or a folder
-named `node_modules`.
+named `node_modules`, or a folder containing a `node_ceiling` file.
 
 This page provides guidance for package authors writing `package.json` files
 along with a reference for the [`package.json`][] fields defined by Node.js.
@@ -1201,7 +1201,8 @@ Files ending with `.js` are loaded as ES modules when the nearest parent
 
 The nearest parent `package.json` is defined as the first `package.json` found
 when searching in the current folder, that folder's parent, and so on up
-until a node\_modules folder or the volume root is reached.
+until a node\_modules folder or a folder containing a `node_ceiling` file or
+the volume root is reached.
 
 ```json
 // package.json
@@ -1216,7 +1217,8 @@ node my-app.js # Runs as ES module
 ```
 
 If the nearest parent `package.json` lacks a `"type"` field, or contains
-`"type": "commonjs"`, `.js` files are treated as [CommonJS][]. If the volume
+`"type": "commonjs"`, `.js` files are treated as [CommonJS][]. If a folder
+containing a `node_ceiling` file is reached or the volume
 root is reached and no `package.json` is found, `.js` files are treated as
 [CommonJS][].
 
diff --git a/lib/internal/modules/cjs/loader.js b/lib/internal/modules/cjs/loader.js
index 711589894d5d19..c24a555fa0ea60 100644
--- a/lib/internal/modules/cjs/loader.js
+++ b/lib/internal/modules/cjs/loader.js
@@ -342,6 +342,12 @@ function readPackageScope(checkPath) {
       data: pjson,
       path: checkPath,
     };
+    const ceilingPath = checkPath + sep + 'node_ceiling';
+    const rc = stat(ceilingPath);
+    if (rc === 0) {  // File.
+      debug('found node_ceiling at', ceilingPath);
+      return false;
+    }
   } while (separatorIndex > rootSeparatorIndex);
   return false;
 }
@@ -501,11 +507,25 @@ function resolveExports(nmPath, request) {
   }
 }
 
+function lookForCeiling(foundCeiling, foundRoot, curPath) {
+  if (!foundCeiling && !foundRoot) {
+    const ceilingPath = path.resolve(curPath, '../node_ceiling');
+    const rc = stat(ceilingPath);
+    if (rc === 0) {  // File.
+      debug('found node_ceiling at', ceilingPath);
+      return true;
+    }
+  }
+  return foundCeiling;
+}
 const trailingSlashRegex = /(?:^|\/)\.?\.$/;
 Module._findPath = function(request, paths, isMain) {
+  let foundRoot = false;
+  let foundCeiling = false;
   const absoluteRequest = path.isAbsolute(request);
   if (absoluteRequest) {
     paths = [''];
+    foundRoot = true;
   } else if (!paths || paths.length === 0) {
     return false;
   }
@@ -527,7 +547,21 @@ Module._findPath = function(request, paths, isMain) {
   for (let i = 0; i < paths.length; i++) {
     // Don't search further if path doesn't exist
     const curPath = paths[i];
-    if (curPath && stat(curPath) < 1) continue;
+
+    if (!foundRoot) {
+      foundRoot = curPath === path.resolve(curPath, '../../node_modules');
+      if (foundRoot) {
+        debug('foundRoot', curPath);
+      }
+      if (foundCeiling) {
+        continue;
+      }
+    }
+
+    if (curPath && stat(curPath) < 1) {
+      foundCeiling = lookForCeiling(foundCeiling, foundRoot, curPath);
+      continue;
+    }
 
     if (!absoluteRequest) {
       const exportsResolved = resolveExports(curPath, request);
@@ -581,6 +615,8 @@ Module._findPath = function(request, paths, isMain) {
       Module._pathCache[cacheKey] = filename;
       return filename;
     }
+
+    foundCeiling = lookForCeiling(foundCeiling, foundRoot, curPath);
   }
 
   return false;
diff --git a/lib/internal/modules/esm/resolve.js b/lib/internal/modules/esm/resolve.js
index c6abfc9b2b3ecd..8eef73f3dea198 100644
--- a/lib/internal/modules/esm/resolve.js
+++ b/lib/internal/modules/esm/resolve.js
@@ -32,6 +32,9 @@ const {
   statSync,
   Stats,
 } = require('fs');
+let debug = require('internal/util/debuglog').debuglog('esm', (fn) => {
+  debug = fn;
+});
 const { getOptionValue } = require('internal/options');
 // Do not eagerly grab .manifest, it may be in TDZ
 const policy = getOptionValue('--experimental-policy') ?
@@ -235,6 +238,12 @@ function getPackageScopeConfig(resolved) {
                                            resolved);
     if (packageConfig.exists) return packageConfig;
 
+    const ceilingURL = new URL('./node_ceiling', packageJSONUrl);
+    if (fileExists(ceilingURL)) {
+      debug('found node_ceiling at', ceilingURL.href);
+      break;
+    }
+
     const lastPackageJSONUrl = packageJSONUrl;
     packageJSONUrl = new URL('../package.json', packageJSONUrl);
 
@@ -878,6 +887,12 @@ function packageResolve(specifier, base, conditions) {
     const stat = tryStatSync(StringPrototypeSlice(packageJSONPath, 0,
                                                   packageJSONPath.length - 13));
     if (!stat.isDirectory()) {
+      const ceilingURL = new URL(isScoped ? '../../../node_ceiling' : '../../node_ceiling', packageJSONUrl);
+      if (fileExists(ceilingURL)) {
+        debug('found node_ceiling at', ceilingURL.href);
+        break;
+      }
+
       lastPath = packageJSONPath;
       packageJSONUrl = new URL((isScoped ?
         '../../../../node_modules/' : '../../../node_modules/') +
@@ -904,8 +919,6 @@ function packageResolve(specifier, base, conditions) {
     // Cross-platform root check.
   } while (packageJSONPath.length !== lastPath.length);
 
-  // eslint can't handle the above code.
-  // eslint-disable-next-line no-unreachable
   throw new ERR_MODULE_NOT_FOUND(packageName, fileURLToPath(base));
 }
 
diff --git a/test/common/README.md b/test/common/README.md
index ef86f59c656f7b..08c9bd335a7fae 100644
--- a/test/common/README.md
+++ b/test/common/README.md
@@ -403,7 +403,8 @@ spawn(...common.pwdCommand, { stdio: ['pipe'] });
 * `dir` [\<string>][<string>] default = \_\_dirname
 
 Throws an `AssertionError` if a `package.json` file exists in any ancestor
-directory above `dir`. Such files may interfere with proper test functionality.
+directory above `dir` but stops searching if a `node_ceiling` file is found
+first. Such `package.json` files may interfere with proper test functionality.
 
 ### `runWithInvalidFD(func)`
 
diff --git a/test/common/index.js b/test/common/index.js
index 7d6fed2f32007c..194046df35efdd 100644
--- a/test/common/index.js
+++ b/test/common/index.js
@@ -834,6 +834,10 @@ function requireNoPackageJSONAbove(dir = __dirname) {
         'This test shouldn\'t load properties from a package.json above ' +
         `its file location. Found package.json at ${possiblePackage}.`);
     }
+    const ceilingPath = path.join(possiblePackage, '../node_ceiling');
+    if (fs.statSync(ceilingPath, { throwIfNoEntry: false })?.isFile() ?? false) {
+      break;
+    }
     lastPackage = possiblePackage;
     possiblePackage = path.join(possiblePackage, '..', '..', 'package.json');
   }
diff --git a/test/es-module/test-esm-node_ceiling.mjs b/test/es-module/test-esm-node_ceiling.mjs
new file mode 100644
index 00000000000000..42cc9fbc0f6985
--- /dev/null
+++ b/test/es-module/test-esm-node_ceiling.mjs
@@ -0,0 +1,13 @@
+import * as common from '../common/index.mjs';
+import * as fixtures from '../common/fixtures.mjs';
+import assert from 'node:assert';
+import path from 'node:path';
+
+// should not reject
+await import(path.resolve(fixtures.path('/es-module-node_ceiling/nested-without-node_ceiling/find-dep.mjs')));
+await import(path.resolve(fixtures.path('/es-module-node_ceiling/find-dep.mjs')));
+
+await assert.rejects(
+  import(path.resolve(fixtures.path('/es-module-node_ceiling/nested-with-node_ceiling/dep-not-found.mjs'))),
+  { code: 'ERR_MODULE_NOT_FOUND' },
+);
diff --git a/test/es-module/test-esm-resolve-type.js b/test/es-module/test-esm-resolve-type.js
index 05e908cd32fc34..41e994e9138bc5 100644
--- a/test/es-module/test-esm-resolve-type.js
+++ b/test/es-module/test-esm-resolve-type.js
@@ -38,6 +38,7 @@ try {
    */
   [
     [ '/es-modules/package-type-module/index.js', 'module' ],
+    [ '/es-modules/package-type-module/nested-with-node_ceiling/index.js', 'commonjs' ],
     [ '/es-modules/package-type-commonjs/index.js', 'commonjs' ],
     [ '/es-modules/package-without-type/index.js', 'commonjs' ],
     [ '/es-modules/package-without-pjson/index.js', 'commonjs' ],
diff --git a/test/fixtures/cjs-loader-node_ceiling/find-dep.js b/test/fixtures/cjs-loader-node_ceiling/find-dep.js
new file mode 100644
index 00000000000000..0af8a6d0fb586e
--- /dev/null
+++ b/test/fixtures/cjs-loader-node_ceiling/find-dep.js
@@ -0,0 +1 @@
+require('dep');
diff --git a/test/fixtures/cjs-loader-node_ceiling/nested-with-node_ceiling/dep-not-found.js b/test/fixtures/cjs-loader-node_ceiling/nested-with-node_ceiling/dep-not-found.js
new file mode 100644
index 00000000000000..0af8a6d0fb586e
--- /dev/null
+++ b/test/fixtures/cjs-loader-node_ceiling/nested-with-node_ceiling/dep-not-found.js
@@ -0,0 +1 @@
+require('dep');
diff --git a/test/fixtures/cjs-loader-node_ceiling/nested-with-node_ceiling/node_ceiling b/test/fixtures/cjs-loader-node_ceiling/nested-with-node_ceiling/node_ceiling
new file mode 100644
index 00000000000000..e69de29bb2d1d6
diff --git a/test/fixtures/cjs-loader-node_ceiling/nested-without-node_ceiling/find-dep.js b/test/fixtures/cjs-loader-node_ceiling/nested-without-node_ceiling/find-dep.js
new file mode 100644
index 00000000000000..0af8a6d0fb586e
--- /dev/null
+++ b/test/fixtures/cjs-loader-node_ceiling/nested-without-node_ceiling/find-dep.js
@@ -0,0 +1 @@
+require('dep');
diff --git a/test/fixtures/cjs-loader-node_ceiling/node_modules/dep/index.js b/test/fixtures/cjs-loader-node_ceiling/node_modules/dep/index.js
new file mode 100644
index 00000000000000..e69de29bb2d1d6
diff --git a/test/fixtures/cjs-loader-node_ceiling/package-not-found-due-to-node_ceiling/dir-with-node_ceiling/dep-not-found.js b/test/fixtures/cjs-loader-node_ceiling/package-not-found-due-to-node_ceiling/dir-with-node_ceiling/dep-not-found.js
new file mode 100644
index 00000000000000..89db4d7ce753a8
--- /dev/null
+++ b/test/fixtures/cjs-loader-node_ceiling/package-not-found-due-to-node_ceiling/dir-with-node_ceiling/dep-not-found.js
@@ -0,0 +1 @@
+require('#dep');
diff --git a/test/fixtures/cjs-loader-node_ceiling/package-not-found-due-to-node_ceiling/dir-with-node_ceiling/node_ceiling b/test/fixtures/cjs-loader-node_ceiling/package-not-found-due-to-node_ceiling/dir-with-node_ceiling/node_ceiling
new file mode 100644
index 00000000000000..e69de29bb2d1d6
diff --git a/test/fixtures/cjs-loader-node_ceiling/package-not-found-due-to-node_ceiling/node_modules/renamed/index.js b/test/fixtures/cjs-loader-node_ceiling/package-not-found-due-to-node_ceiling/node_modules/renamed/index.js
new file mode 100644
index 00000000000000..e69de29bb2d1d6
diff --git a/test/fixtures/cjs-loader-node_ceiling/package-not-found-due-to-node_ceiling/package.json b/test/fixtures/cjs-loader-node_ceiling/package-not-found-due-to-node_ceiling/package.json
new file mode 100644
index 00000000000000..df4239a1e6a2f4
--- /dev/null
+++ b/test/fixtures/cjs-loader-node_ceiling/package-not-found-due-to-node_ceiling/package.json
@@ -0,0 +1,7 @@
+{
+  "imports": {
+    "#dep": {
+      "node": "renamed"
+    }
+  }
+}
diff --git a/test/fixtures/es-module-node_ceiling/find-dep.mjs b/test/fixtures/es-module-node_ceiling/find-dep.mjs
new file mode 100644
index 00000000000000..407564372867dc
--- /dev/null
+++ b/test/fixtures/es-module-node_ceiling/find-dep.mjs
@@ -0,0 +1 @@
+import dep from 'dep';
diff --git a/test/fixtures/es-module-node_ceiling/nested-with-node_ceiling/dep-not-found.mjs b/test/fixtures/es-module-node_ceiling/nested-with-node_ceiling/dep-not-found.mjs
new file mode 100644
index 00000000000000..407564372867dc
--- /dev/null
+++ b/test/fixtures/es-module-node_ceiling/nested-with-node_ceiling/dep-not-found.mjs
@@ -0,0 +1 @@
+import dep from 'dep';
diff --git a/test/fixtures/es-module-node_ceiling/nested-with-node_ceiling/node_ceiling b/test/fixtures/es-module-node_ceiling/nested-with-node_ceiling/node_ceiling
new file mode 100644
index 00000000000000..e69de29bb2d1d6
diff --git a/test/fixtures/es-module-node_ceiling/nested-without-node_ceiling/find-dep.mjs b/test/fixtures/es-module-node_ceiling/nested-without-node_ceiling/find-dep.mjs
new file mode 100644
index 00000000000000..407564372867dc
--- /dev/null
+++ b/test/fixtures/es-module-node_ceiling/nested-without-node_ceiling/find-dep.mjs
@@ -0,0 +1 @@
+import dep from 'dep';
diff --git a/test/fixtures/es-module-node_ceiling/node_modules/dep/index.js b/test/fixtures/es-module-node_ceiling/node_modules/dep/index.js
new file mode 100644
index 00000000000000..e69de29bb2d1d6
diff --git a/test/fixtures/es-modules/package-type-module/nested-with-node_ceiling/index.js b/test/fixtures/es-modules/package-type-module/nested-with-node_ceiling/index.js
new file mode 100644
index 00000000000000..35eb3bf1d38b79
--- /dev/null
+++ b/test/fixtures/es-modules/package-type-module/nested-with-node_ceiling/index.js
@@ -0,0 +1,2 @@
+// No package.json -> should still be CommonJS as there is node_ceiling
+module.exports = 42;
diff --git a/test/fixtures/es-modules/package-type-module/nested-with-node_ceiling/node_ceiling b/test/fixtures/es-modules/package-type-module/nested-with-node_ceiling/node_ceiling
new file mode 100644
index 00000000000000..e69de29bb2d1d6
diff --git a/test/fixtures/test-module-loading-globalpaths/local-pkg/nested-with-node_ceiling/node_ceiling b/test/fixtures/test-module-loading-globalpaths/local-pkg/nested-with-node_ceiling/node_ceiling
new file mode 100644
index 00000000000000..e69de29bb2d1d6
diff --git a/test/fixtures/test-module-loading-globalpaths/local-pkg/nested-with-node_ceiling/test.js b/test/fixtures/test-module-loading-globalpaths/local-pkg/nested-with-node_ceiling/test.js
new file mode 100644
index 00000000000000..8054983e992ce8
--- /dev/null
+++ b/test/fixtures/test-module-loading-globalpaths/local-pkg/nested-with-node_ceiling/test.js
@@ -0,0 +1,2 @@
+'use strict';
+console.log(require('foo').string);
diff --git a/test/parallel/test-cjs-loader-node_ceiling.js b/test/parallel/test-cjs-loader-node_ceiling.js
new file mode 100644
index 00000000000000..a78a02e9fd658b
--- /dev/null
+++ b/test/parallel/test-cjs-loader-node_ceiling.js
@@ -0,0 +1,27 @@
+'use strict';
+
+require('../common');
+const fixtures = require('../common/fixtures');
+const path = require('node:path');
+const assert = require('node:assert');
+
+// should not throw
+require(path.resolve(fixtures.path('/cjs-loader-node_ceiling/nested-without-node_ceiling/find-dep.js')));
+require(path.resolve(fixtures.path('/cjs-loader-node_ceiling/find-dep.js')));
+
+assert.throws(
+  () => {
+    require(path.resolve(fixtures.path('/cjs-loader-node_ceiling/nested-with-node_ceiling/dep-not-found.js')));
+  }, {
+    code: 'MODULE_NOT_FOUND',
+  }
+);
+
+assert.throws(
+  () => {
+    require(path.resolve(fixtures.path('/cjs-loader-node_ceiling/package-not-found-due-to-node_ceiling/dir-with-node_ceiling/dep-not-found.js')));
+  }, {
+    code: 'MODULE_NOT_FOUND',
+  }
+);
+
diff --git a/test/parallel/test-module-loading-globalpaths.js b/test/parallel/test-module-loading-globalpaths.js
index 5d6a104f29c9d7..7323d7f1ecf4bc 100644
--- a/test/parallel/test-module-loading-globalpaths.js
+++ b/test/parallel/test-module-loading-globalpaths.js
@@ -101,4 +101,12 @@ if (process.argv[2] === 'child') {
                                            [ path.join(localDir, 'test.js') ],
                                            { encoding: 'utf8', env: env });
   assert.strictEqual(child.trim(), 'local');
+
+  // Test module in local folder above node_ceiling is not loaded but NODE_PATH  is still loaded
+  env.HOME = env.USERPROFILE = bothHomeDir;
+  env.NODE_PATH = path.join(testFixturesDir, 'node_path');
+  const child2 = child_process.execFileSync(testExecPath,
+                                           [ path.join(localDir, 'nested-with-node_ceiling', 'test.js') ],
+                                           { encoding: 'utf8', env: env });
+  assert.strictEqual(child2.trim(), '$NODE_PATH');
 }