diff --git a/.changeset/itchy-flowers-report.md b/.changeset/itchy-flowers-report.md
new file mode 100644
index 0000000000..3c8e41c879
--- /dev/null
+++ b/.changeset/itchy-flowers-report.md
@@ -0,0 +1,5 @@
+---
+'astro': patch
+---
+
+Resets `NODE_ENV` to ensure install command run in dev mode
diff --git a/packages/astro/src/cli/install-package.ts b/packages/astro/src/cli/install-package.ts
index d61a752dea..8dfd7c6c59 100644
--- a/packages/astro/src/cli/install-package.ts
+++ b/packages/astro/src/cli/install-package.ts
@@ -144,7 +144,13 @@ async function installPackage(
 			await exec(
 				installCommand.pm,
 				[installCommand.command, ...installCommand.flags, ...installCommand.dependencies],
-				{ nodeOptions: { cwd: cwd } },
+				{
+					nodeOptions: {
+						cwd,
+						// reset NODE_ENV to ensure install command run in dev mode
+						env: { NODE_ENV: undefined },
+					}
+				},
 			);
 			spinner.succeed();