diff --git a/lib/src/package.dart b/lib/src/package.dart
index e1e9f31e5..2bbd0c6b2 100644
--- a/lib/src/package.dart
+++ b/lib/src/package.dart
@@ -474,7 +474,10 @@ Package `$override` at `${overriddenWorkspacePackage.presentationDir}` is overri
     // By adding this to visited we will never go above the workspaceRoot.dir.
     p.canonicalize(root.dir),
   };
-  for (final package in root.transitiveWorkspace) {
+  for (final package in root.transitiveWorkspace
+      // We don't want to look at the roots parents. The first package is always
+      // the root, so skip that.
+      .skip(1)) {
     // Run through all parent directories until we meet another workspace
     // package.
     for (final dir in parentDirs(package.dir).skip(1)) {
diff --git a/pubspec.lock b/pubspec.lock
index 85bff242b..95ad99caf 100644
--- a/pubspec.lock
+++ b/pubspec.lock
@@ -13,7 +13,7 @@ packages:
     dependency: transitive
     description: dart
     source: sdk
-    version: "0.3.3"
+    version: "0.3.2"
   analyzer:
     dependency: "direct main"
     description:
@@ -194,10 +194,10 @@ packages:
     dependency: transitive
     description:
       name: macros
-      sha256: "1d9e801cd66f7ea3663c45fc708450db1fa57f988142c64289142c9b7ee80656"
+      sha256: "0acaed5d6b7eab89f63350bccd82119e6c602df0f391260d0e32b5e23db79536"
       url: "https://pub.dev"
     source: hosted
-    version: "0.1.3-main.0"
+    version: "0.1.2-main.4"
   matcher:
     dependency: transitive
     description:
diff --git a/test/workspace_test.dart b/test/workspace_test.dart
index 171ba7d07..94ce826ab 100644
--- a/test/workspace_test.dart
+++ b/test/workspace_test.dart
@@ -1491,6 +1491,72 @@ Consider removing one of the overrides.''',
     );
   });
 
+  test(
+      'rejects workspace with non-workspace between root and workspace package',
+      () async {
+    await dir(appPath, [
+      libPubspec(
+        'myapp',
+        '1.2.3',
+        extras: {
+          'workspace': ['pkgs/a'],
+        },
+        sdk: '^3.5.0',
+      ),
+      dir('pkgs', [
+        libPubspec(
+          'in_the_way',
+          '1.0.0',
+        ),
+        dir('a', [
+          libPubspec(
+            'a',
+            '1.0.0',
+            resolutionWorkspace: true,
+          ),
+        ]),
+      ]),
+    ]).create();
+    await pubGet(
+      environment: {'_PUB_TEST_SDK_VERSION': '3.5.0'},
+      error: contains(
+        'The file `.${s}pkgs${s}pubspec.yaml` is located in a directory '
+        'between the workspace root at',
+      ),
+    );
+  });
+
+  test('Doesn\t complain about pubspecs above the workspace', () async {
+    // Regression test for https://github.com/dart-lang/pub/issues/4463
+    await dir(appPath, [
+      libPubspec(
+        'not_in_the_way',
+        '1.0.0',
+      ),
+      dir('pkgs', [
+        libPubspec(
+          'myapp',
+          '1.2.3',
+          extras: {
+            'workspace': ['a'],
+          },
+          sdk: '^3.5.0',
+        ),
+        dir('a', [
+          libPubspec(
+            'a',
+            '1.0.0',
+            resolutionWorkspace: true,
+          ),
+        ]),
+      ]),
+    ]).create();
+    await pubGet(
+      environment: {'_PUB_TEST_SDK_VERSION': '3.5.0'},
+      workingDirectory: p.join(sandbox, appPath, 'pkgs'),
+    );
+  });
+
   test('overrides are applied', () async {
     final server = await servePackages();
     server.serve('foo', '1.0.0');