diff --git a/CHANGELOG.md b/CHANGELOG.md
index 099e363..05c6d17 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -11,6 +11,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## 1.1.0 - 2021-12-03
 
+- Fix issue with loading project root's node_modules path
+
+## 1.1.0 - 2021-12-03
+
 - Switch to processing SSR through Node sidecar server and various other performance & caching enhancements
 
 ## 1.0.0 - 2021-09-25
diff --git a/lib/bridgetown-lit-renderer/renderer.rb b/lib/bridgetown-lit-renderer/renderer.rb
index 3d377d9..4cd235b 100644
--- a/lib/bridgetown-lit-renderer/renderer.rb
+++ b/lib/bridgetown-lit-renderer/renderer.rb
@@ -13,7 +13,7 @@ class << self
 
     attr_accessor :site
 
-    def self.start_node_server
+    def self.start_node_server(node_modules_path)
       return if serverpid
 
       self.authtoken =  SecureRandom.hex(64)
@@ -23,6 +23,7 @@ def self.start_node_server
         {
           "LIT_SSR_SERVER_PORT" => serverport.to_s,
           "LIT_SSR_AUTH_TOKEN"  => authtoken,
+          "NODE_PATH"           => node_modules_path,
         },
         "node #{File.expand_path("../../src/serve.js", __dir__)}",
         pgroup: true
@@ -86,7 +87,7 @@ def render(code, data:, entry:, caching: true) # rubocop:todo Metrics/MethodLeng
         @render_notice_printed = true
       end
 
-      self.class.start_node_server
+      self.class.start_node_server(site.in_root_dir("node_modules"))
 
       output = Faraday.post(
         "http://127.0.0.1:#{self.class.serverport}",
diff --git a/lib/bridgetown-lit-renderer/version.rb b/lib/bridgetown-lit-renderer/version.rb
index 7269f73..2604bbb 100644
--- a/lib/bridgetown-lit-renderer/version.rb
+++ b/lib/bridgetown-lit-renderer/version.rb
@@ -1,5 +1,5 @@
 # frozen_string_literal: true
 
 module BridgetownLitRenderer
-  VERSION = "1.1.0"
+  VERSION = "1.1.1"
 end
diff --git a/package.json b/package.json
index 0f45f96..ce32720 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "bridgetown-lit-renderer",
-  "version": "1.1.0",
+  "version": "1.1.1",
   "main": "frontend/javascript/index.js",
   "exports": {
     ".": {