diff --git a/package-lock.json b/package-lock.json
index f76bcb26..b2bf715d 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -35,6 +35,7 @@
         "@typescript-eslint/eslint-plugin": "^5.34.0",
         "@typescript-eslint/parser": "^5.34.0",
         "esbuild": "^0.15.9",
+        "esbuild-node-externals": "^1.5.0",
         "eslint": "^8.20.0",
         "husky": "^8.0.1",
         "jest": "^29.0.3",
@@ -3902,6 +3903,25 @@
         "node": ">=12"
       }
     },
+    "node_modules/esbuild-node-externals": {
+      "version": "1.5.0",
+      "resolved": "https://registry.npmjs.org/esbuild-node-externals/-/esbuild-node-externals-1.5.0.tgz",
+      "integrity": "sha512-9394Ne2t2Z243BWeNBRkXEYVMOVbQuzp7XSkASZTOQs0GSXDuno5aH5OmzEXc6GMuln5zJjpkZpgwUPW0uRKgw==",
+      "dev": true,
+      "dependencies": {
+        "find-up": "5.0.0",
+        "tslib": "2.3.1"
+      },
+      "peerDependencies": {
+        "esbuild": "0.12 - 0.15"
+      }
+    },
+    "node_modules/esbuild-node-externals/node_modules/tslib": {
+      "version": "2.3.1",
+      "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.3.1.tgz",
+      "integrity": "sha512-77EbyPPpMz+FRFRuAFlWMtmgUWGe9UOG2Z25NqCwiIjRhOf5iKGuzSe5P2w1laq+FkRy4p+PCuVkJSGkzTEKVw==",
+      "dev": true
+    },
     "node_modules/esbuild-openbsd-64": {
       "version": "0.15.9",
       "resolved": "https://registry.npmjs.org/esbuild-openbsd-64/-/esbuild-openbsd-64-0.15.9.tgz",
@@ -14677,6 +14697,24 @@
       "dev": true,
       "optional": true
     },
+    "esbuild-node-externals": {
+      "version": "1.5.0",
+      "resolved": "https://registry.npmjs.org/esbuild-node-externals/-/esbuild-node-externals-1.5.0.tgz",
+      "integrity": "sha512-9394Ne2t2Z243BWeNBRkXEYVMOVbQuzp7XSkASZTOQs0GSXDuno5aH5OmzEXc6GMuln5zJjpkZpgwUPW0uRKgw==",
+      "dev": true,
+      "requires": {
+        "find-up": "5.0.0",
+        "tslib": "2.3.1"
+      },
+      "dependencies": {
+        "tslib": {
+          "version": "2.3.1",
+          "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.3.1.tgz",
+          "integrity": "sha512-77EbyPPpMz+FRFRuAFlWMtmgUWGe9UOG2Z25NqCwiIjRhOf5iKGuzSe5P2w1laq+FkRy4p+PCuVkJSGkzTEKVw==",
+          "dev": true
+        }
+      }
+    },
     "esbuild-openbsd-64": {
       "version": "0.15.9",
       "resolved": "https://registry.npmjs.org/esbuild-openbsd-64/-/esbuild-openbsd-64-0.15.9.tgz",
diff --git a/package.json b/package.json
index a1ad748f..35428af0 100644
--- a/package.json
+++ b/package.json
@@ -81,6 +81,7 @@
     "@typescript-eslint/eslint-plugin": "^5.34.0",
     "@typescript-eslint/parser": "^5.34.0",
     "esbuild": "^0.15.9",
+    "esbuild-node-externals": "^1.5.0",
     "eslint": "^8.20.0",
     "husky": "^8.0.1",
     "jest": "^29.0.3",
@@ -93,7 +94,13 @@
     "typescript": "^4.8.3"
   },
   "peerDependencies": {
-    "esbuild": ">=0.8 <0.16"
+    "esbuild": ">=0.8 <0.16",
+    "esbuild-node-externals": "^1.0.0"
+  },
+  "peerDependenciesMeta": {
+    "esbuild-node-externals": {
+      "optional": true
+    }
   },
   "engines": {
     "node": ">=16.0.0"
diff --git a/src/pack-externals.ts b/src/pack-externals.ts
index 0a368f85..9bc0f8b3 100644
--- a/src/pack-externals.ts
+++ b/src/pack-externals.ts
@@ -28,6 +28,11 @@ import {
 import { getPackager } from './packagers';
 import { findProjectRoot, findUp } from './utils';
 
+import type {
+  findDependencies as FindDependenciesFn,
+  findPackagePaths as FindPackagePathsFn,
+} from 'esbuild-node-externals/dist/utils';
+
 import type EsbuildServerlessPlugin from './index';
 import type { JSONObject } from './types';
 
@@ -164,6 +169,18 @@ function getProdModules(externalModules: { external: string }[], packageJsonPath
   return prodModules;
 }
 
+export function nodeExternalsPluginUtilsPath(): string | undefined {
+  try {
+    const resolvedPackage = require.resolve('esbuild-node-externals/dist/utils', {
+      paths: [process.cwd()],
+    });
+
+    return resolvedPackage;
+  } catch {
+    // No-op
+  }
+}
+
 /**
  * We need a performant algorithm to install the packages for each single
  * function (in case we package individually).
@@ -180,20 +197,27 @@ function getProdModules(externalModules: { external: string }[], packageJsonPath
 export async function packExternalModules(this: EsbuildServerlessPlugin) {
   const plugins = this.plugins;
 
-  if (
-    plugins &&
-    plugins.map((plugin) => plugin.name).includes('node-externals') &&
-    fse.existsSync(path.resolve(__dirname, '../../esbuild-node-externals/dist/utils.js'))
-  ) {
-    const { findDependencies, findPackagePaths } = require('esbuild-node-externals/dist/utils');
-
-    const allowList = this.buildOptions?.nodeExternals?.allowList ? this.buildOptions.nodeExternals.allowList : [];
-
-    this.buildOptions.external = findDependencies({
-      dependencies: true,
-      packagePaths: findPackagePaths(),
-      allowList,
-    });
+  if (plugins && plugins.map((plugin) => plugin.name).includes('node-externals')) {
+    const utilsPath = nodeExternalsPluginUtilsPath();
+
+    if (utilsPath) {
+      const {
+        findDependencies,
+        findPackagePaths,
+      }: {
+        findDependencies: typeof FindDependenciesFn;
+        findPackagePaths: typeof FindPackagePathsFn;
+      } = require(utilsPath);
+
+      this.buildOptions.external = findDependencies({
+        packagePaths: findPackagePaths(),
+        dependencies: true,
+        devDependencies: false,
+        peerDependencies: false,
+        optionalDependencies: false,
+        allowList: this.buildOptions.nodeExternals?.allowList ?? [],
+      });
+    }
   }
 
   let externals = [];