diff --git a/.changeset/chilled-taxis-dance.md b/.changeset/chilled-taxis-dance.md
new file mode 100644
index 0000000000..e2a5dcecee
--- /dev/null
+++ b/.changeset/chilled-taxis-dance.md
@@ -0,0 +1,5 @@
+---
+'@backstage/cli': patch
+---
+
+The check for `react-dom/client` in the Jest configuration will now properly always run from the target directory.
diff --git a/packages/cli/config/jest.js b/packages/cli/config/jest.js
index 36ffd359aa..b979db5177 100644
--- a/packages/cli/config/jest.js
+++ b/packages/cli/config/jest.js
@@ -28,7 +28,9 @@ const envOptions = {
 };
 
 try {
-  require.resolve('react-dom/client');
+  require.resolve('react-dom/client', {
+    paths: [paths.targetRoot],
+  });
   process.env.HAS_REACT_DOM_CLIENT = true;
 } catch {
   /* ignored */