diff --git a/.changeset/cli-always-yarn-pack-freal.md b/.changeset/cli-always-yarn-pack-freal.md
new file mode 100644
index 0000000000..b58ffea857
--- /dev/null
+++ b/.changeset/cli-always-yarn-pack-freal.md
@@ -0,0 +1,5 @@
+---
+'@backstage/cli': patch
+---
+
+Fixed the `--alwaysYarnPack` flag on the`backstage-cli build-workspace` command.
diff --git a/packages/cli/src/commands/buildWorkspace.ts b/packages/cli/src/commands/buildWorkspace.ts
index 97bf2f1239..685e4b1cb0 100644
--- a/packages/cli/src/commands/buildWorkspace.ts
+++ b/packages/cli/src/commands/buildWorkspace.ts
@@ -17,12 +17,17 @@
 import fs from 'fs-extra';
 import { createDistWorkspace } from '../lib/packager';
 
-export default async (dir: string, packages: string[]) => {
+type Options = {
+  alwaysYarnPack?: boolean;
+};
+
+export default async (dir: string, packages: string[], options: Options) => {
   if (!(await fs.pathExists(dir))) {
     throw new Error(`Target workspace directory doesn't exist, '${dir}'`);
   }
 
   await createDistWorkspace(packages, {
     targetDir: dir,
+    alwaysYarnPack: options.alwaysYarnPack,
   });
 };