diff --git a/.changeset/curvy-ducks-explode.md b/.changeset/curvy-ducks-explode.md
new file mode 100644
index 0000000000..1d631e60a8
--- /dev/null
+++ b/.changeset/curvy-ducks-explode.md
@@ -0,0 +1,5 @@
+---
+'@backstage/repo-tools': patch
+---
+
+Use the project tsconfig in case of selection all packages
diff --git a/packages/repo-tools/src/commands/api-reports/api-reports.ts b/packages/repo-tools/src/commands/api-reports/api-reports.ts
index 6270072912..66436644d2 100644
--- a/packages/repo-tools/src/commands/api-reports/api-reports.ts
+++ b/packages/repo-tools/src/commands/api-reports/api-reports.ts
@@ -66,7 +66,7 @@ export const buildApiReports = async (paths: string[] = [], opts: Options) => {
   }
 
   let temporaryTsConfigPath: string | undefined;
-  if (selectedPackageDirs) {
+  if (!isAllPackages) {
     temporaryTsConfigPath = await createTemporaryTsConfig(selectedPackageDirs);
   }
   const tsconfigFilePath =