diff --git a/internal/node/node_repositories.bzl b/internal/node/node_repositories.bzl
index f68210a507..b751d0425f 100644
--- a/internal/node/node_repositories.bzl
+++ b/internal/node/node_repositories.bzl
@@ -529,8 +529,13 @@ if %errorlevel% neq 0 exit /b %errorlevel%
         script = repository_ctx.path(npm_script),
     ))
 
-    # The entry points for yarn for osx/linux and windows
-    # Runs yarn using appropriate node entry point
+    # The entry points for yarn for osx/linux and windows.
+    # Runs yarn using appropriate node entry point.
+    # Unset YARN_IGNORE_PATH before calling yarn incase it is set so that
+    # .yarnrc yarn-path is followed if set. This is for the case when calling
+    # bazel from yarn with `yarn bazel ...` and yarn follows yarn-path in
+    # .yarnrc it will set YARN_IGNORE_PATH=1 which will prevent the bazel
+    # call into yarn from also following the yarn-path as desired.
     if not is_windows:
         # Yarn entry point
         repository_ctx.file(
@@ -539,6 +544,7 @@ if %errorlevel% neq 0 exit /b %errorlevel%
 # Generated by node_repositories.bzl
 # Immediately exit if any command fails.
 set -e
+unset YARN_IGNORE_PATH
 {get_script_dir}
 "$SCRIPT_DIR/{node}" "$SCRIPT_DIR/{script}" "$@"
 """.format(
@@ -558,6 +564,7 @@ set -e
 """ + GET_SCRIPT_DIR + "".join([
             """
 echo Running yarn "$@" in {root}
+unset YARN_IGNORE_PATH
 (cd "{root}"; "$SCRIPT_DIR/{node}" "$SCRIPT_DIR/{script}" "$@")
 """.format(
                 root = repository_ctx.path(package_json).dirname,
@@ -572,6 +579,7 @@ echo Running yarn "$@" in {root}
             "bin/yarn.cmd",
             content = """@echo off
 SET SCRIPT_DIR=%~dp0
+SET "YARN_IGNORE_PATH="
 "%SCRIPT_DIR%\\{node}" "%SCRIPT_DIR%\\{script}" %*
 """.format(
                 node = paths.relativize(node_entry, "bin"),
@@ -586,6 +594,7 @@ SET SCRIPT_DIR=%~dp0
 """ + "".join([
             """
 echo Running yarn %* in {root}
+SET "YARN_IGNORE_PATH="
 cd "{root}"
 CALL "%SCRIPT_DIR%\\{node}" "%SCRIPT_DIR%\\{script}" %*
 if %errorlevel% neq 0 exit /b %errorlevel%
diff --git a/internal/npm_install/npm_install.bzl b/internal/npm_install/npm_install.bzl
index 611e11cbb9..55d5afbe9e 100644
--- a/internal/npm_install/npm_install.bzl
+++ b/internal/npm_install/npm_install.bzl
@@ -363,7 +363,7 @@ unset YARN_IGNORE_PATH
         repository_ctx.file(
             "_yarn.cmd",
             content = """@echo off
-set "YARN_IGNORE_PATH=" 
+set "YARN_IGNORE_PATH="
 cd "{root}" && "{yarn}" {yarn_args}
 """.format(
                 root = root,