diff --git a/.npmrc b/.npmrc
deleted file mode 100644
index 9227ff789b96..000000000000
--- a/.npmrc
+++ /dev/null
@@ -1,11 +0,0 @@
-engine-strict = true
-
-# Disabling pnpm [hoisting](https://pnpm.io/npmrc#hoist) by setting `hoist=false` is recommended on
-# projects using rules_js so that pnpm outside of Bazel lays out a node_modules tree similar to what
-# rules_js lays out under Bazel (without a hidden node_modules/.pnpm/node_modules)
-hoist=false
-
-# Avoid pnpm auto-installing peer dependencies. We want to be explicit about our versions used
-# for peer dependencies, avoiding potential mismatches. In addition, it ensures we can continue
-# to rely on peer dependency placeholders substituted via Bazel.
-auto-install-peers=false
diff --git a/MODULE.bazel b/MODULE.bazel
index 5d5cedf91936..d1846f43fcff 100644
--- a/MODULE.bazel
+++ b/MODULE.bazel
@@ -131,8 +131,8 @@ use_repo(
 pnpm = use_extension("@aspect_rules_js//npm:extensions.bzl", "pnpm")
 pnpm.pnpm(
     name = "pnpm",
-    pnpm_version = "10.33.4",
-    pnpm_version_integrity = "sha512-HGezs1my1AgRm6HtKJ80uPw8aHNBK+xv0mT73IJInlEPy+y5zp0i2ufzt2Jp2EQQRgFL3KU7mXnNelYa1jG4AA==",
+    pnpm_version = "11.1.0",
+    pnpm_version_integrity = "sha512-DEToQuVoaywGGoGt2osiWL2IGOlwSyzyxj1WuTGnsukQCS4IUCcAO5bKORGrVqB/bfWrrtK+mSUDTN1oalNbFA==",
 )
 use_repo(pnpm, "pnpm")
 
@@ -172,7 +172,6 @@ npm.npm_translate_lock(
         # which would then break execution.
         "webdriver-manager": ["local"],
     },
-    npmrc = "//:.npmrc",
     pnpm_lock = "//:pnpm-lock.yaml",
 )
 
diff --git a/package.json b/package.json
index c588498bee05..3f379b288462 100644
--- a/package.json
+++ b/package.json
@@ -28,12 +28,12 @@
     "type": "git",
     "url": "git+https://github.com/angular/angular-cli.git"
   },
-  "packageManager": "pnpm@10.33.4",
+  "packageManager": "pnpm@11.1.0",
   "engines": {
     "node": "^22.22.0 || ^24.13.1 || >=26.0.0",
     "npm": "Please use pnpm instead of NPM to install dependencies",
     "yarn": "Please use pnpm instead of Yarn to install dependencies",
-    "pnpm": "10.33.4"
+    "pnpm": "11.1.0"
   },
   "author": "Angular Authors",
   "license": "MIT",
@@ -145,25 +145,5 @@
     "puppeteer": {
       "built": true
     }
-  },
-  "pnpm": {
-    "onlyBuiltDependencies": [
-      "webdriver-manager"
-    ],
-    "overrides": {
-      "@angular/build": "workspace:*"
-    },
-    "packageExtensions": {
-      "grpc-gcp": {
-        "peerDependencies": {
-          "protobufjs": "*"
-        }
-      },
-      "vitest": {
-        "peerDependencies": {
-          "@vitest/coverage-v8": "*"
-        }
-      }
-    }
   }
 }
diff --git a/pnpm-workspace.yaml b/pnpm-workspace.yaml
index a6c57def2129..bcab62fcf536 100644
--- a/pnpm-workspace.yaml
+++ b/pnpm-workspace.yaml
@@ -24,3 +24,35 @@ minimumReleaseAgeExclude:
   - '@ngtools/webpack'
   - '@schematics/*'
   - 'ng-packagr'
+overrides:
+  '@angular/build': workspace:*
+packageExtensions:
+  grpc-gcp:
+    peerDependencies:
+      protobufjs: '*'
+  vitest:
+    peerDependencies:
+      '@vitest/coverage-v8': '*'
+
+engineStrict: true
+# Disabling pnpm [hoisting](https://pnpm.io/settings#hoist) by setting `hoist:false` is recommended on
+# projects using rules_js so that pnpm outside of Bazel lays out a node_modules tree similar to what
+# rules_js lays out under Bazel (without a hidden node_modules/.pnpm/node_modules)
+hoist: false
+
+# Avoid pnpm auto-installing peer dependencies. We want to be explicit about our versions used
+# for peer dependencies, avoiding potential mismatches. In addition, it ensures we can continue
+# to rely on peer dependency placeholders substituted via Bazel.
+autoInstallPeers: false
+allowBuilds:
+  '@firebase/util': false
+  '@google/genai': false
+  '@parcel/watcher': false
+  bufferutil: false
+  esbuild: false
+  lmdb: false
+  msgpackr-extract: false
+  protobufjs: false
+  puppeteer: false
+  utf-8-validate: false
+  webdriver-manager: true