diff --git a/src/env.ts b/src/env.ts
index b267be2..7b1c1da 100644
--- a/src/env.ts
+++ b/src/env.ts
@@ -36,17 +36,20 @@ export function getPathFromEnv(env: EnvLike): EnvPathInfo {
 
 function addNodeBinToPath(cwd: string, path: EnvPathInfo): EnvPathInfo {
   const parts = path.value.split(pathDelimiter);
+  const nodeModulesBinPaths: string[] = [];
 
   let currentPath = cwd;
   let lastPath: string;
 
   do {
-    parts.push(resolvePath(currentPath, 'node_modules', '.bin'));
+    nodeModulesBinPaths.push(resolvePath(currentPath, 'node_modules', '.bin'));
     lastPath = currentPath;
     currentPath = dirname(currentPath);
   } while (currentPath !== lastPath);
 
-  return {key: path.key, value: parts.join(pathDelimiter)};
+  const newPath = nodeModulesBinPaths.concat(parts).join(pathDelimiter);
+
+  return {key: path.key, value: newPath};
 }
 
 export function computeEnv(cwd: string, env?: EnvLike): EnvLike {
diff --git a/src/test/env_test.ts b/src/test/env_test.ts
index 80f66d1..87f019f 100644
--- a/src/test/env_test.ts
+++ b/src/test/env_test.ts
@@ -1,7 +1,7 @@
 import {computeEnv, getPathFromEnv} from '../env.js';
 import {expect, test, describe} from 'vitest';
 import process from 'node:process';
-import {sep as pathSep} from 'node:path';
+import path, {sep as pathSep, delimiter as pathDelimiter} from 'node:path';
 
 const pathKey = getPathFromEnv(process.env).key;
 
@@ -69,4 +69,36 @@ describe('computeEnv', async () => {
       process.env[pathKey] = originalPath;
     }
   });
+
+  test('prepends local node_modules/.bin to PATH', () => {
+    /** The original variable is just `PATH=/usr/local/bin` */
+    const originalPath = path.join(pathSep, 'usr', 'local', 'bin');
+    const cwd = path.resolve(pathSep, 'one', 'two', 'three');
+
+    const env = computeEnv(cwd, {
+      PATH: originalPath
+    });
+
+    /**
+     * After computing, the PATH is now prefixed with all the `node_modules/.bin`
+     * directories starting from the CWD=/one/two/three. This means local binaries
+     * are preferred from the closest directory to the CWD, and are preferred to
+     * the global ones from the existing path. Essentially, if `eslint` is installed
+     * via `npm` to a local directory, it is preferred to a globally-installed `eslint`.
+     *
+     * This should match the behavior of `npm` path resolution algorithm used for
+     * running scripts.
+     *
+     * @link https://github.com/npm/run-script/blob/08ad35e66f0d09ed7a6b85b9a457e54859b70acd/lib/set-path.js#L37
+     */
+    const expected = [
+      path.resolve(pathSep, 'one', 'two', 'three', 'node_modules', '.bin'),
+      path.resolve(pathSep, 'one', 'two', 'node_modules', '.bin'),
+      path.resolve(pathSep, 'one', 'node_modules', '.bin'),
+      path.resolve(pathSep, 'node_modules', '.bin'),
+      originalPath
+    ].join(pathDelimiter);
+
+    expect(env[pathKey]).toBe(expected);
+  });
 });