diff --git a/.eslintignore b/.eslintignore
index 492195f96..a1a50129e 100644
--- a/.eslintignore
+++ b/.eslintignore
@@ -3,5 +3,6 @@
 /test/cli/errors
 /test/cli/watch
 /test/transpile/directories
-/test/transpile/module-resolution/*/node_modules
+/test/transpile/module-resolution/**/node_modules
+/test/transpile/module-resolution/**/dist
 /test/transpile/outFile
diff --git a/.gitignore b/.gitignore
index e9fe7f092..fc3920330 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,6 +1,8 @@
 node_modules
 /dist
 /coverage
+/test/transpile/module-resolution/**/dist
+/test/transpile/module-resolution/**/tsconfig.tsbuildinfo
 
 yarn.lock
 .vscode
diff --git a/.prettierignore b/.prettierignore
index 23b85e3bd..656f1a4d6 100644
--- a/.prettierignore
+++ b/.prettierignore
@@ -2,3 +2,5 @@
 /coverage
 /test/translation/transformation/characterEscapeSequence.ts
 /benchmark/dist
+/test/transpile/module-resolution/**/node_modules
+/test/transpile/module-resolution/**/dist
diff --git a/src/transpilation/resolve.ts b/src/transpilation/resolve.ts
index c7ea38dd1..fa0a5200a 100644
--- a/src/transpilation/resolve.ts
+++ b/src/transpilation/resolve.ts
@@ -15,6 +15,7 @@ const resolver = resolve.ResolverFactory.createResolver({
     enforceExtension: true, // Resolved file must be a lua file
     fileSystem: { ...new resolve.CachedInputFileSystem(fs) },
     useSyncFileSystemCalls: true,
+    conditionNames: ["require", "node", "default"],
     symlinks: false, // Do not resolve symlinks to their original paths (that breaks node_modules detection)
 });
 
diff --git a/test/transpile/module-resolution.spec.ts b/test/transpile/module-resolution.spec.ts
index 8f8cc0230..f9e1894d5 100644
--- a/test/transpile/module-resolution.spec.ts
+++ b/test/transpile/module-resolution.spec.ts
@@ -2,6 +2,7 @@ import * as path from "path";
 import * as tstl from "../../src";
 import * as util from "../util";
 import * as ts from "typescript";
+import * as fs from "fs-extra";
 import { BuildMode } from "../../src";
 import { normalizeSlashes } from "../../src/utils";
 import { pathsWithoutBaseUrl } from "../../src/transpilation/diagnostics";
@@ -272,6 +273,52 @@ describe("module resolution project with dependencies built by tstl library mode
     });
 });
 
+describe("module resolution project with dependencies built by tstl library mode and has exports field", () => {
+    const projectPath = path.resolve(__dirname, "module-resolution", "project-with-tstl-library-has-exports-field");
+    const appPath = path.join(projectPath, "app");
+
+    // First compile dependencies into node_modules. NOTE: Actually writing to disk, very slow
+    const dependency1Path = path.join(projectPath, "dependency1-ts");
+    tstl.transpileProject(path.join(dependency1Path, "tsconfig.json"));
+
+    // Install dependencies. This will create node_modules folder with dependency1-ts in it.
+    const nodeModulesPath = path.join(appPath, "node_modules");
+    fs.ensureDirSync(nodeModulesPath);
+    fs.ensureSymlinkSync(dependency1Path, path.join(nodeModulesPath, "dependency1"), "dir");
+
+    const expectedResult = {
+        dependency1IndexResult: "function in dependency 1 index: dependency1OtherFileFunc in dependency1/d1otherfile",
+        dependency1OtherFileFuncResult: "dependency1OtherFileFunc in dependency1/d1otherfile",
+    };
+
+    test("can resolve lua dependencies", () => {
+        const transpileResult = util
+            .testProject(path.join(appPath, "tsconfig.json"))
+            .setMainFileName(path.join(appPath, "main.ts"))
+            .setOptions({ outDir: "tstl-out", moduleResolution: ts.ModuleResolutionKind.Node16 })
+            .expectToEqual(expectedResult)
+            .getLuaResult();
+
+        // Assert node_modules file requires the correct lualib_bundle
+        const requiringLuaFile = path.join("lua_modules", "dependency1", "dist", "index.lua");
+        const lualibRequiringFile = transpileResult.transpiledFiles.find(f => f.outPath.endsWith(requiringLuaFile));
+        expect(lualibRequiringFile).toBeDefined();
+        expect(lualibRequiringFile?.lua).toContain('require("lualib_bundle")');
+    });
+
+    test("can resolve dependencies and bundle", () => {
+        const mainFile = path.join(appPath, "main.ts");
+        util.testProject(path.join(appPath, "tsconfig.json"))
+            .setMainFileName(mainFile)
+            .setOptions({
+                luaBundle: "bundle.lua",
+                luaBundleEntry: mainFile,
+                moduleResolution: ts.ModuleResolutionKind.Node16,
+            })
+            .expectToEqual(expectedResult);
+    });
+});
+
 // Test fix for https://github.com/TypeScriptToLua/TypeScriptToLua/issues/1037
 describe("module resolution with tsx", () => {
     const projectPath = path.resolve(__dirname, "module-resolution", "project-with-tsx");
diff --git a/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/app/main.ts b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/app/main.ts
new file mode 100644
index 000000000..3421911f2
--- /dev/null
+++ b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/app/main.ts
@@ -0,0 +1,5 @@
+import { dependency1IndexFunc } from "dependency1/sub";
+import { dependency1OtherFileFunc } from "dependency1/sub/d1otherfile";
+
+export const dependency1IndexResult = dependency1IndexFunc();
+export const dependency1OtherFileFuncResult = dependency1OtherFileFunc();
diff --git a/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/app/package.json b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/app/package.json
new file mode 100644
index 000000000..b88dc4bc0
--- /dev/null
+++ b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/app/package.json
@@ -0,0 +1,7 @@
+{
+    "name": "app",
+    "version": "0.0.1",
+    "dependencies": {
+        "dependency1": "file:../dependency1-ts"
+    }
+}
diff --git a/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/app/tsconfig.json b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/app/tsconfig.json
new file mode 100644
index 000000000..7b0969155
--- /dev/null
+++ b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/app/tsconfig.json
@@ -0,0 +1,6 @@
+{
+    "compilerOptions": {
+        "moduleResolution": "node16"
+    },
+    "references": [{ "path": "./node_modules/dependency1" }]
+}
diff --git a/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/dependency1-ts/package.json b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/dependency1-ts/package.json
new file mode 100644
index 000000000..c74b862a1
--- /dev/null
+++ b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/dependency1-ts/package.json
@@ -0,0 +1,14 @@
+{
+    "name": "dependency1",
+    "version": "0.0.1",
+    "exports": {
+        "./sub": {
+            "require": "./dist/index",
+            "types": "./dist/index.d.ts"
+        },
+        "./sub/*": {
+            "require": "./dist/*",
+            "types": "./dist/*.d.ts"
+        }
+    }
+}
diff --git a/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/dependency1-ts/src/d1otherfile.ts b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/dependency1-ts/src/d1otherfile.ts
new file mode 100644
index 000000000..3877a1c52
--- /dev/null
+++ b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/dependency1-ts/src/d1otherfile.ts
@@ -0,0 +1,3 @@
+export function dependency1OtherFileFunc() {
+    return "dependency1OtherFileFunc in dependency1/d1otherfile";
+}
diff --git a/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/dependency1-ts/src/index.ts b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/dependency1-ts/src/index.ts
new file mode 100644
index 000000000..03cff47c5
--- /dev/null
+++ b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/dependency1-ts/src/index.ts
@@ -0,0 +1,10 @@
+import { dependency1OtherFileFunc } from "./d1otherfile";
+
+export function dependency1IndexFunc() {
+    return "function in dependency 1 index: " + dependency1OtherFileFunc();
+}
+
+export function squares(nums: number[]) {
+    // Require lualib functionality
+    return nums.map(n => n * n);
+}
diff --git a/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/dependency1-ts/tsconfig.json b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/dependency1-ts/tsconfig.json
new file mode 100644
index 000000000..d6ffcdc0c
--- /dev/null
+++ b/test/transpile/module-resolution/project-with-tstl-library-has-exports-field/dependency1-ts/tsconfig.json
@@ -0,0 +1,13 @@
+{
+    "compilerOptions": {
+        "rootDir": "./src",
+        "outDir": "./dist",
+        "declaration": true,
+        "declarationMap": true,
+        "sourceMap": true,
+        "composite": true
+    },
+    "tstl": {
+        "buildMode": "library"
+    }
+}