diff --git a/packages/node_modules/@node-red/runtime/lib/storage/localfilesystem/projects/Project.js b/packages/node_modules/@node-red/runtime/lib/storage/localfilesystem/projects/Project.js
index d67c49eeb..86fd13775 100644
--- a/packages/node_modules/@node-red/runtime/lib/storage/localfilesystem/projects/Project.js
+++ b/packages/node_modules/@node-red/runtime/lib/storage/localfilesystem/projects/Project.js
@@ -292,7 +292,7 @@ Project.prototype.update = function (user, data) {
 
     if (data.hasOwnProperty('files')) {
         this.package['node-red'] = this.package['node-red'] || { settings: {}};
-        if (data.files.hasOwnProperty('package') && data.files.package !== fspath.join(this.paths.root,"package.json")) {
+        if (data.files.hasOwnProperty('package') && (data.files.package !== fspath.join(this.paths.root,"package.json") || !this.paths['package.json'])) {
             // We have a package file. It could be one that doesn't exist yet,
             // or it does exist and we need to load it.
             if (!/package\.json$/.test(data.files.package)) {