diff --git a/editor/js/ui/palette-editor.js b/editor/js/ui/palette-editor.js
index d7523ed31..05b1d7c7b 100644
--- a/editor/js/ui/palette-editor.js
+++ b/editor/js/ui/palette-editor.js
@@ -255,7 +255,9 @@ RED.palette.editor = (function() {
                     nodeEntry.removeButton.hide();
                 } else {
                     nodeEntry.enableButton.removeClass('disabled');
-                    nodeEntry.removeButton.show();
+                    if (moduleInfo.local) {
+                        nodeEntry.removeButton.show();
+                    }
                     if (activeTypeCount === 0) {
                         nodeEntry.enableButton.html(RED._('palette.editor.enableall'));
                     } else {
diff --git a/red/runtime/nodes/registry/localfilesystem.js b/red/runtime/nodes/registry/localfilesystem.js
index 9ca1307e3..2a5c682af 100644
--- a/red/runtime/nodes/registry/localfilesystem.js
+++ b/red/runtime/nodes/registry/localfilesystem.js
@@ -281,6 +281,7 @@ function getModuleFiles(module) {
         }
         nodeModuleFiles.forEach(function(node) {
             nodeList[moduleFile.package.name].nodes[node.name] = node;
+            nodeList[moduleFile.package.name].nodes[node.name].local = moduleFile.local || false;
         });
     });
     return nodeList;