diff --git a/packages/payload/src/bin/register/index.ts b/packages/payload/src/bin/register/index.ts
index ef20abb3b9..a44daa0e18 100644
--- a/packages/payload/src/bin/register/index.ts
+++ b/packages/payload/src/bin/register/index.ts
@@ -27,7 +27,13 @@ const locatedConfig = getTsconfig()
 const tsconfig = locatedConfig.config.compilerOptions as unknown as ts.CompilerOptions
 
 tsconfig.module = ts.ModuleKind.ESNext
-tsconfig.moduleResolution = ts.ModuleResolutionKind.NodeNext
+
+// Specify bundler resolution for Next.js compatibility.
+// We will use TS to resolve file paths for most flexibility
+tsconfig.moduleResolution = ts.ModuleResolutionKind.Bundler
+
+// Don't resolve d.ts files, because we aren't type-checking
+tsconfig.noDtsResolution = true
 
 const moduleResolutionCache = ts.createModuleResolutionCache(
   ts.sys.getCurrentDirectory(),
@@ -78,16 +84,21 @@ export const resolve: ResolveFn = async (specifier, context, nextResolve) => {
   )
 
   // import from local project to local project TS file
-  if (
-    resolvedModule &&
-    !resolvedModule.resolvedFileName.includes('/node_modules/') &&
-    EXTENSIONS.includes(resolvedModule.extension)
-  ) {
-    return {
-      format: 'ts',
-      shortCircuit: true,
-      url: pathToFileURL(resolvedModule.resolvedFileName).href,
+  if (resolvedModule) {
+    const resolvedIsNodeModule = resolvedModule.resolvedFileName.includes('/node_modules/')
+    const resolvedIsTS = EXTENSIONS.includes(resolvedModule.extension)
+
+    if (!resolvedIsNodeModule && resolvedIsTS) {
+      return {
+        format: 'ts',
+        shortCircuit: true,
+        url: pathToFileURL(resolvedModule.resolvedFileName).href,
+      }
     }
+
+    // We want to use TS "Bundler" moduleResolution for just about all files
+    // so we pass the TS result here
+    return nextResolve(pathToFileURL(resolvedModule.resolvedFileName).href)
   }
 
   // import from local project to either:
diff --git a/test/config-loader/int.spec.ts b/test/config-loader/int.spec.ts
new file mode 100644
index 0000000000..bf3cc1fad6
--- /dev/null
+++ b/test/config-loader/int.spec.ts
@@ -0,0 +1,8 @@
+import { load } from './load.js'
+
+describe('Config Loader', () => {
+  it('should load using TS moduleResolution: bundler', async () => {
+    const file = await load('./next-navigation-test.js')
+    expect(typeof file.redirect).toStrictEqual('function')
+  })
+})
diff --git a/test/config-loader/load.ts b/test/config-loader/load.ts
new file mode 100644
index 0000000000..c32f8fd2db
--- /dev/null
+++ b/test/config-loader/load.ts
@@ -0,0 +1,16 @@
+import { register } from 'node:module'
+import path from 'node:path'
+import { fileURLToPath, pathToFileURL } from 'node:url'
+
+export const load = async (filePath) => {
+  const filename = fileURLToPath(import.meta.url)
+  const dirname = path.dirname(filename)
+  const url = pathToFileURL(dirname).toString() + '/'
+
+  // Need to register loader from payload/dist for a true test of functionality
+  register('../../packages/payload/dist/bin/register/index.js', url)
+
+  const result = await import(filePath)
+
+  return result
+}
diff --git a/test/config-loader/next-navigation-test.js b/test/config-loader/next-navigation-test.js
new file mode 100644
index 0000000000..fc44a00f82
--- /dev/null
+++ b/test/config-loader/next-navigation-test.js
@@ -0,0 +1,3 @@
+import { redirect } from 'next/navigation'
+
+export { redirect }
diff --git a/test/tsconfig.json b/test/tsconfig.json
index e2ac241919..cbdf7dc691 100644
--- a/test/tsconfig.json
+++ b/test/tsconfig.json
@@ -25,6 +25,7 @@
         "name": "next"
       }
     ],
+    "baseUrl": ".",
     "paths": {
       "@payloadcms/ui/assets": ["./packages/ui/src/assets/index.ts"],
       "@payloadcms/ui/elements/*": ["./packages/ui/src/elements/*/index.tsx"],
diff --git a/tsconfig.json b/tsconfig.json
index cb0b346566..99002cb035 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -164,4 +164,4 @@
     ".next/types/**/*.ts",
     "scripts/**/*.ts"
   ]
-}
\ No newline at end of file
+}