diff --git a/internal/command/meta_providers_test.go b/internal/command/meta_providers_test.go
index de04620a07..0b50488985 100644
--- a/internal/command/meta_providers_test.go
+++ b/internal/command/meta_providers_test.go
@@ -144,7 +144,7 @@ func TestEnsureProviderVersions_devOverrideAndReattachedProviders(t *testing.T)
 				providerA.ForDisplay(),
 				providerB.ForDisplay(),
 				providerC.ForDisplay(),
-				providerD.ForDisplay(), // D is installed despite being dev overridden
+				// D is not installed due to being dev override
 			},
 		},
 
diff --git a/internal/providercache/installer.go b/internal/providercache/installer.go
index 5d0e0a5e05..936430ca53 100644
--- a/internal/providercache/installer.go
+++ b/internal/providercache/installer.go
@@ -252,6 +252,10 @@ func (i *Installer) EnsureProviderVersions(ctx context.Context, locks *depsfile.
 			// unmanaged providers do not require installation
 			continue
 		}
+		if _, ok := i.devOverrideTypes[provider]; ok {
+			// development override providers do not require installation
+			continue
+		}
 		acceptableVersions := versions.MeetingConstraints(versionConstraints)
 		if !mode.forceQueryAllProviders() {
 			// If we're not forcing potential changes of version then an