diff --git a/CHANGELOG.md b/CHANGELOG.md
index 64ec0e05230..d64ddf99ca1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,6 +12,7 @@ Docs: https://docs.openclaw.ai
 
 - Auto-reply/system events: route async exec-event completion replies through the persisted session delivery context, so long-running command results return to the originating channel instead of being dropped when live origin metadata is missing. (#70258) Thanks @wzfukui.
 - QA channel/security: reject non-HTTP(S) inbound attachment URLs before media fetch, and log rejected schemes so suspicious or misconfigured payloads are visible during debugging. (#70708) Thanks @vincentkoc.
+- Plugins/install: link the host OpenClaw package into external plugins that declare `openclaw` as a peer dependency, so peer-only plugin SDK imports resolve after install without bundling a duplicate host package. (#70462) Thanks @anishesg.
 - Teams/security: require shared Bot Framework audience tokens to name the configured Teams app via verified `appid` or `azp`, blocking cross-bot token replay on the global audience. (#70724) Thanks @vincentkoc.
 - Plugins/startup: resolve bundled plugin Jiti loads relative to the target plugin module instead of the central loader, so Bun global installs no longer hang while discovering bundled image providers. (#70073) Thanks @yidianyiko.
 - Anthropic/CLI security: stop Claude CLI backend defaults from forcing `bypassPermissions`, and strip malformed permission-mode overrides instead of silently falling back to a bypass. (#70723) Thanks @vincentkoc.
diff --git a/src/plugins/install.test.ts b/src/plugins/install.test.ts
index 88c765fbf3f..c8e14a0e275 100644
--- a/src/plugins/install.test.ts
+++ b/src/plugins/install.test.ts
@@ -3,13 +3,13 @@ import path from "node:path";
 import * as tar from "tar";
 import { afterAll, beforeAll, beforeEach, describe, expect, it, vi } from "vitest";
 import { safePathSegmentHashed } from "../infra/install-safe-path.js";
+import { resolveOpenClawPackageRootSync } from "../infra/openclaw-root.js";
 import { runCommandWithTimeout } from "../process/exec.js";
 import { expectSingleNpmInstallIgnoreScriptsCall } from "../test-utils/exec-assertions.js";
 import { expectInstallUsesIgnoreScripts } from "../test-utils/npm-spec-install-test-helpers.js";
 import { initializeGlobalHookRunner, resetGlobalHookRunner } from "./hook-runner-global.js";
 import { createMockPluginRegistry } from "./hooks.test-helpers.js";
 import * as installSecurityScan from "./install-security-scan.js";
-import { resolveOpenClawPackageRootSync } from "../infra/openclaw-root.js";
 import {
   installPluginFromArchive,
   installPluginFromDir,
@@ -2380,6 +2380,7 @@ describe("linkOpenClawPeerDependencies (via installPluginFromDir)", () => {
   it("creates a node_modules/openclaw symlink when peerDependencies declares openclaw", async () => {
     const { pluginDir, extensionsDir } = setupPluginInstallDirs();
     const fakeHostRoot = suiteTempRootTracker.makeTempDir();
+    const run = vi.mocked(runCommandWithTimeout);
     resolveRootMock.mockReturnValue(fakeHostRoot);
 
     writePluginWithPeerDeps(pluginDir, { openclaw: "*" });
@@ -2395,6 +2396,7 @@ describe("linkOpenClawPeerDependencies (via installPluginFromDir)", () => {
     const stat = fs.lstatSync(symlinkPath);
     expect(stat.isSymbolicLink()).toBe(true);
     expect(fs.realpathSync(symlinkPath)).toBe(fs.realpathSync(fakeHostRoot));
+    expect(run).not.toHaveBeenCalled();
   });
 
   it("does not create a symlink when peerDependencies is empty", async () => {
@@ -2415,7 +2417,7 @@ describe("linkOpenClawPeerDependencies (via installPluginFromDir)", () => {
     expect(fs.existsSync(symlinkPath)).toBe(false);
   });
 
-  it("is idempotent — re-installing replaces an existing symlink without error", async () => {
+  it("is idempotent - re-installing replaces an existing symlink without error", async () => {
     const { pluginDir, extensionsDir } = setupPluginInstallDirs();
     const fakeHostRoot = suiteTempRootTracker.makeTempDir();
     resolveRootMock.mockReturnValue(fakeHostRoot);
@@ -2426,7 +2428,7 @@ describe("linkOpenClawPeerDependencies (via installPluginFromDir)", () => {
     const { result: first } = await installFromDirWithWarnings({ pluginDir, extensionsDir });
     expect(first.ok).toBe(true);
 
-    // Second install (update mode) — should replace symlink, not throw
+    // Second install (update mode) should replace symlink, not throw.
     const { result: second, warnings } = await installFromDirWithWarnings({
       pluginDir,
       extensionsDir,
diff --git a/src/plugins/install.ts b/src/plugins/install.ts
index a886863c4e7..1b565a86b29 100644
--- a/src/plugins/install.ts
+++ b/src/plugins/install.ts
@@ -611,10 +611,8 @@ async function detectNativePackageInstallSource(packageDir: string): Promise<boo
 }
 
 /**
- * After npm install completes, symlink any peerDependencies that name the host
- * openclaw package into the plugin's node_modules/ directory.  npm never
- * materialises peerDependencies automatically, so plugins that moved openclaw
- * from dependencies → peerDependencies would fail at runtime without this.
+ * After the staged plugin tree has been scanned, symlink the host openclaw
+ * package for plugins that declare it as a peer dependency.
  */
 async function linkOpenClawPeerDependencies(params: {
   installedDir: string;
@@ -643,31 +641,15 @@ async function linkOpenClawPeerDependencies(params: {
 
   for (const peerName of peers) {
     const linkPath = path.join(nodeModulesDir, peerName);
-    // Resolve the actual source for scoped packages (e.g. @scope/name).
-    const linkTarget = path.join(hostRoot, "node_modules", peerName);
-    // Check whether the package exists at the expected location inside the
-    // host root's node_modules.  If it does not (e.g. openclaw IS the root
-    // package), fall back to the host root itself.
-    let resolvedTarget: string;
-    try {
-      await fs.access(path.join(linkTarget, "package.json"));
-      resolvedTarget = linkTarget;
-    } catch {
-      resolvedTarget = hostRoot;
-    }
 
     try {
       // Remove any existing entry (broken link or stale directory) before
       // creating the new symlink so re-installs are idempotent.
       await fs.rm(linkPath, { recursive: true, force: true });
-      await fs.symlink(resolvedTarget, linkPath, "junction");
-      params.logger.info?.(
-        `Linked peerDependency "${peerName}" → ${resolvedTarget}`,
-      );
+      await fs.symlink(hostRoot, linkPath, "junction");
+      params.logger.info?.(`Linked peerDependency "${peerName}" -> ${hostRoot}`);
     } catch (err) {
-      params.logger.warn?.(
-        `Failed to symlink peerDependency "${peerName}": ${String(err)}`,
-      );
+      params.logger.warn?.(`Failed to symlink peerDependency "${peerName}": ${String(err)}`);
     }
   }
 }
@@ -820,7 +802,7 @@ async function installPluginFromPackageDir(
     mode: targetResult.target.effectiveMode,
     dryRun,
     copyErrorPrefix: "failed to copy plugin",
-    hasDeps: Object.keys(deps).length > 0 || Object.keys(peerDeps).length > 0,
+    hasDeps: Object.keys(deps).length > 0,
     depsLogMessage: "Installing plugin dependencies…",
     nameEncoder: encodePluginInstallDirName,
     afterCopy: async (installedDir) => {