diff --git a/Cargo.lock b/Cargo.lock
index 8b0b8e21077..1899b721b16 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1606,6 +1606,17 @@ dependencies = [
  "instant",
 ]
 
+[[package]]
+name = "fd-lock"
+version = "3.0.8"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "bb21c69b9fea5e15dbc1049e4b77145dd0ba1c84019c488102de0dc4ea4b0a27"
+dependencies = [
+ "cfg-if 1.0.0",
+ "rustix 0.36.4",
+ "windows-sys 0.42.0",
+]
+
 [[package]]
 name = "ff"
 version = "0.12.1"
@@ -1778,6 +1789,7 @@ name = "forc-pkg"
 version = "0.31.3"
 dependencies = [
  "anyhow",
+ "fd-lock",
  "forc-tracing",
  "forc-util",
  "fuels-types",
@@ -2662,6 +2674,16 @@ version = "0.7.5"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "59ce5ef949d49ee85593fc4d3f3f95ad61657076395cbbce23e2121fc5542074"
 
+[[package]]
+name = "io-lifetimes"
+version = "1.0.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "46112a93252b123d31a119a8d1a1ac19deac4fac6e0e8b0df58f0d4e5870e63c"
+dependencies = [
+ "libc",
+ "windows-sys 0.42.0",
+]
+
 [[package]]
 name = "itertools"
 version = "0.10.5"
@@ -2854,6 +2876,12 @@ version = "0.0.46"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "d4d2456c373231a208ad294c33dc5bff30051eafd954cd4caae83a712b12854d"
 
+[[package]]
+name = "linux-raw-sys"
+version = "0.1.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "8f9f08d8963a6c613f4b1a78f4f4a4dbfadf8e6545b2d72861731e4858b8b47f"
+
 [[package]]
 name = "lock_api"
 version = "0.4.9"
@@ -3884,9 +3912,23 @@ checksum = "727a1a6d65f786ec22df8a81ca3121107f235970dc1705ed681d3e6e8b9cd5f9"
 dependencies = [
  "bitflags",
  "errno",
- "io-lifetimes",
+ "io-lifetimes 0.7.5",
+ "libc",
+ "linux-raw-sys 0.0.46",
+ "windows-sys 0.42.0",
+]
+
+[[package]]
+name = "rustix"
+version = "0.36.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "cb93e85278e08bb5788653183213d3a60fc242b10cb9be96586f5a73dcb67c23"
+dependencies = [
+ "bitflags",
+ "errno",
+ "io-lifetimes 1.0.3",
  "libc",
- "linux-raw-sys",
+ "linux-raw-sys 0.1.3",
  "windows-sys 0.42.0",
 ]
 
@@ -4817,7 +4859,7 @@ version = "0.2.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "40ca90c434fd12083d1a6bdcbe9f92a14f96c8a1ba600ba451734ac334521f7a"
 dependencies = [
- "rustix",
+ "rustix 0.35.13",
  "windows-sys 0.42.0",
 ]
 
diff --git a/forc-pkg/Cargo.toml b/forc-pkg/Cargo.toml
index 3ccc770c4eb..cc3f7f47caf 100644
--- a/forc-pkg/Cargo.toml
+++ b/forc-pkg/Cargo.toml
@@ -10,6 +10,7 @@ description = "Building, locking, fetching and updating Sway projects as Forc pa
 
 [dependencies]
 anyhow = "1"
+fd-lock = "3.0.8"
 forc-tracing = { version = "0.31.3", path = "../forc-tracing" }
 forc-util = { version = "0.31.3", path = "../forc-util" }
 fuels-types = "0.31" 
diff --git a/forc-pkg/src/pkg.rs b/forc-pkg/src/pkg.rs
index 21a70221549..9377619fadd 100644
--- a/forc-pkg/src/pkg.rs
+++ b/forc-pkg/src/pkg.rs
@@ -7,6 +7,7 @@ use crate::{
     CORE, PRELUDE, STD,
 };
 use anyhow::{anyhow, bail, Context, Error, Result};
+use fd_lock::RwLock;
 use forc_util::{
     default_output_directory, find_file_name, git_checkouts_directory, kebab_to_snake_case,
     print_on_failure, print_on_success,
@@ -1609,11 +1610,20 @@ fn with_tmp_git_repo<F, O>(fetch_id: u64, name: &str, source: &SourceGit, f: F)
 where
     F: FnOnce(git2::Repository) -> Result<O>,
 {
-    // Clear existing temporary directory if it exists.
     let repo_dir = tmp_git_repo_dir(fetch_id, name, &source.repo);
-    if repo_dir.exists() {
-        let _ = std::fs::remove_dir_all(&repo_dir);
-    }
+
+    // Always clear existing temporary directory.
+    let _ = std::fs::remove_dir_all(&repo_dir);
+
+    let _ = std::fs::create_dir_all(&repo_dir);
+
+    let mut lock = RwLock::new(
+        fs::OpenOptions::new()
+            .write(true)
+            .create(true)
+            .open(&repo_dir.join(".forc-lock"))?,
+    );
+    let _ = lock.write()?;
 
     // Initialise the repository.
     let repo = git2::Repository::init(&repo_dir)
@@ -1811,10 +1821,17 @@ pub fn fetch_git(fetch_id: u64, name: &str, pinned: &SourceGitPinned) -> Result<
         // Change HEAD to point to the pinned commit.
         let id = git2::Oid::from_str(&pinned.commit_hash)?;
         repo.set_head_detached(id)?;
-        if path.exists() {
-            let _ = std::fs::remove_dir_all(&path);
-        }
-        std::fs::create_dir_all(&path)?;
+
+        let _ = std::fs::remove_dir_all(&path);
+
+        let _ = std::fs::create_dir_all(&path);
+        let mut lock = RwLock::new(
+            fs::OpenOptions::new()
+                .write(true)
+                .create(true)
+                .open(&path.join(".forc-lock"))?,
+        );
+        let _ = lock.write()?;
 
         // Checkout HEAD to the target directory.
         let mut checkout = git2::build::CheckoutBuilder::new();