diff --git a/Makefile b/Makefile
index 0acebfe1e8d..8a64db4d5b7 100644
--- a/Makefile
+++ b/Makefile
@@ -753,7 +753,7 @@ test-tsc: esbuild | github/tsc
 	cp -r github/tsc/src github/tsc/scripts demo/tsc
 	cp github/tsc/lib/*.d.ts demo/tsc/built/local
 	cd demo/tsc && node scripts/processDiagnosticMessages.mjs src/compiler/diagnosticMessages.json
-	./esbuild --bundle demo/tsc/src/tsc/tsc.ts --outfile=demo/tsc/built/local/tsc.js --platform=node --target=es2018
+	./esbuild --bundle demo/tsc/src/tsc/tsc.ts --outfile=demo/tsc/built/local/tsc.js --platform=node --target=es2018 -- packages=external
 	echo '{"dependencies":{"@types/node":"20.2.5","@types/microsoft__typescript-etw":"0.1.1","@types/source-map-support":"0.5.6"}}' > demo/tsc/package.json
 	cd demo/tsc && npm i --silent && echo 'Type checking tsc using tsc...' && time -p node ./built/local/tsc.js -p src/compiler
 
@@ -769,7 +769,6 @@ TEST_ROLLUP_REPLACE += "paths": { "package.json": [".\/package.json"] },
 TEST_ROLLUP_FLAGS += --bundle
 TEST_ROLLUP_FLAGS += --external:fsevents
 TEST_ROLLUP_FLAGS += --outfile=dist/rollup.js
-TEST_ROLLUP_FLAGS += --packages=bundle
 TEST_ROLLUP_FLAGS += --platform=node
 TEST_ROLLUP_FLAGS += --target=es6
 TEST_ROLLUP_FLAGS += src/node-entry.ts
diff --git a/pkg/api/api_impl.go b/pkg/api/api_impl.go
index 76320e4a887..d2de989e94f 100644
--- a/pkg/api/api_impl.go
+++ b/pkg/api/api_impl.go
@@ -218,9 +218,7 @@ func validateASCIIOnly(value Charset) bool {
 
 func validateExternalPackages(value Packages, platform Platform) bool {
 	switch value {
-	case PackagesDefault:
-		return platform == PlatformNode
-	case PackagesBundle:
+	case PackagesDefault, PackagesBundle:
 		return false
 	case PackagesExternal:
 		return true
diff --git a/scripts/end-to-end-tests.js b/scripts/end-to-end-tests.js
index 1b08bd9e36b..7d280807040 100644
--- a/scripts/end-to-end-tests.js
+++ b/scripts/end-to-end-tests.js
@@ -8108,9 +8108,7 @@ for (const flags of [[], ['--bundle']]) {
         }
       }`,
     }),
-
-    // Check the default behavior of "--platform=node"
-    test(['in.js', '--outfile=node.js', '--bundle', '--platform=node', '--format=esm'].concat(flags), {
+    test(['in.js', '--outfile=node.js', '--bundle', '--platform=node', '--packages=external', '--format=esm'].concat(flags), {
       'in.js': `import abc from 'pkg'; if (abc !== 'import') throw 'fail'`,
       'node_modules/pkg/fail.js': `TEST FAILED`, // This package should not be bundled
       'node_modules/pkg/require.cjs': `module.exports = 'require'`,
@@ -8125,7 +8123,7 @@ for (const flags of [[], ['--bundle']]) {
         }
       }`,
     }),
-    test(['in.js', '--outfile=node.js', '--bundle', '--platform=node', '--format=cjs'].concat(flags), {
+    test(['in.js', '--outfile=node.js', '--bundle', '--platform=node', '--packages=external', '--format=cjs'].concat(flags), {
       'in.js': `import abc from 'pkg'; if (abc !== 'require') throw 'fail'`,
       'node_modules/pkg/fail.js': `TEST FAILED`, // This package should not be bundled
       'node_modules/pkg/require.cjs': `module.exports = 'require'`,
@@ -8141,6 +8139,23 @@ for (const flags of [[], ['--bundle']]) {
       }`,
     }),
 
+    // Check the default behavior of "--platform=node"
+    test(['in.js', '--outfile=node.js', '--bundle', '--platform=node', '--format=esm'].concat(flags), {
+      'in.js': `import abc from 'pkg'; if (abc !== 'module') throw 'fail'`,
+      'node_modules/pkg/module.js': `export default 'module'`,
+      'node_modules/pkg/require.cjs': `module.exports = 'require'`,
+      'node_modules/pkg/import.mjs': `export default 'import'`,
+      'node_modules/pkg/package.json': `{
+        "exports": {
+          ".": {
+            "module": "./module.js",
+            "import": "./import.mjs",
+            "require": "./require.cjs"
+          }
+        }
+      }`,
+    }),
+
     // This is an edge case for extensionless files. The file should be treated
     // as CommonJS even though package.json says "type": "module" because that
     // only applies to ".js" files in node, not to all JavaScript files.
diff --git a/scripts/test-yarnpnp.js b/scripts/test-yarnpnp.js
index 01f4ebd34d5..30ded93400b 100644
--- a/scripts/test-yarnpnp.js
+++ b/scripts/test-yarnpnp.js
@@ -66,7 +66,6 @@ function runTests() {
     'in.mjs',
     '--bundle',
     '--log-level=debug',
-    '--packages=bundle',
     '--platform=node',
     '--outfile=out-native.js',
   ], { cwd: rootDir, stdio: 'inherit' })
@@ -74,12 +73,12 @@ function runTests() {
 
   // Test the WebAssembly build
   esbuild.buildWasmLib(ESBUILD_BINARY_PATH)
-  run('node ../../npm/esbuild-wasm/bin/esbuild in.mjs --bundle --log-level=debug --packages=bundle --platform=node --outfile=out-wasm.js')
+  run('node ../../npm/esbuild-wasm/bin/esbuild in.mjs --bundle --log-level=debug --platform=node --outfile=out-wasm.js')
   run('node out-wasm.js')
 
   // Test the WebAssembly build when run through Yarn's file system shim
   esbuild.buildWasmLib(ESBUILD_BINARY_PATH)
-  run('yarn node ../../npm/esbuild-wasm/bin/esbuild in.mjs --bundle --log-level=debug --packages=bundle --platform=node --outfile=out-wasm-yarn.js')
+  run('yarn node ../../npm/esbuild-wasm/bin/esbuild in.mjs --bundle --log-level=debug --platform=node --outfile=out-wasm-yarn.js')
   run('node out-wasm-yarn.js')
 }