diff --git a/tooling/nargo_cli/build.rs b/tooling/nargo_cli/build.rs
index 904e404d7c5..6cfda84020d 100644
--- a/tooling/nargo_cli/build.rs
+++ b/tooling/nargo_cli/build.rs
@@ -188,9 +188,12 @@ fn generate_test_cases(
 {test_cases}
 fn test_{test_name}(force_brillig: ForceBrillig, inliner_aggressiveness: Inliner) {{
     let test_program_dir = PathBuf::from("{test_dir}");
+    let temp_dir = tempfile::tempdir().unwrap();
+    let target_dir = temp_dir.path();
 
     let mut nargo = Command::cargo_bin("nargo").unwrap();
     nargo.arg("--program-dir").arg(test_program_dir);
+    nargo.arg("--target-dir").arg(target_dir);
     nargo.arg("{test_command}").arg("--force");
     nargo.arg("--inliner-aggressiveness").arg(inliner_aggressiveness.0.to_string());
     // Check whether the test case is non-deterministic
diff --git a/tooling/nargo_cli/src/cli/mod.rs b/tooling/nargo_cli/src/cli/mod.rs
index 0c644ae554c..20c9ac345a5 100644
--- a/tooling/nargo_cli/src/cli/mod.rs
+++ b/tooling/nargo_cli/src/cli/mod.rs
@@ -6,7 +6,7 @@ use nargo_toml::{
 };
 use noirc_driver::{CrateName, NOIR_ARTIFACT_VERSION_STRING};
 use std::{
-    fs::File,
+    fs::{File, OpenOptions},
     path::{Path, PathBuf},
 };
 
@@ -203,7 +203,9 @@ where
     // Lock manifests if the command needs it.
     let _locks = match cmd.lock_type() {
         LockType::None => None,
-        typ => Some(lock_workspace(&workspace, typ == LockType::Exclusive)?),
+        typ => {
+            Some(lock_target_dir(&workspace.target_directory_path(), typ == LockType::Exclusive)?)
+        }
     };
     run(cmd, workspace)
 }
@@ -211,10 +213,7 @@ where
 /// Lock the (selected) packages in the workspace.
 /// The lock taken can be shared for commands that only read the artifacts,
 /// or exclusive for the ones that (might) write artifacts as well.
-fn lock_workspace(
-    workspace: &Workspace,
-    exclusive: bool,
-) -> Result<Vec<impl Drop + use<>>, CliError> {
+fn lock_target_dir(target_dir: &Path, exclusive: bool) -> Result<impl Drop + use<>, CliError> {
     struct LockedFile(File);
 
     impl Drop for LockedFile {
@@ -223,31 +222,32 @@ fn lock_workspace(
         }
     }
 
-    let mut locks = Vec::new();
-    for pkg in workspace.into_iter() {
-        let toml_path = get_package_manifest(&pkg.root_dir)?;
-        let path_display = toml_path.display();
-
-        let file = File::open(&toml_path)
-            .unwrap_or_else(|e| panic!("Expected {path_display} to exist: {e}"));
-
-        if exclusive {
-            if fs2::FileExt::try_lock_exclusive(&file).is_err() {
-                eprintln!("Waiting for lock on {path_display}...");
-            }
-            fs2::FileExt::lock_exclusive(&file)
-                .unwrap_or_else(|e| panic!("Failed to lock {path_display}: {e}"));
-        } else {
-            if fs2::FileExt::try_lock_shared(&file).is_err() {
-                eprintln!("Waiting for lock on {path_display}...",);
-            }
-            fs2::FileExt::lock_shared(&file)
-                .unwrap_or_else(|e| panic!("Failed to lock {path_display}: {e}"));
-        }
+    let lock_path = target_dir.join(".nargo-lock");
+    let path_display = lock_path.display();
+
+    std::fs::create_dir_all(target_dir).unwrap();
+    let file = OpenOptions::new()
+        .create(true)
+        .truncate(false)
+        .write(true)
+        .open(&lock_path)
+        .unwrap_or_else(|e| panic!("Expected {path_display} to exist: {e}"));
 
-        locks.push(LockedFile(file));
+    if exclusive {
+        if fs2::FileExt::try_lock_exclusive(&file).is_err() {
+            eprintln!("Waiting for lock on {path_display}...");
+        }
+        fs2::FileExt::lock_exclusive(&file)
+            .unwrap_or_else(|e| panic!("Failed to lock {path_display}: {e}"));
+    } else {
+        if fs2::FileExt::try_lock_shared(&file).is_err() {
+            eprintln!("Waiting for lock on {path_display}...",);
+        }
+        fs2::FileExt::lock_shared(&file)
+            .unwrap_or_else(|e| panic!("Failed to lock {path_display}: {e}"));
     }
-    Ok(locks)
+
+    Ok(LockedFile(file))
 }
 
 /// Parses a path and turns it into an absolute one by joining to the current directory.