diff --git a/src/libarchive/libarchive.zig b/src/libarchive/libarchive.zig
index 7765ab4e4607..09f5c495546e 100644
--- a/src/libarchive/libarchive.zig
+++ b/src/libarchive/libarchive.zig
@@ -462,7 +462,13 @@ pub const Archiver = struct {
                             }
                         },
                         .file => {
-                            const mode: bun.Mode = if (comptime Environment.isWindows) 0 else @intCast(entry.perm());
+                            // first https://github.com/npm/cli/blob/feb54f7e9a39bd52519221bae4fafc8bc70f235e/node_modules/pacote/lib/fetcher.js#L65-L66
+                            // this.fmode = opts.fmode || 0o666
+                            //
+                            // then https://github.com/npm/cli/blob/feb54f7e9a39bd52519221bae4fafc8bc70f235e/node_modules/pacote/lib/fetcher.js#L402-L411
+                            //
+                            // we simplify and turn it into `entry.mode || 0o666` because we aren't accepting a umask or fmask option.
+                            const mode: bun.Mode = if (comptime Environment.isWindows) 0 else @intCast(entry.perm() | 0o666);
 
                             const file_handle_native = brk: {
                                 if (Environment.isWindows) {
diff --git a/test/cli/install/bun-install.test.ts b/test/cli/install/bun-install.test.ts
index 088199222acc..3c33dbc6cd21 100644
--- a/test/cli/install/bun-install.test.ts
+++ b/test/cli/install/bun-install.test.ts
@@ -11,8 +11,18 @@ import {
   setDefaultTimeout,
   test,
 } from "bun:test";
-import { access, mkdir, readlink, rm, writeFile } from "fs/promises";
-import { bunEnv, bunExe, bunEnv as env, tempDirWithFiles, toBeValidBin, toBeWorkspaceLink, toHaveBins } from "harness";
+import { access, mkdir, readlink, rm, writeFile, cp, stat } from "fs/promises";
+import {
+  bunEnv,
+  bunExe,
+  bunEnv as env,
+  tempDirWithFiles,
+  toBeValidBin,
+  toBeWorkspaceLink,
+  toHaveBins,
+  runBunInstall,
+  isWindows,
+} from "harness";
 import { join, sep } from "path";
 import {
   dummyAfterAll,
@@ -8185,6 +8195,31 @@ describe("Registry URLs", () => {
   });
 });
 
+it("should ensure read permissions of all extracted files", async () => {
+  await Promise.all([
+    cp(join(import.meta.dir, "pkg-only-owner-2.2.2.tgz"), join(package_dir, "pkg-only-owner-2.2.2.tgz")),
+    writeFile(
+      join(package_dir, "package.json"),
+      JSON.stringify({
+        name: "foo",
+        version: "0.0.1",
+        dependencies: {
+          "pkg-only-owner": "file:pkg-only-owner-2.2.2.tgz",
+        },
+      }),
+    ),
+  ]);
+
+  await runBunInstall(env, package_dir);
+
+  expect((await stat(join(package_dir, "node_modules", "pkg-only-owner", "package.json"))).mode & 0o666).toBe(
+    isWindows ? 0o666 : 0o644,
+  );
+  expect((await stat(join(package_dir, "node_modules", "pkg-only-owner", "src", "index.js"))).mode & 0o666).toBe(
+    isWindows ? 0o666 : 0o644,
+  );
+});
+
 it("should handle @scoped name that contains tilde, issue#7045", async () => {
   await writeFile(
     join(package_dir, "bunfig.toml"),
diff --git a/test/cli/install/pkg-only-owner-2.2.2.tgz b/test/cli/install/pkg-only-owner-2.2.2.tgz
new file mode 100644
index 000000000000..c45ba36ad033
Binary files /dev/null and b/test/cli/install/pkg-only-owner-2.2.2.tgz differ