diff --git a/apps/oxlint/fixtures/issue_11054/.oxlintrc.json b/apps/oxlint/fixtures/issue_11054/.oxlintrc.json
new file mode 100644
index 0000000000000..933355aaa4b99
--- /dev/null
+++ b/apps/oxlint/fixtures/issue_11054/.oxlintrc.json
@@ -0,0 +1,12 @@
+{
+  "rules": {
+    "no-unused-vars": [
+      2,
+      {
+        "args": "none",
+        "caughtErrors": "none",
+        "varsIgnorePattern": "^h|React|createElement|Fragment$"
+      }
+    ]
+  }
+}
diff --git a/apps/oxlint/fixtures/issue_11054/index.js b/apps/oxlint/fixtures/issue_11054/index.js
new file mode 100644
index 0000000000000..24624c8ef0d1d
--- /dev/null
+++ b/apps/oxlint/fixtures/issue_11054/index.js
@@ -0,0 +1 @@
+import { createElement } from "preact";
diff --git a/apps/oxlint/src/lint.rs b/apps/oxlint/src/lint.rs
index c1cd57f404625..b1f1184f41709 100644
--- a/apps/oxlint/src/lint.rs
+++ b/apps/oxlint/src/lint.rs
@@ -1159,4 +1159,10 @@ mod test {
         let args = &["--import-plugin", "-D", "import/no-cycle"];
         Tester::new().with_cwd("fixtures/import-cycle".into()).test_and_snapshot(args);
     }
+
+    #[test]
+    fn test_rule_config_being_enabled_correctly() {
+        let args = &["-c", ".oxlintrc.json"];
+        Tester::new().with_cwd("fixtures/issue_11054".into()).test_and_snapshot(args);
+    }
 }
diff --git a/apps/oxlint/src/snapshots/fixtures__issue_11054_-c .oxlintrc.json@oxlint.snap b/apps/oxlint/src/snapshots/fixtures__issue_11054_-c .oxlintrc.json@oxlint.snap
new file mode 100644
index 0000000000000..3621a4b8c0e1f
--- /dev/null
+++ b/apps/oxlint/src/snapshots/fixtures__issue_11054_-c .oxlintrc.json@oxlint.snap	
@@ -0,0 +1,12 @@
+---
+source: apps/oxlint/src/tester.rs
+---
+########## 
+arguments: -c .oxlintrc.json
+working directory: fixtures/issue_11054
+----------
+Found 0 warnings and 0 errors.
+Finished in <variable>ms on 1 file with 101 rules using 1 threads.
+----------
+CLI result: LintSucceeded
+----------
diff --git a/crates/oxc_linter/src/config/rules.rs b/crates/oxc_linter/src/config/rules.rs
index 2433d0d70b3a7..bf37c6a77fc85 100644
--- a/crates/oxc_linter/src/config/rules.rs
+++ b/crates/oxc_linter/src/config/rules.rs
@@ -147,6 +147,7 @@ impl OxlintRules {
             rules_for_override.remove(&rule);
         }
         for (rule, severity) in rules_to_replace {
+            let _ = rules_for_override.remove(&rule);
             rules_for_override.insert(rule, severity);
         }
     }