diff --git a/apps/oxfmt/src/cli/format.rs b/apps/oxfmt/src/cli/format.rs
index b3cfe891d690c..1b38ba8183e64 100644
--- a/apps/oxfmt/src/cli/format.rs
+++ b/apps/oxfmt/src/cli/format.rs
@@ -87,13 +87,14 @@ impl FormatRunner {
         // - Parse returned `languages`
         // - Allow its `extensions` and `filenames` in `walk.rs`
         // - Pass `parser` to `SourceFormatter`
+        // Use `block_in_place()` to avoid nested async runtime access
         #[cfg(feature = "napi")]
-        if let Err(err) = self
-            .external_formatter
-            .as_ref()
-            .expect("External formatter must be set when `napi` feature is enabled")
-            .setup_config(&external_config.to_string(), num_of_threads)
-        {
+        if let Err(err) = tokio::task::block_in_place(|| {
+            self.external_formatter
+                .as_ref()
+                .expect("External formatter must be set when `napi` feature is enabled")
+                .setup_config(&external_config.to_string(), num_of_threads)
+        }) {
             utils::print_and_flush(
                 stderr,
                 &format!("Failed to setup external formatter config.\n{err}\n"),
diff --git a/apps/oxfmt/src/core/external_formatter.rs b/apps/oxfmt/src/core/external_formatter.rs
index bb655ac60fe91..59813ae626430 100644
--- a/apps/oxfmt/src/core/external_formatter.rs
+++ b/apps/oxfmt/src/core/external_formatter.rs
@@ -5,7 +5,6 @@ use napi::{
     bindgen_prelude::{FnArgs, Promise, block_on},
     threadsafe_function::ThreadsafeFunction,
 };
-use tokio::task::block_in_place;
 
 use oxc_formatter::EmbeddedFormatterCallback;
 
@@ -126,24 +125,32 @@ impl ExternalFormatter {
 
 // ---
 
+// NOTE: These methods are all wrapped by `block_on` to run the async JS calls in a blocking manner.
+//
+// When called from `rayon` worker threads (Mode::Cli), this works fine.
+// Because `rayon` threads are separate from the `tokio` runtime.
+//
+// However, in cases like `--stdin-filepath` or Node.js API calls,
+// where already inside an async context (the `napi`'s `async` function),
+// calling `block_on` directly would cause issues with nested async runtime access.
+//
+// Therefore, `block_in_place()` is used at the call site
+// to temporarily convert the current async task into a blocking context.
+
 /// Wrap JS `setupConfig` callback as a normal Rust function.
-// NOTE: Use `block_in_place()` because this is called from a sync context, unlike the others
 fn wrap_setup_config(cb: JsSetupConfigCb) -> SetupConfigCallback {
     Arc::new(move |config_json: &str, num_threads: usize| {
-        block_in_place(|| {
-            tokio::runtime::Handle::current().block_on(async {
-                #[expect(clippy::cast_possible_truncation)]
-                let status = cb
-                    .call_async(FnArgs::from((config_json.to_string(), num_threads as u32)))
-                    .await;
-                match status {
-                    Ok(promise) => match promise.await {
-                        Ok(languages) => Ok(languages),
-                        Err(err) => Err(format!("JS setupConfig promise rejected: {err}")),
-                    },
-                    Err(err) => Err(format!("Failed to call JS setupConfig callback: {err}")),
-                }
-            })
+        block_on(async {
+            #[expect(clippy::cast_possible_truncation)]
+            let status =
+                cb.call_async(FnArgs::from((config_json.to_string(), num_threads as u32))).await;
+            match status {
+                Ok(promise) => match promise.await {
+                    Ok(languages) => Ok(languages),
+                    Err(err) => Err(format!("JS setupConfig promise rejected: {err}")),
+                },
+                Err(err) => Err(format!("Failed to call JS setupConfig callback: {err}")),
+            }
         })
     })
 }
diff --git a/apps/oxfmt/src/stdin/mod.rs b/apps/oxfmt/src/stdin/mod.rs
index 2b6f81a5cd042..c0500e3194780 100644
--- a/apps/oxfmt/src/stdin/mod.rs
+++ b/apps/oxfmt/src/stdin/mod.rs
@@ -77,9 +77,10 @@ impl StdinRunner {
             };
 
         // TODO: Plugins support
-        if let Err(err) =
+        // Use `block_in_place()` to avoid nested async runtime access
+        if let Err(err) = tokio::task::block_in_place(|| {
             external_formatter.setup_config(&external_config.to_string(), num_of_threads)
-        {
+        }) {
             utils::print_and_flush(
                 stderr,
                 &format!("Failed to setup external formatter config.\n{err}\n"),
@@ -97,8 +98,7 @@ impl StdinRunner {
         let source_formatter = SourceFormatter::new(num_of_threads, format_options)
             .with_external_formatter(Some(external_formatter), oxfmt_options.sort_package_json);
 
-        // Run formatting in a blocking task within tokio runtime
-        // This is needed because external formatter uses `tokio::runtime::Handle::current()`
+        // Use `block_in_place()` to avoid nested async runtime access
         match tokio::task::block_in_place(|| source_formatter.format(&strategy, &source_text)) {
             FormatResult::Success { code, .. } => {
                 utils::print_and_flush(stdout, &code);