diff --git a/packages/test-setup/package.json b/packages/test-setup/package.json
index 94fb7ce44..d5ac6bc60 100644
--- a/packages/test-setup/package.json
+++ b/packages/test-setup/package.json
@@ -16,11 +16,27 @@
     "resolve": "^1.20.0"
   },
   "devDependencies": {
-    "@embroider/compat": "workspace:*",
-    "@embroider/core": "workspace:*",
-    "@embroider/webpack": "workspace:*",
+    "@embroider/compat": "workspace:^",
+    "@embroider/core": "workspace:^",
+    "@embroider/webpack": "workspace:^",
     "@types/lodash": "^4.14.170"
   },
+  "peerDependencies": {
+    "@embroider/compat": "workspace:^",
+    "@embroider/core": "workspace:^",
+    "@embroider/webpack": "workspace:^"
+  },
+  "peerDependenciesMeta": {
+    "@embroider/compat": {
+      "optional": true
+    },
+    "@embroider/core": {
+      "optional": true
+    },
+    "@embroider/webpack": {
+      "optional": true
+    }
+  },
   "engines": {
     "node": "12.* || 14.* || >= 16"
   },
diff --git a/packages/test-setup/src/index.ts b/packages/test-setup/src/index.ts
index 8ce4cf3d8..ebe48bf46 100644
--- a/packages/test-setup/src/index.ts
+++ b/packages/test-setup/src/index.ts
@@ -5,7 +5,15 @@ import type { Webpack } from '@embroider/webpack';
 type EmberWebpackOptions = typeof Webpack extends PackagerConstructor<infer Options> ? Options : never;
 
 // eslint-disable-next-line @typescript-eslint/no-require-imports
-const currentEmbroiderVersion = `^${require('../package.json').version}`;
+const ourPeerDeps = require('../package.json').peerDependencies;
+
+const embroiderDevDeps = {
+  '@embroider/core': `^${ourPeerDeps['@embroider/core']}`,
+  '@embroider/webpack': `^${ourPeerDeps['@embroider/webpack']}`,
+  '@embroider/compat': `^${ourPeerDeps['@embroider/compat']}`,
+  // Webpack is a peer dependency of `@embroider/webpack`
+  webpack: '^5.0.0',
+};
 
 /*
   Use this instead of `app.toTree()` in your ember-cli-build.js:
@@ -49,14 +57,7 @@ export function embroiderSafe(extension?: object) {
     {
       name: 'embroider-safe',
       npm: {
-        devDependencies: {
-          '@embroider/core': currentEmbroiderVersion,
-          '@embroider/webpack': currentEmbroiderVersion,
-          '@embroider/compat': currentEmbroiderVersion,
-
-          // Webpack is a peer dependency of `@embroider/webpack`
-          webpack: '^5.0.0',
-        },
+        devDependencies: embroiderDevDeps,
       },
       env: {
         EMBROIDER_TEST_SETUP_OPTIONS: 'safe',
@@ -71,14 +72,7 @@ export function embroiderOptimized(extension?: object) {
     {
       name: 'embroider-optimized',
       npm: {
-        devDependencies: {
-          '@embroider/core': currentEmbroiderVersion,
-          '@embroider/webpack': currentEmbroiderVersion,
-          '@embroider/compat': currentEmbroiderVersion,
-
-          // Webpack is a peer dependency of `@embroider/webpack`
-          webpack: '^5.0.0',
-        },
+        devDependencies: embroiderDevDeps,
       },
       env: {
         EMBROIDER_TEST_SETUP_OPTIONS: 'optimized',
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 12a1e4ec6..890ff5752 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -719,13 +719,13 @@ importers:
         version: 1.20.0
     devDependencies:
       '@embroider/compat':
-        specifier: workspace:*
+        specifier: workspace:^
         version: link:../compat
       '@embroider/core':
-        specifier: workspace:*
+        specifier: workspace:^
         version: link:../core
       '@embroider/webpack':
-        specifier: workspace:*
+        specifier: workspace:^
         version: link:../webpack
       '@types/lodash':
         specifier: ^4.14.170
@@ -8657,7 +8657,7 @@ packages:
     dev: true
 
   /cookie-signature@1.0.6:
-    resolution: {integrity: sha512-QADzlaHc8icV8I7vbaJXJwod9HWYp8uCqf1xa4OfNu1T7JVxQIrUgOWtHdNDtPiywmFbiS12VjotIXLrKM3orQ==}
+    resolution: {integrity: sha1-4wOogrNCzD7oylE6eZmXNNqzriw=}
 
   /cookie@0.4.2:
     resolution: {integrity: sha512-aSWTXFzaKWkvHO1Ny/s+ePFpvKsPnjc551iI41v3ny/ow6tBG5Vd+FuqGNhh1LxOmVzOlGUriIlOaokOvhaStA==}
@@ -13103,7 +13103,7 @@ packages:
       map-cache: 0.2.2
 
   /fresh@0.5.2:
-    resolution: {integrity: sha512-zJ2mQYM18rEFOudeV4GShTGIQ7RbzA7ozbU9I/XBpm7kqgMywgmylMwXHxZJmkVoYkna9d2pVXVXPdYTP9ej8Q==}
+    resolution: {integrity: sha1-PYyt2Q2XZWn6g1qx+OSyOhBWBac=}
     engines: {node: '>= 0.6'}
 
   /from2@2.3.0:
@@ -15810,7 +15810,7 @@ packages:
     dev: true
 
   /merge-descriptors@1.0.1:
-    resolution: {integrity: sha512-cCi6g3/Zr1iqQi6ySbseM1Xvooa98N0w31jzUYrXPX2xqObmFGHJ0tQ5u74H3mVh7wLouTseZyYIq39g8cNp1w==}
+    resolution: {integrity: sha1-sAqqVW3YtEVoFQ7J0blT8/kMu2E=}
 
   /merge-stream@2.0.0:
     resolution: {integrity: sha512-abv/qOcuPfk3URPfDzmZU1LKmuw8kT+0nIHvKrKgFrwifol/doWcdA4ZqsWQ8ENrFKkd67Mfpo/LovbIUsbt3w==}
@@ -16751,7 +16751,7 @@ packages:
     dev: true
 
   /path-to-regexp@0.1.7:
-    resolution: {integrity: sha512-5DFkuoqlv1uYQKxy8omFBeJPQcdoE07Kv2sferDCrAq1ohOU+MSDswDIbnx3YAM60qIOnYa53wBhXW0EbMonrQ==}
+    resolution: {integrity: sha1-32BBeABfUi8V60SQ5yR6G/qmf4w=}
 
   /path-type@3.0.0:
     resolution: {integrity: sha512-T2ZUsdZFHgA3u4e5PfPbjd7HDDpxPnQb5jN0SrDsjNSuVXHJqtwTnWqG0B1jZrgmJ/7lj1EmVIByWt1gxGkWvg==}