diff --git a/sources/commands/InstallLocal.ts b/sources/commands/InstallLocal.ts
index 4990b4a8f..eb6396a6f 100644
--- a/sources/commands/InstallLocal.ts
+++ b/sources/commands/InstallLocal.ts
@@ -27,7 +27,11 @@ export class InstallLocalCommand extends BaseCommand {
     if (resolved === null)
       throw new UsageError(`Failed to successfully resolve '${descriptor.range}' to a valid ${descriptor.name} release`);
 
-    this.context.stdout.write(`Adding ${resolved.name}@${resolved.reference} to the cache...\n`);
-    await this.context.engine.ensurePackageManager(resolved);
+    const info = await this.context.engine.ensurePackageManager(resolved);
+    if (info.isAlreadyInstalled) {
+      this.context.stdout.write(`${info.locator.name}@${info.locator.reference} is already in the cache\n`);
+    } else {
+      this.context.stdout.write(`Adding ${resolved.name}@${resolved.reference} to the cache...\n`);
+    }
   }
 }
diff --git a/sources/corepackUtils.ts b/sources/corepackUtils.ts
index d38df1c7b..9023b788d 100644
--- a/sources/corepackUtils.ts
+++ b/sources/corepackUtils.ts
@@ -224,6 +224,7 @@ export async function installVersion(installTarget: string, locator: Locator, {s
       hash: corepackData.hash as string,
       location: installFolder,
       bin: corepackData.bin,
+      isAlreadyInstalled: true,
     };
   } catch (err) {
     if (nodeUtils.isNodeError(err) && err.code !== `ENOENT`) {
@@ -374,6 +375,7 @@ export async function installVersion(installTarget: string, locator: Locator, {s
     location: installFolder,
     bin,
     hash: serializedHash,
+    isAlreadyInstalled: false,
   };
 }
 
diff --git a/sources/types.ts b/sources/types.ts
index 9fca1dc40..4ca86ef8c 100644
--- a/sources/types.ts
+++ b/sources/types.ts
@@ -53,6 +53,8 @@ export interface InstallSpec {
   location: string;
   bin?: BinList | BinSpec;
   hash: string;
+  /** Whether the package manager was reused from the cache without downloading it. */
+  isAlreadyInstalled: boolean;
 }
 
 export interface DownloadSpec {
diff --git a/tests/InstallLocal.test.ts b/tests/InstallLocal.test.ts
new file mode 100644
index 000000000..bff89d67c
--- /dev/null
+++ b/tests/InstallLocal.test.ts
@@ -0,0 +1,120 @@
+import {ppath, xfs, npath}                from '@yarnpkg/fslib';
+import process                            from 'node:process';
+import {describe, beforeEach, it, expect} from 'vitest';
+
+import {runCli}                           from './_runCli.ts';
+
+beforeEach(async () => {
+  const home = await xfs.mktempPromise();
+
+  process.env.COREPACK_HOME = npath.fromPortablePath(home);
+  process.env.COREPACK_DEFAULT_TO_LATEST = `0`;
+
+  return async () => {
+    await xfs.removePromise(home, {recursive: true});
+  };
+});
+
+describe(`InstallLocalCommand`, () => {
+  it.each([
+    [`1.22.4`, `1.22.4+sha512.a1833b862fe52169bd6c2a033045a07df5bc6a23595c259e675fed1b2d035ab37abe6ce309720abb6636d68f03615054b6292dc0a70da31c8697fda228b50d18`],
+    [`1.22.4+sha224.0d6eecaf4d82ec12566fdd97143794d0f0c317e0d652bd4d1b305430`, `1.22.4+sha224.0d6eecaf4d82ec12566fdd97143794d0f0c317e0d652bd4d1b305430`],
+  ])(`should report the cached version and integrity hash on repeated installs (%s)`, async (version, cachedReference) => {
+    await xfs.mktempPromise(async cwd => {
+      const manifestPath = ppath.join(cwd, `package.json`);
+      await xfs.writeJsonPromise(manifestPath, {packageManager: `yarn@${version}`});
+      const manifest = await xfs.readFilePromise(manifestPath, `utf8`);
+
+      await expect(runCli(cwd, [`install`])).resolves.toEqual({
+        exitCode: 0,
+        stdout: `Adding yarn@${version} to the cache...\n`,
+        stderr: ``,
+      });
+
+      process.env.COREPACK_ENABLE_NETWORK = `0`;
+      await expect(runCli(cwd, [`install`])).resolves.toEqual({
+        exitCode: 0,
+        stdout: `yarn@${cachedReference} is already in the cache\n`,
+        stderr: ``,
+      });
+      await expect(xfs.readFilePromise(manifestPath, `utf8`)).resolves.toBe(manifest);
+      expect(await xfs.existsPromise(ppath.join(npath.toPortablePath(process.env.COREPACK_HOME!), `lastKnownGood.json`))).toBe(false);
+      await expect(runCli(cwd, [`yarn`, `--version`])).resolves.toEqual({
+        exitCode: 0,
+        stdout: `1.22.4\n`,
+        stderr: ``,
+      });
+    });
+  });
+
+  it(`should include the stored hash when an exact devEngines version is already cached`, async () => {
+    await xfs.mktempPromise(async cwd => {
+      const version = `1.22.4+sha224.0d6eecaf4d82ec12566fdd97143794d0f0c317e0d652bd4d1b305430`;
+      await xfs.writeJsonPromise(ppath.join(cwd, `package.json`), {
+        devEngines: {packageManager: {name: `yarn`, version}},
+      });
+
+      await expect(runCli(cwd, [`install`])).resolves.toEqual({
+        exitCode: 0,
+        stdout: `Adding yarn@${version} to the cache...\n`,
+        stderr: ``,
+      });
+      process.env.COREPACK_ENABLE_NETWORK = `0`;
+      await expect(runCli(cwd, [`install`])).resolves.toEqual({
+        exitCode: 0,
+        stdout: `yarn@${version} is already in the cache\n`,
+        stderr: ``,
+      });
+    });
+  });
+
+  it(`should report cache reuse after resolving a devEngines range offline`, async () => {
+    await xfs.mktempPromise(async cwd => {
+      await xfs.writeJsonPromise(ppath.join(cwd, `package.json`), {packageManager: `yarn@1.22.4`});
+      await expect(runCli(cwd, [`install`])).resolves.toEqual({
+        exitCode: 0,
+        stdout: `Adding yarn@1.22.4 to the cache...\n`,
+        stderr: ``,
+      });
+      await xfs.writeJsonPromise(ppath.join(cwd, `package.json`), {
+        devEngines: {packageManager: {name: `yarn`, version: `^1.0.0`}},
+      });
+      process.env.COREPACK_ENABLE_NETWORK = `0`;
+
+      await expect(runCli(cwd, [`install`])).resolves.toEqual({
+        exitCode: 0,
+        stdout: `yarn@1.22.4+sha512.a1833b862fe52169bd6c2a033045a07df5bc6a23595c259e675fed1b2d035ab37abe6ce309720abb6636d68f03615054b6292dc0a70da31c8697fda228b50d18 is already in the cache\n`,
+        stderr: ``,
+      });
+    });
+  });
+
+  it(`should report installation again after clearing the cache`, async () => {
+    await xfs.mktempPromise(async cwd => {
+      await xfs.writeJsonPromise(ppath.join(cwd, `package.json`), {packageManager: `yarn@1.22.4`});
+      const expected = {exitCode: 0, stdout: `Adding yarn@1.22.4 to the cache...\n`, stderr: ``};
+
+      await expect(runCli(cwd, [`install`])).resolves.toEqual(expected);
+      await expect(runCli(cwd, [`cache`, `clean`])).resolves.toEqual({exitCode: 0, stdout: ``, stderr: ``});
+      await expect(runCli(cwd, [`install`])).resolves.toEqual(expected);
+    });
+  });
+
+  it(`should not report a cached version when the download fails integrity verification`, async () => {
+    await xfs.mktempPromise(async cwd => {
+      await xfs.writeJsonPromise(ppath.join(cwd, `package.json`), {packageManager: `yarn@1.22.4+sha1.deadbeef`});
+
+      // Repeat the failed install to verify that the invalid download was not cached.
+      for (let attempt = 0; attempt < 2; attempt++) {
+        const result = await runCli(cwd, [`install`]);
+        expect(result).toEqual({
+          exitCode: 1,
+          stdout: expect.stringContaining(`Internal Error: Mismatch hashes. Expected deadbeef, got`),
+          stderr: ``,
+        });
+        expect(result.stdout).not.toContain(`is already in the cache`);
+        expect(result.stdout).not.toContain(`Adding yarn@`);
+      }
+    });
+  });
+});