diff --git a/src/test/groovy/com/github/gradle/node/task/NodeTask_integTest.groovy b/src/test/groovy/com/github/gradle/node/task/NodeTask_integTest.groovy
index 718f6471..0959fd3e 100644
--- a/src/test/groovy/com/github/gradle/node/task/NodeTask_integTest.groovy
+++ b/src/test/groovy/com/github/gradle/node/task/NodeTask_integTest.groovy
@@ -1,7 +1,10 @@
 package com.github.gradle.node.task
 
 import com.github.gradle.AbstractIntegTest
+
 import org.gradle.testkit.runner.TaskOutcome
+import org.gradle.util.GradleVersion
+import org.junit.Assume
 import org.junit.Rule
 import org.junit.contrib.java.lang.system.EnvironmentVariables
 
@@ -238,4 +241,17 @@ class NodeTask_integTest extends AbstractIntegTest {
         then:
         result.output.contains("Cannot resolve external dependency org.nodejs:node:${DEFAULT_NODE_VERSION} because no repositories are defined.")
     }
+
+    def 'make sure build works with FAIL_ON_PROJECT_REPOS'() {
+        given:
+        Assume.assumeFalse(gradleVersion < GradleVersion.version("6.8"))
+        copyResources("fixtures/node-depresolutionmgmt")
+
+        when:
+        def result = build("hello")
+
+        then:
+        result.task(":nodeSetup").outcome == TaskOutcome.SUCCESS
+        result.task(":hello").outcome == TaskOutcome.SUCCESS
+    }
 }
diff --git a/src/test/resources/fixtures/node-depresolutionmgmt/build.gradle b/src/test/resources/fixtures/node-depresolutionmgmt/build.gradle
new file mode 100644
index 00000000..a1651c95
--- /dev/null
+++ b/src/test/resources/fixtures/node-depresolutionmgmt/build.gradle
@@ -0,0 +1,49 @@
+import org.gradle.util.GradleVersion
+
+plugins {
+    id "com.github.node-gradle.node"
+}
+
+node {
+    version = "12.13.0"
+    distBaseUrl = null
+    download = true
+    workDir = file("build/node")
+}
+
+def changeScript = isPropertyEnabled("changeScript")
+def changeArgs = isPropertyEnabled("changeArgs")
+
+task hello(type: NodeTask) {
+    script = file("simple.js")
+    args = []
+    outputs.upToDateWhen {
+        true
+    }
+}
+
+if (changeScript) {
+    hello.script = file("name.js")
+}
+
+if (changeArgs) {
+    hello.args = ["Bob", "Alice"]
+}
+
+task executeDirectoryScript(type: NodeTask) {
+    script = file(".")
+    outputs.upToDateWhen {
+        true
+    }
+}
+
+task version(type: NodeTask) {
+    script = file("version.js")
+}
+
+def isPropertyEnabled(String name) {
+    if (GradleVersion.current() >= GradleVersion.version("6.6")) {
+        return providers.systemProperty(name).forUseAtConfigurationTime().isPresent()
+    }
+    return System.properties[name] != null
+}
diff --git a/src/test/resources/fixtures/node-depresolutionmgmt/name.js b/src/test/resources/fixtures/node-depresolutionmgmt/name.js
new file mode 100644
index 00000000..0fc2362c
--- /dev/null
+++ b/src/test/resources/fixtures/node-depresolutionmgmt/name.js
@@ -0,0 +1,5 @@
+const args = process.argv.slice(2);
+
+for (const name of args) {
+    console.log(`Hello ${name}`);
+}
diff --git a/src/test/resources/fixtures/node-depresolutionmgmt/settings.gradle b/src/test/resources/fixtures/node-depresolutionmgmt/settings.gradle
new file mode 100644
index 00000000..aeb9881b
--- /dev/null
+++ b/src/test/resources/fixtures/node-depresolutionmgmt/settings.gradle
@@ -0,0 +1,25 @@
+import org.gradle.api.initialization.resolve.RepositoriesMode
+import org.gradle.util.GradleVersion
+
+if (GradleVersion.current() >= GradleVersion.version("6.8")) {
+    dependencyResolutionManagement {
+        repositories {
+            repositoriesMode.set(RepositoriesMode.FAIL_ON_PROJECT_REPOS)
+
+            ivy {
+                name = "Node.js"
+                setUrl("https://nodejs.org/dist/")
+                patternLayout {
+                    artifact("v[revision]/[artifact](-v[revision]-[classifier]).[ext]")
+                    ivy("v[revision]/ivy.xml")
+                }
+                metadataSources {
+                    artifact()
+                }
+                content {
+                    includeModule("org.nodejs", "node")
+                }
+            }
+        }
+    }
+}
diff --git a/src/test/resources/fixtures/node-depresolutionmgmt/simple.js b/src/test/resources/fixtures/node-depresolutionmgmt/simple.js
new file mode 100644
index 00000000..accefceb
--- /dev/null
+++ b/src/test/resources/fixtures/node-depresolutionmgmt/simple.js
@@ -0,0 +1 @@
+console.log("Hello World");
diff --git a/src/test/resources/fixtures/node-depresolutionmgmt/version.js b/src/test/resources/fixtures/node-depresolutionmgmt/version.js
new file mode 100644
index 00000000..17d8434d
--- /dev/null
+++ b/src/test/resources/fixtures/node-depresolutionmgmt/version.js
@@ -0,0 +1 @@
+console.log(`Version: ${process.version}`);