diff --git a/packages/client/src/utils.js b/packages/client/src/utils.js
index 775963e9b..369c14a59 100644
--- a/packages/client/src/utils.js
+++ b/packages/client/src/utils.js
@@ -135,8 +135,8 @@ export async function request(url, options = {}, callback) {
   let { protocol, hostname, port, pathname, search, hash } = new URL(url);
 
   // reference the default export so tests can mock it
-  // bundling cli inside electron (LCNC) fails if we import it like
-  // this: await import(protocol === 'https:' ? 'https' : 'http');
+  // bundling cli inside electron or another package fails if we import it
+  // like this: await import(protocol === 'https:' ? 'https' : 'http');
   let { default: http } = protocol === 'https:' ? await import('https') : await import('http');
   let { proxyAgentFor } = await import('./proxy.js');
 
diff --git a/packages/core/src/api.js b/packages/core/src/api.js
index dd9a3e3ed..0ba613c11 100644
--- a/packages/core/src/api.js
+++ b/packages/core/src/api.js
@@ -1,13 +1,22 @@
 import fs from 'fs';
 import path from 'path';
-import { createRequire } from 'module';
 import logger from '@percy/logger';
 import { normalize } from '@percy/config/utils';
 import { getPackageJSON, Server, percyAutomateRequestHandler, percyBuildEventHandler } from './utils.js';
 import WebdriverUtils from '@percy/webdriver-utils';
 import { handleSyncJob } from './snapshot.js';
-// need require.resolve until import.meta.resolve can be transpiled
-export const PERCY_DOM = createRequire(import.meta.url).resolve('@percy/dom');
+// Previously, we used `createRequire(import.meta.url).resolve` to resolve the path to the module.
+// This approach relied on `createRequire`, which is Node.js-specific and less compatible with modern ESM (ECMAScript Module) standards.
+// This was leading to hard coded paths when CLI is used as a dependency in another project.
+// Now, we use `fileURLToPath` and `path.resolve` to determine the absolute path in a way that's more aligned with ESM conventions.
+// This change ensures better compatibility and avoids relying on Node.js-specific APIs that might cause issues in ESM environments.
+import { fileURLToPath } from 'url';
+import { dirname, resolve } from 'path';
+
+const __filename = fileURLToPath(import.meta.url);
+const __dirname = dirname(__filename);
+
+export const PERCY_DOM = resolve(__dirname, 'node_modules/@percy/dom');
 
 // Returns a URL encoded string of nested query params
 function encodeURLSearchParams(subj, prefix) {