diff --git a/.changeset/thirty-scissors-hug.md b/.changeset/thirty-scissors-hug.md
new file mode 100644
index 000000000..adefe266f
--- /dev/null
+++ b/.changeset/thirty-scissors-hug.md
@@ -0,0 +1,5 @@
+---
+'providence-analytics': patch
+---
+
+providence-analytics: enhanced allowlistMode detection
diff --git a/packages-node/providence-analytics/src/program/services/InputDataService.js b/packages-node/providence-analytics/src/program/services/InputDataService.js
index 6851d71d0..8338816c9 100644
--- a/packages-node/providence-analytics/src/program/services/InputDataService.js
+++ b/packages-node/providence-analytics/src/program/services/InputDataService.js
@@ -423,6 +423,16 @@ class InputDataService {
     return { globPattern };
   }
 
+  /**
+   * Gets allowlist mode that determines which files to analyze
+   * @param {PathFromSystemRoot} startPath - local filesystem path
+   * @returns {'git'|'npm'}
+   */
+  static _determineAllowListMode(startPath) {
+    const isNodeModule = /^.*\/(node_modules\/@.*|node_modules)\/.*$/.test(startPath);
+    return isNodeModule ? 'npm' : 'git';
+  }
+
   /**
    * Gets an array of files for given extension
    * @param {PathFromSystemRoot} startPath - local filesystem path
@@ -453,9 +463,7 @@ class InputDataService {
     let gitIgnorePaths = [];
     /** @type {string[]} */
     let npmPackagePaths = [];
-
-    const hasGitIgnore = getGitignoreFile(startPath);
-    const allowlistMode = cfg.allowlistMode || (hasGitIgnore ? 'git' : 'npm');
+    const allowlistMode = cfg.allowlistMode || this._determineAllowListMode(startPath);
 
     if (allowlistMode === 'git') {
       gitIgnorePaths = getGitIgnorePaths(startPath);
diff --git a/packages-node/providence-analytics/test-node/program/services/InputDataService.test.js b/packages-node/providence-analytics/test-node/program/services/InputDataService.test.js
index 5f65f5bfd..968b694aa 100644
--- a/packages-node/providence-analytics/test-node/program/services/InputDataService.test.js
+++ b/packages-node/providence-analytics/test-node/program/services/InputDataService.test.js
@@ -349,9 +349,7 @@ build/
             './package.json': JSON.stringify({
               files: ['dist'],
             }),
-            '.gitignore': `
-/dist
-            `,
+            '.gitignore': '/dist',
           });
           const globOutput = InputDataService.gatherFilesFromDir('/fictional/project');
           expect(globOutput).to.eql([
@@ -372,6 +370,36 @@ build/
             // This means allowlistMode is 'npm'
             '/fictional/project/dist/bundle.js',
           ]);
+
+          mockProject(
+            { './dist/bundle.js': '', '.gitignore': '/dist' },
+            {
+              projectName: 'detect-as-npm',
+              projectPath: '/inside/proj/with/node_modules/detect-as-npm',
+            },
+          );
+          const globOutput3 = InputDataService.gatherFilesFromDir(
+            '/inside/proj/with/node_modules/detect-as-npm',
+          );
+          expect(globOutput3).to.eql([
+            // This means allowlistMode is 'npm' (even though we found .gitignore)
+            '/inside/proj/with/node_modules/detect-as-npm/dist/bundle.js',
+          ]);
+
+          mockProject(
+            { './dist/bundle.js': '', '.gitignore': '/dist' },
+            {
+              projectName: '@scoped/detect-as-npm',
+              projectPath: '/inside/proj/with/node_modules/@scoped/detect-as-npm',
+            },
+          );
+          const globOutput4 = InputDataService.gatherFilesFromDir(
+            '/inside/proj/with/node_modules/@scoped/detect-as-npm',
+          );
+          expect(globOutput4).to.eql([
+            // This means allowlistMode is 'npm' (even though we found .gitignore)
+            '/inside/proj/with/node_modules/@scoped/detect-as-npm/dist/bundle.js',
+          ]);
         });
 
         it('custom "allowlist" will take precedence over "allowlistMode"', async () => {