diff --git a/common/changes/@microsoft/rush/approve-builds_2026-01-26-21-57.json b/common/changes/@microsoft/rush/approve-builds_2026-01-26-21-57.json
new file mode 100644
index 0000000000..0a04580e4b
--- /dev/null
+++ b/common/changes/@microsoft/rush/approve-builds_2026-01-26-21-57.json
@@ -0,0 +1,10 @@
+{
+  "changes": [
+    {
+      "packageName": "@microsoft/rush",
+      "comment": "Add support for `rush-pnpm approve-builds` command to persist `globalOnlyBuiltDependencies` in pnpm-config.json",
+      "type": "none"
+    }
+  ],
+  "packageName": "@microsoft/rush"
+}
diff --git a/common/reviews/api/rush-lib.api.md b/common/reviews/api/rush-lib.api.md
index e0f49f952c..22ee65f07d 100644
--- a/common/reviews/api/rush-lib.api.md
+++ b/common/reviews/api/rush-lib.api.md
@@ -1176,6 +1176,7 @@ export class PnpmOptionsConfiguration extends PackageManagerOptionsConfiguration
     readonly resolutionMode: PnpmResolutionMode | undefined;
     readonly strictPeerDependencies: boolean;
     readonly unsupportedPackageJsonSettings: unknown | undefined;
+    updateGlobalOnlyBuiltDependencies(onlyBuiltDependencies: string[] | undefined): void;
     updateGlobalPatchedDependencies(patchedDependencies: Record<string, string> | undefined): void;
     readonly useWorkspaces: boolean;
 }
diff --git a/libraries/rush-lib/src/cli/RushPnpmCommandLineParser.ts b/libraries/rush-lib/src/cli/RushPnpmCommandLineParser.ts
index 7c7787a436..1980c57f08 100644
--- a/libraries/rush-lib/src/cli/RushPnpmCommandLineParser.ts
+++ b/libraries/rush-lib/src/cli/RushPnpmCommandLineParser.ts
@@ -359,6 +359,36 @@ export class RushPnpmCommandLineParser {
           }
           break;
         }
+        case 'approve-builds': {
+          const semver: typeof import('semver') = await import('semver');
+          /**
+           * The "approve-builds" command was introduced in pnpm version 10.1.0
+           * to approve packages for running build scripts when onlyBuiltDependencies is used
+           */
+          if (semver.lt(this._rushConfiguration.packageManagerToolVersion, '10.1.0')) {
+            this._terminal.writeErrorLine(
+              PrintUtilities.wrapWords(
+                `Error: The "pnpm approve-builds" command is added after pnpm@10.1.0.` +
+                  ` Please update "pnpmVersion" >= 10.1.0 in ${RushConstants.rushJsonFilename} file and run "rush update" to use this command.`
+              ) + '\n'
+            );
+            throw new AlreadyReportedError();
+          }
+          const pnpmOptionsJsonFilename: string = path.join(
+            this._rushConfiguration.commonRushConfigFolder,
+            RushConstants.pnpmConfigFilename
+          );
+          if (this._rushConfiguration.rushConfigurationJson.pnpmOptions) {
+            this._terminal.writeErrorLine(
+              PrintUtilities.wrapWords(
+                `Error: The "pnpm approve-builds" command is incompatible with specifying "pnpmOptions" in ${RushConstants.rushJsonFilename} file.` +
+                  ` Please move the content of "pnpmOptions" in ${RushConstants.rushJsonFilename} file to ${pnpmOptionsJsonFilename}`
+              ) + '\n'
+            );
+            throw new AlreadyReportedError();
+          }
+          break;
+        }
 
         // Known safe
         case 'audit':
@@ -532,6 +562,39 @@ export class RushPnpmCommandLineParser {
         }
         break;
       }
+      case 'approve-builds': {
+        if (this._subspace.getPnpmOptions() === undefined) {
+          const subspaceConfigFolder: string = this._subspace.getSubspaceConfigFolderPath();
+          this._terminal.writeErrorLine(
+            `The "rush-pnpm approve-builds" command cannot proceed without a pnpm-config.json file.` +
+              `  Create one in this folder: ${subspaceConfigFolder}`
+          );
+          break;
+        }
+
+        // Example: "C:\MyRepo\common\temp\package.json"
+        const commonPackageJsonFilename: string = `${subspaceTempFolder}/${FileConstants.PackageJson}`;
+        const commonPackageJson: JsonObject = await JsonFile.loadAsync(commonPackageJsonFilename);
+        const newGlobalOnlyBuiltDependencies: string[] | undefined =
+          commonPackageJson?.pnpm?.onlyBuiltDependencies;
+        const pnpmOptions: PnpmOptionsConfiguration | undefined = this._subspace.getPnpmOptions();
+        const currentGlobalOnlyBuiltDependencies: string[] | undefined =
+          pnpmOptions?.globalOnlyBuiltDependencies;
+
+        if (!Objects.areDeepEqual(currentGlobalOnlyBuiltDependencies, newGlobalOnlyBuiltDependencies)) {
+          // Update onlyBuiltDependencies to pnpm configuration file
+          pnpmOptions?.updateGlobalOnlyBuiltDependencies(newGlobalOnlyBuiltDependencies);
+
+          // Rerun installation to update
+          await this._doRushUpdateAsync();
+
+          this._terminal.writeWarningLine(
+            `Rush refreshed the ${RushConstants.pnpmConfigFilename} and shrinkwrap file.\n` +
+              '  Please commit this change to Git.'
+          );
+        }
+        break;
+      }
     }
   }
 
diff --git a/libraries/rush-lib/src/logic/installManager/WorkspaceInstallManager.ts b/libraries/rush-lib/src/logic/installManager/WorkspaceInstallManager.ts
index 0c603aef59..4be7bb4a91 100644
--- a/libraries/rush-lib/src/logic/installManager/WorkspaceInstallManager.ts
+++ b/libraries/rush-lib/src/logic/installManager/WorkspaceInstallManager.ts
@@ -600,17 +600,28 @@ export class WorkspaceInstallManager extends BaseInstallManager {
         }
       }
 
-      const onPnpmStdoutChunk: ((chunk: string) => void) | undefined =
-        pnpmTips.length > 0
-          ? (chunk: string): void => {
-              // Iterate over the supported custom tip metadata and try to match the chunk.
-              for (const { isMatch, tipId } of pnpmTips) {
-                if (isMatch?.(chunk)) {
-                  tipIDsToBePrinted.add(tipId);
-                }
-              }
+      const onPnpmStdoutChunk: ((chunk: string) => string | void) | undefined = (
+        chunk: string
+      ): string | void => {
+        // Iterate over the supported custom tip metadata and try to match the chunk.
+        if (pnpmTips.length > 0) {
+          for (const { isMatch, tipId } of pnpmTips) {
+            if (isMatch?.(chunk)) {
+              tipIDsToBePrinted.add(tipId);
             }
-          : undefined;
+          }
+        }
+
+        // Replace `pnpm approve-builds` with `rush-pnpm approve-builds` when running
+        // `rush install` or `rush update` to instruct users to use the correct command
+        const modifiedChunk: string = chunk.replace(
+          /pnpm approve-builds/g,
+          `rush-pnpm --subspace ${subspace.subspaceName} approve-builds`
+        );
+
+        // Return modified chunk if it was changed, otherwise return void to keep original
+        return modifiedChunk !== chunk ? modifiedChunk : undefined;
+      };
       try {
         await Utilities.executeCommandWithRetryAsync(
           {
diff --git a/libraries/rush-lib/src/logic/pnpm/PnpmOptionsConfiguration.ts b/libraries/rush-lib/src/logic/pnpm/PnpmOptionsConfiguration.ts
index 7e59c637b6..026ecd2933 100644
--- a/libraries/rush-lib/src/logic/pnpm/PnpmOptionsConfiguration.ts
+++ b/libraries/rush-lib/src/logic/pnpm/PnpmOptionsConfiguration.ts
@@ -539,4 +539,14 @@ export class PnpmOptionsConfiguration extends PackageManagerOptionsConfiguration
       JsonFile.save(this._json, this.jsonFilename, { updateExistingFile: true });
     }
   }
+
+  /**
+   * Updates globalOnlyBuiltDependencies field of the PNPM options in the common/config/rush/pnpm-config.json file.
+   */
+  public updateGlobalOnlyBuiltDependencies(onlyBuiltDependencies: string[] | undefined): void {
+    this._json.globalOnlyBuiltDependencies = onlyBuiltDependencies;
+    if (this.jsonFilename) {
+      JsonFile.save(this._json, this.jsonFilename, { updateExistingFile: true });
+    }
+  }
 }