diff --git a/client/api.c b/client/api.c
index 5f586146..9f001a0a 100644
--- a/client/api.c
+++ b/client/api.c
@@ -832,9 +832,9 @@ TDNFAddCmdLinePackages(
         queue_push(pQueueGoal, id);
     }
 
+    repo_internalize(pTdnf->pSolvCmdLineRepo);
     pool_addfileprovides(pSack->pPool);
     pool_createwhatprovides(pSack->pPool);
-    repo_internalize(pTdnf->pSolvCmdLineRepo);
 
 cleanup:
     TDNF_SAFE_FREE_MEMORY(pszRPMPath);
diff --git a/pytests/config.json.in b/pytests/config.json.in
index 09982e85..c15e19bb 100644
--- a/pytests/config.json.in
+++ b/pytests/config.json.in
@@ -1,4 +1,5 @@
 {
+    "packages_server": "packages.broadcom.com",
     "project_name": "@PROJECT_NAME@",
     "project_version": "@VERSION@",
     "specs_dir": "@CMAKE_SOURCE_DIR@/pytests/repo",
diff --git a/pytests/conftest.py b/pytests/conftest.py
index f3e5ec86..eab35472 100644
--- a/pytests/conftest.py
+++ b/pytests/conftest.py
@@ -365,6 +365,15 @@ def get_cached_package_sizes(self, cache_dir):
     def floats_approx_equal(self, x, y, tol=500):
         return abs(x - y) <= tol
 
+    def server_reachable(self, host, port=443, timeout=5):
+        try:
+            addr = socket.gethostbyname(host)
+            sock = socket.create_connection((addr, port), timeout)
+            sock.close()
+            return True
+        except (socket.gaierror, OSError, TimeoutError):
+            return False
+
 
 @pytest.fixture(scope='session')
 def utils():
diff --git a/pytests/tests/test_installroot.py b/pytests/tests/test_installroot.py
index 4d3d7ab3..d839426f 100644
--- a/pytests/tests/test_installroot.py
+++ b/pytests/tests/test_installroot.py
@@ -7,12 +7,16 @@
 #
 
 import os
+import glob
 import shutil
 import pytest
 import fnmatch
+import tempfile
+import platform
 
 INSTALLROOT = '/root/installroot'
 REPOFILENAME = 'photon-test.repo'
+RELEASE_VER = '5.0'
 
 REPODIR = '/root/yum.repos.d'
 REPONAME = 'reposdir-test'
@@ -128,3 +132,48 @@ def test_setopt_reposdir_with_installroot(utils):
     assert REPONAME in "\n".join(ret['stdout'])
 
     shutil.rmtree(INSTALLROOT)
+
+
+def test_installroot_local_rpms_disablerepo_after_download(utils):
+    repo_server = utils.config["packages_server"]
+    assert repo_server
+
+    if not utils.server_reachable(repo_server):
+        pytest.skip('Package repo server unavailable')
+
+    workdir = tempfile.mkdtemp(prefix='test-tdnf-')
+    try:
+        installroot = os.path.join(workdir, 'installroot')
+        rpm_repo = os.path.join(workdir, 'rpm-repo')
+        os.makedirs(rpm_repo, exist_ok=True)
+        os.makedirs(installroot, exist_ok=True)
+
+        arch = platform.machine()
+        repo_url = f"https://{repo_server}/photon/{RELEASE_VER}/photon_updates_{RELEASE_VER}_{arch}"
+
+        ret = utils.run(
+            ['tdnf', 'install', '-y', 'bash',
+             '--refresh', '--downloadonly',
+             '--releasever', RELEASE_VER,
+             '--installroot', installroot,
+             '--downloaddir', rpm_repo,
+             '--nogpgcheck',
+             '--disablerepo=*', '--enablerepo=pkgs',
+             f'--repofrompath=pkgs,{repo_url}'],
+            cwd=workdir
+        )
+        assert ret['retval'] == 0, 'downloadonly bash failed: {}'.format(ret.get('stderr', []))
+
+        rpms = glob.glob(os.path.join(rpm_repo, '*.rpm'))
+        assert len(rpms) >= 1, 'no RPMs downloaded into rpm-repo'
+
+        ret = utils.run(
+            ['tdnf', 'install', '-y', '--refresh', '--releasever', RELEASE_VER,
+             '--installroot', installroot, '--disablerepo=*', '--nogpgcheck'] + rpms,
+            cwd=workdir
+        )
+        assert ret['retval'] == 0, (
+            'install from local RPMs into installroot with --disablerepo=* failed: {}'
+        ).format(ret.get('stderr', []))
+    finally:
+        shutil.rmtree(workdir, ignore_errors=True)