diff --git a/packages/module-api/vite.config.ts b/packages/module-api/vite.config.ts
index 61f8fc5389..46af335695 100644
--- a/packages/module-api/vite.config.ts
+++ b/packages/module-api/vite.config.ts
@@ -11,6 +11,8 @@ import { defineConfig } from "vite";
 import dts from "vite-plugin-dts";
 import externalGlobals from "rollup-plugin-external-globals";
 
+import packageJson from "./package.json" with { type: "json" };
+
 const __dirname = dirname(fileURLToPath(import.meta.url));
 
 export default defineConfig({
@@ -32,7 +34,9 @@ export default defineConfig({
         }),
     ],
     define: {
-        __VERSION__: JSON.stringify(process.env.npm_package_version),
+        // We cannot use `process.env.npm_package_version` as when building element-web with module-api set to `workspace`
+        // this would contain the version of element-web rather than that of the module-api.
+        __VERSION__: JSON.stringify(packageJson.version),
         // Use production mode for the build as it is tested against production builds of Element Web,
         // this is required for React JSX versions to be compatible.
         process: { env: { NODE_ENV: "production" } },