diff --git a/nvm.sh b/nvm.sh
index 6140b386..22024257 100755
--- a/nvm.sh
+++ b/nvm.sh
@@ -4223,8 +4223,10 @@ nvm_die_on_prefix() {
     NVM_OS="$(nvm_get_os)"
     local NVM_CONFIG_VALUE
     eval "NVM_CONFIG_VALUE=\"\$${NVM_NPM_CONFIG_x_PREFIX_ENV}\""
-    if [ -n "${NVM_CONFIG_VALUE-}" ] && [ "_${NVM_OS}" = "_win" ]; then
-      NVM_CONFIG_VALUE="$(nvm_cd "$NVM_CONFIG_VALUE" 2>/dev/null && pwd)"
+    local NVM_CONFIG_DIR
+    # a prefix that does not exist yet can not be resolved, so it is checked as-is
+    if [ -n "${NVM_CONFIG_VALUE-}" ] && [ "_${NVM_OS}" = "_win" ] && NVM_CONFIG_DIR="$(nvm_cd "$NVM_CONFIG_VALUE" 2>/dev/null && pwd)"; then
+      NVM_CONFIG_VALUE="${NVM_CONFIG_DIR}"
     fi
     if [ -n "${NVM_CONFIG_VALUE-}" ] && ! nvm_tree_contains_path "${NVM_DIR}" "${NVM_CONFIG_VALUE}"; then
       nvm deactivate >/dev/null 2>&1
diff --git a/test/fast/Unit tests/nvm_die_on_prefix b/test/fast/Unit tests/nvm_die_on_prefix
index 8c1f3884..11237fde 100755
--- a/test/fast/Unit tests/nvm_die_on_prefix	
+++ b/test/fast/Unit tests/nvm_die_on_prefix	
@@ -97,6 +97,14 @@ Run `unset NPM_CONFIG_PREFIX` to unset it.'
 [ "_$CAPTURED_STDERR" = "_$EXPECTED_OUTPUT" ] || die "'NPM_CONFIG_PREFIX=bar nvm_die_on_prefix 0 foo' did not error with '$EXPECTED_OUTPUT'; got '$CAPTURED_STDERR'"
 [ "_$CAPTURED_EXIT_CODE" = "_4" ] || die "'NPM_CONFIG_PREFIX=bar nvm_die_on_prefix 0 foo' did not exit with 4; got '$CAPTURED_EXIT_CODE'"
 
+# on Windows, a prefix that does not exist can not be resolved, but it is still not inside `$NVM_DIR`
+(
+  nvm_get_os() { nvm_echo win; }
+  NPM_CONFIG_PREFIX=bar try_err nvm_die_on_prefix 0 foo "$(nvm_version_dir new)"
+  [ "_$CAPTURED_STDERR" = "_$EXPECTED_OUTPUT" ] || die "on Windows, 'NPM_CONFIG_PREFIX=bar nvm_die_on_prefix 0 foo' did not error with '$EXPECTED_OUTPUT'; got '$CAPTURED_STDERR'"
+  [ "_$CAPTURED_EXIT_CODE" = "_4" ] || die "on Windows, 'NPM_CONFIG_PREFIX=bar nvm_die_on_prefix 0 foo' did not exit with 4; got '$CAPTURED_EXIT_CODE'"
+) || die 'nvm_die_on_prefix must not skip an unresolvable NPM_CONFIG_PREFIX on Windows'
+
 npm_CONFIG_PREFIX=bar try_err nvm_die_on_prefix 0 foo "$(nvm_version_dir new)"
 unset npm_CONFIG_PREFIX
 EXPECTED_OUTPUT='nvm is not compatible with the "npm_CONFIG_PREFIX" environment variable: currently set to "bar"