diff --git a/src/Resolvers/Microsoft.NET.Sdk.WorkloadManifestReader/SdkDirectoryWorkloadManifestProvider.cs b/src/Resolvers/Microsoft.NET.Sdk.WorkloadManifestReader/SdkDirectoryWorkloadManifestProvider.cs
index f46af199399b..22a7c18d3b47 100644
--- a/src/Resolvers/Microsoft.NET.Sdk.WorkloadManifestReader/SdkDirectoryWorkloadManifestProvider.cs
+++ b/src/Resolvers/Microsoft.NET.Sdk.WorkloadManifestReader/SdkDirectoryWorkloadManifestProvider.cs
@@ -169,31 +169,28 @@ bool TryGetWorkloadSet(string workloadSetVersion, out WorkloadSet? workloadSet)
                 }
             }
 
+            _installStateFilePath = Path.Combine(WorkloadInstallType.GetInstallStateFolder(_sdkVersionBand, _sdkRootPath), "default.json");
+            var installState = InstallStateContents.FromPath(_installStateFilePath);
             if (_workloadSet is null)
             {
-                var installStateFilePath = Path.Combine(WorkloadInstallType.GetInstallStateFolder(_sdkVersionBand, _sdkRootPath), "default.json");
-                if (File.Exists(installStateFilePath))
+                if (!string.IsNullOrEmpty(installState.WorkloadVersion))
                 {
-                    var installState = InstallStateContents.FromPath(installStateFilePath);
-                    if (!string.IsNullOrEmpty(installState.WorkloadVersion))
+                    if (!TryGetWorkloadSet(installState.WorkloadVersion!, out _workloadSet))
                     {
-                        if (!TryGetWorkloadSet(installState.WorkloadVersion!, out _workloadSet))
-                        {
-                            throw new FileNotFoundException(string.Format(Strings.WorkloadVersionFromInstallStateNotFound, installState.WorkloadVersion, installStateFilePath));
-                        }
+                        throw new FileNotFoundException(string.Format(Strings.WorkloadVersionFromInstallStateNotFound, installState.WorkloadVersion, _installStateFilePath));
                     }
-
-                    //  Note: It is possible here to have both a workload set and loose manifests listed in the install state.  This might happen if there is a
-                    //  third-party workload manifest installed that's not part of the workload set
-                    _manifestsFromInstallState = installState.Manifests is null ? null : WorkloadSet.FromDictionaryForJson(installState.Manifests, _sdkVersionBand);
-                    _installStateFilePath = installStateFilePath;
                 }
+
+                //  Note: It is possible here to have both a workload set and loose manifests listed in the install state.  This might happen if there is a
+                //  third-party workload manifest installed that's not part of the workload set
+                _manifestsFromInstallState = installState.Manifests is null ? null : WorkloadSet.FromDictionaryForJson(installState.Manifests, _sdkVersionBand);
             }
 
-            if (_workloadSet == null && availableWorkloadSets.Any())
+            if (_workloadSet == null && installState.UseWorkloadSets == true && availableWorkloadSets.Any())
             {
                 var maxWorkloadSetVersion = availableWorkloadSets.Keys.Aggregate((s1, s2) => VersionCompare(s1, s2) >= 0 ? s1 : s2);
                 _workloadSet = availableWorkloadSets[maxWorkloadSetVersion.ToString()];
+                _useManifestsFromInstallState = false;
             }
         }
 
diff --git a/src/Tests/Microsoft.NET.Sdk.WorkloadManifestReader.Tests/SdkDirectoryWorkloadManifestProviderTests.cs b/src/Tests/Microsoft.NET.Sdk.WorkloadManifestReader.Tests/SdkDirectoryWorkloadManifestProviderTests.cs
index 081d8c260a61..f3e02e55773c 100644
--- a/src/Tests/Microsoft.NET.Sdk.WorkloadManifestReader.Tests/SdkDirectoryWorkloadManifestProviderTests.cs
+++ b/src/Tests/Microsoft.NET.Sdk.WorkloadManifestReader.Tests/SdkDirectoryWorkloadManifestProviderTests.cs
@@ -4,6 +4,7 @@
 using System.Diagnostics.CodeAnalysis;
 using System.Runtime.CompilerServices;
 using Microsoft.DotNet.Cli;
+using Microsoft.DotNet.Workloads.Workload;
 using Microsoft.NET.Sdk.Localization;
 using Microsoft.NET.Sdk.WorkloadManifestReader;
 
@@ -31,6 +32,40 @@ void Initialize(string featureBand = "5.0.100", [CallerMemberName] string? testN
             Directory.CreateDirectory(_manifestVersionBandDirectory);
         }
 
+        [Theory]
+        [InlineData(true)]
+        [InlineData(false)]
+        public void ItShouldPrioritizeInstallStateOverWorkloadSetUnlessSpecified(bool preferWorkloadSet)
+        {
+            Initialize();
+
+            CreateMockManifest(_manifestRoot, "8.0.400", "ios", "11.0.2", true);
+            CreateMockManifest(_manifestRoot, "8.0.400", "ios", "11.0.6", true);
+            CreateMockWorkloadSet(_manifestRoot, "8.0.400", "8.0.400", @"
+                {
+                    ""ios"": ""11.0.2/8.0.400""
+                }
+            ");
+
+            var installStateLocation = WorkloadInstallType.GetInstallStateFolder(new SdkFeatureBand("8.0.400"), Path.GetDirectoryName(_manifestRoot)!);
+            var installStateFilePath = Path.Combine(installStateLocation, "default.json");
+            var installState = InstallStateContents.FromPath(installStateFilePath);
+            installState.UseWorkloadSets = preferWorkloadSet;
+            installState.Manifests = new Dictionary<string, string>()
+            {
+                { "ios", "11.0.6/8.0.400" }
+            };
+            Directory.CreateDirectory(installStateLocation);
+            File.WriteAllText(installStateFilePath, installState.ToString());
+
+            var sdkDirectoryWorkloadManifestProvider
+                = new SdkDirectoryWorkloadManifestProvider(sdkRootPath: _fakeDotnetRootDirectory, sdkVersion: "8.0.400", userProfileDir: null, globalJsonPath: null);
+
+            sdkDirectoryWorkloadManifestProvider.GetManifests().Single().ManifestVersion.Should().Be(preferWorkloadSet ? "11.0.2" : "11.0.6");
+
+            Directory.Delete(Path.Combine(_manifestRoot, "8.0.400"), recursive: true);
+        }
+
         [Theory]
         [InlineData(true)]
         [InlineData(false)]
@@ -418,6 +453,13 @@ public void WorkloadSetCanIncludeMultipleJsonFiles()
             CreateMockManifest(_manifestRoot, "8.0.200", "android", "33.0.2-rc.1", true);
             CreateMockManifest(_manifestRoot, "8.0.200", "android", "33.0.2", true);
 
+            // To prepare the resolver to work with workload sets, we need to specify 'workload sets' in the install state file.
+            var installStateLocation = WorkloadInstallType.GetInstallStateFolder(new SdkFeatureBand("8.0.200"), Path.GetDirectoryName(_manifestRoot)!);
+            var installStateFilePath = Path.Combine(installStateLocation, "default.json");
+            var installState = InstallStateContents.FromPath(installStateFilePath);
+            installState.UseWorkloadSets = true;
+            Directory.CreateDirectory(installStateLocation);
+            File.WriteAllText(installStateFilePath, installState.ToString());
 
             var workloadSetDirectory = Path.Combine(_manifestRoot, "8.0.200", "workloadsets", "8.0.200");
             Directory.CreateDirectory(workloadSetDirectory);
@@ -1254,6 +1296,14 @@ private void CreateMockManifest(string manifestRoot, string featureBand, string
 
         private void CreateMockWorkloadSet(string manifestRoot, string featureBand, string workloadSetVersion, string workloadSetContents)
         {
+            // To prepare the resolver to work with workload sets, we need to specify 'workload sets' in the install state file.
+            var installStateLocation = WorkloadInstallType.GetInstallStateFolder(new SdkFeatureBand(featureBand), Path.GetDirectoryName(manifestRoot)!);
+            var installStateFilePath = Path.Combine(installStateLocation, "default.json");
+            var installState = InstallStateContents.FromPath(installStateFilePath);
+            installState.UseWorkloadSets = true;
+            Directory.CreateDirectory(installStateLocation);
+            File.WriteAllText(installStateFilePath, installState.ToString());
+
             var workloadSetDirectory = Path.Combine(manifestRoot, featureBand, "workloadsets", workloadSetVersion);
             if (!Directory.Exists(workloadSetDirectory))
             {