diff --git a/turbopack/crates/turbo-tasks-fs/src/lib.rs b/turbopack/crates/turbo-tasks-fs/src/lib.rs
index 3e1ce659eca10..3ea9efd3f1bb5 100644
--- a/turbopack/crates/turbo-tasks-fs/src/lib.rs
+++ b/turbopack/crates/turbo-tasks-fs/src/lib.rs
@@ -311,45 +311,14 @@ impl DiskFileSystem {
 
         Ok(Self::cell(instance))
     }
-}
-
-impl Debug for DiskFileSystem {
-    fn fmt(&self, f: &mut Formatter) -> fmt::Result {
-        write!(f, "name: {}, root: {}", self.name, self.root)
-    }
-}
 
-#[turbo_tasks::value_impl]
-impl FileSystem for DiskFileSystem {
     #[turbo_tasks::function(fs)]
-    async fn read(&self, fs_path: Vc<FileSystemPath>) -> Result<Vc<FileContent>> {
-        let full_path = self.to_sys_path(fs_path).await?;
-        self.register_invalidator(&full_path)?;
-
-        let _lock = self.lock_path(&full_path).await;
-        let content = match retry_future(|| File::from_path(full_path.clone()))
-            .instrument(tracing::info_span!(
-                "read file",
-                path = display(full_path.display())
-            ))
-            .await
-        {
-            Ok(file) => FileContent::new(file),
-            Err(e) if e.kind() == ErrorKind::NotFound || e.kind() == ErrorKind::InvalidFilename => {
-                FileContent::NotFound
-            }
-            Err(e) => {
-                bail!(anyhow!(e).context(format!("reading file {}", full_path.display())))
-            }
-        };
-        Ok(content.cell())
-    }
-
-    #[turbo_tasks::function(fs)]
-    async fn read_dir(&self, fs_path: Vc<FileSystemPath>) -> Result<Vc<DirectoryContent>> {
+    async fn read_dir_internal(
+        &self,
+        fs_path: Vc<FileSystemPath>,
+    ) -> Result<Vc<InternalDirectoryContent>> {
         let full_path = self.to_sys_path(fs_path).await?;
         self.register_dir_invalidator(&full_path)?;
-        let fs_path = fs_path.await?;
 
         // we use the sync std function here as it's a lot faster (600%) in
         // node-file-trace
@@ -366,7 +335,7 @@ impl FileSystem for DiskFileSystem {
                     || e.kind() == ErrorKind::NotADirectory
                     || e.kind() == ErrorKind::InvalidFilename =>
             {
-                return Ok(DirectoryContent::not_found());
+                return Ok(InternalDirectoryContent::not_found());
             }
             Err(e) => {
                 bail!(anyhow!(e).context(format!("reading dir {}", full_path.display())))
@@ -386,13 +355,13 @@ impl FileSystem for DiskFileSystem {
                 let file_name: RcStr = path.file_name()?.to_str()?.into();
                 let path_to_root = sys_to_unix(path.strip_prefix(&self.root).ok()?.to_str()?);
 
-                let fs_path = FileSystemPath::new_normalized(fs_path.fs, path_to_root.into());
+                let path = path_to_root.into();
 
                 let entry = match e.file_type() {
-                    Ok(t) if t.is_file() => DirectoryEntry::File(fs_path),
-                    Ok(t) if t.is_dir() => DirectoryEntry::Directory(fs_path),
-                    Ok(t) if t.is_symlink() => DirectoryEntry::Symlink(fs_path),
-                    Ok(_) => DirectoryEntry::Other(fs_path),
+                    Ok(t) if t.is_file() => InternalDirectoryEntry::File(path),
+                    Ok(t) if t.is_dir() => InternalDirectoryEntry::Directory(path),
+                    Ok(t) if t.is_symlink() => InternalDirectoryEntry::Symlink(path),
+                    Ok(_) => InternalDirectoryEntry::Other(path),
                     Err(err) => return Some(Err(err.into())),
                 };
 
@@ -401,7 +370,72 @@ impl FileSystem for DiskFileSystem {
             .collect::<Result<_>>()
             .with_context(|| format!("reading directory item in {}", full_path.display()))?;
 
-        Ok(DirectoryContent::new(entries))
+        Ok(InternalDirectoryContent::new(entries))
+    }
+}
+
+impl Debug for DiskFileSystem {
+    fn fmt(&self, f: &mut Formatter) -> fmt::Result {
+        write!(f, "name: {}, root: {}", self.name, self.root)
+    }
+}
+
+#[turbo_tasks::value_impl]
+impl FileSystem for DiskFileSystem {
+    #[turbo_tasks::function(fs)]
+    async fn read(&self, fs_path: Vc<FileSystemPath>) -> Result<Vc<FileContent>> {
+        let full_path = self.to_sys_path(fs_path).await?;
+        self.register_invalidator(&full_path)?;
+
+        let _lock = self.lock_path(&full_path).await;
+        let content = match retry_future(|| File::from_path(full_path.clone()))
+            .instrument(tracing::info_span!(
+                "read file",
+                path = display(full_path.display())
+            ))
+            .await
+        {
+            Ok(file) => FileContent::new(file),
+            Err(e) if e.kind() == ErrorKind::NotFound || e.kind() == ErrorKind::InvalidFilename => {
+                FileContent::NotFound
+            }
+            Err(e) => {
+                bail!(anyhow!(e).context(format!("reading file {}", full_path.display())))
+            }
+        };
+        Ok(content.cell())
+    }
+
+    #[turbo_tasks::function]
+    async fn read_dir(self: Vc<Self>, fs_path: Vc<FileSystemPath>) -> Result<Vc<DirectoryContent>> {
+        match &*self.read_dir_internal(fs_path).await? {
+            InternalDirectoryContent::NotFound => Ok(DirectoryContent::not_found()),
+            InternalDirectoryContent::Entries(entries) => {
+                let fs = fs_path.await?.fs;
+                let entries = entries
+                    .iter()
+                    .map(|(name, entry)| {
+                        let entry = match entry {
+                            InternalDirectoryEntry::File(path) => DirectoryEntry::File(
+                                FileSystemPath::new_normalized(fs, path.clone()),
+                            ),
+                            InternalDirectoryEntry::Directory(path) => DirectoryEntry::Directory(
+                                FileSystemPath::new_normalized(fs, path.clone()),
+                            ),
+                            InternalDirectoryEntry::Symlink(path) => DirectoryEntry::Symlink(
+                                FileSystemPath::new_normalized(fs, path.clone()),
+                            ),
+                            InternalDirectoryEntry::Other(path) => DirectoryEntry::Other(
+                                FileSystemPath::new_normalized(fs, path.clone()),
+                            ),
+                            InternalDirectoryEntry::Error => DirectoryEntry::Error,
+                        };
+                        (name.clone(), entry)
+                    })
+                    .collect();
+                Ok(DirectoryContent::new(entries))
+            }
+        }
     }
 
     #[turbo_tasks::function(fs)]
@@ -1849,6 +1883,15 @@ pub enum FileLinesContent {
     NotFound,
 }
 
+#[derive(Hash, Clone, Debug, PartialEq, Eq, TraceRawVcs, Serialize, Deserialize)]
+pub enum InternalDirectoryEntry {
+    File(RcStr),
+    Directory(RcStr),
+    Symlink(RcStr),
+    Other(RcStr),
+    Error,
+}
+
 #[derive(Hash, Clone, Copy, Debug, PartialEq, Eq, TraceRawVcs, Serialize, Deserialize)]
 pub enum DirectoryEntry {
     File(Vc<FileSystemPath>),
@@ -1916,6 +1959,23 @@ impl From<&DirectoryEntry> for FileSystemEntryType {
     }
 }
 
+#[turbo_tasks::value]
+#[derive(Debug)]
+pub enum InternalDirectoryContent {
+    Entries(Vec<(RcStr, InternalDirectoryEntry)>),
+    NotFound,
+}
+
+impl InternalDirectoryContent {
+    pub fn new(entries: Vec<(RcStr, InternalDirectoryEntry)>) -> Vc<Self> {
+        Self::cell(InternalDirectoryContent::Entries(entries))
+    }
+
+    pub fn not_found() -> Vc<Self> {
+        Self::cell(InternalDirectoryContent::NotFound)
+    }
+}
+
 #[turbo_tasks::value]
 #[derive(Debug)]
 pub enum DirectoryContent {