diff --git a/packages/app/prisma-utils/.gitignore b/packages/app/prisma-utils/.gitignore
index 4426c203e..03f97ad9f 100644
--- a/packages/app/prisma-utils/.gitignore
+++ b/packages/app/prisma-utils/.gitignore
@@ -2,4 +2,3 @@ node_modules
 dist
 coverage
 .eslintcache
-test/db-client/**
diff --git a/packages/app/prisma-utils/prisma/schema.prisma b/packages/app/prisma-utils/prisma/schema.prisma
index b71248e15..9066e37e1 100644
--- a/packages/app/prisma-utils/prisma/schema.prisma
+++ b/packages/app/prisma-utils/prisma/schema.prisma
@@ -8,7 +8,7 @@ datasource db {
 
 generator client {
   provider = "prisma-client"
-  output   = "../test/db-client"
+  output   = "../node_modules/db-client"
 }
 
 model Item1 {
diff --git a/packages/app/prisma-utils/src/factory/extendPrismaClientWithMetrics.spec.ts b/packages/app/prisma-utils/src/factory/extendPrismaClientWithMetrics.spec.ts
index 30816978b..0b924840a 100644
--- a/packages/app/prisma-utils/src/factory/extendPrismaClientWithMetrics.spec.ts
+++ b/packages/app/prisma-utils/src/factory/extendPrismaClientWithMetrics.spec.ts
@@ -1,10 +1,10 @@
 import { PrismaPg } from '@prisma/adapter-pg'
+import { PrismaClient } from 'db-client/client.ts'
+import { PrismaClientKnownRequestError } from 'db-client/internal/prismaNamespace.ts'
 import type * as Prometheus from 'prom-client'
 import * as promClient from 'prom-client'
 import { afterAll, beforeAll, beforeEach, describe, expect, it, vi } from 'vitest'
 import { cleanTables, DB_MODEL } from '../../test/DbCleaner.ts'
-import { PrismaClient } from '../../test/db-client/client.ts'
-import { PrismaClientKnownRequestError } from '../../test/db-client/internal/prismaNamespace.ts'
 import { getDatasourceUrl } from '../../test/getDatasourceUrl.ts'
 import { extendPrismaClientWithMetrics } from './extendPrismaClientWithMetrics.ts'
 
diff --git a/packages/app/prisma-utils/src/factory/extendPrismaClientWithMetrics.ts b/packages/app/prisma-utils/src/factory/extendPrismaClientWithMetrics.ts
index b0d9a72d4..3619c007c 100644
--- a/packages/app/prisma-utils/src/factory/extendPrismaClientWithMetrics.ts
+++ b/packages/app/prisma-utils/src/factory/extendPrismaClientWithMetrics.ts
@@ -1,6 +1,6 @@
 import type { Either } from '@lokalise/node-core'
+import type { PrismaClient } from 'db-client/client.ts'
 import type Prometheus from 'prom-client'
-import type { PrismaClient } from '../../test/db-client/client.ts'
 
 export const extendPrismaClientWithMetrics = <Client extends PrismaClient>(
   prisma: Client,
diff --git a/packages/app/prisma-utils/src/factory/prismaClientFactory.spec.ts b/packages/app/prisma-utils/src/factory/prismaClientFactory.spec.ts
index 962efbc02..a89cc4888 100644
--- a/packages/app/prisma-utils/src/factory/prismaClientFactory.spec.ts
+++ b/packages/app/prisma-utils/src/factory/prismaClientFactory.spec.ts
@@ -1,9 +1,9 @@
 import { PrismaPg } from '@prisma/adapter-pg'
+import { PrismaClient } from 'db-client/client.ts'
 import type * as Prometheus from 'prom-client'
 import * as promClient from 'prom-client'
 import { afterEach, beforeEach, describe, expect, it, type Mock, vi } from 'vitest'
 import { cleanTables, DB_MODEL } from '../../test/DbCleaner.ts'
-import { PrismaClient } from '../../test/db-client/client.ts'
 import { getDatasourceUrl } from '../../test/getDatasourceUrl.ts'
 import { prismaClientFactory } from './prismaClientFactory.ts'
 
diff --git a/packages/app/prisma-utils/src/factory/prismaClientFactory.ts b/packages/app/prisma-utils/src/factory/prismaClientFactory.ts
index b90c4e79e..24a4eb53d 100644
--- a/packages/app/prisma-utils/src/factory/prismaClientFactory.ts
+++ b/packages/app/prisma-utils/src/factory/prismaClientFactory.ts
@@ -1,7 +1,7 @@
 import type * as RuntimePrisma from '@prisma/client/runtime/client'
+import type { PrismaClient } from 'db-client/client.ts'
+import type { PrismaClientConstructor } from 'db-client/internal/class.ts'
 import type Prometheus from 'prom-client'
-import type { PrismaClient } from '../../test/db-client/client.ts'
-import type { PrismaClientConstructor } from '../../test/db-client/internal/class.ts'
 import { extendPrismaClientWithMetrics } from './extendPrismaClientWithMetrics.ts'
 
 export type prismaClientFactoryOptions = {
diff --git a/packages/app/prisma-utils/src/transaction/prismaTransaction.isolationLevel.spec.ts b/packages/app/prisma-utils/src/transaction/prismaTransaction.isolationLevel.spec.ts
index 4fa5f56fd..3d68f3415 100644
--- a/packages/app/prisma-utils/src/transaction/prismaTransaction.isolationLevel.spec.ts
+++ b/packages/app/prisma-utils/src/transaction/prismaTransaction.isolationLevel.spec.ts
@@ -1,6 +1,6 @@
 import { PrismaPg } from '@prisma/adapter-pg'
+import { PrismaClient } from 'db-client/client.ts'
 import { afterAll, beforeAll, describe, expect, it } from 'vitest'
-import { PrismaClient } from '../../test/db-client/client.ts'
 import { getDatasourceUrl } from '../../test/getDatasourceUrl.ts'
 import { prismaTransaction } from './prismaTransaction.ts'
 
diff --git a/packages/app/prisma-utils/src/transaction/prismaTransaction.spec.ts b/packages/app/prisma-utils/src/transaction/prismaTransaction.spec.ts
index 931763406..95cf0124a 100644
--- a/packages/app/prisma-utils/src/transaction/prismaTransaction.spec.ts
+++ b/packages/app/prisma-utils/src/transaction/prismaTransaction.spec.ts
@@ -1,9 +1,9 @@
 import type { Either } from '@lokalise/node-core'
 import { PrismaPg } from '@prisma/adapter-pg'
 import { PrismaClientKnownRequestError } from '@prisma/client/runtime/client'
+import { PrismaClient } from 'db-client/client.ts'
 import { afterAll, beforeAll, beforeEach, describe, expect, it, vi } from 'vitest'
 import { cleanTables, DB_MODEL } from '../../test/DbCleaner.ts'
-import { PrismaClient } from '../../test/db-client/client.ts'
 import { getDatasourceUrl } from '../../test/getDatasourceUrl.ts'
 import {
   PRISMA_NOT_FOUND_ERROR,
diff --git a/packages/app/prisma-utils/src/transaction/prismaTransaction.ts b/packages/app/prisma-utils/src/transaction/prismaTransaction.ts
index 7c818c85d..0c64f73b4 100644
--- a/packages/app/prisma-utils/src/transaction/prismaTransaction.ts
+++ b/packages/app/prisma-utils/src/transaction/prismaTransaction.ts
@@ -2,7 +2,7 @@ import { setTimeout } from 'node:timers/promises'
 import type { Either } from '@lokalise/node-core'
 import { deepClone } from '@lokalise/node-core'
 import type * as RuntimePrisma from '@prisma/client/runtime/client'
-import type { PrismaClient } from '../../test/db-client/client.ts'
+import type { PrismaClient } from 'db-client/client.ts'
 import { isCockroachDBRetryTransaction } from '../errors/cockroachdbError.ts'
 import {
   isPrismaClientKnownRequestError,
diff --git a/packages/app/prisma-utils/test/DbCleaner.ts b/packages/app/prisma-utils/test/DbCleaner.ts
index f47773cb6..59dfba679 100644
--- a/packages/app/prisma-utils/test/DbCleaner.ts
+++ b/packages/app/prisma-utils/test/DbCleaner.ts
@@ -1,4 +1,4 @@
-import type { PrismaClient } from './db-client/client.ts'
+import type { PrismaClient } from 'db-client/client.ts'
 
 export const DB_MODEL = {
   item1: 'item1',
diff --git a/packages/app/prisma-utils/vitest.config.ts b/packages/app/prisma-utils/vitest.config.ts
index 5056419a0..8386da08a 100644
--- a/packages/app/prisma-utils/vitest.config.ts
+++ b/packages/app/prisma-utils/vitest.config.ts
@@ -1,7 +1,20 @@
+import path from 'node:path'
+import { fileURLToPath } from 'node:url'
 import { defineConfig } from 'vitest/config'
 
+const __dirname = path.dirname(fileURLToPath(import.meta.url))
+
 // biome-ignore lint/style/noDefaultExport: vite expects default export
 export default defineConfig({
+  resolve: {
+    alias: {
+      // Prisma 7's new `prisma-client` generator outputs raw TypeScript files to node_modules/db-client
+      // without a package.json, so Node cannot resolve `db-client/*` imports as a package.
+      // The output is intentionally placed in node_modules so tsc excludes it from the compiled output.
+      // This alias points the resolver directly at the generated directory.
+      'db-client': path.resolve(__dirname, 'node_modules/db-client'),
+    },
+  },
   test: {
     globals: true,
     watch: false,