diff --git a/lib/fs.js b/lib/fs.js
index 53e4d5b829b5f1..932d665a005e5e 100644
--- a/lib/fs.js
+++ b/lib/fs.js
@@ -2731,6 +2731,14 @@ function realpathSync(p, options) {
       }
       resolvedLink = pathModule.resolve(previous, linkTarget);
 
+      // If resolvedLink is not valid, or is a pipe/socket, stop resolving and break out of the loop
+      // Ref: https://github.com/nodejs/node/issues/54200
+      const resolvedLinkStats = binding.lstat(resolvedLink, false, undefined, false /* throwIfNoEntry */);
+      if (!resolvedLinkStats || isFileType(resolvedLinkStats, S_IFIFO) ||
+        isFileType(resolvedLinkStats, S_IFSOCK)) {
+        break;
+      }
+
       cache?.set(base, resolvedLink);
       if (!isWindows) seenLinks.set(id, linkTarget);
     }
diff --git a/test/parallel/test-linux-dev-stdin.js b/test/parallel/test-linux-dev-stdin.js
new file mode 100644
index 00000000000000..578360aee9fa22
--- /dev/null
+++ b/test/parallel/test-linux-dev-stdin.js
@@ -0,0 +1,54 @@
+'use strict';
+const common = require('../common');
+const tmpdir = require('../common/tmpdir');
+const fs = require('fs');
+
+//
+// This test ensures Node.js doesn't crash when reading from /dev/stdin as an input.
+// Ref: https://github.com/nodejs/node/issues/54200
+//
+
+if (!fs.existsSync('/dev/stdin')) {
+  common.skip('Only test on platforms having /dev/stdin');
+}
+
+const child_process = require('child_process');
+const assert = require('assert');
+const { describe, it } = require('node:test');
+const { join } = require('path');
+
+describe("Test reading SourceCode from stdin and it's symlinks", () => {
+  it('Test reading sourcecode from /dev/stdin', () => {
+    const cp = child_process.execSync(
+      `printf 'console.log(1)' | "${process.execPath}" /dev/stdin`,
+      { stdio: 'pipe' }
+    );
+    assert.strictEqual(cp.toString(), '1\n');
+  });
+
+  it('Test reading sourcecode from a symlink to /dev/stdin', () => {
+    tmpdir.refresh();
+    const tmp = tmpdir.resolve('./stdin');
+    fs.symlinkSync('/dev/stdin', tmp);
+    const cp2 = child_process.execSync(
+      `printf 'console.log(2)' | "${process.execPath}" ${tmp}`,
+      { stdio: 'pipe' }
+    );
+    assert.strictEqual(cp2.toString(), '2\n');
+  });
+
+  it('Test reading sourcecode from a symlink to the `readlink -f /dev/stdin`', () => {
+    const devStdin = fs.readlinkSync('/dev/stdin');
+    let devStdinRealPath = devStdin;
+    if (common.isMacOS) {
+      // macOS `readlink` gives back the relative path, so we need to convert it to absolute path.
+      devStdinRealPath = join('/dev', devStdin);
+    }
+
+    const cp3 = child_process.execSync(
+      `printf 'console.log(3)' | "${process.execPath}" "${devStdinRealPath}"`,
+      { stdio: 'pipe' }
+    );
+    assert.strictEqual(cp3.toString(), '3\n');
+  });
+});