diff --git a/src/install/lockfile/Tree.rs b/src/install/lockfile/Tree.rs
index e13a27b6b90b..e85ef21605dc 100644
--- a/src/install/lockfile/Tree.rs
+++ b/src/install/lockfile/Tree.rs
@@ -806,11 +806,16 @@ impl Tree {
 
             let dependency = &dependencies[dep_id as usize];
 
-            if !crate::dependency::is_safe_install_folder_name(
-                dependency
-                    .name
-                    .slice(lockfile.buffers.string_bytes.as_slice()),
-            ) {
+            // An empty alias has no `node_modules/<name>` folder to escape, so
+            // don't treat it as unsafe — match the lockfile parser and isolated
+            // installer (`bun.lock.rs`, `isolated_install.rs`) which guard
+            // `!name.is_empty()` here rather than failing the whole install.
+            let dependency_name = dependency
+                .name
+                .slice(lockfile.buffers.string_bytes.as_slice());
+            if !dependency_name.is_empty()
+                && !crate::dependency::is_safe_install_folder_name(dependency_name)
+            {
                 builder.maybe_report_error(format_args!(
                     "Invalid dependency name \"{}\"",
                     dependency
diff --git a/test/regression/issue/31652.test.ts b/test/regression/issue/31652.test.ts
new file mode 100644
index 000000000000..8ddbf274925a
--- /dev/null
+++ b/test/regression/issue/31652.test.ts
@@ -0,0 +1,124 @@
+import { spawn } from "bun";
+import { expect, test } from "bun:test";
+import { bunExe, bunEnv as env, tempDir } from "harness";
+import { createHash } from "node:crypto";
+import { gzipSync } from "node:zlib";
+import { join } from "path";
+
+// Build a minimal gzipped npm tarball containing a single package.json.
+function octal(n: number, width: number) {
+  return n.toString(8).padStart(width - 1, "0") + "\0";
+}
+function tarHeader(name: string, size: number) {
+  const buf = Buffer.alloc(512, 0);
+  buf.write(name, 0, 100, "utf8");
+  buf.write(octal(0o644, 8), 100);
+  buf.write(octal(0, 8), 108);
+  buf.write(octal(0, 8), 116);
+  buf.write(octal(size, 12), 124);
+  buf.write(octal(0, 12), 136);
+  buf.fill(" ", 148, 156);
+  buf.write("0", 156); // typeflag: regular file
+  buf.write("ustar\0", 257);
+  buf.write("00", 263);
+  let sum = 0;
+  for (let i = 0; i < 512; i++) sum += buf[i];
+  buf.write(octal(sum, 8), 148); // checksum
+  return buf;
+}
+function pad512(len: number) {
+  return Buffer.alloc((512 - (len % 512)) % 512, 0);
+}
+function buildTarball(pkgJson: object) {
+  const body = Buffer.from(JSON.stringify(pkgJson) + "\n");
+  const tar = Buffer.concat([
+    tarHeader("package/package.json", body.length),
+    body,
+    pad512(body.length),
+    Buffer.alloc(1024, 0), // two zero blocks = end-of-archive
+  ]);
+  const tgz = gzipSync(tar);
+  return { tgz, integrity: "sha512-" + createHash("sha512").update(tgz).digest("base64") };
+}
+
+// Regression test for https://github.com/oven-sh/bun/issues/31652
+//
+// `bun install -g @openai/codex` (and similar) aborted with
+// `error: Invalid dependency name ""`. The trigger is an *optional* dependency
+// declared with an empty key (`"optionalDependencies": { "": "..." }`) whose
+// target does not resolve on the current platform. An optional dependency that
+// fails to resolve keeps its empty name (the resolved-package name is never
+// substituted), and the hoisting tree builder then rejected that empty name
+// instead of skipping it — so the whole install failed.
+//
+// A dependency with an empty name has no `node_modules/<name>` folder to
+// escape, so it must be tolerated the same way the lockfile parser and
+// isolated installer already handle it. Previously this worked (Bun 1.3.x);
+// it broke on 1.4.0-canary.
+test("install does not abort on an unresolved optional dependency with an empty name (#31652)", async () => {
+  // `top@1.0.0` declares an optional dependency under an empty key whose target
+  // (a package literally named "") cannot be resolved.
+  const top = buildTarball({ name: "top", version: "1.0.0" });
+
+  let emptyNameManifestRequested = false;
+
+  await using server = Bun.serve({
+    port: 0,
+    hostname: "127.0.0.1",
+    async fetch(req) {
+      const url = new URL(req.url);
+      const base = `http://127.0.0.1:${server.port}`;
+      if (url.pathname === "/top") {
+        return Response.json({
+          name: "top",
+          "dist-tags": { latest: "1.0.0" },
+          versions: {
+            "1.0.0": {
+              name: "top",
+              version: "1.0.0",
+              optionalDependencies: { "": "1.0.0" },
+              dist: { integrity: top.integrity, tarball: `${base}/top/-/top-1.0.0.tgz` },
+            },
+          },
+        });
+      }
+      if (url.pathname === "/top/-/top-1.0.0.tgz") {
+        return new Response(top.tgz, { headers: { "content-length": String(top.tgz.length) } });
+      }
+      // The empty-name dependency resolves to a request for a package named "",
+      // i.e. the registry root. Make it 404 so the optional dep fails to resolve.
+      if (url.pathname === "/") {
+        emptyNameManifestRequested = true;
+      }
+      return new Response("Not found", { status: 404 });
+    },
+  });
+
+  using dir = tempDir("issue-31652", {
+    "package.json": JSON.stringify({
+      name: "app",
+      version: "1.0.0",
+      dependencies: { top: "1.0.0" },
+    }),
+    "bunfig.toml": `[install]\ncache = false\nregistry = "http://127.0.0.1:${server.port}/"\n`,
+  });
+
+  await using proc = spawn({
+    cmd: [bunExe(), "install"],
+    cwd: String(dir),
+    env: { ...env, BUN_INSTALL_CACHE_DIR: join(String(dir), ".cache") },
+    stdout: "pipe",
+    stderr: "pipe",
+  });
+
+  const [stdout, stderr, exitCode] = await Promise.all([proc.stdout.text(), proc.stderr.text(), proc.exited]);
+
+  // The empty-name optional dependency must not abort the install.
+  expect(stderr).not.toContain('Invalid dependency name ""');
+  // The requested package must still be installed.
+  expect(await Bun.file(join(String(dir), "node_modules", "top", "package.json")).exists()).toBe(true);
+  // Sanity check that we actually exercised the empty-name resolution path.
+  expect(emptyNameManifestRequested).toBe(true);
+  // Assert the exit code last for a more useful message if a behavioral check fails.
+  expect(exitCode).toBe(0);
+});