diff --git a/common/changes/@microsoft/rush/bugfix-rename-subspace-pnpmfileShimSettings_2025-02-25-05-03.json b/common/changes/@microsoft/rush/bugfix-rename-subspace-pnpmfileShimSettings_2025-02-25-05-03.json
new file mode 100644
index 00000000000..f5478bdc05e
--- /dev/null
+++ b/common/changes/@microsoft/rush/bugfix-rename-subspace-pnpmfileShimSettings_2025-02-25-05-03.json
@@ -0,0 +1,10 @@
+{
+  "changes": [
+    {
+      "packageName": "@microsoft/rush",
+      "comment": "Rename the subspace pnpmfileSettings file to globalPnpmfileSettings.json to avoid overwriting the original pnpmfileSettings.json",
+      "type": "none"
+    }
+  ],
+  "packageName": "@microsoft/rush"
+}
\ No newline at end of file
diff --git a/libraries/rush-lib/src/logic/pnpm/SubspaceGlobalPnpmfileShim.ts b/libraries/rush-lib/src/logic/pnpm/SubspaceGlobalPnpmfileShim.ts
index 83573297750..368fe945a01 100644
--- a/libraries/rush-lib/src/logic/pnpm/SubspaceGlobalPnpmfileShim.ts
+++ b/libraries/rush-lib/src/logic/pnpm/SubspaceGlobalPnpmfileShim.ts
@@ -44,7 +44,7 @@ function init(context: IPnpmfileContext | any): IPnpmfileContext {
   if (!settings) {
     // Initialize the settings from file
     if (!context.splitWorkspacePnpmfileShimSettings) {
-      context.splitWorkspacePnpmfileShimSettings = __non_webpack_require__('./pnpmfileSettings.json');
+      context.splitWorkspacePnpmfileShimSettings = __non_webpack_require__('./globalPnpmfileSettings.json');
     }
     settings = context.splitWorkspacePnpmfileShimSettings!;
   } else if (!context.splitWorkspacePnpmfileShimSettings) {
diff --git a/libraries/rush-lib/src/logic/pnpm/SubspacePnpmfileConfiguration.ts b/libraries/rush-lib/src/logic/pnpm/SubspacePnpmfileConfiguration.ts
index 327f1787de7..800ffd605b2 100644
--- a/libraries/rush-lib/src/logic/pnpm/SubspacePnpmfileConfiguration.ts
+++ b/libraries/rush-lib/src/logic/pnpm/SubspacePnpmfileConfiguration.ts
@@ -49,7 +49,7 @@ export class SubspacePnpmfileConfiguration {
     // Write the settings file used by the shim
     await JsonFile.saveAsync(
       subspaceGlobalPnpmfileShimSettings,
-      path.join(targetDir, 'pnpmfileSettings.json'),
+      path.join(targetDir, 'globalPnpmfileSettings.json'),
       {
         ensureFolderExists: true
       }