diff --git a/lib/config-validator.ts b/lib/config-validator.ts
index bc298c6c23b0bd..c8ff6bfc4a564f 100644
--- a/lib/config-validator.ts
+++ b/lib/config-validator.ts
@@ -1,6 +1,7 @@
 #!/usr/bin/env node
 // istanbul ignore file
 import 'source-map-support/register';
+import './punycode.cjs';
 import { dequal } from 'dequal';
 import { pathExists, readFile } from 'fs-extra';
 import { configFileNames } from './config/app-strings';
diff --git a/lib/punycode.cjs b/lib/punycode.cjs
new file mode 100644
index 00000000000000..40e97f8dcba0df
--- /dev/null
+++ b/lib/punycode.cjs
@@ -0,0 +1,10 @@
+/**
+ * punycode workaround
+ *
+ * Load punycode.js module to cache and override node built-in.
+ *
+ * See <https://github.com/renovatebot/renovate/issues/32395>
+ */
+// eslint-disable-next-line @typescript-eslint/no-require-imports
+require('punycode/');
+require.cache.punycode = require.cache[require.resolve('punycode/')];
diff --git a/lib/renovate.ts b/lib/renovate.ts
index 4a618b9a385f83..d60ae5b2d7dec1 100644
--- a/lib/renovate.ts
+++ b/lib/renovate.ts
@@ -1,6 +1,7 @@
 #!/usr/bin/env node
 
 import 'source-map-support/register';
+import './punycode.cjs';
 import { instrument, shutdown as telemetryShutdown } from './instrumentation'; // has to be imported before logger and other libraries which are instrumentalised
 import { logger } from './logger';
 import { bootstrap } from './proxy';
diff --git a/package.json b/package.json
index b0b65a9dfa9756..f25bd61731e9f4 100644
--- a/package.json
+++ b/package.json
@@ -231,6 +231,7 @@
     "parse-link-header": "2.0.0",
     "prettier": "3.3.3",
     "protobufjs": "7.4.0",
+    "punycode": "2.3.1",
     "redis": "4.7.0",
     "remark": "13.0.0",
     "remark-github": "10.1.0",
@@ -300,6 +301,7 @@
     "@types/ms": "0.7.34",
     "@types/node": "20.17.6",
     "@types/parse-link-header": "2.0.3",
+    "@types/punycode": "2.1.4",
     "@types/semver": "7.5.8",
     "@types/semver-stable": "3.0.2",
     "@types/semver-utils": "1.1.3",
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 064e54bc980782..ffcda476a2bb41 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -275,6 +275,9 @@ importers:
       protobufjs:
         specifier: 7.4.0
         version: 7.4.0
+      punycode:
+        specifier: 2.3.1
+        version: 2.3.1
       redis:
         specifier: 4.7.0
         version: 4.7.0
@@ -472,6 +475,9 @@ importers:
       '@types/parse-link-header':
         specifier: 2.0.3
         version: 2.0.3
+      '@types/punycode':
+        specifier: 2.1.4
+        version: 2.1.4
       '@types/semver':
         specifier: 7.5.8
         version: 7.5.8
@@ -2113,6 +2119,9 @@ packages:
   '@types/parse-link-header@2.0.3':
     resolution: {integrity: sha512-ffLAxD6Xqcf2gSbtEJehj8yJ5R/2OZqD4liodQvQQ+hhO4kg1mk9ToEZQPMtNTm/zIQj2GNleQbsjPp9+UQm4Q==}
 
+  '@types/punycode@2.1.4':
+    resolution: {integrity: sha512-trzh6NzBnq8yw5e35f8xe8VTYjqM3NE7bohBtvDVf/dtUer3zYTLK1Ka3DG3p7bdtoaOHZucma6FfVKlQ134pQ==}
+
   '@types/responselike@1.0.3':
     resolution: {integrity: sha512-H/+L+UkTV33uf49PH5pCAUBVPNj2nDBXTN+qS1dOwyyg24l3CcicicCA7ca+HMvJBZcFgl5r8e+RR6elsb4Lyw==}
 
@@ -8641,6 +8650,8 @@ snapshots:
 
   '@types/parse-link-header@2.0.3': {}
 
+  '@types/punycode@2.1.4': {}
+
   '@types/responselike@1.0.3':
     dependencies:
       '@types/node': 20.17.6