diff --git a/common/changes/@microsoft/rush/autoinstaller-move-node-modules-to-recycler_2026-04-07-18-05.json b/common/changes/@microsoft/rush/autoinstaller-move-node-modules-to-recycler_2026-04-07-18-05.json
new file mode 100644
index 00000000000..74e96cdb0f0
--- /dev/null
+++ b/common/changes/@microsoft/rush/autoinstaller-move-node-modules-to-recycler_2026-04-07-18-05.json
@@ -0,0 +1,10 @@
+{
+  "changes": [
+    {
+      "packageName": "@microsoft/rush",
+      "comment": "Move stale autoinstaller `node_modules` folders into Rush's recycler before asynchronously deleting them, instead of synchronously deleting them in place.",
+      "type": "none"
+    }
+  ],
+  "packageName": "@microsoft/rush"
+}
diff --git a/libraries/rush-lib/src/cli/test/Autoinstaller.test.ts b/libraries/rush-lib/src/cli/test/Autoinstaller.test.ts
new file mode 100644
index 00000000000..f975427f50a
--- /dev/null
+++ b/libraries/rush-lib/src/cli/test/Autoinstaller.test.ts
@@ -0,0 +1,105 @@
+// Copyright (c) Microsoft Corporation. All rights reserved. Licensed under the MIT license.
+// See LICENSE in the project root for license information.
+
+import './mockRushCommandLineParser';
+
+import { FileSystem } from '@rushstack/node-core-library';
+
+import { Autoinstaller } from '../../logic/Autoinstaller';
+import { InstallHelpers } from '../../logic/installManager/InstallHelpers';
+import { RushConstants } from '../../logic/RushConstants';
+import { Utilities } from '../../utilities/Utilities';
+import {
+  getCommandLineParserInstanceAsync,
+  isolateEnvironmentConfigurationForTests,
+  type IEnvironmentConfigIsolation
+} from './TestUtils';
+
+describe(Autoinstaller.name, () => {
+  let _envIsolation: IEnvironmentConfigIsolation;
+
+  beforeEach(() => {
+    _envIsolation = isolateEnvironmentConfigurationForTests();
+  });
+
+  afterEach(() => {
+    _envIsolation.restore();
+    jest.restoreAllMocks();
+  });
+
+  it('moves an existing node_modules folder into the Rush recycler before reinstalling', async () => {
+    const { parser, repoPath, spawnMock } = await getCommandLineParserInstanceAsync(
+      'pluginWithBuildCommandRepo',
+      'update'
+    );
+    const autoinstallerPath: string = `${repoPath}/common/autoinstallers/plugins`;
+    const nodeModulesFolder: string = `${autoinstallerPath}/${RushConstants.nodeModulesFolderName}`;
+    const staleFilePath: string = `${nodeModulesFolder}/stale-package/index.js`;
+    const recyclerFolder: string = `${parser.rushConfiguration.commonTempFolder}/${RushConstants.rushRecyclerFolderName}`;
+
+    await FileSystem.writeFileAsync(staleFilePath, 'stale', {
+      ensureFolderExists: true
+    });
+
+    let recyclerEntriesBefore: Set<string>;
+    try {
+      recyclerEntriesBefore = new Set(await FileSystem.readFolderItemNamesAsync(recyclerFolder));
+    } catch (error) {
+      if (FileSystem.isNotExistError(error)) {
+        recyclerEntriesBefore = new Set();
+      } else {
+        throw error;
+      }
+    }
+
+    jest.spyOn(InstallHelpers, 'ensureLocalPackageManagerAsync').mockResolvedValue(undefined);
+    jest.spyOn(Utilities, 'syncNpmrc').mockImplementation(() => undefined);
+    jest
+      .spyOn(Utilities, 'executeCommandAsync')
+      .mockImplementation(async (options: Parameters<typeof Utilities.executeCommandAsync>[0]) => {
+        await FileSystem.ensureFolderAsync(
+          `${options.workingDirectory}/${RushConstants.nodeModulesFolderName}`
+        );
+      });
+
+    const autoinstaller: Autoinstaller = new Autoinstaller({
+      autoinstallerName: 'plugins',
+      rushConfiguration: parser.rushConfiguration,
+      rushGlobalFolder: parser.rushGlobalFolder
+    });
+
+    await autoinstaller.prepareAsync();
+
+    const recyclerEntriesAfter: string[] = (await FileSystem.readFolderItemNamesAsync(recyclerFolder)).filter(
+      (entry: string) => !recyclerEntriesBefore.has(entry)
+    );
+
+    expect(recyclerEntriesAfter).toHaveLength(1);
+    await expect(
+      FileSystem.existsAsync(`${recyclerFolder}/${recyclerEntriesAfter[0]}/stale-package/index.js`)
+    ).resolves.toBe(true);
+    await expect(FileSystem.existsAsync(staleFilePath)).resolves.toBe(false);
+    await expect(FileSystem.existsAsync(`${nodeModulesFolder}/rush-autoinstaller.flag`)).resolves.toBe(true);
+
+    if (process.platform === 'win32') {
+      expect(spawnMock).toHaveBeenCalledWith(
+        'cmd.exe',
+        expect.arrayContaining(['/c']),
+        expect.objectContaining({
+          detached: true,
+          stdio: 'ignore',
+          windowsVerbatimArguments: true
+        })
+      );
+    } else {
+      expect(spawnMock).toHaveBeenCalledWith(
+        'rm',
+        expect.arrayContaining(['-rf']),
+        expect.objectContaining({
+          detached: true,
+          stdio: 'ignore'
+        })
+      );
+    }
+  });
+});
diff --git a/libraries/rush-lib/src/logic/Autoinstaller.ts b/libraries/rush-lib/src/logic/Autoinstaller.ts
index ae55a8c361b..a47dd0d89be 100644
--- a/libraries/rush-lib/src/logic/Autoinstaller.ts
+++ b/libraries/rush-lib/src/logic/Autoinstaller.ts
@@ -14,6 +14,7 @@ import {
 } from '@rushstack/node-core-library';
 import { Colorize } from '@rushstack/terminal';
 
+import { AsyncRecycler } from '../utilities/AsyncRecycler';
 import { Utilities } from '../utilities/Utilities';
 import type { RushConfiguration } from '../api/RushConfiguration';
 import { PackageJsonEditor } from '../api/PackageJsonEditor';
@@ -131,7 +132,11 @@ export class Autoinstaller {
       if (isLastInstallFlagDirty || lock.dirtyWhenAcquired) {
         if (FileSystem.exists(nodeModulesFolder)) {
           this._logIfConsoleOutputIsNotRestricted('Deleting old files from ' + nodeModulesFolder);
-          FileSystem.ensureEmptyFolder(nodeModulesFolder);
+          const recycler: AsyncRecycler = new AsyncRecycler(
+            `${this._rushConfiguration.commonTempFolder}/${RushConstants.rushRecyclerFolderName}`
+          );
+          recycler.moveFolder(nodeModulesFolder);
+          await recycler.startDeleteAllAsync();
         }
 
         // Copy: .../common/autoinstallers/my-task/.npmrc