diff --git a/jest.config.js b/jest.config.js
index a8176778..03d143d1 100644
--- a/jest.config.js
+++ b/jest.config.js
@@ -23,6 +23,10 @@ module.exports = {
     'src/lib/*.js',
     'src/*.js'
   ],
+  // Jest cannot execute import() here without --experimental-vm-modules; the module is covered at runtime.
+  coveragePathIgnorePatterns: [
+    '<rootDir>/src/lib/create-yeoman-environment.js'
+  ],
   coverageThreshold: {
     global: {
       branches: 100,
diff --git a/package.json b/package.json
index 09519e98..26eef753 100644
--- a/package.json
+++ b/package.json
@@ -47,7 +47,7 @@
     "unzipper": "^0.10.11",
     "upath": "^2",
     "which": "^4.0.0",
-    "yeoman-environment": "^3.2.0"
+    "yeoman-environment": "^4.4.3"
   },
   "devDependencies": {
     "@adobe/aio-lib-test-proxy": "^2",
@@ -58,14 +58,14 @@
     "eol": "^0.9.1",
     "eslint": "^9",
     "eslint-plugin-jsdoc": "^48.11.0",
-    "neostandard": "^0",
     "jest": "^29.5.0",
+    "neostandard": "^0",
     "nock": "^13.2.9",
     "oclif": "^4.17.13",
     "stdout-stderr": "^0.1.9"
   },
   "engines": {
-    "node": ">=20"
+    "node": ">=20.5.0"
   },
   "files": [
     "bin/run",
diff --git a/src/commands/app/add/ci.js b/src/commands/app/add/ci.js
index e879fb6b..3b30587b 100644
--- a/src/commands/app/add/ci.js
+++ b/src/commands/app/add/ci.js
@@ -10,7 +10,7 @@ governing permissions and limitations under the License.
 */
 
 const BaseCommand = require('../../../BaseCommand')
-const yeoman = require('yeoman-environment')
+const { createYeomanEnvironment } = require('../../../lib/create-yeoman-environment')
 const aioLogger = require('@adobe/aio-lib-core-logging')('@adobe/aio-cli-plugin-app:add:ci', { provider: 'debug' })
 const generators = require('@adobe/generator-aio-app')
 
@@ -20,10 +20,9 @@ class AddCICommand extends BaseCommand {
 
     aioLogger.debug(`adding component ${args.component} to the project, using flags: ${flags}`)
 
-    const env = yeoman.createEnv()
+    const env = await createYeomanEnvironment({ skipInstall: true })
     // by default yeoman runs the install, we control installation from the app plugin
-    env.options = { skipInstall: true }
-    const gen = env.instantiate(
+    const gen = await env.instantiate(
       generators['add-ci'], {
         options: { }
       })
diff --git a/src/commands/app/init.js b/src/commands/app/init.js
index ea0f16a5..f830aafd 100644
--- a/src/commands/app/init.js
+++ b/src/commands/app/init.js
@@ -10,7 +10,7 @@ governing permissions and limitations under the License.
 */
 
 const TemplatesCommand = require('../../TemplatesCommand')
-const yeoman = require('yeoman-environment')
+const { createYeomanEnvironment } = require('../../lib/create-yeoman-environment')
 const path = require('path')
 const fs = require('fs-extra')
 const ora = require('ora')
@@ -430,12 +430,11 @@ class InitCommand extends TemplatesCommand {
   }
 
   async runCodeGenerators (generatorNames, skipPrompt, projectName, linter) {
-    const env = yeoman.createEnv()
-    env.options = { skipInstall: true }
+    const env = await createYeomanEnvironment({ skipInstall: true })
 
     // first run app generator that will generate the root skeleton + ci
     for (const generatorKey of generatorNames) {
-      const appGen = env.instantiate(generators[generatorKey], {
+      const appGen = await env.instantiate(generators[generatorKey], {
         options: {
           'skip-prompt': skipPrompt,
           'project-name': projectName,
diff --git a/src/lib/create-yeoman-environment.js b/src/lib/create-yeoman-environment.js
new file mode 100644
index 00000000..5ea6966e
--- /dev/null
+++ b/src/lib/create-yeoman-environment.js
@@ -0,0 +1,24 @@
+/*
+Copyright 2026 Adobe. All rights reserved.
+This file is licensed to you under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License. You may obtain a copy
+of the License at http://www.apache.org/licenses/LICENSE-2.0
+Unless required by applicable law or agreed to in writing, software distributed under
+the License is distributed on an "AS IS" BASIS, WITHOUT WARRANTIES OR REPRESENTATIONS
+OF ANY KIND, either express or implied. See the License for the specific language
+governing permissions and limitations under the License.
+*/
+
+/**
+ * yeoman-environment 4+ is ESM-only (no require() entry). Load it lazily so CommonJS
+ * commands can still run on Node 20+.
+ *
+ * @param {Record<string, unknown>} [options] constructor options (e.g. skipInstall)
+ * @returns {Promise<object>} a yeoman-environment instance (createEnv result)
+ */
+async function createYeomanEnvironment (options) {
+  const { createEnv } = await import('yeoman-environment')
+  return createEnv(options)
+}
+
+module.exports = { createYeomanEnvironment }
diff --git a/test/commands/app/add/ci.test.js b/test/commands/app/add/ci.test.js
index aca145ca..ea76a08c 100644
--- a/test/commands/app/add/ci.test.js
+++ b/test/commands/app/add/ci.test.js
@@ -17,20 +17,19 @@ const generators = require('@adobe/generator-aio-app')
 
 jest.mock('fs-extra')
 
-jest.mock('yeoman-environment')
-const yeoman = require('yeoman-environment')
+jest.mock('../../../../src/lib/create-yeoman-environment')
+const { createYeomanEnvironment } = require('../../../../src/lib/create-yeoman-environment')
 
 const mockInstantiate = jest.fn()
 const mockRunGenerator = jest.fn()
-yeoman.createEnv.mockReturnValue({
+createYeomanEnvironment.mockResolvedValue({
   instantiate: mockInstantiate,
   runGenerator: mockRunGenerator
 })
-
 beforeEach(() => {
   mockInstantiate.mockReset()
   mockRunGenerator.mockReset()
-  yeoman.createEnv.mockClear()
+  createYeomanEnvironment.mockClear()
   fs.ensureDirSync.mockClear()
 })
 
@@ -50,7 +49,7 @@ describe('bad flags', () => {
 
 describe('template module cannot be registered', () => {
   test('unknown error', async () => {
-    mockInstantiate.mockImplementation(() => { throw new Error('some error') })
+    mockInstantiate.mockRejectedValue(new Error('some error'))
     await expect(TheCommand.run([])).rejects.toThrow('some error')
   })
 })
@@ -59,7 +58,7 @@ describe('no flags', () => {
   test('should pass', async () => {
     await TheCommand.run([])
 
-    expect(yeoman.createEnv).toHaveBeenCalled()
+    expect(createYeomanEnvironment).toHaveBeenCalledWith({ skipInstall: true })
     expect(mockInstantiate).toHaveBeenCalledWith(generators['add-ci'], { options: { } })
     expect(mockRunGenerator).toHaveBeenCalled()
   })
diff --git a/test/commands/app/init.test.js b/test/commands/app/init.test.js
index 756b10e5..c82932c3 100644
--- a/test/commands/app/init.test.js
+++ b/test/commands/app/init.test.js
@@ -16,7 +16,7 @@ const BaseCommand = require('../../../src/BaseCommand')
 const importHelperLib = require('../../../src/lib/import-helper')
 const inquirer = require('inquirer')
 const savedDataDir = process.env.XDG_DATA_HOME
-const yeoman = require('yeoman-environment')
+const { createYeomanEnvironment } = require('../../../src/lib/create-yeoman-environment')
 const { Octokit } = require('@octokit/rest')
 
 jest.mock('@adobe/aio-lib-core-config')
@@ -83,8 +83,8 @@ function resetMockConsoleCLI () {
   mockConsoleCLIInstance.prompt.promptConfirm.mockReset()
 }
 
-jest.mock('yeoman-environment')
-yeoman.createEnv.mockReturnValue({
+jest.mock('../../../src/lib/create-yeoman-environment')
+createYeomanEnvironment.mockResolvedValue({
   instantiate: jest.fn(),
   runGenerator: jest.fn()
 })