diff --git a/tools/pipelines/build-performance-observability.yml b/tools/pipelines/build-performance-observability.yml
index dc3177e44ca8..4d7dd7c272e3 100644
--- a/tools/pipelines/build-performance-observability.yml
+++ b/tools/pipelines/build-performance-observability.yml
@@ -98,44 +98,9 @@ extends:
 
         - template: /tools/pipelines/templates/include-use-node-version.yml@self
 
-        - task: Bash@3
-          displayName: Configure npm registry
-          inputs:
-            targetType: 'inline'
-            workingDirectory: $(Pipeline.Workspace)/${{ variables.FluidFrameworkDirectory }}
-            script: |
-              set -eu -o pipefail
-              echo "registry=$(ado-feeds-primary-registry)" > .npmrc
-
-        - task: npmAuthenticate@0
-          displayName: Npm authenticate
-          retryCountOnTaskFailure: 1
-          inputs:
-            workingFile: $(Pipeline.Workspace)/${{ variables.FluidFrameworkDirectory }}/.npmrc
-
-        - task: Bash@3
-          displayName: Install pnpm
-          inputs:
-            targetType: 'inline'
-            workingDirectory: $(Pipeline.Workspace)/${{ variables.FluidFrameworkDirectory }}
-            script: |
-              set -eu -o pipefail
-              PNPM_VERSION=$(node -e "const p=require('./package.json');console.log(p.packageManager.split('+')[0])")
-              npm install -g "$PNPM_VERSION" --userconfig "$(Pipeline.Workspace)/${{ variables.FluidFrameworkDirectory }}/.npmrc"
-
-        - task: Bash@3
-          displayName: Configure pnpm
-          inputs:
-            targetType: 'inline'
-            workingDirectory: $(Pipeline.Workspace)/${{ variables.FluidFrameworkDirectory }}
-            script: |
-              set -eu -o pipefail
-              echo "Using pnpm $(pnpm -v)"
-              # Point all npm/pnpm commands at the authenticated .npmrc
-              echo "##vso[task.setvariable variable=NPM_CONFIG_USERCONFIG]$(Pipeline.Workspace)/${{ variables.FluidFrameworkDirectory }}/.npmrc"
-              pnpm config set store-dir $(Pipeline.Workspace)/.pnpm-store
-              pnpm config set -g workspace-concurrency 0
-              pnpm config set registry "$(ado-feeds-primary-registry)"
+        - template: /tools/pipelines/templates/include-install-pnpm.yml@self
+          parameters:
+            buildDirectory: ${{ variables.FluidFrameworkDirectory }}
 
         - task: Bash@3
           displayName: Install root dependencies
diff --git a/tools/pipelines/templates/include-install-pnpm.yml b/tools/pipelines/templates/include-install-pnpm.yml
index 6207eb48abe4..0b926ec9d422 100644
--- a/tools/pipelines/templates/include-install-pnpm.yml
+++ b/tools/pipelines/templates/include-install-pnpm.yml
@@ -62,46 +62,57 @@ steps:
       restoreKeys: |
         "pnpm-store" | "$(Agent.OS)"
 
+# Seed the userconfig .npmrc with the primary registry. This propagates to subsequent tasks so
+# that npmAuthenticate (below) and any later pnpm/npm invocation in the job reuse the same file.
 - task: Bash@3
-  displayName: Install and configure pnpm
+  displayName: Configure npm registry
   # The previous task (cache restoration) can timeout, which is classified as canceled, but since it's just cache
   # restoration, we want to continue even if it timed out.
   condition: or(succeeded(), canceled())
   inputs:
     targetType: 'inline'
     workingDirectory: '$(Pipeline.Workspace)/${{ parameters.buildDirectory }}'
-    # workspace-concurrency 0 means use use the CPU core count. This is better than the default (4) for larger agents.
     script: |
       set -eu -o pipefail
       echo "Using node $(node --version)"
-      sudo corepack enable
-      echo "Using pnpm $(pnpm -v)"
-      # This ensures all subsequent tasks in this job will use the pnpm configuration set here.
       echo "##vso[task.setvariable variable=NPM_CONFIG_USERCONFIG]$NPM_CONFIG_USERCONFIG"
-      echo "Pnpm user config location: $(pnpm config get userconfig)"
-      pnpm config set store-dir ${{ parameters.pnpmStorePath }}
-      echo "Pnpm store: ${{ parameters.pnpmStorePath }}"
       echo "Primary registry: ${NPM_REGISTRY}"
-      pnpm config set -g workspace-concurrency 0
-      pnpm config set registry "${NPM_REGISTRY}"
-      if [ ${NPM_REGISTRY} == "https://registry.npmjs.org/" ]; then
+      echo "registry=${NPM_REGISTRY}" > "$NPM_CONFIG_USERCONFIG"
+      if [ "${NPM_REGISTRY}" == "https://registry.npmjs.org/" ]; then
         echo "##vso[task.setvariable variable=registryType]public"
       else
         echo "##vso[task.setvariable variable=registryType]private"
       fi
   env:
     NPM_REGISTRY: ${{ parameters.primaryRegistry }}
-    NPM_CONFIG_USERCONFIG: ${{ parameters.userNpmrcPath}}
-    # We should leverage the primary npm registry to install pnpm as well. However, ADO artifacts feeds do not implement
-    # the full npm registry API including a route that corepack uses to get package metadata--the version route here:
-    # https://github.com/nodejs/corepack/blob/bc13d40037d0b1bfd386e260ae741f55505b5c7c/sources/npmRegistryUtils.ts#L32
-    # Thus installing pnpm from an ADO feed using corepack is not possible at time of writing.
-    # COREPACK_NPM_REGISTRY: ${{ parameters.primaryRegistry }}
+    NPM_CONFIG_USERCONFIG: ${{ parameters.userNpmrcPath }}
 
-# Authenticate to npm feed if required
+# Authenticate to the npm feed if required. Runs before pnpm install so that,
+# `npm install -g pnpm@<version>` can fetch pnpm itself from the authenticated feed.
 - task: npmAuthenticate@0
   displayName: 'Npm authenticate'
   condition: and(succeeded(), eq(variables['registryType'], 'private'))
   retryCountOnTaskFailure: 1
   inputs:
     workingFile: ${{ parameters.userNpmrcPath }}
+
+# Install and configure pnpm
+- task: Bash@3
+  displayName: Install pnpm
+  inputs:
+    targetType: 'inline'
+    workingDirectory: '$(Pipeline.Workspace)/${{ parameters.buildDirectory }}'
+    script: |
+      set -eu -o pipefail
+      # Parse the pnpm version pinned in package.json's "packageManager" field
+      # (e.g. "pnpm@10.33.0+sha512..." -> "pnpm@10.33.0").
+      # This discards the integrity hash suffix, which npm does not provide a practical way to use,
+      # and trusts the package repository to serve the correct version.
+      PNPM_VERSION=$(node -e "const p=require('./package.json');console.log(p.packageManager.split('+')[0])")
+      npm install -g "$PNPM_VERSION" --userconfig "${{ parameters.userNpmrcPath }}"
+      echo "Using pnpm $(pnpm -v)"
+      echo "Pnpm user config location: $(pnpm config get userconfig)"
+      pnpm config set store-dir ${{ parameters.pnpmStorePath }}
+      echo "Pnpm store: ${{ parameters.pnpmStorePath }}"
+      # workspace-concurrency 0 means use the CPU core count. This is better than the default (4) for larger agents.
+      pnpm config set -g workspace-concurrency 0