diff --git a/share/rocmcmakebuildtools/cmake/ROCMPackageConfigHelpers.cmake b/share/rocmcmakebuildtools/cmake/ROCMPackageConfigHelpers.cmake
index f15bfb94..631bbf6c 100644
--- a/share/rocmcmakebuildtools/cmake/ROCMPackageConfigHelpers.cmake
+++ b/share/rocmcmakebuildtools/cmake/ROCMPackageConfigHelpers.cmake
@@ -21,6 +21,16 @@ function(rocm_configure_package_config_file INPUT_FILE OUTPUT_FILE)
         message(FATAL_ERROR "INSTALL_DESTINATION is required for rocm_configure_package_config_file()")
     endif()
 
+    # CMAKE_INSTALL_MODE with symlinks and PREFIX is not supported because the symlink structure
+    # created by rocm_install_symlink_subdir() is incompatible with the config file's
+    # PACKAGE_PREFIX_DIR calculation when symlinks are followed by REALPATH.
+    # CMAKE_INSTALL_MODE symlink modes: SYMLINK, SYMLINK_OR_COPY, ABS_SYMLINK, ABS_SYMLINK_OR_COPY
+    if(PARSE_PREFIX AND NOT WIN32 AND "$ENV{CMAKE_INSTALL_MODE}" MATCHES "SYMLINK")
+        message(FATAL_ERROR
+            "CMAKE_INSTALL_MODE=$ENV{CMAKE_INSTALL_MODE} cannot be used with PREFIX argument. "
+            "Use either CMAKE_INSTALL_MODE with symlinks (without PREFIX) or PREFIX (without CMAKE_INSTALL_MODE symlinks).")
+    endif()
+
     if(IS_ABSOLUTE "${CMAKE_INSTALL_PREFIX}")
         set(INSTALL_PREFIX "${CMAKE_INSTALL_PREFIX}")
     else()
@@ -70,9 +80,38 @@ endif()
 # Any changes to this file will be overwritten by the next CMake run
 ####################################################################################
 
-get_filename_component(_ROCM_CMAKE_CURRENT_LIST_FILE_REAL \"\${CMAKE_CURRENT_LIST_FILE}\" REALPATH)
-get_filename_component(_ROCM_CMAKE_CURRENT_LIST_DIR_REAL \"\${_ROCM_CMAKE_CURRENT_LIST_FILE_REAL}\" DIRECTORY)
-get_filename_component(PACKAGE_PREFIX_DIR \"\${_ROCM_CMAKE_CURRENT_LIST_DIR_REAL}/${PACKAGE_RELATIVE_PATH}\" ABSOLUTE)
+# Handle both PREFIX symlinks and CMAKE_INSTALL_MODE=SYMLINK by detecting directory structure.
+# PREFIX symlinks (e.g., /opt/rocm -> /opt/rocm-7.2) preserve the install tree structure,
+# so the real file and symlink have matching relative layouts (lib/cmake/foo/ in both).
+# CMAKE_INSTALL_MODE=SYMLINK creates symlinks from install tree (lib/cmake/foo/) to build
+# directory (build/), which has a different structure, breaking relative path assumptions.
+get_filename_component(
+    _ROCM_CMAKE_CURRENT_LIST_FILE_REAL \"\${CMAKE_CURRENT_LIST_FILE}\" REALPATH)
+get_filename_component(
+    _ROCM_CMAKE_CURRENT_LIST_DIR_REAL \"\${_ROCM_CMAKE_CURRENT_LIST_FILE_REAL}\" DIRECTORY)
+
+# Check if navigating from real dir through install structure returns to real dir.
+# If yes, structure is preserved (PREFIX case); if no, structure differs (INSTALL_MODE case).
+get_filename_component(
+    _ROCM_STRUCTURE_CHECK
+    \"\${_ROCM_CMAKE_CURRENT_LIST_DIR_REAL}/${PACKAGE_RELATIVE_PATH}/${PACKAGE_INSTALL_RELATIVE_DIR}\"
+    ABSOLUTE)
+
+if(\"\${_ROCM_STRUCTURE_CHECK}\" STREQUAL \"\${_ROCM_CMAKE_CURRENT_LIST_DIR_REAL}\")
+    # Structure preserved - use REALPATH (handles PREFIX symlinks like /opt/rocm -> /opt/rocm-7.2)
+    get_filename_component(
+        PACKAGE_PREFIX_DIR \"\${_ROCM_CMAKE_CURRENT_LIST_DIR_REAL}/${PACKAGE_RELATIVE_PATH}\"
+        ABSOLUTE)
+else()
+    # Structure differs - use ABSOLUTE to preserve symlink path (handles CMAKE_INSTALL_MODE=SYMLINK)
+    get_filename_component(
+        _ROCM_CMAKE_CURRENT_LIST_FILE_ABS \"\${CMAKE_CURRENT_LIST_FILE}\" ABSOLUTE)
+    get_filename_component(
+        _ROCM_CMAKE_CURRENT_LIST_DIR_ABS \"\${_ROCM_CMAKE_CURRENT_LIST_FILE_ABS}\" DIRECTORY)
+    get_filename_component(
+        PACKAGE_PREFIX_DIR \"\${_ROCM_CMAKE_CURRENT_LIST_DIR_ABS}/${PACKAGE_RELATIVE_PATH}\"
+        ABSOLUTE)
+endif()
 
 ${CHECK_PREFIX}
 
diff --git a/test/fail/simple-prefix-install-mode-symlink.cmake b/test/fail/simple-prefix-install-mode-symlink.cmake
new file mode 100644
index 00000000..fbff8b25
--- /dev/null
+++ b/test/fail/simple-prefix-install-mode-symlink.cmake
@@ -0,0 +1,14 @@
+# ######################################################################################################################
+# Copyright (C) 2017 Advanced Micro Devices, Inc.
+# ######################################################################################################################
+
+set(ENV{CMAKE_INSTALL_MODE} "SYMLINK")
+install_dir(
+    ${TEST_DIR}/libsimple
+    CMAKE_ARGS -DROCM_PREFIX=simple
+    TARGETS package)
+test_expect_file(${PREFIX}/include/simple.h)
+if(NOT WIN32)
+    test_expect_file(${PREFIX}/simple/include/simple.h)
+endif()
+install_dir(${TEST_DIR}/libbasic)
diff --git a/test/pass/simple-install-mode-symlink.cmake b/test/pass/simple-install-mode-symlink.cmake
new file mode 100644
index 00000000..35836806
--- /dev/null
+++ b/test/pass/simple-install-mode-symlink.cmake
@@ -0,0 +1,12 @@
+# ######################################################################################################################
+# Copyright (C) 2017 Advanced Micro Devices, Inc.
+# ######################################################################################################################
+
+set(ENV{CMAKE_INSTALL_MODE} "SYMLINK")
+install_dir(
+    ${TEST_DIR}/libsimple
+    CMAKE_ARGS
+    TARGETS package)
+test_expect_file(${PREFIX}/include/simple.h)
+
+install_dir(${TEST_DIR}/libbasic)
diff --git a/test/test.cmake b/test/test.cmake
index 9b0e2411..5c10818f 100755
--- a/test/test.cmake
+++ b/test/test.cmake
@@ -149,10 +149,20 @@ function(install_dir DIR)
 
     cmake_parse_arguments(PARSE "${options}" "${oneValueArgs}" "${multiValueArgs}" ${ARGN})
 
-    configure_dir(
-        ${DIR}
-        TARGETS all ${PARSE_TARGETS} install
-        CMAKE_ARGS ${PARSE_CMAKE_ARGS} -DROCM_SYMLINK_LIBS=OFF)
+    # When CMAKE_INSTALL_MODE is SYMLINK, we need to preserve the build directory
+    # because installed files are symlinks pointing to it
+    if("$ENV{CMAKE_INSTALL_MODE}" STREQUAL "SYMLINK")
+        configure_dir(
+            ${DIR}
+            BUILD_DIR_VAR PRESERVED_BUILD_DIR
+            TARGETS all ${PARSE_TARGETS} install
+            CMAKE_ARGS ${PARSE_CMAKE_ARGS} -DROCM_SYMLINK_LIBS=OFF)
+    else()
+        configure_dir(
+            ${DIR}
+            TARGETS all ${PARSE_TARGETS} install
+            CMAKE_ARGS ${PARSE_CMAKE_ARGS} -DROCM_SYMLINK_LIBS=OFF)
+    endif()
 endfunction()
 
 function(write_version_cmake DIR VERSION CONTENT)