diff --git a/README.md b/README.md
index 3899b8a..88f71be 100644
--- a/README.md
+++ b/README.md
@@ -122,6 +122,17 @@ export NVM_AUTO_USE=true
 antigen bundle lukechilds/zsh-nvm
 ```
 
+### Local bins
+
+If your projects include dependencies with binaries, this ensures that they take precedence on your `$PATH` over globally installed ones.
+
+For example, if you are using antigen, you would put the following in your `.zshrc`:
+
+```shell
+export NVM_PREFER_LOCAL_BINS=true
+antigen bundle lukechilds/zsh-nvm
+```
+
 ## Installation
 
 ### Using [Antigen](https://github.com/zsh-users/antigen)
diff --git a/tests/options/NVM_PREFER_LOCAL_BINS b/tests/options/NVM_PREFER_LOCAL_BINS
new file mode 100755
index 0000000..0a886a7
--- /dev/null
+++ b/tests/options/NVM_PREFER_LOCAL_BINS
@@ -0,0 +1,50 @@
+#!/bin/sh
+source ../common.sh
+
+# Setup projects in tmp, so we don't have ancestor paths of this repo messing
+# with things.
+cd $(mktemp -d)
+echo "Running NVM_PREFER_LOCAL_BINS in $(pwd)\n"
+
+mkdir -p package/src/a/b
+touch package/package.json
+mkdir -p package/vendor
+touch package/vendor/package.json
+
+# Load it.
+export NVM_PREFER_LOCAL_BINS=true
+load_zsh_nvm
+
+# Check cding without node installed (shouldn't fail)
+cd ./package
+cd ./src/a/b
+cd ../../../..
+
+# Now test with node installed
+nvm install 8
+nvm use 8
+# This is our base path, without any local binary paths in it.
+base_path=$PATH
+# npm bin can resolve to a different path (/private/var instead of /var) on some
+# platforms. It also resolves to the current directory if there is no
+# package.json up the current path. So, we use it to expand our path.
+sandbox=$(dirname $(dirname $(npm bin)))
+
+# Check cd directly into a package directory
+cd ./package
+[[ "$PATH" == "$sandbox/package/node_modules/.bin:$base_path" ]] || die "Didn't prepend local bin dir to path when moving into package directory"
+
+# Check package subdirs
+cd ./src
+cd ./a
+cd ./b
+[[ "$PATH" == "$sandbox/package/node_modules/.bin:$base_path" ]] || die "Didn't prepend local bin dir to path when moving into package subdirectories"
+
+# Check nested packages
+cd ../../..
+cd ./vendor
+[[ "$PATH" == "$sandbox/package/vendor/node_modules/.bin:$base_path" ]] || die "Didn't prepend local bin dir to path when moving into a nested package"
+
+# Check leaving
+cd ../..
+[[ "$PATH" == "$base_path" ]] || die "Didn't remove local bin dir when leaving a package directory"
diff --git a/zsh-nvm.plugin.zsh b/zsh-nvm.plugin.zsh
index a672ed7..27da5e2 100644
--- a/zsh-nvm.plugin.zsh
+++ b/zsh-nvm.plugin.zsh
@@ -195,6 +195,28 @@ _zsh_nvm_install_wrapper() {
   esac
 }
 
+_zsh_nvm_add_local_bin_path() {
+  _zsh_nvm_has npm || return # No-op until we have a copy of node in our env.
+  local nearest_package=$(nvm_find_up package.json)
+  # Skip if we're moving within a project (npm bin is slow).
+  #
+  # Also notice that we prepend a value in front of the variable so that it
+  # isn't expanded by %~ prompts.
+  [[ "z$nearest_package" == "$NVM_CURRENT_PACKAGE_PATH" ]] && return
+  NVM_CURRENT_PACKAGE_PATH=z$nearest_package
+
+  # Ensure a clean slate; so that we are not prepending paths forever.
+  if [[ -n "$NVM_PATH_WITHOUT_LOCAL_BINS" ]]; then
+    PATH=$NVM_PATH_WITHOUT_LOCAL_BINS
+    unset NVM_PATH_WITHOUT_LOCAL_BINS
+  fi
+
+  if [[ -n "$nearest_package" ]]; then
+    NVM_PATH_WITHOUT_LOCAL_BINS=$PATH
+    PATH=$(npm bin):$PATH
+  fi
+}
+
 # Don't init anything if this is true (debug/testing only)
 if [[ "$ZSH_NVM_NO_LOAD" != true ]]; then
 
@@ -209,6 +231,9 @@ if [[ "$ZSH_NVM_NO_LOAD" != true ]]; then
 
     # Auto use nvm on chpwd
     [[ "$NVM_AUTO_USE" == true ]] && add-zsh-hook chpwd _zsh_nvm_auto_use && _zsh_nvm_auto_use
+
+    # Ensure that local bins take precedence on $PATH.
+    [[ "$NVM_PREFER_LOCAL_BINS" == true ]] && add-zsh-hook chpwd _zsh_nvm_add_local_bin_path && _zsh_nvm_add_local_bin_path
   fi
 
 fi