diff --git a/packages/vitest/src/node/workspace.ts b/packages/vitest/src/node/workspace.ts
index b99d88fc1f2f..a18a438b87ac 100644
--- a/packages/vitest/src/node/workspace.ts
+++ b/packages/vitest/src/node/workspace.ts
@@ -358,7 +358,8 @@ export class WorkspaceProject {
         },
       },
       snapshotOptions: {
-        ...this.config.snapshotOptions,
+        ...this.ctx.config.snapshotOptions,
+        expand: this.config.snapshotOptions.expand ?? this.ctx.config.snapshotOptions.expand,
         resolveSnapshotPath: undefined,
       },
       onConsoleLog: undefined!,
diff --git a/test/snapshots/test/fixtures/workspace/packages/space/test/__snapshots__/basic.test.ts.snap b/test/snapshots/test/fixtures/workspace/packages/space/test/__snapshots__/basic.test.ts.snap
new file mode 100644
index 000000000000..e9b0ef842a27
--- /dev/null
+++ b/test/snapshots/test/fixtures/workspace/packages/space/test/__snapshots__/basic.test.ts.snap
@@ -0,0 +1,3 @@
+// Vitest Snapshot v1, https://vitest.dev/guide/snapshot.html
+
+exports[`basic 1`] = `1`;
diff --git a/test/snapshots/test/fixtures/workspace/packages/space/test/basic.test.ts b/test/snapshots/test/fixtures/workspace/packages/space/test/basic.test.ts
new file mode 100644
index 000000000000..22f8da6f0c95
--- /dev/null
+++ b/test/snapshots/test/fixtures/workspace/packages/space/test/basic.test.ts
@@ -0,0 +1,5 @@
+import { test, expect } from "vitest"
+
+test("basic", () => {
+  expect(1).toMatchSnapshot()
+})
diff --git a/test/snapshots/test/fixtures/workspace/packages/space/vite.config.ts b/test/snapshots/test/fixtures/workspace/packages/space/vite.config.ts
new file mode 100644
index 000000000000..f797ea2206c3
--- /dev/null
+++ b/test/snapshots/test/fixtures/workspace/packages/space/vite.config.ts
@@ -0,0 +1,5 @@
+import { defineProject } from 'vitest/config'
+
+export default defineProject({
+  test: {},
+})
diff --git a/test/snapshots/test/fixtures/workspace/vitest.workspace.ts b/test/snapshots/test/fixtures/workspace/vitest.workspace.ts
new file mode 100644
index 000000000000..b18a56c5a4c8
--- /dev/null
+++ b/test/snapshots/test/fixtures/workspace/vitest.workspace.ts
@@ -0,0 +1,5 @@
+import { defineWorkspace } from 'vitest/config'
+
+export default defineWorkspace([
+  'packages/*',
+])
diff --git a/test/snapshots/test/workspace.test.ts b/test/snapshots/test/workspace.test.ts
new file mode 100644
index 000000000000..50ebd751e2c2
--- /dev/null
+++ b/test/snapshots/test/workspace.test.ts
@@ -0,0 +1,19 @@
+import { expect, test } from 'vitest'
+import { editFile, runVitest } from '../../test-utils'
+
+test('--update works for workspace project', async () => {
+  // setup wrong snapshot value
+  editFile(
+    'test/fixtures/workspace/packages/space/test/__snapshots__/basic.test.ts.snap',
+    data => data.replace('`1`', '`2`'),
+  )
+
+  // run with --update
+  const { stdout, exitCode } = await runVitest({
+    update: true,
+    root: 'test/fixtures/workspace',
+    workspace: 'vitest.workspace.ts',
+  })
+  expect.soft(stdout).include('Snapshots  1 updated')
+  expect.soft(exitCode).toBe(0)
+})