diff --git a/pkg/cmd/dependency.go b/pkg/cmd/dependency.go
index bb7dfe707..b3fc00552 100644
--- a/pkg/cmd/dependency.go
+++ b/pkg/cmd/dependency.go
@@ -133,5 +133,5 @@ func addDependencySubcommandFlags(f *pflag.FlagSet, client *action.Dependency) {
 	f.BoolVar(&client.InsecureSkipTLSverify, "insecure-skip-tls-verify", false, "skip tls certificate checks for the chart download")
 	f.BoolVar(&client.PlainHTTP, "plain-http", false, "use insecure HTTP connections for the chart download")
 	f.StringVar(&client.CaFile, "ca-file", "", "verify certificates of HTTPS-enabled servers using this CA bundle")
-	f.BoolVar(&client.BuildOrUpdateRecursive, "recursive", false, "build dependencies recursively")
+	f.BoolVar(&client.BuildOrUpdateRecursive, "recursive", false, "build or update dependencies recursively")
 }
diff --git a/pkg/cmd/dependency_build_test.go b/pkg/cmd/dependency_build_test.go
index a3473301d..9d031457a 100644
--- a/pkg/cmd/dependency_build_test.go
+++ b/pkg/cmd/dependency_build_test.go
@@ -22,6 +22,7 @@ import (
 	"strings"
 	"testing"
 
+	chart "helm.sh/helm/v4/pkg/chart/v2"
 	chartutil "helm.sh/helm/v4/pkg/chart/v2/util"
 	"helm.sh/helm/v4/pkg/provenance"
 	"helm.sh/helm/v4/pkg/repo/v1"
@@ -162,3 +163,64 @@ func TestDependencyBuildCmdWithHelmV2Hash(t *testing.T) {
 		t.Fatal(err)
 	}
 }
+
+// createTestingChart creates a basic chart that depends on reqtest-0.1.0
+//
+// The baseURL can be used to point to a particular repository server.
+func createTestingChartWithRecursion(t *testing.T, dest, name, baseURL string) {
+	t.Helper()
+	cfile := &chart.Chart{
+		Metadata: &chart.Metadata{
+			APIVersion: chart.APIVersionV2,
+			Name:       name,
+			Version:    "1.2.3",
+			Dependencies: []*chart.Dependency{
+				{Name: "reqtest", Version: "0.1.0", Repository: baseURL},
+				{Name: "compressedchart", Version: "0.1.0", Repository: baseURL},
+				{Name: "root", Version: "0.1.0", Repository: baseURL},
+			},
+		},
+	}
+	if err := chartutil.SaveDir(cfile, dest); err != nil {
+		t.Fatal(err)
+	}
+}
+
+func TestDependencyBuildCmdRecursive(t *testing.T) {
+	srv := repotest.NewTempServer(
+		t,
+		repotest.WithChartSourceGlob("testdata/testcharts/*.tgz"),
+	)
+	defer srv.Stop()
+	rootDir := srv.Root()
+
+	srv.LinkIndices()
+	ociSrv, err := repotest.NewOCIServer(t, rootDir)
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	dir := func(p ...string) string {
+		return filepath.Join(append([]string{rootDir}, p...)...)
+	}
+
+	ociChartName := "oci-depending-chart"
+	c := createTestingMetadataForOCI(ociChartName, ociSrv.RegistryURL)
+	if _, err := chartutil.Save(c, ociSrv.Dir); err != nil {
+		t.Fatal(err)
+	}
+	ociSrv.Run(t, repotest.WithDependingChart(c))
+
+	chartname := "chart-with-multi-level-deps"
+	createTestingChartWithRecursion(t, dir(), chartname, srv.URL())
+	repoFile := filepath.Join(dir(), "repositories.yaml")
+
+	cmd := fmt.Sprintf("dependency build '%s' --repository-config %s --repository-cache %s --plain-http --recursive", filepath.Join(rootDir, chartname), repoFile, rootDir)
+	_, out, err := executeActionCommand(cmd)
+
+	// In the first pass, we basically want the same results as an update.
+	if err != nil {
+		t.Logf("Output: %s", out)
+		t.Fatal(err)
+	}
+}
diff --git a/pkg/cmd/helpers_test.go b/pkg/cmd/helpers_test.go
index 3f04a6a9b..5432ff2de 100644
--- a/pkg/cmd/helpers_test.go
+++ b/pkg/cmd/helpers_test.go
@@ -31,8 +31,8 @@ import (
 
 	"helm.sh/helm/v4/internal/test"
 	"helm.sh/helm/v4/pkg/action"
+	"helm.sh/helm/v4/pkg/chart/common"
 	"helm.sh/helm/v4/pkg/chart/v2/loader"
-	chartutil "helm.sh/helm/v4/pkg/chart/v2/util"
 	"helm.sh/helm/v4/pkg/cli"
 	kubefake "helm.sh/helm/v4/pkg/kube/fake"
 	release "helm.sh/helm/v4/pkg/release/v1"
diff --git a/pkg/cmd/testdata/output/install-dependency-update-recursive.txt b/pkg/cmd/testdata/output/install-dependency-update-recursive.txt
index 9b25fbe36..16ece824e 100644
--- a/pkg/cmd/testdata/output/install-dependency-update-recursive.txt
+++ b/pkg/cmd/testdata/output/install-dependency-update-recursive.txt
@@ -3,4 +3,5 @@ LAST DEPLOYED: Fri Sep  2 22:04:05 1977
 NAMESPACE: default
 STATUS: deployed
 REVISION: 1
+DESCRIPTION: Install complete
 TEST SUITE: None
diff --git a/pkg/cmd/testdata/output/template-dependency-update-recursive.txt b/pkg/cmd/testdata/output/template-dependency-update-recursive.txt
index 46a53092f..5c451ad75 100644
--- a/pkg/cmd/testdata/output/template-dependency-update-recursive.txt
+++ b/pkg/cmd/testdata/output/template-dependency-update-recursive.txt
@@ -1,11 +1,5 @@
-Hang tight while we grab the latest from your chart repositories...
-...Successfully got an update from the "kube-sigs-external-dns" chart repository
-Update Complete. ⎈Happy Helming!⎈
 Saving 1 charts
 Deleting outdated charts
-Hang tight while we grab the latest from your chart repositories...
-...Successfully got an update from the "kube-sigs-external-dns" chart repository
-Update Complete. ⎈Happy Helming!⎈
 Saving 1 charts
 Deleting outdated charts
 ---
diff --git a/pkg/cmd/testdata/testcharts/root-0.1.0.tgz b/pkg/cmd/testdata/testcharts/root-0.1.0.tgz
new file mode 100644
index 000000000..265ce8d89
Binary files /dev/null and b/pkg/cmd/testdata/testcharts/root-0.1.0.tgz differ
diff --git a/pkg/downloader/manager.go b/pkg/downloader/manager.go
index 0ce0928ab..7c4edb823 100644
--- a/pkg/downloader/manager.go
+++ b/pkg/downloader/manager.go
@@ -833,19 +833,19 @@ func (m *Manager) locateLocalDependencies(baseChartPath string, resursive bool)
 				[]string{fullDepChartPath},
 				reversedDeps...,
 			)
-		}
 
-		if resursive {
-			subDeps, err := m.locateLocalDependencies(fullDepChartPath, resursive)
+			if resursive {
+				subDeps, err := m.locateLocalDependencies(fullDepChartPath, resursive)
 
-			if err != nil {
-				return nil, err
-			}
+				if err != nil {
+					return nil, err
+				}
 
-			reversedDeps = append(
-				subDeps,
-				reversedDeps...,
-			)
+				reversedDeps = append(
+					subDeps,
+					reversedDeps...,
+				)
+			}
 		}
 	}