diff --git a/packages/core/src/helpers/namespace.ts b/packages/core/src/helpers/namespace.ts
index 4839d36ef..99c42b809 100644
--- a/packages/core/src/helpers/namespace.ts
+++ b/packages/core/src/helpers/namespace.ts
@@ -42,7 +42,7 @@ export interface CreateNamespaceOptions {
         strict: boolean,
         namespace: string,
         filePath: string,
-        usedBy?: string
+        usedByMap: Map<string, string>
     ) => string;
     hashSeparator?: string;
     strict?: boolean;
@@ -75,8 +75,9 @@ export function defaultNoMatchHandler(
     strict: boolean,
     ns: string,
     stylesheetPath: string,
-    usedBy?: string
+    usedByMap: Map<string, string>
 ): string {
+    const usedBy = usedByMap.get(ns);
     throw new Error(
         `Could not create namespace for:\n${stylesheetPath}\nthe last valid namespace tried was ${JSON.stringify(
             ns
@@ -146,16 +147,11 @@ export function createNamespaceStrategy(options: CreateNamespaceOptions) {
             if (usedBy === stylesheetPath) {
                 return finalNamespace;
             } else if (strict) {
-                return handleNoMatch(strict, finalNamespace, stylesheetPath, usedBy);
+                return handleNoMatch(strict, finalNamespace, stylesheetPath, usedNamespaces);
             }
             i++;
         }
 
-        return handleNoMatch(
-            strict,
-            finalNamespace,
-            stylesheetPath,
-            usedNamespaces.get(finalNamespace)
-        );
+        return handleNoMatch(strict, finalNamespace, stylesheetPath, usedNamespaces);
     };
 }
diff --git a/packages/core/test/helpers/namespace.spec.ts b/packages/core/test/helpers/namespace.spec.ts
index 923156ee7..be593a728 100644
--- a/packages/core/test/helpers/namespace.spec.ts
+++ b/packages/core/test/helpers/namespace.spec.ts
@@ -119,7 +119,12 @@ describe('createNamespaceStrategy', () => {
     it('should throw when no unique namespace can be generated and hash slice size is larger then hash length', () => {
         function getErrorMessage() {
             try {
-                defaultNoMatchHandler(false, 'x-1', '/package/x2.st.css', '/package/x1.st.css');
+                defaultNoMatchHandler(
+                    false,
+                    'x-1',
+                    '/package/x2.st.css',
+                    new Map([['x-1', '/package/x1.st.css']])
+                );
             } catch (e) {
                 return (e as Error).message;
             }
@@ -140,7 +145,12 @@ describe('createNamespaceStrategy', () => {
     it('should throw when no unique namespace can be generated in strict mode', () => {
         function getErrorMessage() {
             try {
-                defaultNoMatchHandler(true, 'x', '/package/x1.st.css', '/package/x.st.css');
+                defaultNoMatchHandler(
+                    true,
+                    'x',
+                    '/package/x1.st.css',
+                    new Map([['x', '/package/x.st.css']])
+                );
             } catch (e) {
                 return (e as Error).message;
             }
diff --git a/packages/node/src/resolve-namespace.ts b/packages/node/src/resolve-namespace.ts
index 5a4c661d9..dd5be5052 100644
--- a/packages/node/src/resolve-namespace.ts
+++ b/packages/node/src/resolve-namespace.ts
@@ -4,6 +4,7 @@ import {
     defaultNoMatchHandler,
 } from '@stylable/core';
 import { dirname, relative } from 'path';
+import { existsSync } from 'node:fs';
 import { findPackageJson } from './find-package-json';
 
 export function resolveNamespaceFactory(
@@ -16,7 +17,10 @@ export function resolveNamespaceFactory(
 
 export const packageJsonLookupCache = new Map<string, string>();
 
-export function createNamespaceStrategyNode(options: Partial<CreateNamespaceOptions> = {}) {
+export function createNamespaceStrategyNode(
+    options: Partial<CreateNamespaceOptions> = {},
+    devMode?: boolean
+) {
     return createNamespaceStrategy({
         normalizePath(packageRoot: string, stylesheetPath: string) {
             return relative(packageRoot, stylesheetPath).replace(/\\/g, '/');
@@ -36,8 +40,17 @@ export function createNamespaceStrategyNode(options: Partial<CreateNamespaceOpti
                 dirPath: dirname(configPath),
             };
         },
-        handleNoMatch(strict, ns, stylesheetPath, usedBy) {
-            return strict ? defaultNoMatchHandler(strict, ns, stylesheetPath, usedBy) : ns;
+        handleNoMatch(strict, ns, stylesheetPath, usedByMap) {
+            if (strict && devMode) {
+                const usedBy = usedByMap.get(ns);
+                if (usedBy) {
+                    if (!existsSync(usedBy)) {
+                        usedByMap.set(ns, stylesheetPath);
+                        return ns;
+                    }
+                }
+            }
+            return strict ? defaultNoMatchHandler(strict, ns, stylesheetPath, usedByMap) : ns;
         },
         hashSalt: '',
         hashFragment: 'full',