diff --git a/src/cli/index.js b/src/cli/index.js
index 0ed6b449fd..7b5670dc75 100644
--- a/src/cli/index.js
+++ b/src/cli/index.js
@@ -10,31 +10,18 @@ require('../../require-main');
 const packageInstall = require('./package-install');
 const { paths } = require('../constants');
 
-// check to make sure dependencies are installed
 try {
-	fs.accessSync(paths.currentPackage, fs.constants.R_OK);
-} catch (e) {
-	if (e.code === 'ENOENT') {
-		console.warn('package.json not found.');
-		console.log('Populating package.json...');
-
-		packageInstall.updatePackageFile();
-		packageInstall.preserveExtraneousPlugins();
-
-		try {
-			fs.accessSync(path.join(paths.nodeModules, 'chalk/package.json'), fs.constants.R_OK);
-
-			const chalk = require('chalk');
-			console.log(chalk.green('OK'));
-		} catch (e) {
-			console.log('OK');
+	fs.accessSync(paths.currentPackage, fs.constants.R_OK); // throw on missing package.json
+	try { // handle missing node_modules/ directory
+		fs.accessSync(paths.nodeModules, fs.constants.R_OK);
+	} catch (e) {
+		if (e.code === 'ENOENT') {
+			// run package installation just to sync up node_modules/ with existing package.json
+			packageInstall.installAll();
+		} else {
+			throw e;
 		}
-	} else {
-		throw e;
 	}
-}
-
-try {
 	fs.accessSync(path.join(paths.nodeModules, 'semver/package.json'), fs.constants.R_OK);
 
 	const semver = require('semver');
@@ -53,12 +40,14 @@ try {
 	checkVersion('async');
 	checkVersion('commander');
 	checkVersion('chalk');
+	checkVersion('lodash');
 } catch (e) {
 	if (['ENOENT', 'DEP_WRONG_VERSION', 'MODULE_NOT_FOUND'].includes(e.code)) {
 		console.warn('Dependencies outdated or not yet installed.');
 		console.log('Installing them now...\n');
 
 		packageInstall.updatePackageFile();
+		packageInstall.preserveExtraneousPlugins();
 		packageInstall.installAll();
 
 		const chalk = require('chalk');
diff --git a/src/cli/package-install.js b/src/cli/package-install.js
index d5e99b16d4..e9ca4a2e44 100644
--- a/src/cli/package-install.js
+++ b/src/cli/package-install.js
@@ -1,6 +1,7 @@
 'use strict';
 
 const path = require('path');
+
 const fs = require('fs');
 const cproc = require('child_process');
 
@@ -17,34 +18,22 @@ function sortDependencies(dependencies) {
 		}, {});
 }
 
-function merge(to, from) {
-	// Poor man's version of _.merge()
-	if (Object.values(from).every(val => typeof val !== 'object')) {
-		return Object.assign(to, from);
-	}
-
-	Object.keys(from).forEach((key) => {
-		if (Object.getPrototypeOf(from[key]) === Object.prototype) {
-			to[key] = merge(to[key], from[key]);
-		} else {
-			to[key] = from[key];
-		}
-	});
-
-	return to;
-}
-
 pkgInstall.updatePackageFile = () => {
-	let oldPackageContents = {};
+	let oldPackageContents;
 
 	try {
 		oldPackageContents = JSON.parse(fs.readFileSync(paths.currentPackage, 'utf8'));
 	} catch (e) {
 		if (e.code !== 'ENOENT') {
 			throw e;
+		} else {
+			// No local package.json, copy from install/package.json
+			fs.copyFileSync(paths.installPackage, paths.currentPackage);
+			return;
 		}
 	}
 
+	const _ = require('lodash');
 	const defaultPackageContents = JSON.parse(fs.readFileSync(paths.installPackage, 'utf8'));
 
 	let dependencies = {};
@@ -59,7 +48,7 @@ pkgInstall.updatePackageFile = () => {
 	// Sort dependencies alphabetically
 	dependencies = sortDependencies({ ...dependencies, ...defaultPackageContents.dependencies });
 
-	const packageContents = { ...merge(oldPackageContents, defaultPackageContents), dependencies, devDependencies };
+	const packageContents = { ..._.merge(oldPackageContents, defaultPackageContents), dependencies, devDependencies };
 	fs.writeFileSync(paths.currentPackage, JSON.stringify(packageContents, null, 4));
 };
 
diff --git a/test/package-install.js b/test/package-install.js
index 0d31387df1..97d6041bae 100644
--- a/test/package-install.js
+++ b/test/package-install.js
@@ -23,12 +23,11 @@ describe('Package install lib', () => {
 			// Move `install/package.json` and `package.json` out of the way for now
 			await fs.copyFile(sourcePackagePath, path.resolve(__dirname, '../install/package.json.bak')); // safekeeping
 			await fs.copyFile(packageFilePath, path.resolve(__dirname, '../package.json.bak')); // safekeeping
-			await fs.copyFile(sourcePackagePath, packageFilePath); // match files for testing
 		});
 
 		beforeEach(async () => {
 			await fs.copyFile(path.resolve(__dirname, '../install/package.json.bak'), sourcePackagePath);
-			await fs.copyFile(path.resolve(__dirname, '../package.json.bak'), packageFilePath);
+			await fs.copyFile(sourcePackagePath, packageFilePath); // match files for testing
 			source = JSON.parse(await fs.readFile(sourcePackagePath));
 			current = JSON.parse(await fs.readFile(packageFilePath));
 		});
@@ -95,6 +94,14 @@ describe('Package install lib', () => {
 			assert.strictEqual(updated.devDependencies.hasOwnProperty('expect'), false);
 		});
 
+		it('should handle if there is no package.json', async () => {
+			await fs.unlink(packageFilePath);
+
+			pkgInstall.updatePackageFile();
+			const updated = JSON.parse(await fs.readFile(packageFilePath, 'utf8'));
+			assert.deepStrictEqual(updated, source);
+		});
+
 		after(async () => {
 			// Clean up
 			await fs.rename(path.resolve(__dirname, '../install/package.json.bak'), sourcePackagePath);