diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0e04f80d5..5405513ad 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,7 @@
+### [2.5.4] 2023-02-15
+
+  * Fixed extra.plugin-optional support in PluginInstaller when doing pre-install checks (#11318)
+
 ### [2.5.3] 2023-02-10
 
   * Added extra.plugin-optional support for allow auto-disabling unknown plugins which are not critical when running non-interactive (#11315)
@@ -1695,6 +1699,7 @@
 
   * Initial release
 
+[2.5.4]: https://github.com/composer/composer/compare/2.5.3...2.5.4
 [2.5.3]: https://github.com/composer/composer/compare/2.5.2...2.5.3
 [2.5.2]: https://github.com/composer/composer/compare/2.5.1...2.5.2
 [2.5.1]: https://github.com/composer/composer/compare/2.5.0...2.5.1
diff --git a/src/Composer/Installer/PluginInstaller.php b/src/Composer/Installer/PluginInstaller.php
index 68326462e..3a982f13b 100644
--- a/src/Composer/Installer/PluginInstaller.php
+++ b/src/Composer/Installer/PluginInstaller.php
@@ -50,7 +50,7 @@ class PluginInstaller extends LibraryInstaller
     {
         // fail install process early if it is going to fail due to a plugin not being allowed
         if (($type === 'install' || $type === 'update') && !$this->getPluginManager()->arePluginsDisabled('local')) {
-            $this->getPluginManager()->isPluginAllowed($package->getName(), false);
+            $this->getPluginManager()->isPluginAllowed($package->getName(), false, true === ($package->getExtra()['plugin-optional'] ?? false));
         }
 
         return parent::prepare($type, $package, $prevPackage);
diff --git a/src/Composer/Plugin/PluginManager.php b/src/Composer/Plugin/PluginManager.php
index 74c33221e..14eb40211 100644
--- a/src/Composer/Plugin/PluginManager.php
+++ b/src/Composer/Plugin/PluginManager.php
@@ -187,7 +187,7 @@ class PluginManager
             }
         }
 
-        if (!$this->isPluginAllowed($package->getName(), $isGlobalPlugin, $package->getExtra()['plugin-optional'] ?? false)) {
+        if (!$this->isPluginAllowed($package->getName(), $isGlobalPlugin, true === ($package->getExtra()['plugin-optional'] ?? false))) {
             $this->io->writeError('Skipped loading "'.$package->getName() . '" '.($isGlobalPlugin || $this->runningInGlobalDir ? '(installed globally) ' : '').'as it is not in config.allow-plugins', true, IOInterface::DEBUG);
 
             return;
@@ -370,7 +370,7 @@ class PluginManager
 
         if ($sourcePackage === null) {
             trigger_error('Calling PluginManager::addPlugin without $sourcePackage is deprecated, if you are using this please get in touch with us to explain the use case', E_USER_DEPRECATED);
-        } elseif (!$this->isPluginAllowed($sourcePackage->getName(), $isGlobalPlugin, $sourcePackage->getExtra()['plugin-optional'] ?? false)) {
+        } elseif (!$this->isPluginAllowed($sourcePackage->getName(), $isGlobalPlugin, true === ($sourcePackage->getExtra()['plugin-optional'] ?? false))) {
             $this->io->writeError('Skipped loading "'.get_class($plugin).' from '.$sourcePackage->getName() . '" '.($isGlobalPlugin || $this->runningInGlobalDir ? '(installed globally) ' : '').' as it is not in config.allow-plugins', true, IOInterface::DEBUG);
 
             return;