diff --git a/api/internal/builtins/HelmChartInflationGenerator.go b/api/internal/builtins/HelmChartInflationGenerator.go
index 936ced33625..40437a21557 100644
--- a/api/internal/builtins/HelmChartInflationGenerator.go
+++ b/api/internal/builtins/HelmChartInflationGenerator.go
@@ -91,12 +91,7 @@ func (p *HelmChartInflationGeneratorPlugin) validateArgs() (err error) {
 	// be under the loader root (unless root restrictions are
 	// disabled).
 	if p.ValuesFile == "" {
-		// If the version is specified, use the versioned values file.
-		if p.Version != "" {
-			p.ValuesFile = filepath.Join(p.ChartHome, fmt.Sprintf("%s-%s", p.Name, p.Version), p.Name, "values.yaml")
-		} else {
-			p.ValuesFile = filepath.Join(p.ChartHome, p.Name, "values.yaml")
-		}
+		p.ValuesFile = filepath.Join(p.absChartHome(), p.Name, "values.yaml")
 	}
 	for i, file := range p.AdditionalValuesFiles {
 		// use Load() to enforce root restrictions
@@ -144,7 +139,7 @@ func (p *HelmChartInflationGeneratorPlugin) absChartHome() string {
 		chartHome = filepath.Join(p.h.Loader().Root(), p.ChartHome)
 	}
 
-	if p.Version != "" {
+	if p.Version != "" && p.Repo != "" {
 		return filepath.Join(chartHome, fmt.Sprintf("%s-%s", p.Name, p.Version))
 	}
 	return chartHome
diff --git a/plugin/builtin/helmchartinflationgenerator/HelmChartInflationGenerator.go b/plugin/builtin/helmchartinflationgenerator/HelmChartInflationGenerator.go
index 394de7a98c7..01adb29f5be 100644
--- a/plugin/builtin/helmchartinflationgenerator/HelmChartInflationGenerator.go
+++ b/plugin/builtin/helmchartinflationgenerator/HelmChartInflationGenerator.go
@@ -97,12 +97,7 @@ func (p *plugin) validateArgs() (err error) {
 	// be under the loader root (unless root restrictions are
 	// disabled).
 	if p.ValuesFile == "" {
-		// If the version is specified, use the versioned values file.
-		if p.Version != "" {
-			p.ValuesFile = filepath.Join(p.ChartHome, fmt.Sprintf("%s-%s", p.Name, p.Version), p.Name, "values.yaml")
-		} else {
-			p.ValuesFile = filepath.Join(p.ChartHome, p.Name, "values.yaml")
-		}
+		p.ValuesFile = filepath.Join(p.absChartHome(), p.Name, "values.yaml")
 	}
 	for i, file := range p.AdditionalValuesFiles {
 		// use Load() to enforce root restrictions
@@ -150,7 +145,7 @@ func (p *plugin) absChartHome() string {
 		chartHome = filepath.Join(p.h.Loader().Root(), p.ChartHome)
 	}
 
-	if p.Version != "" {
+	if p.Version != "" && p.Repo != "" {
 		return filepath.Join(chartHome, fmt.Sprintf("%s-%s", p.Name, p.Version))
 	}
 	return chartHome
diff --git a/plugin/builtin/helmchartinflationgenerator/HelmChartInflationGenerator_test.go b/plugin/builtin/helmchartinflationgenerator/HelmChartInflationGenerator_test.go
index aa181471a1c..da504e0e1f9 100644
--- a/plugin/builtin/helmchartinflationgenerator/HelmChartInflationGenerator_test.go
+++ b/plugin/builtin/helmchartinflationgenerator/HelmChartInflationGenerator_test.go
@@ -670,6 +670,12 @@ func TestHelmChartInflationGeneratorWithSameChartMultipleVersions(t *testing.T)
 			version:     "1.1.2",
 			releaseName: "terraform-1.1.2",
 		},
+		{
+			name:        "terraform chart with version 1.1.2 but without repo",
+			chartName:   "terraform",
+			version:     "1.1.2",
+			releaseName: "terraform-1.1.2",
+		},
 	}
 
 	for _, tt := range tests {
@@ -689,12 +695,14 @@ releaseName: %s
 			assert.True(t, len(rm.Resources()) > 0)
 
 			var chartDir string
-			if tt.version != "" {
+			if tt.version != "" && tt.repo != "" {
 				chartDir = fmt.Sprintf("charts/%s-%s/%s", tt.chartName, tt.version, tt.chartName)
 			} else {
 				chartDir = fmt.Sprintf("charts/%s", tt.chartName)
 			}
 
+			fmt.Printf("%s: %s\n", tt.name, chartDir)
+
 			d, err := th.GetFSys().ReadFile(filepath.Join(th.GetRoot(), chartDir, "Chart.yaml"))
 			if err != nil {
 				t.Fatal(err)
@@ -761,4 +769,56 @@ releaseName: podinfo2
 	podinfo2ChartContents, err := th.GetFSys().ReadFile(filepath.Join(podinfo2ChartsDir, "Chart.yaml"))
 	assert.NoError(t, err)
 	assert.Contains(t, string(podinfo2ChartContents), "version: 6.1.8")
+
+}
+
+// Addressed: https://github.com/kubernetes-sigs/kustomize/issues/5163
+func TestHelmChartInflationGeneratorWithLocalChartWithVersion(t *testing.T) {
+	th := kusttest_test.MakeEnhancedHarnessWithTmpRoot(t).
+		PrepBuiltin("HelmChartInflationGenerator")
+	defer th.Reset()
+	if err := th.ErrIfNoHelm(); err != nil {
+		t.Skip("skipping: " + err.Error())
+	}
+
+	th.GetFSys().MkdirAll(filepath.Join(th.GetRoot(), "charts/dummy/templates"))
+	th.WriteF(filepath.Join(th.GetRoot(), "charts/dummy/Chart.yaml"), `
+apiVersion: v1
+appVersion: 1.0.0
+description: Dummy
+name: dummy
+version: 1.0.0
+`)
+
+	th.WriteF(filepath.Join(th.GetRoot(), "charts/dummy/values.yaml"), `
+foo: bar
+`)
+
+	th.WriteF(filepath.Join(th.GetRoot(), "charts/dummy/templates/cm.yaml"), `
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: {{ .Values.foo }}
+`)
+
+	dummyInlineHelmChart := th.LoadAndRunGenerator(`
+apiVersion: builtin
+kind: HelmChartInflationGenerator
+metadata:
+  name: dummy
+name: dummy
+version: 1.0.0
+releaseName: dummy
+`)
+
+	dummyConfigmap, err := dummyInlineHelmChart.Resources()[0].GetFieldValue("metadata.name")
+	assert.NoError(t, err)
+	assert.Equal(t, "bar", dummyConfigmap)
+
+	dummyChartsDir := filepath.Join(th.GetRoot(), "charts/dummy")
+	assert.True(t, th.GetFSys().Exists(dummyChartsDir))
+
+	dummyChartsContent, err := th.GetFSys().ReadFile(filepath.Join(dummyChartsDir, "Chart.yaml"))
+	assert.NoError(t, err)
+	assert.Contains(t, string(dummyChartsContent), "version: 1.0.0")
 }