diff --git a/cli/azd/cmd/build.go b/cli/azd/cmd/build.go
index 7e1341900bf..853b4dfcdca 100644
--- a/cli/azd/cmd/build.go
+++ b/cli/azd/cmd/build.go
@@ -149,13 +149,13 @@ func (ba *buildAction) Run(ctx context.Context) (*actions.ActionResult, error) {
 		return nil, err
 	}
 
-	if err := ba.projectManager.EnsureFrameworkTools(ctx, ba.projectConfig, func(svc *project.ServiceConfig) bool {
-		return targetServiceName == "" || svc.Name == targetServiceName
-	}); err != nil {
+	if err := ba.projectManager.Initialize(ctx, ba.projectConfig); err != nil {
 		return nil, err
 	}
 
-	if err := ba.projectManager.Initialize(ctx, ba.projectConfig); err != nil {
+	if err := ba.projectManager.EnsureFrameworkTools(ctx, ba.projectConfig, func(svc *project.ServiceConfig) bool {
+		return targetServiceName == "" || svc.Name == targetServiceName
+	}); err != nil {
 		return nil, err
 	}
 
diff --git a/cli/azd/cmd/env.go b/cli/azd/cmd/env.go
index d9883e32d27..9e784106298 100644
--- a/cli/azd/cmd/env.go
+++ b/cli/azd/cmd/env.go
@@ -451,6 +451,10 @@ func (ef *envRefreshAction) Run(ctx context.Context) (*actions.ActionResult, err
 		return nil, err
 	}
 
+	if err := ef.projectManager.EnsureAllTools(ctx, ef.projectConfig, nil); err != nil {
+		return nil, err
+	}
+
 	infra, err := ef.importManager.ProjectInfrastructure(ctx, ef.projectConfig)
 	if err != nil {
 		return nil, err
diff --git a/cli/azd/cmd/restore.go b/cli/azd/cmd/restore.go
index 87d7b6ce3aa..b105a3c42e1 100644
--- a/cli/azd/cmd/restore.go
+++ b/cli/azd/cmd/restore.go
@@ -148,7 +148,7 @@ func (ra *restoreAction) Run(ctx context.Context) (*actions.ActionResult, error)
 		return nil, err
 	}
 
-	if err := ra.projectManager.EnsureFrameworkTools(ctx, ra.projectConfig, func(svc *project.ServiceConfig) bool {
+	if err := ra.projectManager.EnsureRestoreTools(ctx, ra.projectConfig, func(svc *project.ServiceConfig) bool {
 		return targetServiceName == "" || svc.Name == targetServiceName
 	}); err != nil {
 		return nil, err
diff --git a/cli/azd/internal/cmd/provision.go b/cli/azd/internal/cmd/provision.go
index f1f829a881b..20ef1e110ab 100644
--- a/cli/azd/internal/cmd/provision.go
+++ b/cli/azd/internal/cmd/provision.go
@@ -185,6 +185,10 @@ func (p *ProvisionAction) Run(ctx context.Context) (*actions.ActionResult, error
 		return nil, err
 	}
 
+	if err := p.projectManager.EnsureAllTools(ctx, p.projectConfig, nil); err != nil {
+		return nil, err
+	}
+
 	infra, err := p.importManager.ProjectInfrastructure(ctx, p.projectConfig)
 	if err != nil {
 		return nil, err
diff --git a/cli/azd/internal/vsrpc/environment_service_refresh.go b/cli/azd/internal/vsrpc/environment_service_refresh.go
index d983920a562..d788d55a727 100644
--- a/cli/azd/internal/vsrpc/environment_service_refresh.go
+++ b/cli/azd/internal/vsrpc/environment_service_refresh.go
@@ -76,6 +76,10 @@ func (s *environmentService) refreshEnvironmentAsync(
 		return nil, err
 	}
 
+	if err := c.projectManager.EnsureAllTools(ctx, c.projectConfig, nil); err != nil {
+		return nil, err
+	}
+
 	infra, err := c.importManager.ProjectInfrastructure(ctx, c.projectConfig)
 	if err != nil {
 		return nil, err
diff --git a/cli/azd/pkg/project/project_manager.go b/cli/azd/pkg/project/project_manager.go
index eb59e858d7c..6dcf232a17a 100644
--- a/cli/azd/pkg/project/project_manager.go
+++ b/cli/azd/pkg/project/project_manager.go
@@ -37,8 +37,6 @@ type ProjectManager interface {
 	// The initialization process will instantiate the framework & service target associated
 	// with the service config that enables the scenario for these components to add event
 	// handlers to participate in the lifecycle of an azd project
-	//
-	// The initialization process will also ensure that all required tools are installed
 	Initialize(ctx context.Context, projectConfig *ProjectConfig) error
 
 	// Returns the default service name to target based on the current working directory.
@@ -58,6 +56,11 @@ type ProjectManager interface {
 
 	// Ensures that all required service target tools are installed for the project and all child services
 	EnsureServiceTargetTools(ctx context.Context, projectConfig *ProjectConfig, serviceFilterFn ServiceFilterPredicate) error
+
+	// Ensures that all required tools for restore are installed for the project and all child services. This is like
+	// EnsureFrameworkTools but treats docker projects differently - it requires the tools for the inner project (i.e. npm)
+	// instead of needing docker tools themselves, since when doing a project restore, docker is not invoked.
+	EnsureRestoreTools(ctx context.Context, projectConfig *ProjectConfig, serviceFilterFn ServiceFilterPredicate) error
 }
 
 // ServiceFilterPredicate is a function that can be used to filter services that match a given criteria
@@ -84,8 +87,6 @@ func NewProjectManager(
 
 // Initializes the project and all child services defined within the project configuration
 func (pm *projectManager) Initialize(ctx context.Context, projectConfig *ProjectConfig) error {
-	var projectTools []tools.ExternalTool
-
 	servicesStable, err := pm.importManager.ServiceStable(ctx, projectConfig)
 	if err != nil {
 		return err
@@ -102,17 +103,6 @@ func (pm *projectManager) Initialize(ctx context.Context, projectConfig *Project
 		if err := pm.serviceManager.Initialize(ctx, svc); err != nil {
 			return fmt.Errorf("initializing service '%s', %w", svc.Name, err)
 		}
-
-		svcTools, err := pm.serviceManager.GetRequiredTools(ctx, svc)
-		if err != nil {
-			return fmt.Errorf("getting service required tools: %w", err)
-		}
-
-		projectTools = append(projectTools, svcTools...)
-	}
-
-	if err := tools.EnsureInstalled(ctx, tools.Unique(projectTools)...); err != nil {
-		return err
 	}
 
 	return nil
@@ -243,3 +233,42 @@ func (pm *projectManager) EnsureServiceTargetTools(
 
 	return nil
 }
+
+func (pm *projectManager) EnsureRestoreTools(
+	ctx context.Context,
+	projectConfig *ProjectConfig,
+	serviceFilterFn ServiceFilterPredicate,
+) error {
+	var requiredTools []tools.ExternalTool
+
+	servicesStable, err := pm.importManager.ServiceStable(ctx, projectConfig)
+	if err != nil {
+		return err
+	}
+
+	for _, svc := range servicesStable {
+		if serviceFilterFn != nil && !serviceFilterFn(svc) {
+			continue
+		}
+
+		frameworkService, err := pm.serviceManager.GetFrameworkService(ctx, svc)
+		if err != nil {
+			return fmt.Errorf("getting framework service: %w", err)
+		}
+
+		var frameworkTools []tools.ExternalTool
+		if dp, ok := frameworkService.(*dockerProject); ok {
+			frameworkTools = dp.framework.RequiredExternalTools(ctx, svc)
+		} else {
+			frameworkTools = frameworkService.RequiredExternalTools(ctx, svc)
+		}
+
+		requiredTools = append(requiredTools, frameworkTools...)
+	}
+
+	if err := tools.EnsureInstalled(ctx, tools.Unique(requiredTools)...); err != nil {
+		return err
+	}
+
+	return nil
+}
diff --git a/cli/azd/test/functional/restore_test.go b/cli/azd/test/functional/restore_test.go
index 5bcb33b4443..7db4cdfc18d 100644
--- a/cli/azd/test/functional/restore_test.go
+++ b/cli/azd/test/functional/restore_test.go
@@ -4,7 +4,6 @@ import (
 	"fmt"
 	"os"
 	"path/filepath"
-	"runtime"
 	"testing"
 
 	"github.com/azure/azure-dev/cli/azd/pkg/environment/azdcontext"
@@ -15,10 +14,6 @@ import (
 
 // test for errors when running restore in invalid working directories
 func Test_CLI_Restore_Err_WorkingDirectory(t *testing.T) {
-	if runtime.GOOS == "darwin" {
-		t.Skip("azure/azure-dev#4612")
-	}
-
 	t.Parallel()
 	ctx, cancel := newTestContext(t)
 	defer cancel()
@@ -84,10 +79,6 @@ func Test_CLI_Restore_Err_WorkingDirectory(t *testing.T) {
 
 // test restore in a service directory
 func Test_CLI_Restore_InServiceDirectory(t *testing.T) {
-	if runtime.GOOS == "darwin" {
-		t.Skip("azure/azure-dev#4612")
-	}
-
 	t.Parallel()
 	ctx, cancel := newTestContext(t)
 	defer cancel()
@@ -120,10 +111,6 @@ func Test_CLI_Restore_InServiceDirectory(t *testing.T) {
 
 // test restore using a service name passed explicitly
 func Test_CLI_Restore_UsingServiceName(t *testing.T) {
-	if runtime.GOOS == "darwin" {
-		t.Skip("azure/azure-dev#4612")
-	}
-
 	t.Parallel()
 	ctx, cancel := newTestContext(t)
 	defer cancel()
@@ -155,10 +142,6 @@ func Test_CLI_Restore_UsingServiceName(t *testing.T) {
 
 // test restore all in the project directory
 func Test_CLI_RestoreAll_InProjectDir(t *testing.T) {
-	if runtime.GOOS == "darwin" {
-		t.Skip("azure/azure-dev#4612")
-	}
-
 	t.Parallel()
 	ctx, cancel := newTestContext(t)
 	defer cancel()
@@ -193,10 +176,6 @@ func Test_CLI_RestoreAll_InProjectDir(t *testing.T) {
 
 // test restore --all
 func Test_CLI_RestoreAll_UsingFlags(t *testing.T) {
-	if runtime.GOOS == "darwin" {
-		t.Skip("azure/azure-dev#4612")
-	}
-
 	// running this test in parallel is ok as it uses a t.TempDir()
 	t.Parallel()
 	ctx, cancel := newTestContext(t)
diff --git a/cli/azd/test/functional/telemetry_test.go b/cli/azd/test/functional/telemetry_test.go
index bf9710fd1db..388ad0106f7 100644
--- a/cli/azd/test/functional/telemetry_test.go
+++ b/cli/azd/test/functional/telemetry_test.go
@@ -12,7 +12,6 @@ import (
 	"os"
 	"path/filepath"
 	"regexp"
-	"runtime"
 	"strings"
 	"testing"
 
@@ -134,10 +133,6 @@ func Test_CLI_Telemetry_UsageData_Simple_Command(t *testing.T) {
 
 // Verifies telemetry usage data generated when environments and projects are loaded.
 func Test_CLI_Telemetry_UsageData_EnvProjectLoad(t *testing.T) {
-	if runtime.GOOS == "darwin" {
-		t.Skip("azure/azure-dev#4612")
-	}
-
 	// CLI process and working directory are isolated
 	ctx, cancel := newTestContext(t)
 	defer cancel()