diff --git a/.github/workflows/microsoft-pr.yml b/.github/workflows/microsoft-pr.yml
index 2c1b4500b3cc..968a5d5d9bf3 100644
--- a/.github/workflows/microsoft-pr.yml
+++ b/.github/workflows/microsoft-pr.yml
@@ -132,13 +132,11 @@ jobs:
     permissions: {}
     uses: ./.github/workflows/microsoft-build-rntester.yml
 
-  # https://github.com/microsoft/react-native-macos/issues/2344
-  # Disable these tests because verdaccio hangs
-  # test-react-native-macos-init:
-  #   name: "Test react-native-macos init"
-  #   permissions: {}
-  #   if: ${{ endsWith(github.base_ref, '-stable') }}
-  #   uses: ./.github/workflows/microsoft-test-react-native-macos-init.yml
+  test-react-native-macos-init:
+    name: "Test react-native-macos init"
+    permissions: {}
+    if: ${{ endsWith(github.base_ref, '-stable') }}
+    uses: ./.github/workflows/microsoft-test-react-native-macos-init.yml
 
   # https://github.com/microsoft/react-native-macos/issues/2344
   # Disable these tests because verdaccio hangs
@@ -158,7 +156,7 @@ jobs:
       - yarn-constraints
       - javascript-tests
       - build-rntester
-      # - test-react-native-macos-init
+      - test-react-native-macos-init
       # - react-native-test-app-integration
     steps:
       - name: All required jobs passed
diff --git a/.github/workflows/microsoft-test-react-native-macos-init.yml b/.github/workflows/microsoft-test-react-native-macos-init.yml
index 923ffd7a17a9..d16c97c42ffc 100644
--- a/.github/workflows/microsoft-test-react-native-macos-init.yml
+++ b/.github/workflows/microsoft-test-react-native-macos-init.yml
@@ -32,42 +32,32 @@ jobs:
         working-directory: packages/react-native-macos-init
         run: yarn build
 
-      - name: Start Verdaccio server
+      - name: Determine React Native version
+        id: rn-version
         run: |
-          set -euo pipefail
-          nohup npx --yes verdaccio --config .ado/verdaccio/config.yaml >/dev/null 2>&1 &
-          echo $! > $RUNNER_TEMP/verdaccio.pid
-      - name: Wait for Verdaccio to be ready
-        run: node .ado/scripts/waitForVerdaccio.mjs http://localhost:4873
-
-      - name: Configure npm for Verdaccio
-        run: .ado/scripts/verdaccio.sh init
-
-      - name: Publish to Verdaccio
-        run: .ado/scripts/verdaccio.sh publish --branch origin/${{ github.base_ref }}
-
-      - name: Export versions
-        run: node .ado/scripts/export-versions.mjs
+          RN_VERSION=$(node -e "
+            const pkg = require('./packages/react-native/package.json');
+            console.log(pkg.peerDependencies['react-native']);
+          ")
+          echo "version=$RN_VERSION" >> "$GITHUB_OUTPUT"
 
       - name: Initialize new project
         run: |
           set -eox pipefail
-          npx --yes @react-native-community/cli init testcli --version $(cat .react_native_version) --skip-install
+          npx --yes @react-native-community/cli init testcli --version ${{ steps.rn-version.outputs.version }}
         working-directory: ${{ runner.temp }}
 
-      - name: Install dependencies in new project
+      - name: Install local react-native-macos
         working-directory: ${{ runner.temp }}/testcli
         run: |
           set -eox pipefail
-          yarn install --mode=update-lockfile
-          yarn install
+          npm install ${{ github.workspace }}/packages/react-native
 
       - name: Apply macOS template
         working-directory: ${{ runner.temp }}/testcli
         run: |
           set -eox pipefail
-          ${{ github.workspace }}/.ado/scripts/verdaccio.sh configure
-          node ${{ github.workspace }}/packages/react-native-macos-init/bin.js --verbose --version latest --overwrite --prerelease
+          node ${{ github.workspace }}/packages/react-native-macos-init/bin.js --verbose --overwrite --prerelease
           pod install --project-directory=macos
 
       - name: Build macOS app
@@ -75,10 +65,3 @@ jobs:
         run: |
           set -eox pipefail
           npx react-native build-macos
-
-      - name: Stop Verdaccio
-        if: always()
-        run: |
-          if [ -f "$RUNNER_TEMP/verdaccio.pid" ]; then
-            kill "$(cat $RUNNER_TEMP/verdaccio.pid)" || true
-          fi
diff --git a/packages/react-native-macos-init/package.json b/packages/react-native-macos-init/package.json
index 934a1a1529b4..5679cb4a46cb 100644
--- a/packages/react-native-macos-init/package.json
+++ b/packages/react-native-macos-init/package.json
@@ -17,8 +17,10 @@
     "prepublishOnly": "npm run build"
   },
   "bin": "./bin.js",
+  "engines": {
+    "node": ">=20.12.0"
+  },
   "dependencies": {
-    "chalk": "^3",
     "find-up": "^4.1.0",
     "npm-registry-fetch": "^14.0.0",
     "prompts": "^2.3.0",
@@ -27,7 +29,7 @@
   },
   "devDependencies": {
     "@rnx-kit/tsconfig": "^2.0.0",
-    "@types/chalk": "^2.2.0",
+    "@types/node": "^22.0.0",
     "@types/npm-registry-fetch": "^8.0.0",
     "@types/prompts": "^2.0.3",
     "@types/semver": "^7.1.0",
diff --git a/packages/react-native-macos-init/src/cli.ts b/packages/react-native-macos-init/src/cli.ts
index 42bb93692b80..6f6678cbd118 100644
--- a/packages/react-native-macos-init/src/cli.ts
+++ b/packages/react-native-macos-init/src/cli.ts
@@ -5,9 +5,9 @@
  * @format
  */
 
-import chalk from 'chalk';
 import {execSync} from 'child_process';
 import * as findUp from 'find-up';
+import {styleText} from 'node:util';
 import * as fs from 'fs';
 import * as npmFetch from 'npm-registry-fetch';
 import prompts from 'prompts';
@@ -60,7 +60,9 @@ function getNpmRegistryUrl(): string {
 }
 
 function getReactNativeAppName() {
-  console.log(`Reading ${chalk.cyan('application name')} from package.json…`);
+  console.log(
+    `Reading ${styleText('cyan', 'application name')} from package.json…`,
+  );
   const cwd = process.cwd();
   const pkgJsonPath = findUp.sync('package.json', {cwd});
   if (!pkgJsonPath) {
@@ -73,7 +75,9 @@ function getReactNativeAppName() {
   if (!name) {
     const appJsonPath = findUp.sync('app.json', {cwd});
     if (appJsonPath) {
-      console.log(`Reading ${chalk.cyan('application name')} from app.json…`);
+      console.log(
+        `Reading ${styleText('cyan', 'application name')} from app.json…`,
+      );
       name = JSON.parse(fs.readFileSync(appJsonPath, 'utf8')).name;
     }
   }
@@ -84,7 +88,9 @@ function getReactNativeAppName() {
 }
 
 function getPackageVersion(packageName: string, exitOnError: boolean = true) {
-  console.log(`Reading ${chalk.cyan(packageName)} version from node_modules…`);
+  console.log(
+    `Reading ${styleText('cyan', packageName)} version from node_modules…`,
+  );
 
   try {
     const pkgJsonPath = require.resolve(`${packageName}/package.json`, {
@@ -112,8 +118,8 @@ function getReactNativeMacOSVersion() {
 }
 
 function errorOutOnUnsupportedVersionOfReactNative(rnVersion: string): never {
-  const version = chalk.cyan(rnVersion);
-  const supportedVersions = chalk.cyan('>=0.60');
+  const version = styleText('cyan', rnVersion);
+  const supportedVersions = styleText('cyan', '>=0.60');
   printError(
     `Unsupported version of ${RNPKG}: ${version}\n${MACOSPKG} supports ${RNPKG} versions ${supportedVersions}`,
   );
@@ -208,8 +214,8 @@ function isProjectUsingYarn(cwd: string) {
  * Outputs decorated version of the package for the CLI
  */
 function printPkg(name: string, version?: string) {
-  return `${chalk.yellow(name)}${
-    version ? `${chalk.grey('@')}${chalk.cyan(version)}` : ''
+  return `${styleText('yellow', name)}${
+    version ? `${styleText('gray', '@')}${styleText('cyan', version)}` : ''
   }`;
 }
 
@@ -217,7 +223,43 @@ function printPkg(name: string, version?: string) {
  * Prints decorated version of console.error to the CLI
  */
 function printError(message: string, ...optionalParams: any[]) {
-  console.error(chalk.red(chalk.bold(message)), ...optionalParams);
+  console.error(styleText(['red', 'bold'], message), ...optionalParams);
+}
+
+/**
+ * Checks if the resolved react-native-macos version's peer dependency on
+ * react-native is compatible with the installed version. Warns if not.
+ */
+async function validatePeerDependencies(
+  macosVersion: string,
+  installedRNVersion: string,
+): Promise<void> {
+  try {
+    const npmResponse = await npmFetch.json(`${MACOSPKG}/${macosVersion}`, {
+      registry: getNpmRegistryUrl(),
+    });
+    const peerDeps = (npmResponse as any).peerDependencies;
+    if (peerDeps && peerDeps[RNPKG]) {
+      const requiredRN = peerDeps[RNPKG];
+      if (!semver.satisfies(installedRNVersion, requiredRN)) {
+        console.warn(
+          styleText(
+            'yellow',
+            `\n${styleText('bold', 'Warning:')} ${printPkg(
+              MACOSPKG,
+              macosVersion,
+            )} requires ${printPkg(RNPKG, requiredRN)}, ` +
+              `but you have ${printPkg(
+                RNPKG,
+                installedRNVersion,
+              )} installed.\n`,
+          ),
+        );
+      }
+    }
+  } catch {
+    // Non-fatal — if we can't check, proceed anyway
+  }
 }
 
 (async () => {
@@ -243,29 +285,38 @@ function printError(message: string, ...optionalParams: any[]) {
 
     if (!argv.version) {
       console.log(
-        `Latest matching version of ${chalk.green(MACOSPKG)} for ${printPkg(
-          RNPKG,
-          reactNativeVersion,
-        )} is ${printPkg(MACOSPKG, reactNativeMacOSResolvedVersion)}.`,
+        `Latest matching version of ${styleText(
+          'green',
+          MACOSPKG,
+        )} for ${printPkg(RNPKG, reactNativeVersion)} is ${printPkg(
+          MACOSPKG,
+          reactNativeMacOSResolvedVersion,
+        )}.`,
       );
 
       if (semver.prerelease(reactNativeMacOSResolvedVersion)) {
         console.warn(
           `
-${printPkg(MACOSPKG, reactNativeMacOSResolvedVersion)} is a ${chalk.bgYellow(
+${printPkg(MACOSPKG, reactNativeMacOSResolvedVersion)} is a ${styleText(
+            'bgYellow',
             'pre-release',
           )} version.
 The latest supported version is ${printPkg(
             MACOSPKG,
             reactNativeMacOSLatestVersion,
           )}.
-You can either downgrade your version of ${chalk.yellow(RNPKG)} to ${chalk.cyan(
+You can either downgrade your version of ${styleText(
+            'yellow',
+            RNPKG,
+          )} to ${styleText(
+            'cyan',
             getMatchingReactNativeSemVerForReactNativeMacOSVersion(
               reactNativeMacOSLatestVersion,
             ),
-          )}, or continue with a ${chalk.bgYellow(
+          )}, or continue with a ${styleText(
+            'bgYellow',
             'pre-release',
-          )} version of ${chalk.yellow(MACOSPKG)}.
+          )} version of ${styleText('yellow', MACOSPKG)}.
 `,
         );
 
@@ -288,6 +339,11 @@ You can either downgrade your version of ${chalk.yellow(RNPKG)} to ${chalk.cyan(
       }
     }
 
+    await validatePeerDependencies(
+      reactNativeMacOSResolvedVersion,
+      reactNativeVersion,
+    );
+
     const pkgLatest = printPkg(MACOSPKG, version);
 
     if (reactNativeMacOSResolvedVersion !== reactNativeMacOSVersion) {
@@ -298,15 +354,44 @@ You can either downgrade your version of ${chalk.yellow(RNPKG)} to ${chalk.cyan(
       );
 
       const pkgmgr = isProjectUsingYarn(process.cwd())
-        ? `yarn add${verbose ? '' : ' --silent'}`
-        : `npm install --save${verbose ? '' : ' --silent'}`;
+        ? 'yarn add'
+        : 'npm install --save';
       const execOptions = verbose ? {stdio: 'inherit' as const} : {};
-      execSync(`${pkgmgr} "${MACOSPKG}@${version}"`, execOptions);
 
-      console.log(`${pkgLatest} ${chalk.green('successfully installed!')}`);
+      try {
+        execSync(`${pkgmgr} "${MACOSPKG}@${version}"`, execOptions);
+      } catch (e: any) {
+        // When not verbose, execSync captures output in the error object
+        if (!verbose) {
+          if (e.stderr) {
+            console.error(e.stderr.toString());
+          }
+          if (e.stdout) {
+            console.log(e.stdout.toString());
+          }
+        }
+        printError(
+          `Failed to install ${printPkg(MACOSPKG, version)}.\n` +
+            `This can happen if there is a peer dependency mismatch between ` +
+            `${RNPKG} and ${MACOSPKG}.\n` +
+            `Check that your installed version of ${styleText(
+              'yellow',
+              RNPKG,
+            )} is compatible ` +
+            `with ${printPkg(MACOSPKG, version)}.`,
+        );
+        process.exit(EXITCODE_UNKNOWN_ERROR);
+      }
+
+      console.log(
+        `${pkgLatest} ${styleText('green', 'successfully installed!')}`,
+      );
     } else {
       console.log(
-        `${chalk.green('Latest version')} of ${pkgLatest} already installed.`,
+        `${styleText(
+          'green',
+          'Latest version',
+        )} of ${pkgLatest} already installed.`,
       );
     }
 
diff --git a/packages/react-native/local-cli/generate-macos.js b/packages/react-native/local-cli/generate-macos.js
index 4d3a208879e3..bb4a9c869d34 100644
--- a/packages/react-native/local-cli/generate-macos.js
+++ b/packages/react-native/local-cli/generate-macos.js
@@ -3,7 +3,6 @@
 
 const {
   copyProjectTemplateAndReplace,
-  installDependencies,
   printFinishMessage,
 } = require('./generator-macos');
 const fs = require('fs');
@@ -21,8 +20,6 @@ function generateMacOS (projectDir, name, options) {
     fs.mkdirSync(projectDir);
   }
 
-  installDependencies(options);
-
   copyProjectTemplateAndReplace(
     path.join(__dirname, 'generator-macos', 'templates'),
     projectDir,
diff --git a/packages/react-native/local-cli/generator-common/index.js b/packages/react-native/local-cli/generator-common/index.js
index a2a54581548f..1c2a77517ff7 100644
--- a/packages/react-native/local-cli/generator-common/index.js
+++ b/packages/react-native/local-cli/generator-common/index.js
@@ -1,8 +1,8 @@
 // @ts-check
 
 // @noflow
-const chalk = require('chalk');
 const fs = require('fs');
+const { styleText } = require('node:util');
 const path = require('path');
 
 // Copied from `copyAndReplace` in react-native-community/cli as it's deleted in newer versions
@@ -330,11 +330,11 @@ function alwaysOverwriteContentChangedCallback(
   contentChanged
 ) {
   if (contentChanged === 'new') {
-    console.log(`${chalk.bold('new')} ${relativeDestPath}`);
+    console.log(`${styleText('bold','new')} ${relativeDestPath}`);
     return 'overwrite';
   }
   if (contentChanged === 'changed') {
-    console.log(`${chalk.bold('changed')} ${relativeDestPath} ${chalk.yellow('[overwriting]')}`);
+    console.log(`${styleText('bold','changed')} ${relativeDestPath} ${styleText('yellow','[overwriting]')}`);
     return 'overwrite';
   }
   if (contentChanged === 'identical') {
@@ -351,12 +351,12 @@ function upgradeFileContentChangedCallback(
   contentChanged
 ) {
   if (contentChanged === 'new') {
-    console.log(`${chalk.bold('new')} ${relativeDestPath}`);
+    console.log(`${styleText('bold','new')} ${relativeDestPath}`);
     return 'overwrite';
   }
   if (contentChanged === 'changed') {
     console.log(
-      `${chalk.bold(relativeDestPath)} ` +
+      `${styleText('bold',relativeDestPath)} ` +
       `has changed in the new version.\nDo you want to keep your ${relativeDestPath} or replace it with the ` +
       'latest version?\nIf you ever made any changes ' +
       'to this file, you\'ll probably want to keep it.\n' +
diff --git a/packages/react-native/local-cli/generator-macos/index.js b/packages/react-native/local-cli/generator-macos/index.js
index ea0ffa464073..cd406c3b6d7b 100644
--- a/packages/react-native/local-cli/generator-macos/index.js
+++ b/packages/react-native/local-cli/generator-macos/index.js
@@ -7,9 +7,7 @@ const {
   copyAndReplaceAll,
   createDir,
 } = require('../generator-common');
-const chalk = require('chalk');
-const childProcess = require('child_process');
-const fs = require('fs');
+const { styleText } = require('node:util');
 const path = require('path');
 
 const macOSDir = 'macos';
@@ -102,34 +100,21 @@ function schemePath(basename, platform) {
   return path.join(schemesPath(basename), projectName(basename, platform) + '.xcscheme');
 }
 
-/**
- * @param {{ verbose?: boolean }=} options
- */
-function installDependencies(options) {
-  const cwd = process.cwd();
-
-  // Install dependencies using correct package manager
-  const isYarn = fs.existsSync(path.join(cwd, 'yarn.lock'));
-
-  /** @type {{ stdio?: 'inherit' }} */
-  const execOptions = options && options.verbose ? { stdio: 'inherit' } : {};
-  childProcess.execSync(isYarn ? 'yarn' : 'npm i', execOptions);
-}
-
 /**
  * @param {string} newProjectName
  */
 function printFinishMessage(newProjectName) {
   console.log(`
-  ${chalk.blue(`Run instructions for ${chalk.bold('macOS')}`)}:
-    • pod install --project-directory=macos
-    • npx react-native run-macos
-    • yarn start:macos
+  ${styleText('blue', `Run instructions for ${styleText('bold', 'macOS')}`)}:
+    • ${styleText('cyan', 'pod install --project-directory=macos')}
+    • ${styleText('cyan', 'npx react-native run-macos')}
+
+  To start the Metro bundler separately:
+    • ${styleText('cyan', 'npx react-native start')}
 `);
 }
 
 module.exports = {
   copyProjectTemplateAndReplace,
-  installDependencies,
   printFinishMessage,
 };
diff --git a/yarn.lock b/yarn.lock
index 6cf5af7025a1..522ad4d39c85 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -4044,15 +4044,6 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@types/chalk@npm:^2.2.0":
-  version: 2.2.0
-  resolution: "@types/chalk@npm:2.2.0"
-  dependencies:
-    chalk: "npm:*"
-  checksum: 10c0/d408e65041f37db0211574d72300058538beac430bd636e6ebc51fad15e954de35796dea42ab9706b0f1f96c15d2e68dce14de22d7a0755270a6d86ac2813390
-  languageName: node
-  linkType: hard
-
 "@types/chokidar@npm:^2.1.3":
   version: 2.1.3
   resolution: "@types/chokidar@npm:2.1.3"
@@ -4190,6 +4181,15 @@ __metadata:
   languageName: node
   linkType: hard
 
+"@types/node@npm:^22.0.0":
+  version: 22.19.15
+  resolution: "@types/node@npm:22.19.15"
+  dependencies:
+    undici-types: "npm:~6.21.0"
+  checksum: 10c0/f17eaf3d0d1da5e93ad9e287efb78201f8a5282973c004c5f70d91675c5c6b926a23acaa7b158a42b3d7e27e36b349d65a531710c91c308fca53dd7fa280ef98
+  languageName: node
+  linkType: hard
+
 "@types/npm-package-arg@npm:*":
   version: 6.1.2
   resolution: "@types/npm-package-arg@npm:6.1.2"
@@ -5751,13 +5751,6 @@ __metadata:
   languageName: node
   linkType: hard
 
-"chalk@npm:*":
-  version: 5.3.0
-  resolution: "chalk@npm:5.3.0"
-  checksum: 10c0/8297d436b2c0f95801103ff2ef67268d362021b8210daf8ddbe349695333eb3610a71122172ff3b0272f1ef2cf7cc2c41fdaa4715f52e49ffe04c56340feed09
-  languageName: node
-  linkType: hard
-
 "chalk@npm:^2.0.1, chalk@npm:^2.3.0":
   version: 2.4.2
   resolution: "chalk@npm:2.4.2"
@@ -5769,16 +5762,6 @@ __metadata:
   languageName: node
   linkType: hard
 
-"chalk@npm:^3":
-  version: 3.0.0
-  resolution: "chalk@npm:3.0.0"
-  dependencies:
-    ansi-styles: "npm:^4.1.0"
-    supports-color: "npm:^7.1.0"
-  checksum: 10c0/ee650b0a065b3d7a6fda258e75d3a86fc8e4effa55871da730a9e42ccb035bf5fd203525e5a1ef45ec2582ecc4f65b47eb11357c526b84dd29a14fb162c414d2
-  languageName: node
-  linkType: hard
-
 "chalk@npm:^4.0.0, chalk@npm:^4.0.2, chalk@npm:^4.1.0, chalk@npm:^4.1.2":
   version: 4.1.2
   resolution: "chalk@npm:4.1.2"
@@ -12675,13 +12658,12 @@ __metadata:
   resolution: "react-native-macos-init@workspace:packages/react-native-macos-init"
   dependencies:
     "@rnx-kit/tsconfig": "npm:^2.0.0"
-    "@types/chalk": "npm:^2.2.0"
+    "@types/node": "npm:^22.0.0"
     "@types/npm-registry-fetch": "npm:^8.0.0"
     "@types/prompts": "npm:^2.0.3"
     "@types/semver": "npm:^7.1.0"
     "@types/valid-url": "npm:^1.0.2"
     "@types/yargs": "npm:^15.0.3"
-    chalk: "npm:^3"
     find-up: "npm:^4.1.0"
     just-scripts: "npm:^2.3.2"
     npm-registry-fetch: "npm:^14.0.0"