diff --git a/changelogs/fragments/5829-fix-yarn-global.yml b/changelogs/fragments/5829-fix-yarn-global.yml
new file mode 100644
index 0000000000..fade7d97f6
--- /dev/null
+++ b/changelogs/fragments/5829-fix-yarn-global.yml
@@ -0,0 +1,4 @@
+bugfixes:
+  - yarn - fix ``state=latest`` not working with ``global=true`` (https://github.com/ansible-collections/community.general/issues/5712).
+  - yarn - fix ``global=true`` to check for the configured global folder instead of assuming the default (https://github.com/ansible-collections/community.general/pull/5829)
+  - yarn - fix ``state=absent`` not working with ``global=true`` when the package does not include a binary (https://github.com/ansible-collections/community.general/pull/5829)
diff --git a/plugins/modules/yarn.py b/plugins/modules/yarn.py
index 2e96cb799d..df55925dba 100644
--- a/plugins/modules/yarn.py
+++ b/plugins/modules/yarn.py
@@ -163,8 +163,6 @@ from ansible.module_utils.basic import AnsibleModule
 
 class Yarn(object):
 
-    DEFAULT_GLOBAL_INSTALLATION_PATH = os.path.expanduser('~/.config/yarn/global')
-
     def __init__(self, module, **kwargs):
         self.module = module
         self.globally = kwargs['globally']
@@ -188,10 +186,12 @@ class Yarn(object):
         elif self.name is not None:
             self.name_version = self.name
 
-    def _exec(self, args, run_in_check_mode=False, check_rc=True):
+    def _exec(self, args, run_in_check_mode=False, check_rc=True, unsupported_with_global=False):
         if not self.module.check_mode or (self.module.check_mode and run_in_check_mode):
 
-            if self.globally:
+            with_global_arg = self.globally and not unsupported_with_global
+
+            if with_global_arg:
                 # Yarn global arg is inserted before the command (e.g. `yarn global {some-command}`)
                 args.insert(0, 'global')
 
@@ -207,7 +207,7 @@ class Yarn(object):
 
             # If path is specified, cd into that path and run the command.
             cwd = None
-            if self.path and not self.globally:
+            if self.path and not with_global_arg:
                 if not os.path.exists(self.path):
                     # Module will make directory if not exists.
                     os.makedirs(self.path)
@@ -233,24 +233,21 @@ class Yarn(object):
             missing.append(self.name)
             return installed, missing
 
-        result, error = self._exec(cmd, True, False)
+        # `yarn global list` should be treated as "unsupported with global" even though it exists,
+        # because it only only lists binaries, but `yarn global add` can install libraries too.
+        result, error = self._exec(cmd, run_in_check_mode=True, check_rc=False, unsupported_with_global=True)
 
         if error:
             self.module.fail_json(msg=error)
 
         for json_line in result.strip().split('\n'):
             data = json.loads(json_line)
-            if self.globally:
-                if data['type'] == 'list' and data['data']['type'].startswith('bins-'):
-                    # This is a string in format: 'bins-<PACKAGE_NAME>'
-                    installed.append(data['data']['type'][5:])
-            else:
-                if data['type'] == 'tree':
-                    dependencies = data['data']['trees']
+            if data['type'] == 'tree':
+                dependencies = data['data']['trees']
 
-                    for dep in dependencies:
-                        name, version = dep['name'].rsplit('@', 1)
-                        installed.append(name)
+                for dep in dependencies:
+                    name, version = dep['name'].rsplit('@', 1)
+                    installed.append(name)
 
         if self.name not in installed:
             missing.append(self.name)
@@ -276,9 +273,12 @@ class Yarn(object):
         if not os.path.isfile(os.path.join(self.path, 'yarn.lock')):
             return outdated
 
-        cmd_result, err = self._exec(['outdated', '--json'], True, False)
-        if err:
-            self.module.fail_json(msg=err)
+        cmd_result, err = self._exec(['outdated', '--json'], True, False, unsupported_with_global=True)
+
+        # the package.json in the global dir is missing a license field, so warnings are expected on stderr
+        for line in err.splitlines():
+            if json.loads(line)['type'] == 'error':
+                self.module.fail_json(msg=err)
 
         if not cmd_result:
             return outdated
@@ -340,7 +340,8 @@ def main():
 
     # When installing globally, use the defined path for global node_modules
     if globally:
-        path = Yarn.DEFAULT_GLOBAL_INSTALLATION_PATH
+        _rc, out, _err = module.run_command([executable, 'global', 'dir'], check_rc=True)
+        path = out.strip()
 
     yarn = Yarn(module,
                 name=name,
diff --git a/tests/integration/targets/yarn/tasks/run.yml b/tests/integration/targets/yarn/tasks/run.yml
index 367d7dcf2c..6521d45fcf 100644
--- a/tests/integration/targets/yarn/tasks/run.yml
+++ b/tests/integration/targets/yarn/tasks/run.yml
@@ -39,6 +39,7 @@
     package: 'iconv-lite'
   environment:
     PATH: "{{ node_bin_path }}:{{ansible_env.PATH}}"
+    YARN_IGNORE_ENGINES: true
   block:
 
     # Get the version of Yarn and register to a variable
@@ -135,3 +136,89 @@
       assert:
         that:
           - yarn_uninstall_package is changed
+
+    - name: 'Global install binary with explicit version (older version of package)'
+      yarn:
+        global: true
+        executable: '{{ yarn_bin_path }}/yarn'
+        name: prettier
+        version: 2.0.0
+        state: present
+      environment:
+        PATH: '{{ node_bin_path }}:{{ ansible_env.PATH }}'
+      register: yarn_global_install_old_binary
+
+    - assert:
+        that:
+          - yarn_global_install_old_binary is changed
+
+    - name: 'Global upgrade old binary'
+      yarn:
+        global: true
+        executable: '{{ yarn_bin_path }}/yarn'
+        name: prettier
+        state: latest
+      environment:
+        PATH: '{{ node_bin_path }}:{{ ansible_env.PATH }}'
+      register: yarn_global_update_old_binary
+
+    - assert:
+        that:
+          - yarn_global_update_old_binary is changed
+
+    - name: 'Global remove a binary'
+      yarn:
+        global: true
+        executable: '{{ yarn_bin_path }}/yarn'
+        name: prettier
+        state: absent
+      environment:
+        PATH: '{{ node_bin_path }}:{{ ansible_env.PATH }}'
+      register: yarn_global_uninstall_binary
+
+    - assert:
+        that:
+          - yarn_global_uninstall_binary is changed
+
+    - name: 'Global install package with no binary with explicit version (older version of package)'
+      yarn:
+        global: true
+        executable: '{{ yarn_bin_path }}/yarn'
+        name: left-pad
+        version: 1.1.0
+        state: present
+      environment:
+        PATH: '{{ node_bin_path }}:{{ ansible_env.PATH }}'
+      register: yarn_global_install_old_package
+
+    - assert:
+        that:
+          - yarn_global_install_old_package is changed
+
+    - name: 'Global upgrade old package with no binary'
+      yarn:
+        global: true
+        executable: '{{ yarn_bin_path }}/yarn'
+        name: left-pad
+        state: latest
+      environment:
+        PATH: '{{ node_bin_path }}:{{ ansible_env.PATH }}'
+      register: yarn_global_update_old_package
+
+    - assert:
+        that:
+          - yarn_global_update_old_package is changed
+
+    - name: 'Global remove a package with no binary'
+      yarn:
+        global: true
+        executable: '{{ yarn_bin_path }}/yarn'
+        name: left-pad
+        state: absent
+      environment:
+        PATH: '{{ node_bin_path }}:{{ ansible_env.PATH }}'
+      register: yarn_global_uninstall_package
+
+    - assert:
+        that:
+          - yarn_global_uninstall_package is changed
diff --git a/tests/sanity/ignore-2.11.txt b/tests/sanity/ignore-2.11.txt
index 508785f220..336a923589 100644
--- a/tests/sanity/ignore-2.11.txt
+++ b/tests/sanity/ignore-2.11.txt
@@ -24,6 +24,5 @@ plugins/modules/rax_files.py validate-modules:parameter-state-invalid-choice
 plugins/modules/rax.py use-argspec-type-path                                          # module deprecated - removed in 9.0.0
 plugins/modules/rhevm.py validate-modules:parameter-state-invalid-choice
 plugins/modules/xfconf.py validate-modules:return-syntax-error
-plugins/modules/yarn.py use-argspec-type-path
 tests/integration/targets/django_manage/files/base_test/simple_project/p1/manage.py compile-2.6   # django generated code
 tests/integration/targets/django_manage/files/base_test/simple_project/p1/manage.py compile-2.7   # django generated code
diff --git a/tests/sanity/ignore-2.12.txt b/tests/sanity/ignore-2.12.txt
index 77a0105529..2386cda087 100644
--- a/tests/sanity/ignore-2.12.txt
+++ b/tests/sanity/ignore-2.12.txt
@@ -19,4 +19,3 @@ plugins/modules/rax_files.py validate-modules:parameter-state-invalid-choice
 plugins/modules/rax.py use-argspec-type-path                                          # module deprecated - removed in 9.0.0
 plugins/modules/rhevm.py validate-modules:parameter-state-invalid-choice
 plugins/modules/xfconf.py validate-modules:return-syntax-error
-plugins/modules/yarn.py use-argspec-type-path
diff --git a/tests/sanity/ignore-2.13.txt b/tests/sanity/ignore-2.13.txt
index 77a0105529..2386cda087 100644
--- a/tests/sanity/ignore-2.13.txt
+++ b/tests/sanity/ignore-2.13.txt
@@ -19,4 +19,3 @@ plugins/modules/rax_files.py validate-modules:parameter-state-invalid-choice
 plugins/modules/rax.py use-argspec-type-path                                          # module deprecated - removed in 9.0.0
 plugins/modules/rhevm.py validate-modules:parameter-state-invalid-choice
 plugins/modules/xfconf.py validate-modules:return-syntax-error
-plugins/modules/yarn.py use-argspec-type-path
diff --git a/tests/sanity/ignore-2.14.txt b/tests/sanity/ignore-2.14.txt
index db0e449b79..ec887e18b8 100644
--- a/tests/sanity/ignore-2.14.txt
+++ b/tests/sanity/ignore-2.14.txt
@@ -21,4 +21,3 @@ plugins/modules/rax.py use-argspec-type-path
 plugins/modules/rhevm.py validate-modules:parameter-state-invalid-choice
 plugins/modules/udm_user.py import-3.11  # Uses deprecated stdlib library 'crypt'
 plugins/modules/xfconf.py validate-modules:return-syntax-error
-plugins/modules/yarn.py use-argspec-type-path
diff --git a/tests/sanity/ignore-2.15.txt b/tests/sanity/ignore-2.15.txt
index db0e449b79..ec887e18b8 100644
--- a/tests/sanity/ignore-2.15.txt
+++ b/tests/sanity/ignore-2.15.txt
@@ -21,4 +21,3 @@ plugins/modules/rax.py use-argspec-type-path
 plugins/modules/rhevm.py validate-modules:parameter-state-invalid-choice
 plugins/modules/udm_user.py import-3.11  # Uses deprecated stdlib library 'crypt'
 plugins/modules/xfconf.py validate-modules:return-syntax-error
-plugins/modules/yarn.py use-argspec-type-path