diff --git a/doc/changes/fixed/12802.md b/doc/changes/fixed/12802.md
new file mode 100644
index 00000000000..5eed559026d
--- /dev/null
+++ b/doc/changes/fixed/12802.md
@@ -0,0 +1,3 @@
+- Provide a more informative error message when `(pkg enabled)` is put in
+  `dune-project` instead of `dune-workspace`. (#12802, fixes #12801,
+  @benodiwal)
diff --git a/src/dune_lang/dune_project.ml b/src/dune_lang/dune_project.ml
index 8ffc376bda7..e7653c646c4 100644
--- a/src/dune_lang/dune_project.ml
+++ b/src/dune_lang/dune_project.ml
@@ -953,6 +953,21 @@ let parse ~dir ~(lang : Lang.Instance.t) ~file =
          "warnings"
          ~default:Warning.Settings.empty
          (Syntax.since Stanza.syntax (3, 11) >>> Warning.Settings.decode)
+     and+ () =
+       field_o
+         "pkg"
+         (let+ loc = loc
+          and+ () = junk_everything in
+          loc)
+       >>| Option.iter ~f:(fun loc ->
+         User_error.raise
+           ~loc
+           ~hints:
+             [ Pp.text
+                 "Move this stanza to your dune-workspace file. If you don't have one, \
+                  create one in your workspace root."
+             ]
+           [ Pp.text "The (pkg ...) stanza is only valid in dune-workspace files." ])
      in
      fun (opam_packages : (Loc.t * Package.t Memo.t) Package.Name.Map.t) ->
        let opam_file_location =
diff --git a/test/blackbox-tests/test-cases/pkg/pkg-in-dune-project-error.t b/test/blackbox-tests/test-cases/pkg/pkg-in-dune-project-error.t
new file mode 100644
index 00000000000..efad2230df5
--- /dev/null
+++ b/test/blackbox-tests/test-cases/pkg/pkg-in-dune-project-error.t
@@ -0,0 +1,16 @@
+Test that putting (pkg enabled) in dune-project instead of dune-workspace
+gives a helpful error message.
+
+  $ cat > dune-project <<EOF
+  > (lang dune 3.21)
+  > (pkg enabled)
+  > EOF
+
+  $ dune build
+  File "dune-project", line 2, characters 0-13:
+  2 | (pkg enabled)
+      ^^^^^^^^^^^^^
+  Error: The (pkg ...) stanza is only valid in dune-workspace files.
+  Hint: Move this stanza to your dune-workspace file. If you don't have one,
+  create one in your workspace root.
+  [1]