diff --git a/changelog/pending/20240508--sdk-nodejs--dont-load-punycode-module-in-function-serialization-code.yaml b/changelog/pending/20240508--sdk-nodejs--dont-load-punycode-module-in-function-serialization-code.yaml
new file mode 100644
index 000000000000..18cf774fdaff
--- /dev/null
+++ b/changelog/pending/20240508--sdk-nodejs--dont-load-punycode-module-in-function-serialization-code.yaml
@@ -0,0 +1,4 @@
+changes:
+- type: fix
+  scope: sdk/nodejs
+  description: Don't load punycode module in function serialization code
diff --git a/sdk/nodejs/runtime/closure/createClosure.ts b/sdk/nodejs/runtime/closure/createClosure.ts
index a00f32ff87bb..61926a5290df 100644
--- a/sdk/nodejs/runtime/closure/createClosure.ts
+++ b/sdk/nodejs/runtime/closure/createClosure.ts
@@ -1418,6 +1418,7 @@ function getBuiltInModules(): Promise<Map<any, string>> {
         // available at the unqualified names listed below.
 
         const excludes = [
+            "punycode", // deprecated in documentation since 7.0, logs a warning in 21.0
             "sys", // deprecated since 1.0
             "wasi", // experimental
         ];