diff --git a/tests/test_completion/test_completion_install.py b/tests/test_completion/test_completion_install.py
index f6194695fe..6c84ae173d 100644
--- a/tests/test_completion/test_completion_install.py
+++ b/tests/test_completion/test_completion_install.py
@@ -110,6 +110,49 @@ def test_completion_install_zsh():
     )
 
 
+@requires_completion_permission
+def test_completion_install_zsh_respects_zdotdir(tmp_path: Path):
+    home_path = tmp_path / "home"
+    home_path.mkdir()
+    zdotdir_path = home_path / "not_default_zsh_dir"
+    zdotdir_path.mkdir()
+    zshrc_path = zdotdir_path / ".zshrc"
+    zshrc_path.write_text('echo "custom .zshrc"\n')
+    result = subprocess.run(
+        [
+            sys.executable,
+            "-m",
+            "coverage",
+            "run",
+            mod.__file__,
+            "--install-completion",
+            "zsh",
+        ],
+        capture_output=True,
+        encoding="utf-8",
+        env={
+            **os.environ,
+            "HOME": str(home_path),
+            "ZDOTDIR": str(zdotdir_path),
+            "_TYPER_COMPLETE_TEST_DISABLE_SHELL_DETECTION": "True",
+        },
+    )
+    assert result.returncode == 0
+    assert not (home_path / ".zshrc").exists()
+    new_text = zshrc_path.read_text()
+    zfunc_fragment = "fpath+=~/.zfunc"
+    assert zfunc_fragment in new_text
+    assert "completion installed in" in result.stdout
+    assert "Completion will take effect once you restart the terminal" in result.stdout
+    install_source_path = home_path / ".zfunc/_tutorial001_py310.py"
+    assert install_source_path.is_file()
+    install_content = install_source_path.read_text()
+    assert (
+        "compdef _tutorial001_py310py_completion tutorial001_py310.py"
+        in install_content
+    )
+
+
 @requires_completion_permission
 def test_completion_install_fish():
     script_path = Path(mod.__file__)
diff --git a/typer/_completion_shared.py b/typer/_completion_shared.py
index 5a81dcf68c..074ffc107c 100644
--- a/typer/_completion_shared.py
+++ b/typer/_completion_shared.py
@@ -116,9 +116,18 @@ def install_bash(*, prog_name: str, complete_var: str, shell: str) -> Path:
     return completion_path
 
 
+def _get_zshrc_path() -> Path:
+    zdotdir = os.getenv("ZDOTDIR")
+    if zdotdir:
+        resolved_zdotdir = Path(os.path.expandvars(zdotdir)).expanduser()
+        if resolved_zdotdir.is_absolute():
+            return resolved_zdotdir / ".zshrc"
+    return Path.home() / ".zshrc"
+
+
 def install_zsh(*, prog_name: str, complete_var: str, shell: str) -> Path:
     # Setup Zsh and load ~/.zfunc
-    zshrc_path = Path.home() / ".zshrc"
+    zshrc_path = _get_zshrc_path()
     zshrc_path.parent.mkdir(parents=True, exist_ok=True)
     zshrc_content = ""
     if zshrc_path.is_file():