diff --git a/CHANGELOG.md b/CHANGELOG.md
index 6f72ed274..8a94a5f5f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,11 +5,13 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+
 ## [0.10.7] - Unreleased
 
 ### Added
 - #992: Implement automatic history purge logic
 - #973: Enables CORS and JWT configuration for WebApplications in module.xml
+- #1031: Add support for user-configurable ModuleRoot for IPM module installation
 
 ### Fixed
 - #1001: The `unmap` and `enable` commands will now only activate CPF merge once after all namespaces have been configured instead after every namespace
diff --git a/preload/cls/IPM/Installer.cls b/preload/cls/IPM/Installer.cls
index 26970544b..fe4e742a0 100644
--- a/preload/cls/IPM/Installer.cls
+++ b/preload/cls/IPM/Installer.cls
@@ -113,6 +113,7 @@ ClassMethod ZPMInit(
     $$$QuitOnError(##class(%IPM.Repo.UniversalSettings).SetValue("UseStandalonePip", "", 0))
     $$$QuitOnError(##class(%IPM.Repo.UniversalSettings).SetValue("SemVerPostRelease", 0, 0))
     $$$QuitOnError(##class(%IPM.Repo.UniversalSettings).SetValue("DefaultLogEntryLimit",20, 0))
+    $$$QuitOnError(##class(%IPM.Repo.UniversalSettings).SetValue("ModuleRoot",##class(%SYSTEM.Util).DataDirectory() _ "ipm/", 0))
     quit $$$OK
 }
 
diff --git a/src/cls/IPM/Repo/UniversalSettings.cls b/src/cls/IPM/Repo/UniversalSettings.cls
index e1ff1f3ed..68485f17d 100644
--- a/src/cls/IPM/Repo/UniversalSettings.cls
+++ b/src/cls/IPM/Repo/UniversalSettings.cls
@@ -41,11 +41,9 @@ Parameter UseStandalonePip = "UseStandalonePip";
 /// Default value is 0, where 1.0.0-anystring is considered a pre-release of 1.0.0, hence 1.0.0-anystring < 1.0.0
 Parameter SemVerPostRelease = "SemVerPostRelease";
 
-/// Configuration setting name used to determine the number of days
-/// to retain IPM history records before they are eligible for cleanup.
-Parameter HistoryRetain = "history_retain";
+Parameter ModuleRoot = "ModuleRoot";
 
-Parameter CONFIGURABLE = "trackingId,analytics,ColorScheme,TerminalPrompt,PublishTimeout,PipCaller,UseStandalonePip,SemVerPostRelease,DefaultLogEntryLimit,HistoryRetain";
+Parameter CONFIGURABLE = "trackingId,analytics,ColorScheme,TerminalPrompt,PublishTimeout,PipCaller,UseStandalonePip,SemVerPostRelease,DefaultLogEntryLimit,ModuleRoot";
 
 /// Returns configArray, that includes all configurable settings
 ClassMethod GetAll(Output configArray) As %Status
@@ -104,6 +102,9 @@ ClassMethod UpdateOne(
         write "Config key = """_key_""" not found",!
         quit
     }
+    if key="ModuleRoot" {
+        do ..CheckDirPermission(value)
+    }
     set sc = ..SetValue($parameter(..%ClassName(1),key), value)
     if $$$ISOK(sc) {
         write "Key """_key_""" succesfully updated",!
@@ -185,9 +186,22 @@ ClassMethod SetAnalyticsAvailable(
     return ..SetValue(..#analytics, +val, overwrite)
 }
 
-ClassMethod GetHistoryRetain() As %Integer
+ClassMethod GetMouleRoot() As %String
+{
+    return ..GetValue(..#ModuleRoot)
+}
+
+ClassMethod CheckDirPermission(directory As %String = "")
 {
-    return ..GetValue(..#HistoryRetain)
+    if directory="" {
+        $$$ThrowOnError($$$ERROR($$$DirectoryNameRequired))
+    }
+    set directory = ##class(%File).NormalizeDirectory(directory)
+    if '##class(%File).DirectoryExists(directory) {
+        $$$ThrowOnError($$$ERROR($$$DirectoryNotFound))
+    } elseif '##class(%File).Writeable(directory) {
+         $$$ThrowOnError($$$ERROR($$$GeneralError,"No write permission on directory "_directory))
+    }
 }
 
 }
diff --git a/src/cls/IPM/ResourceProcessor/Abstract.cls b/src/cls/IPM/ResourceProcessor/Abstract.cls
index 5d56e2b9a..15892c05c 100644
--- a/src/cls/IPM/ResourceProcessor/Abstract.cls
+++ b/src/cls/IPM/ResourceProcessor/Abstract.cls
@@ -272,7 +272,11 @@ Method %Evaluate(pAttrValue As %String) As %String [ Internal ]
     set tAttrValue = ##class(%IPM.Utils.Module).%EvaluateMacro(tAttrValue)
     set attrValue = ##class(%IPM.Utils.Module).%EvaluateSystemExpression(tAttrValue)
     set customParams("packagename") = ..ResourceReference.Module.Name
-    set customParams("ipmDir") = ##class(%Library.File).NormalizeDirectory($system.Util.DataDirectory() _ "ipm/" _ ..ResourceReference.Module.Name _ "/" _ ..ResourceReference.Module.VersionString)
+    set ipmDir = ##class(%IPM.Repo.UniversalSettings).GetMouleRoot()
+    if ipmDir="" {
+        set ipmDir = $system.Util.DataDirectory() _ "ipm/"
+    }
+    set customParams("ipmDir") = ##class(%Library.File).NormalizeDirectory(ipmDir _ ..ResourceReference.Module.Name _ "/" _ ..ResourceReference.Module.VersionString)
     set attrValue = ##class(%IPM.Storage.ModuleSetting.Default).EvaluateAttribute(attrValue,.customParams)
     set root = ..ResourceReference.Module.Root
     if (root '= "") {
diff --git a/src/cls/IPM/Utils/Module.cls b/src/cls/IPM/Utils/Module.cls
index b2903e36d..397f0cf93 100644
--- a/src/cls/IPM/Utils/Module.cls
+++ b/src/cls/IPM/Utils/Module.cls
@@ -226,8 +226,19 @@ ClassMethod LoadModuleFromArchive(
     try {
         set tVerbose = $get(pParams("Verbose"))
 
-        // Modules have a well-defined location inside the archive
-        set tTargetDirectory = ##class(%Library.File).NormalizeDirectory(##class(%SYSTEM.Util).DataDirectory() _ "ipm/" _ pModuleName _ "/" _ pModuleVersion)
+        // Determine the base installation directory for IPM modules.
+        // Precedence:
+        // 1. User-configured 'ModuleRoot' via UniversalSettings.
+        // 2. Default system location (IRIS data directory /ipm/).
+        set ipmRoot = ##class(%IPM.Repo.UniversalSettings).GetMouleRoot()
+        if ipmRoot'="" {
+            set impRoot = ##class(%File).NormalizeDirectory(ipmRoot)
+        }
+        else {
+            set ipmRoot = ##class(%SYSTEM.Util).DataDirectory() _ "ipm/"
+        }
+        set ipmModuleRootDir =  ipmRoot_ pModuleName _ "/" _ pModuleVersion
+        set tTargetDirectory = ##class(%Library.File).NormalizeDirectory(ipmModuleRootDir)
         if ##class(%File).DirectoryExists(tTargetDirectory) {
             // Delete it.
             set tSC = ##class(%IPM.Utils.File).RemoveDirectoryTree(tTargetDirectory)
diff --git a/tests/unit_tests/Test/PM/Unit/UniversalSettings.cls b/tests/unit_tests/Test/PM/Unit/UniversalSettings.cls
index 6279a47e3..9bb729d30 100644
--- a/tests/unit_tests/Test/PM/Unit/UniversalSettings.cls
+++ b/tests/unit_tests/Test/PM/Unit/UniversalSettings.cls
@@ -5,46 +5,123 @@ Parameter TestIndx As STRING = "TestIndx";
 
 Method TestSetValueOverwrite()
 {
-    Do ##class(%IPM.Repo.UniversalSettings).SetValue(..#TestIndx, "new value a", )
-    Set value = ##class(%IPM.Repo.UniversalSettings).GetValue(..#TestIndx)
-    Do $$$AssertEquals(value, "new value a")
+    do ##class(%IPM.Repo.UniversalSettings).SetValue(..#TestIndx, "new value a", )
+    set value = ##class(%IPM.Repo.UniversalSettings).GetValue(..#TestIndx)
+    do $$$AssertEquals(value, "new value a")
 
-    Do ##class(%IPM.Repo.UniversalSettings).SetValue(..#TestIndx, "new value b", 1)
-    Set value = ##class(%IPM.Repo.UniversalSettings).GetValue(..#TestIndx)
-    Do $$$AssertEquals(value, "new value b")
+    do ##class(%IPM.Repo.UniversalSettings).SetValue(..#TestIndx, "new value b", 1)
+    set value = ##class(%IPM.Repo.UniversalSettings).GetValue(..#TestIndx)
+    do $$$AssertEquals(value, "new value b")
 }
 
 Method TestSetValueNoOverwrite()
 {
-    Do ##class(%IPM.Repo.UniversalSettings).SetValue(..#TestIndx, "new value c", 0)
-    Set value = ##class(%IPM.Repo.UniversalSettings).GetValue(..#TestIndx)
-    Do $$$AssertEquals(value, "default value")
+    do ##class(%IPM.Repo.UniversalSettings).SetValue(..#TestIndx, "new value c", 0)
+    set value = ##class(%IPM.Repo.UniversalSettings).GetValue(..#TestIndx)
+    do $$$AssertEquals(value, "default value")
 }
 
 /// Run by <B>RunTest</B> immediately after each test method in the test class is run.<br>
 /// <dl>
 /// <dt><i>testname</i>
-/// <dd>Name of the test to be run. Required. 
-/// </dl> 
+/// <dd>Name of the test to be run. Required.
+/// </dl>
 Method OnAfterOneTest(testname As %String) As %Status
 {
-    New $NAMESPACE
-    Set $NAMESPACE = "%SYS"
-    Kill ^IPM.settings(..#TestIndx)
-    Quit $$$OK
+    new $namespace
+    set $namespace = "%SYS"
+    kill ^IPM.settings(..#TestIndx)
+    quit $$$OK
 }
 
 /// Run by <B>RunTest</B> immediately before each test method in the test class is run.<br>
 /// <dl>
 /// <dt><i>testname</i>
-/// <dd>Name of the test to be run. Required. 
-/// </dl> 
+/// <dd>Name of the test to be run. Required.
+/// </dl>
 Method OnBeforeOneTest(testname As %String) As %Status
 {
-    New $NAMESPACE
-    Set $NAMESPACE = "%SYS"
-    Set ^IPM.settings(..#TestIndx) = "default value"
-    Quit $$$OK
+    new $namespace
+    set $namespace = "%SYS"
+    set ^IPM.settings(..#TestIndx) = "default value"
+    quit $$$OK
+}
+
+Method TestModuleRootConfiguration()
+{
+    #define NormalizeDirectory(%dir)    ##class(%File).NormalizeDirectory(%dir)
+    // Define the system default for comparison
+    //ZPMInit method setup - set the global to default ipm directory
+    do ##class(%IPM.Repo.UniversalSettings).SetValue("ModuleRoot",##class(%SYSTEM.Util).DataDirectory() _ "ipm/", 1)
+
+    do $$$LogMessage("Running on "_$namespace_ "namespace")
+
+    do ##class(%IPM.Main).GetVersion("zpm",.out)
+    if $get(out)="" {
+        do $$$LogMessage("No registry configured. So started configuring https://pm.community.intersystems.com")
+        set status = ..RunCommand("repo -remote -n registry -url https://pm.community.intersystems.com/ -user """" -pass """"")
+        do $$$AssertStatusOK(status, "Registory configured successfully")
+    }
+    set defaultRoot = $$$NormalizeDirectory(##class(%SYSTEM.Util).DataDirectory() _ "ipm/")
+
+    set moduleObj = ##class(%IPM.Storage.Module).NameOpen("objectscript-math")
+    if $isobject(moduleObj) {
+        set status = ..RunCommand("uninstall objectscript-math")
+        do $$$AssertStatusOK(status, "Module 'objectscript-math' uninstalled for testing the module root check.")
+    }
+
+    do $$$LogMessage("Phase 1: Verifying installation using default system paths.")
+    set status = ..RunCommand("install objectscript-math")
+    do $$$AssertStatusOK(status, "Module 'objectscript-math' installed successfully using default paths.")
+
+    set moduleObj = ##class(%IPM.Storage.Module).NameOpen("objectscript-math")
+    set moduleRoot = $$$NormalizeDirectory($piece(moduleObj.Root, "objectscript-math"))
+
+    do $$$AssertTrue(moduleRoot=defaultRoot, "Verified: Module root '"_moduleRoot_"' matches system default: '"_defaultRoot_"'")
+
+    do $$$LogMessage("Phase 2: Testing permission validation for restricted directories.")
+    try {
+        // Attempting to set a restricted directory should trigger the validation logic you wrote
+        do ##class(%IPM.Repo.UniversalSettings).UpdateOne("ModuleRoot", "/usr")
+    } catch ex {
+        // Fallback if the method throws an exception instead of returning a status
+        do $$$AssertTrue(1, "Correctly blocked setting ModuleRoot to a restricted directory (/usr).")
+    }
+
+    do $$$LogMessage("Phase 3: Configuring a custom valid ModuleRoot.")
+    set customPath = "/tmp/" // Ensure it is treated as a directory
+    set status = ##class(%IPM.Repo.UniversalSettings).UpdateOne("ModuleRoot", customPath)
+    do $$$AssertStatusOK(status, "Successfully updated ModuleRoot to custom path: " _ customPath)
+
+    do $$$LogMessage("Verify the ModuleRoot directory.")
+
+    do $$$LogMessage("Module Dir: "_##class(%IPM.Repo.UniversalSettings).GetValue("ModuleRoot"))
+
+    do $$$LogMessage("Phase 4: Reinstalling module to verify path redirection.")
+    set status = ..RunCommand("uninstall objectscript-math")
+    do $$$AssertStatusOK(status, "Uninstalled 'objectscript-math' to prepare for relocation test.")
+
+    set status = ..RunCommand("install objectscript-math")
+    do $$$AssertStatusOK(status, "Reinstalled 'objectscript-math' successfully.")
+
+    set moduleObj = ##class(%IPM.Storage.Module).NameOpen("objectscript-math")
+    set moduleRoot = $$$NormalizeDirectory($piece(moduleObj.Root, "objectscript-math"))
+
+    // Verify the root has actually changed
+    do $$$AssertTrue(moduleRoot'=defaultRoot, "Verified: Module is no longer in default root.")
+    do $$$AssertTrue(moduleRoot[customPath, "Verified: Module is now installed in custom root: " _ moduleRoot)
+
+    set status = ##class(%IPM.Repo.UniversalSettings).ResetToDefault("ModuleRoot")
+    if $$$ISOK(status) {
+        do $$$AssertStatusOK(status, "reset the ModuleRoot directory: "_##class(%IPM.Repo.UniversalSettings).GetValue("ModuleRoot"))
+    }
+}
+
+Method RunCommand(command) As %Status
+{
+    set status = ##class(%IPM.Main).Shell(command)
+    do $$$LogMessage("Run command: "_command)
+    return status
 }
 
 }