diff --git a/src/codegen/sdk/python/import_resolution.py b/src/codegen/sdk/python/import_resolution.py
index 2686db76a..16f7f876b 100644
--- a/src/codegen/sdk/python/import_resolution.py
+++ b/src/codegen/sdk/python/import_resolution.py
@@ -146,8 +146,24 @@ def resolve_import(self, base_path: str | None = None, *, add_module_name: str |
             else:
                 return ImportResolution(from_file=file, symbol=symbol)
 
-        # =====[ Check if `module/__init__.py` file exists in the graph ]=====
+        # =====[ Check if `module/__init__.py` file exists in the graph with custom resolve path or sys.path enabled ]=====
         filepath = filepath.replace(".py", "/__init__.py")
+        if len(self.ctx.config.import_resolution_paths) > 0 or self.ctx.config.py_resolve_syspath:
+            # Handle resolve overrides first if both is set
+            resolve_paths: list[str] = self.ctx.config.import_resolution_paths + (sys.path if self.ctx.config.py_resolve_syspath else [])
+            if from_file := self._file_by_custom_resolve_paths(resolve_paths, filepath):
+                symbol = from_file.get_node_by_name(symbol_name)
+                if symbol is None:
+                    if from_file.get_node_from_wildcard_chain(symbol_name):
+                        return ImportResolution(from_file=from_file, symbol=None, imports_file=True)
+                    else:
+                        # This is most likely a broken import
+                        return ImportResolution(from_file=from_file, symbol=None)
+
+                else:
+                    return ImportResolution(from_file=from_file, symbol=symbol)
+
+        # =====[ Check if `module/__init__.py` file exists in the graph ]=====
         if from_file := self.ctx.get_file(filepath):
             symbol = from_file.get_node_by_name(symbol_name)
             if symbol is None:
diff --git a/tests/unit/codegen/sdk/python/import_resolution/test_import_resolution.py b/tests/unit/codegen/sdk/python/import_resolution/test_import_resolution.py
index e10df046b..ebbe5d724 100644
--- a/tests/unit/codegen/sdk/python/import_resolution/test_import_resolution.py
+++ b/tests/unit/codegen/sdk/python/import_resolution/test_import_resolution.py
@@ -1,5 +1,6 @@
 from typing import TYPE_CHECKING
 
+from codegen.sdk.codebase.config import TestFlags
 from codegen.sdk.codebase.factory.get_session import get_codebase_session
 
 if TYPE_CHECKING:
@@ -854,3 +855,56 @@ def test_import_resolution_init_wildcard_chainging_deep(tmpdir: str) -> None:
 
         assert len(symb.usages) == 2
         assert symb.symbol_usages == [test1, imp]
+
+
+def test_import_resolution_paths_init(tmpdir: str) -> None:
+    cfg = TestFlags.model_copy()
+    cfg.debug = False  ##Disable to ignore binary expression edge duplicate
+    cfg.import_resolution_paths = ["package"]
+
+    # language=python
+    content1 = """
+    COMMON_AVAILABLE_STREAMS = [
+        1,
+        2,
+        3,
+        4,
+        5,
+        6,
+    ]
+
+    PLAN_MODEL_AVAILABLE_STREAMS = COMMON_AVAILABLE_STREAMS + [
+        4,
+        2
+    ]
+"""
+    content2 = """
+        from main.dir.dir2 import PLAN_MODEL_AVAILABLE_STREAMS
+        def do_smth():
+            foo=PLAN_MODEL_AVAILABLE_STREAMS
+            print(foo)
+
+        do_smth()
+    """
+    with get_codebase_session(
+        tmpdir=tmpdir,
+        config=cfg,
+        files={
+            "package/main/dir/dir2/file1.py": "bar=2",
+            "package/main/dir/dir2/__init__.py": content1,
+            "package/main/dir/__init__.py": content2,
+            "package/main/__init__.py": "",
+            "start.py": """from main.dir.dir2.file1 import bar
+            print(bar)
+            """,
+        },
+    ) as codebase:
+        file1: SourceFile = codebase.get_file("package/main/dir/dir2/__init__.py")
+        p_m = file1.get_symbol("PLAN_MODEL_AVAILABLE_STREAMS")
+        file2: SourceFile = codebase.get_file("package/main/dir/__init__.py")
+        dosmth = file2.get_symbol("do_smth")
+        import_pm = file2.get_import("PLAN_MODEL_AVAILABLE_STREAMS")
+
+        assert len(p_m.usages) == 3
+        assert p_m.symbol_usages == [dosmth, import_pm]
+        assert len(file1.symbols) != 1