diff --git a/CHANGELOG.md b/CHANGELOG.md
index f0e2c2c90..110f8df84 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Change Log
 
+## UNRELEASED - CLI
+
+- feat: Support `MODUS_HOME` environment variable [#639](https://github.com/hypermodeinc/modus/pull/639)
+
 ## UNRELEASED - Runtime
 
 - fix: doc comments from object fields should be present in generated GraphQL schema [#630](https://github.com/hypermodeinc/modus/pull/630)
diff --git a/cli/install.sh b/cli/install.sh
index 88246487f..73674489a 100755
--- a/cli/install.sh
+++ b/cli/install.sh
@@ -12,7 +12,7 @@
 # Config
 PACKAGE_ORG="@hypermode"
 PACKAGE_NAME="modus-cli"
-INSTALL_DIR="${MODUS_CLI:-"$HOME/.modus/cli"}"
+INSTALL_DIR="${MODUS_CLI:-"${MODUS_HOME:-"$HOME/.modus"}/cli"}"
 VERSION="latest"
 INSTALLER_VERSION="0.1.2"
 
diff --git a/cli/src/custom/globals.ts b/cli/src/custom/globals.ts
index 50aba6d08..85248877a 100644
--- a/cli/src/custom/globals.ts
+++ b/cli/src/custom/globals.ts
@@ -9,8 +9,9 @@
 
 import path from "node:path";
 import os from "node:os";
+import process from "node:process";
 
-export const ModusHomeDir = path.join(os.homedir(), ".modus");
+export const ModusHomeDir = process.env.MODUS_HOME || path.join(os.homedir(), ".modus");
 
 export const MinNodeVersion = "22.0.0";
 export const MinGoVersion = "1.23.0";