diff --git a/Makefile b/Makefile
index f2c0bb40a..296163ac3 100644
--- a/Makefile
+++ b/Makefile
@@ -43,6 +43,8 @@ PROTO_DIR       := proto
 BINARY_NAME		:= nginx-agent
 PROJECT_DIR		= cmd/agent
 PROJECT_FILE	= main.go
+COLLECTOR_PATH  ?= /etc/nginx-agent/opentelemetry-collector-agent.yaml
+MANIFEST_DIR	?= /var/lib/nginx-agent
 DIRS            = $(BUILD_DIR) $(TEST_BUILD_DIR) $(BUILD_DIR)/$(DOCS_DIR) $(BUILD_DIR)/$(DOCS_DIR)/$(PROTO_DIR)
 $(shell mkdir -p $(DIRS))
 
@@ -181,7 +183,7 @@ run: build ## Run code
 
 dev: ## Run agent executable
 	@echo "🚀 Running App"
-	$(GORUN) -ldflags=$(DEBUG_LDFLAGS) $(PROJECT_DIR)/$(PROJECT_FILE)
+	NGINX_AGENT_COLLECTOR_CONFIG_PATH=$(COLLECTOR_PATH) NGINX_AGENT_MANIFEST_DIR=$(MANIFEST_DIR) $(GORUN) -ldflags=$(DEBUG_LDFLAGS) $(PROJECT_DIR)/$(PROJECT_FILE)
 
 race-condition-dev: ## Run agent executable with race condition detection
 	@echo "🏎️ Running app with race condition detection enabled"
diff --git a/internal/config/config.go b/internal/config/config.go
index 63dd0c87c..85cdc6a71 100644
--- a/internal/config/config.go
+++ b/internal/config/config.go
@@ -124,6 +124,7 @@ func ResolveConfig() (*Config, error) {
 		Watchers:           resolveWatchers(),
 		Features:           viperInstance.GetStringSlice(FeaturesKey),
 		Labels:             resolveLabels(),
+		ManifestDir:        viperInstance.GetString(ManifestDirPathKey),
 	}
 
 	checkCollectorConfiguration(collector, config)
@@ -231,7 +232,11 @@ func registerFlags() {
 		"The path to output log messages to. "+
 			"If the default path doesn't exist, log messages are output to stdout/stderr.",
 	)
-
+	fs.String(
+		ManifestDirPathKey,
+		DefManifestDir,
+		"Specifies the path to the directory containing the manifest files",
+	)
 	fs.Duration(
 		NginxReloadMonitoringPeriodKey,
 		DefNginxReloadMonitoringPeriod,
diff --git a/internal/config/defaults.go b/internal/config/defaults.go
index cc1212edc..ddeee7a3b 100644
--- a/internal/config/defaults.go
+++ b/internal/config/defaults.go
@@ -74,6 +74,9 @@ const (
 	DefCollectorExtensionsHealthTLSCAPath       = ""
 	DefCollectorExtensionsHealthTLSSkipVerify   = false
 	DefCollectorExtensionsHealthTLServerNameKey = ""
+
+	// File defaults
+	DefManifestDir = "/var/lib/nginx-agent"
 )
 
 func DefaultFeatures() []string {
diff --git a/internal/config/flags.go b/internal/config/flags.go
index 7c977f1ac..50fb461e5 100644
--- a/internal/config/flags.go
+++ b/internal/config/flags.go
@@ -23,6 +23,7 @@ const (
 	InstanceWatcherMonitoringFrequencyKey       = "watchers_instance_watcher_monitoring_frequency"
 	InstanceHealthWatcherMonitoringFrequencyKey = "watchers_instance_health_watcher_monitoring_frequency"
 	FileWatcherKey                              = "watchers_file_watcher"
+	ManifestDirPathKey                          = "manifest_dir"
 )
 
 var (
diff --git a/internal/config/types.go b/internal/config/types.go
index ed4f77c31..8017987f1 100644
--- a/internal/config/types.go
+++ b/internal/config/types.go
@@ -42,6 +42,7 @@ type (
 		Version            string           `yaml:"-"`
 		Path               string           `yaml:"-"`
 		UUID               string           `yaml:"-"`
+		ManifestDir        string           `yaml:"-"`
 		AllowedDirectories []string         `yaml:"allowed_directories" mapstructure:"allowed_directories"`
 		Features           []string         `yaml:"features"            mapstructure:"features"`
 	}
diff --git a/internal/file/file_manager_service.go b/internal/file/file_manager_service.go
index 4836b6fc8..acbab1f29 100644
--- a/internal/file/file_manager_service.go
+++ b/internal/file/file_manager_service.go
@@ -48,11 +48,6 @@ const (
 	filePerm    = 0o600
 )
 
-var (
-	manifestDirPath  = "/var/lib/nginx-agent"
-	manifestFilePath = manifestDirPath + "/manifest.json"
-)
-
 type (
 	fileOperator interface {
 		Write(ctx context.Context, fileContent []byte, file *mpi.FileMeta) error
@@ -98,6 +93,7 @@ type FileManagerService struct {
 	// map of the files currently on disk, used to determine the file action during config apply
 	currentFilesOnDisk    map[string]*mpi.File // key is file path
 	previousManifestFiles map[string]*model.ManifestFile
+	manifestFilePath      string
 	filesMutex            sync.RWMutex
 }
 
@@ -113,6 +109,7 @@ func NewFileManagerService(fileServiceClient mpi.FileServiceClient, agentConfig
 		rollbackFileContents:  make(map[string][]byte),
 		currentFilesOnDisk:    make(map[string]*mpi.File),
 		previousManifestFiles: make(map[string]*model.ManifestFile),
+		manifestFilePath:      agentConfig.ManifestDir + "/manifest.json",
 		isConnected:           isConnected,
 	}
 }
@@ -851,12 +848,12 @@ func (fms *FileManagerService) writeManifestFile(updatedFiles map[string]*model.
 	}
 
 	// 0755 allows read/execute for all, write for owner
-	if err = os.MkdirAll(manifestDirPath, dirPerm); err != nil {
-		return fmt.Errorf("unable to create directory %s: %w", manifestDirPath, err)
+	if err = os.MkdirAll(fms.agentConfig.ManifestDir, dirPerm); err != nil {
+		return fmt.Errorf("unable to create directory %s: %w", fms.agentConfig.ManifestDir, err)
 	}
 
 	// 0600 ensures only root can read/write
-	newFile, err := os.OpenFile(manifestFilePath, os.O_WRONLY|os.O_CREATE|os.O_TRUNC, filePerm)
+	newFile, err := os.OpenFile(fms.manifestFilePath, os.O_WRONLY|os.O_CREATE|os.O_TRUNC, filePerm)
 	if err != nil {
 		return fmt.Errorf("failed to read manifest file: %w", err)
 	}
@@ -875,11 +872,11 @@ func (fms *FileManagerService) writeManifestFile(updatedFiles map[string]*model.
 }
 
 func (fms *FileManagerService) manifestFile() (map[string]*model.ManifestFile, map[string]*mpi.File, error) {
-	if _, err := os.Stat(manifestFilePath); err != nil {
+	if _, err := os.Stat(fms.manifestFilePath); err != nil {
 		return nil, nil, err
 	}
 
-	file, err := os.ReadFile(manifestFilePath)
+	file, err := os.ReadFile(fms.manifestFilePath)
 	if err != nil {
 		return nil, nil, fmt.Errorf("failed to read manifest file: %w", err)
 	}
diff --git a/internal/file/file_manager_service_test.go b/internal/file/file_manager_service_test.go
index b6a07d6f7..aa139810d 100644
--- a/internal/file/file_manager_service_test.go
+++ b/internal/file/file_manager_service_test.go
@@ -179,8 +179,8 @@ func TestFileManagerService_ConfigApply_Add(t *testing.T) {
 
 	overview := protos.FileOverview(filePath, fileHash)
 
-	manifestDirPath = tempDir
-	manifestFilePath = manifestDirPath + "/manifest.json"
+	manifestDirPath := tempDir
+	manifestFilePath := manifestDirPath + "/manifest.json"
 	helpers.CreateFileWithErrorCheck(t, manifestDirPath, "manifest.json")
 
 	fakeFileServiceClient := &v1fakes.FakeFileServiceClient{}
@@ -194,7 +194,10 @@ func TestFileManagerService_ConfigApply_Add(t *testing.T) {
 	}, nil)
 	agentConfig := types.AgentConfig()
 	agentConfig.AllowedDirectories = []string{tempDir}
+
 	fileManagerService := NewFileManagerService(fakeFileServiceClient, agentConfig)
+	fileManagerService.agentConfig.ManifestDir = manifestDirPath
+	fileManagerService.manifestFilePath = manifestFilePath
 
 	request := protos.CreateConfigApplyRequest(overview)
 	writeStatus, err := fileManagerService.ConfigApply(ctx, request)
@@ -218,10 +221,6 @@ func TestFileManagerService_ConfigApply_Add_LargeFile(t *testing.T) {
 
 	overview := protos.FileOverviewLargeFile(filePath, fileHash)
 
-	manifestDirPath = tempDir
-	manifestFilePath = manifestDirPath + "/manifest.json"
-	helpers.CreateFileWithErrorCheck(t, manifestDirPath, "manifest.json")
-
 	fakeFileServiceClient := &v1fakes.FakeFileServiceClient{}
 	fakeFileServiceClient.GetOverviewReturns(&mpi.GetOverviewResponse{
 		Overview: overview,
@@ -237,10 +236,15 @@ func TestFileManagerService_ConfigApply_Add_LargeFile(t *testing.T) {
 		fakeServerStreamingClient.chunks[uint32(i)] = []byte{fileContent[i]}
 	}
 
+	manifestDirPath := tempDir
+	manifestFilePath := manifestDirPath + "/manifest.json"
+
 	fakeFileServiceClient.GetFileStreamReturns(fakeServerStreamingClient, nil)
 	agentConfig := types.AgentConfig()
 	agentConfig.AllowedDirectories = []string{tempDir}
 	fileManagerService := NewFileManagerService(fakeFileServiceClient, agentConfig)
+	fileManagerService.agentConfig.ManifestDir = manifestDirPath
+	fileManagerService.manifestFilePath = manifestFilePath
 
 	request := protos.CreateConfigApplyRequest(overview)
 	writeStatus, err := fileManagerService.ConfigApply(ctx, request)
@@ -279,8 +283,8 @@ func TestFileManagerService_ConfigApply_Update(t *testing.T) {
 		},
 	}
 
-	manifestDirPath = tempDir
-	manifestFilePath = manifestDirPath + "/manifest.json"
+	manifestDirPath := tempDir
+	manifestFilePath := manifestDirPath + "/manifest.json"
 	helpers.CreateFileWithErrorCheck(t, manifestDirPath, "manifest.json")
 
 	overview := protos.FileOverview(tempFile.Name(), fileHash)
@@ -296,12 +300,14 @@ func TestFileManagerService_ConfigApply_Update(t *testing.T) {
 	}, nil)
 	agentConfig := types.AgentConfig()
 	agentConfig.AllowedDirectories = []string{tempDir}
+
 	fileManagerService := NewFileManagerService(fakeFileServiceClient, agentConfig)
+	fileManagerService.agentConfig.ManifestDir = manifestDirPath
+	fileManagerService.manifestFilePath = manifestFilePath
 	err := fileManagerService.UpdateCurrentFilesOnDisk(ctx, filesOnDisk, false)
 	require.NoError(t, err)
 
 	request := protos.CreateConfigApplyRequest(overview)
-
 	writeStatus, err := fileManagerService.ConfigApply(ctx, request)
 	require.NoError(t, err)
 	assert.Equal(t, model.OK, writeStatus)
@@ -336,14 +342,17 @@ func TestFileManagerService_ConfigApply_Delete(t *testing.T) {
 		},
 	}
 
-	manifestDirPath = tempDir
-	manifestFilePath = manifestDirPath + "/manifest.json"
+	manifestDirPath := tempDir
+	manifestFilePath := manifestDirPath + "/manifest.json"
 	helpers.CreateFileWithErrorCheck(t, manifestDirPath, "manifest.json")
 
 	fakeFileServiceClient := &v1fakes.FakeFileServiceClient{}
 	agentConfig := types.AgentConfig()
 	agentConfig.AllowedDirectories = []string{tempDir}
+
 	fileManagerService := NewFileManagerService(fakeFileServiceClient, agentConfig)
+	fileManagerService.agentConfig.ManifestDir = manifestDirPath
+	fileManagerService.manifestFilePath = manifestFilePath
 	err := fileManagerService.UpdateCurrentFilesOnDisk(ctx, filesOnDisk, false)
 	require.NoError(t, err)
 
@@ -462,8 +471,8 @@ func TestFileManagerService_Rollback(t *testing.T) {
 	_, writeErr = updateFile.Write(newFileContent)
 	require.NoError(t, writeErr)
 
-	manifestDirPath = tempDir
-	manifestFilePath = manifestDirPath + "/manifest.json"
+	manifestDirPath := tempDir
+	manifestFilePath := manifestDirPath + "/manifest.json"
 	helpers.CreateFileWithErrorCheck(t, manifestDirPath, "manifest.json")
 
 	filesCache := map[string]*model.FileCache{
@@ -529,6 +538,8 @@ func TestFileManagerService_Rollback(t *testing.T) {
 	fileManagerService := NewFileManagerService(fakeFileServiceClient, types.AgentConfig())
 	fileManagerService.rollbackFileContents = fileContentCache
 	fileManagerService.fileActions = filesCache
+	fileManagerService.agentConfig.ManifestDir = manifestDirPath
+	fileManagerService.manifestFilePath = manifestFilePath
 
 	err := fileManagerService.Rollback(ctx, instanceID)
 	require.NoError(t, err)
@@ -690,11 +701,14 @@ func TestFileManagerService_DetermineFileActions(t *testing.T) {
 			// Delete manifest file if it already exists
 			manifestFile := CreateTestManifestFile(t, tempDir, test.currentFiles)
 			defer manifestFile.Close()
-			manifestDirPath = tempDir
-			manifestFilePath = manifestFile.Name()
+			manifestDirPath := tempDir
+			manifestFilePath := manifestFile.Name()
 
 			fakeFileServiceClient := &v1fakes.FakeFileServiceClient{}
 			fileManagerService := NewFileManagerService(fakeFileServiceClient, types.AgentConfig())
+			fileManagerService.agentConfig.ManifestDir = manifestDirPath
+			fileManagerService.manifestFilePath = manifestFilePath
+
 			require.NoError(tt, err)
 
 			diff, contents, fileActionErr := fileManagerService.DetermineFileActions(test.currentFiles,