diff --git a/CHANGELOG.md b/CHANGELOG.md
index 75512053c82d..6539703cb8fc 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -98,6 +98,7 @@ Docs: https://docs.openclaw.ai
 - Gateway: omit internal stream-error placeholder entries from agent prompt history so failed assistant turns are not replayed as model-authored text. (#85652) Thanks @anyech.
 - Sessions: enforce the session write-lock max-hold policy during lock acquisition so long-held locks can be reclaimed before the stale-lock window. (#85764) Thanks @njuboy11.
 - Sessions/status: preserve user-facing model, fallback, usage, and cost attribution when internal subagent handoff runs use fallback models. (#85726, fixes #85082) Thanks @brokemac79.
+- Install/update: honor `OPENCLAW_HOME` when deriving default dev checkout and installer onboarding paths, while keeping explicit `OPENCLAW_GIT_DIR` and `OPENCLAW_CONFIG_PATH` overrides authoritative. Fixes #54014. Thanks @robertPiro.
 - Models: prune retired Groq, GitHub Copilot, OpenAI, xAI, and old Claude catalog entries, with doctor migration to upgrade existing configs to current provider refs.
 - Doctor/update: recognize junction-backed source checkouts as git installs by comparing canonical paths before showing package-manager update guidance. Fixes #82215. Thanks @igormf.
 - Channels: honor `/verbose on` for tool/progress summaries across direct chats, groups, channels, and forum topics while preserving quiet default behavior. (#85488) Thanks @kurplunkin.
diff --git a/docs/cli/update.md b/docs/cli/update.md
index 8a8c4b7f0f66..4783cd883c21 100644
--- a/docs/cli/update.md
+++ b/docs/cli/update.md
@@ -91,7 +91,8 @@ Options:
 When you switch channels explicitly (`--channel ...`), OpenClaw also keeps the
 install method aligned:
 
-- `dev` → ensures a git checkout (default: `~/openclaw`, override with `OPENCLAW_GIT_DIR`),
+- `dev` → ensures a git checkout (default: `~/openclaw`, or `$OPENCLAW_HOME/openclaw` when
+  `OPENCLAW_HOME` is set; override with `OPENCLAW_GIT_DIR`),
   updates it, and installs the global CLI from that checkout.
 - `stable` → installs from npm using `latest`.
 - `beta` → prefers npm dist-tag `beta`, but falls back to `latest` when beta is
diff --git a/docs/help/environment.md b/docs/help/environment.md
index 50dcd56e3cec..2158f4e7d6b0 100644
--- a/docs/help/environment.md
+++ b/docs/help/environment.md
@@ -138,12 +138,12 @@ shorthand values.
 
 ## Path-related env vars
 
-| Variable                 | Purpose                                                                                                                                                                          |
-| ------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
-| `OPENCLAW_HOME`          | Override the home directory used for all internal path resolution (`~/.openclaw/`, agent dirs, sessions, credentials). Useful when running OpenClaw as a dedicated service user. |
-| `OPENCLAW_STATE_DIR`     | Override the state directory (default `~/.openclaw`).                                                                                                                            |
-| `OPENCLAW_CONFIG_PATH`   | Override the config file path (default `~/.openclaw/openclaw.json`).                                                                                                             |
-| `OPENCLAW_INCLUDE_ROOTS` | Path-list of directories where `$include` directives may resolve files outside the config directory (default: none — `$include` is confined to the config dir). Tilde-expanded.  |
+| Variable                 | Purpose                                                                                                                                                                                                                                 |
+| ------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
+| `OPENCLAW_HOME`          | Override the home directory used for internal OpenClaw path defaults (`~/.openclaw/`, agent dirs, sessions, credentials, installer onboarding, and the default dev checkout). Useful when running OpenClaw as a dedicated service user. |
+| `OPENCLAW_STATE_DIR`     | Override the state directory (default `~/.openclaw`).                                                                                                                                                                                   |
+| `OPENCLAW_CONFIG_PATH`   | Override the config file path (default `~/.openclaw/openclaw.json`).                                                                                                                                                                    |
+| `OPENCLAW_INCLUDE_ROOTS` | Path-list of directories where `$include` directives may resolve files outside the config directory (default: none — `$include` is confined to the config dir). Tilde-expanded.                                                         |
 
 ## Logging
 
@@ -157,7 +157,7 @@ shorthand values.
 
 ### `OPENCLAW_HOME`
 
-When set, `OPENCLAW_HOME` replaces the system home directory (`$HOME` / `os.homedir()`) for all internal path resolution. This enables full filesystem isolation for headless service accounts.
+When set, `OPENCLAW_HOME` replaces the system home directory (`$HOME` / `os.homedir()`) for internal OpenClaw path defaults. This includes the default state directory, config path, agent directories, credentials, installer onboarding workspace, and the default dev checkout used by `openclaw update --channel dev`.
 
 **Precedence:** `OPENCLAW_HOME` > `$HOME` > `USERPROFILE` > Termux `PREFIX` home fallback on Android > `os.homedir()`
 
@@ -173,6 +173,8 @@ When set, `OPENCLAW_HOME` replaces the system home directory (`$HOME` / `os.home
 
 `OPENCLAW_HOME` can also be set to a tilde path (e.g. `~/svc`), which gets expanded using the same OS home fallback chain before use.
 
+Explicit path variables such as `OPENCLAW_STATE_DIR`, `OPENCLAW_CONFIG_PATH`, and `OPENCLAW_GIT_DIR` still take precedence. OS-account tasks such as shell startup file detection, package-manager setup, and host `~` expansion may still use the real system home.
+
 ## nvm users: web_fetch TLS failures
 
 If Node.js was installed via **nvm** (not the system package manager), the built-in `fetch()` uses
diff --git a/docs/install/development-channels.md b/docs/install/development-channels.md
index 13237e5b1554..2415c2198713 100644
--- a/docs/install/development-channels.md
+++ b/docs/install/development-channels.md
@@ -40,7 +40,8 @@ install method:
 - **`stable`** (git installs): checks out the latest stable git tag.
 - **`beta`** (git installs): prefers the latest beta git tag, but falls back to
   the latest stable git tag when beta is missing or older.
-- **`dev`**: ensures a git checkout (default `~/openclaw`, override with
+- **`dev`**: ensures a git checkout (default `~/openclaw`, or
+  `$OPENCLAW_HOME/openclaw` when `OPENCLAW_HOME` is set; override with
   `OPENCLAW_GIT_DIR`), switches to `main`, rebases on upstream, builds, and
   installs the global CLI from that checkout.
 
diff --git a/docs/install/installer.md b/docs/install/installer.md
index 96254dfaf734..8b85427c961a 100644
--- a/docs/install/installer.md
+++ b/docs/install/installer.md
@@ -154,19 +154,20 @@ The script exits with code `2` for invalid method selection or invalid `--instal
 
   <Accordion title="Environment variables reference">
 
-| Variable                                          | Description                                   |
-| ------------------------------------------------- | --------------------------------------------- |
-| `OPENCLAW_INSTALL_METHOD=git\|npm`                | Install method                                |
-| `OPENCLAW_VERSION=latest\|next\|<semver>\|<spec>` | npm version, dist-tag, or package spec        |
-| `OPENCLAW_BETA=0\|1`                              | Use beta if available                         |
-| `OPENCLAW_GIT_DIR=<path>`                         | Checkout directory                            |
-| `OPENCLAW_GIT_UPDATE=0\|1`                        | Toggle git updates                            |
-| `OPENCLAW_NO_PROMPT=1`                            | Disable prompts                               |
-| `OPENCLAW_NO_ONBOARD=1`                           | Skip onboarding                               |
-| `OPENCLAW_DRY_RUN=1`                              | Dry run mode                                  |
-| `OPENCLAW_VERBOSE=1`                              | Debug mode                                    |
-| `OPENCLAW_NPM_LOGLEVEL=error\|warn\|notice`       | npm log level                                 |
-| `SHARP_IGNORE_GLOBAL_LIBVIPS=0\|1`                | Control sharp/libvips behavior (default: `1`) |
+| Variable                                          | Description                                                        |
+| ------------------------------------------------- | ------------------------------------------------------------------ |
+| `OPENCLAW_INSTALL_METHOD=git\|npm`                | Install method                                                     |
+| `OPENCLAW_VERSION=latest\|next\|<semver>\|<spec>` | npm version, dist-tag, or package spec                             |
+| `OPENCLAW_BETA=0\|1`                              | Use beta if available                                              |
+| `OPENCLAW_HOME=<path>`                            | Base directory for OpenClaw state and default git/onboarding paths |
+| `OPENCLAW_GIT_DIR=<path>`                         | Checkout directory                                                 |
+| `OPENCLAW_GIT_UPDATE=0\|1`                        | Toggle git updates                                                 |
+| `OPENCLAW_NO_PROMPT=1`                            | Disable prompts                                                    |
+| `OPENCLAW_NO_ONBOARD=1`                           | Skip onboarding                                                    |
+| `OPENCLAW_DRY_RUN=1`                              | Dry run mode                                                       |
+| `OPENCLAW_VERBOSE=1`                              | Debug mode                                                         |
+| `OPENCLAW_NPM_LOGLEVEL=error\|warn\|notice`       | npm log level                                                      |
+| `SHARP_IGNORE_GLOBAL_LIBVIPS=0\|1`                | Control sharp/libvips behavior (default: `1`)                      |
 
   </Accordion>
 </AccordionGroup>
@@ -256,17 +257,18 @@ by default, plus git-checkout installs under the same prefix flow.
 
   <Accordion title="Environment variables reference">
 
-| Variable                                    | Description                                   |
-| ------------------------------------------- | --------------------------------------------- |
-| `OPENCLAW_PREFIX=<path>`                    | Install prefix                                |
-| `OPENCLAW_INSTALL_METHOD=git\|npm`          | Install method                                |
-| `OPENCLAW_VERSION=<ver>`                    | OpenClaw version or dist-tag                  |
-| `OPENCLAW_NODE_VERSION=<ver>`               | Node version                                  |
-| `OPENCLAW_GIT_DIR=<path>`                   | Git checkout directory for git installs       |
-| `OPENCLAW_GIT_UPDATE=0\|1`                  | Toggle git updates for existing checkouts     |
-| `OPENCLAW_NO_ONBOARD=1`                     | Skip onboarding                               |
-| `OPENCLAW_NPM_LOGLEVEL=error\|warn\|notice` | npm log level                                 |
-| `SHARP_IGNORE_GLOBAL_LIBVIPS=0\|1`          | Control sharp/libvips behavior (default: `1`) |
+| Variable                                    | Description                                                        |
+| ------------------------------------------- | ------------------------------------------------------------------ |
+| `OPENCLAW_PREFIX=<path>`                    | Install prefix                                                     |
+| `OPENCLAW_INSTALL_METHOD=git\|npm`          | Install method                                                     |
+| `OPENCLAW_VERSION=<ver>`                    | OpenClaw version or dist-tag                                       |
+| `OPENCLAW_NODE_VERSION=<ver>`               | Node version                                                       |
+| `OPENCLAW_HOME=<path>`                      | Base directory for OpenClaw state and default git/onboarding paths |
+| `OPENCLAW_GIT_DIR=<path>`                   | Git checkout directory for git installs                            |
+| `OPENCLAW_GIT_UPDATE=0\|1`                  | Toggle git updates for existing checkouts                          |
+| `OPENCLAW_NO_ONBOARD=1`                     | Skip onboarding                                                    |
+| `OPENCLAW_NPM_LOGLEVEL=error\|warn\|notice` | npm log level                                                      |
+| `SHARP_IGNORE_GLOBAL_LIBVIPS=0\|1`          | Control sharp/libvips behavior (default: `1`)                      |
 
   </Accordion>
 </AccordionGroup>
diff --git a/scripts/install-cli.sh b/scripts/install-cli.sh
index a16a6e80731a..e72766e0d8d2 100755
--- a/scripts/install-cli.sh
+++ b/scripts/install-cli.sh
@@ -29,13 +29,34 @@ ensure_home_env() {
 
 ensure_home_env
 
+resolve_openclaw_effective_home() {
+  local openclaw_home="${OPENCLAW_HOME:-}"
+  if [[ -z "$openclaw_home" ]]; then
+    echo "$HOME"
+    return 0
+  fi
+
+  case "$openclaw_home" in
+    \~)
+      echo "$HOME"
+      ;;
+    \~/*)
+      echo "${HOME}/${openclaw_home#~/}"
+      ;;
+    *)
+      echo "$openclaw_home"
+      ;;
+  esac
+}
+
+OPENCLAW_EFFECTIVE_HOME="$(resolve_openclaw_effective_home)"
 PREFIX="${OPENCLAW_PREFIX:-${HOME}/.openclaw}"
 OPENCLAW_VERSION="${OPENCLAW_VERSION:-latest}"
 NODE_VERSION="${OPENCLAW_NODE_VERSION:-22.22.0}"
 SHARP_IGNORE_GLOBAL_LIBVIPS="${SHARP_IGNORE_GLOBAL_LIBVIPS:-1}"
 NPM_LOGLEVEL="${OPENCLAW_NPM_LOGLEVEL:-error}"
 INSTALL_METHOD="${OPENCLAW_INSTALL_METHOD:-npm}"
-GIT_DIR="${OPENCLAW_GIT_DIR:-${HOME}/openclaw}"
+GIT_DIR="${OPENCLAW_GIT_DIR:-${OPENCLAW_EFFECTIVE_HOME}/openclaw}"
 GIT_UPDATE="${OPENCLAW_GIT_UPDATE:-1}"
 JSON=0
 RUN_ONBOARD=0
@@ -46,11 +67,11 @@ print_usage() {
   cat <<EOF
 Usage: install-cli.sh [options]
   --json                              Emit NDJSON events (no human output)
-  --prefix <path>                     Install prefix (default: ~/.openclaw)
+  --prefix <path>                     Install prefix (default: ~/.openclaw; use \$OPENCLAW_PREFIX to override)
   --install-method, --method npm|git  Install via npm (default) or from a git checkout
   --npm                               Shortcut for --install-method npm
   --git, --github                     Shortcut for --install-method git
-  --git-dir, --dir <path>             Checkout directory (default: ~/openclaw)
+  --git-dir, --dir <path>             Checkout directory (default: ~/openclaw, or \$OPENCLAW_HOME/openclaw)
   --version <ver>                     OpenClaw version (default: latest)
   --node-version <ver>                Node version (default: 22.22.0)
   --onboard                           Run "openclaw onboard" after install
@@ -61,6 +82,8 @@ Environment variables:
   SHARP_IGNORE_GLOBAL_LIBVIPS=0|1    Default: 1 (avoid sharp building against global libvips)
   OPENCLAW_NPM_LOGLEVEL=error|warn|notice  Default: error (hide npm deprecation noise)
   OPENCLAW_INSTALL_METHOD=git|npm
+  OPENCLAW_HOME=...
+  OPENCLAW_PREFIX=...
   OPENCLAW_VERSION=latest|next|<semver>
   OPENCLAW_GIT_DIR=...
   OPENCLAW_GIT_UPDATE=0|1
@@ -100,7 +123,7 @@ download_file() {
 }
 
 cleanup_legacy_submodules() {
-  local repo_dir="${1:-${OPENCLAW_GIT_DIR:-${HOME}/openclaw}}"
+  local repo_dir="${1:-${OPENCLAW_GIT_DIR:-${OPENCLAW_EFFECTIVE_HOME}/openclaw}}"
   local legacy_dir="${repo_dir}/Peekaboo"
   if [[ -d "$legacy_dir" ]]; then
     emit_json "{\"event\":\"step\",\"name\":\"legacy-submodule\",\"status\":\"start\",\"path\":\"${legacy_dir//\"/\\\"}\"}"
diff --git a/scripts/install.sh b/scripts/install.sh
index 4ddd69c97bbc..3d4f3a99b9d6 100755
--- a/scripts/install.sh
+++ b/scripts/install.sh
@@ -39,6 +39,23 @@ mktempfile() {
     echo "$f"
 }
 
+resolve_openclaw_effective_home() {
+    local openclaw_home="${OPENCLAW_HOME:-}"
+    if [[ -z "$openclaw_home" ]]; then
+        echo "$HOME"
+        return
+    fi
+    if [[ "$openclaw_home" == "~" ]]; then
+        echo "$HOME"
+        return
+    fi
+    if [[ "$openclaw_home" == \~/* ]]; then
+        echo "${HOME}${openclaw_home:1}"
+        return
+    fi
+    echo "$openclaw_home"
+}
+
 DOWNLOADER=""
 detect_downloader() {
     if command -v curl &> /dev/null; then
@@ -1024,7 +1041,7 @@ DRY_RUN=${OPENCLAW_DRY_RUN:-0}
 INSTALL_METHOD=${OPENCLAW_INSTALL_METHOD:-}
 OPENCLAW_VERSION=${OPENCLAW_VERSION:-latest}
 USE_BETA=${OPENCLAW_BETA:-0}
-GIT_DIR_DEFAULT="${HOME}/openclaw"
+GIT_DIR_DEFAULT="$(resolve_openclaw_effective_home)/openclaw"
 GIT_DIR=${OPENCLAW_GIT_DIR:-$GIT_DIR_DEFAULT}
 GIT_UPDATE=${OPENCLAW_GIT_UPDATE:-1}
 SHARP_IGNORE_GLOBAL_LIBVIPS="${SHARP_IGNORE_GLOBAL_LIBVIPS:-1}"
@@ -2388,6 +2405,7 @@ install_openclaw_from_git() {
     ensure_pnpm_binary_for_scripts
 
     if [[ ! -d "$repo_dir" ]]; then
+        mkdir -p "$(dirname "$repo_dir")"
         run_quiet_step "Cloning OpenClaw" git clone "$repo_url" "$repo_dir"
     fi
 
@@ -2585,10 +2603,12 @@ maybe_open_dashboard() {
 
 resolve_workspace_dir() {
     local profile="${OPENCLAW_PROFILE:-default}"
+    local effective_home
+    effective_home="$(resolve_openclaw_effective_home)"
     if [[ "${profile}" != "default" ]]; then
-        echo "${HOME}/.openclaw/workspace-${profile}"
+        echo "${effective_home}/.openclaw/workspace-${profile}"
     else
-        echo "${HOME}/.openclaw/workspace"
+        echo "${effective_home}/.openclaw/workspace"
     fi
 }
 
@@ -2597,10 +2617,19 @@ run_bootstrap_onboarding_if_needed() {
         return
     fi
 
-    local config_path="${OPENCLAW_CONFIG_PATH:-$HOME/.openclaw/openclaw.json}"
-    if [[ -f "${config_path}" || -f "$HOME/.clawdbot/clawdbot.json" ]]; then
+    local effective_home
+    effective_home="$(resolve_openclaw_effective_home)"
+    local config_path="${OPENCLAW_CONFIG_PATH:-$effective_home/.openclaw/openclaw.json}"
+    local legacy_config_path="${HOME}/.openclaw/openclaw.json"
+    local legacy_clawdbot_path="${HOME}/.clawdbot/clawdbot.json"
+    if [[ -f "${config_path}" || -f "$effective_home/.clawdbot/clawdbot.json" ]]; then
         return
     fi
+    if [[ -z "${OPENCLAW_CONFIG_PATH:-}" && "${effective_home}" != "${HOME}" ]]; then
+        if [[ -f "$legacy_config_path" || -f "$legacy_clawdbot_path" ]]; then
+            return
+        fi
+    fi
 
     local workspace
     workspace="$(resolve_workspace_dir)"
@@ -3033,8 +3062,10 @@ main() {
             user_claw="$(openclaw_command_for_user "${OPENCLAW_BIN:-}")"
             ui_info "Skipping onboard (requested); run ${user_claw} onboard later"
         else
-            local config_path="${OPENCLAW_CONFIG_PATH:-$HOME/.openclaw/openclaw.json}"
-            if [[ -f "${config_path}" || -f "$HOME/.clawdbot/clawdbot.json" ]]; then
+            local effective_home
+            effective_home="$(resolve_openclaw_effective_home)"
+            local config_path="${OPENCLAW_CONFIG_PATH:-$effective_home/.openclaw/openclaw.json}"
+            if [[ -f "${config_path}" || -f "$effective_home/.clawdbot/clawdbot.json" ]]; then
                 ui_info "Config already present; running doctor"
                 run_doctor
                 should_open_dashboard=true
diff --git a/src/cli/update-cli.test.ts b/src/cli/update-cli.test.ts
index f65aac577039..4fc55affdcf8 100644
--- a/src/cli/update-cli.test.ts
+++ b/src/cli/update-cli.test.ts
@@ -310,7 +310,7 @@ const { defaultRuntime } = await import("../runtime.js");
 const { updateCommand, updateFinalizeCommand, updateStatusCommand, updateWizardCommand } =
   await import("./update-cli.js");
 const updateCliShared = await import("./update-cli/shared.js");
-const { resolveGitInstallDir } = updateCliShared;
+const { ensureGitCheckout, resolveGitInstallDir } = updateCliShared;
 const { spawnSync } = await import("node:child_process");
 
 function requireValue<T>(value: T | undefined, label: string): T {
@@ -5486,9 +5486,57 @@ describe("update-cli", () => {
 
   it("uses ~/openclaw as the default dev checkout directory", async () => {
     const homedirSpy = vi.spyOn(os, "homedir").mockReturnValue("/tmp/oc-home");
-    await withEnvAsync({ OPENCLAW_GIT_DIR: undefined }, async () => {
-      expect(resolveGitInstallDir()).toBe(path.posix.join("/tmp/oc-home", "openclaw"));
+    try {
+      await withEnvAsync(
+        {
+          HOME: undefined,
+          OPENCLAW_GIT_DIR: undefined,
+          OPENCLAW_HOME: undefined,
+          USERPROFILE: undefined,
+        },
+        async () => {
+          expect(resolveGitInstallDir()).toBe(path.posix.join("/tmp/oc-home", "openclaw"));
+        },
+      );
+    } finally {
+      homedirSpy.mockRestore();
+    }
+  });
+
+  it("uses OPENCLAW_HOME for the default dev checkout directory", async () => {
+    const homedirSpy = vi.spyOn(os, "homedir").mockReturnValue("/tmp/oc-home");
+    try {
+      await withEnvAsync(
+        { OPENCLAW_GIT_DIR: undefined, OPENCLAW_HOME: "/srv/openclaw-home" },
+        async () => {
+          expect(resolveGitInstallDir()).toBe(path.posix.join("/srv/openclaw-home", "openclaw"));
+        },
+      );
+    } finally {
+      homedirSpy.mockRestore();
+    }
+  });
+
+  it("creates the parent directory before cloning the default dev checkout", async () => {
+    const root = await createTrackedTempDir("openclaw-update-home-");
+    const home = path.join(root, "custom-openclaw-home");
+    const checkoutDir = path.join(home, "openclaw");
+
+    await withEnvAsync({ OPENCLAW_GIT_DIR: undefined, OPENCLAW_HOME: home }, async () => {
+      const dir = resolveGitInstallDir();
+      expect(dir).toBe(checkoutDir);
+      await ensureGitCheckout({ dir, timeoutMs: 1_000, env: process.env });
     });
-    homedirSpy.mockRestore();
+
+    expect((await fs.stat(home)).isDirectory()).toBe(true);
+    const cloneCall = vi
+      .mocked(runCommandWithTimeout)
+      .mock.calls.find((call) => call[0][0] === "git" && call[0][1] === "clone");
+    expect(cloneCall?.[0]).toEqual([
+      "git",
+      "clone",
+      "https://github.com/openclaw/openclaw.git",
+      checkoutDir,
+    ]);
   });
 });
diff --git a/src/cli/update-cli/shared.ts b/src/cli/update-cli/shared.ts
index 2ac30f6b7c99..9536513595a1 100644
--- a/src/cli/update-cli/shared.ts
+++ b/src/cli/update-cli/shared.ts
@@ -2,6 +2,7 @@ import { spawnSync } from "node:child_process";
 import fs from "node:fs/promises";
 import os from "node:os";
 import path from "node:path";
+import { resolveRequiredHomeDir } from "../../infra/home-dir.js";
 import { resolveOpenClawPackageRoot } from "../../infra/openclaw-root.js";
 import { readPackageName, readPackageVersion } from "../../infra/package-json.js";
 import { normalizePackageTagInput } from "../../infra/package-tag.js";
@@ -141,7 +142,7 @@ export function resolveGitInstallDir(): string {
 }
 
 function resolveDefaultGitDir(): string {
-  const home = os.homedir();
+  const home = resolveRequiredHomeDir(process.env, os.homedir);
   if (home.startsWith("/")) {
     return path.posix.join(home, "openclaw");
   }
@@ -221,6 +222,7 @@ export async function ensureGitCheckout(params: {
   const gitEnv = params.env ?? (await createGlobalInstallEnv());
   const dirExists = await pathExists(params.dir);
   if (!dirExists) {
+    await fs.mkdir(path.dirname(params.dir), { recursive: true });
     return await runUpdateStep({
       name: "git clone",
       argv: ["git", "clone", OPENCLAW_REPO_URL, params.dir],
diff --git a/test/scripts/install-cli.test.ts b/test/scripts/install-cli.test.ts
index 7e3eb4c1dc6f..5bfff10a9a80 100644
--- a/test/scripts/install-cli.test.ts
+++ b/test/scripts/install-cli.test.ts
@@ -1,5 +1,7 @@
 import { spawnSync } from "node:child_process";
-import { readFileSync } from "node:fs";
+import { mkdtempSync, mkdirSync, readFileSync, rmSync } from "node:fs";
+import { tmpdir } from "node:os";
+import { join } from "node:path";
 import { describe, expect, it } from "vitest";
 
 const SCRIPT_PATH = "scripts/install-cli.sh";
@@ -18,6 +20,38 @@ function runInstallCliShell(script: string, env: NodeJS.ProcessEnv = {}) {
 describe("install-cli.sh", () => {
   const script = readFileSync(SCRIPT_PATH, "utf8");
 
+  it("keeps HOME for default prefix while OPENCLAW_HOME controls git checkout paths", () => {
+    const tmp = mkdtempSync(join(tmpdir(), "openclaw-install-cli-home-"));
+    const osHome = join(tmp, "os-home");
+    const openclawHome = join(tmp, "openclaw-home");
+    mkdirSync(osHome, { recursive: true });
+    mkdirSync(openclawHome, { recursive: true });
+
+    let result: ReturnType<typeof runInstallCliShell> | undefined;
+    try {
+      result = runInstallCliShell(
+        [
+          `cd ${JSON.stringify(process.cwd())}`,
+          `source ${JSON.stringify(SCRIPT_PATH)}`,
+          'printf "prefix=%s\\ngit=%s\\n" "$PREFIX" "$GIT_DIR"',
+        ].join("\n"),
+        {
+          HOME: osHome,
+          OPENCLAW_HOME: openclawHome,
+          OPENCLAW_GIT_DIR: undefined,
+          OPENCLAW_PREFIX: undefined,
+        },
+      );
+    } finally {
+      rmSync(tmp, { force: true, recursive: true });
+    }
+
+    expect(result?.status).toBe(0);
+    const output = result?.stdout ?? "";
+    expect(output).toContain(`prefix=${join(osHome, ".openclaw")}`);
+    expect(output).toContain(`git=${join(openclawHome, "openclaw")}`);
+  });
+
   it("resolves requested git install versions to checkout refs", () => {
     const result = runInstallCliShell(`
       set -euo pipefail
diff --git a/test/scripts/install-sh.test.ts b/test/scripts/install-sh.test.ts
index 50d3eadf540c..a75c5d74cc44 100644
--- a/test/scripts/install-sh.test.ts
+++ b/test/scripts/install-sh.test.ts
@@ -41,6 +41,86 @@ describe("install.sh", () => {
     expect(script).toContain('cmd+=(--no-fund --no-audit "$freshness_flag" install -g "$spec")');
   });
 
+  it("uses OPENCLAW_HOME for git and onboarding defaults", () => {
+    const tmp = mkdtempSync(join(tmpdir(), "openclaw-install-home-"));
+    const osHome = join(tmp, "os-home");
+    const openclawHome = join(tmp, "openclaw-home");
+    mkdirSync(osHome, { recursive: true });
+    mkdirSync(openclawHome, { recursive: true });
+
+    let result: ReturnType<typeof runInstallShell> | undefined;
+    try {
+      result = runInstallShell(
+        [
+          `cd ${JSON.stringify(process.cwd())}`,
+          `source ${JSON.stringify(SCRIPT_PATH)}`,
+          'printf "git=%s\\nworkspace=%s\\n" "$GIT_DIR" "$(resolve_workspace_dir)"',
+          "OPENCLAW_PROFILE=work",
+          'printf "workspaceProfile=%s\\n" "$(resolve_workspace_dir)"',
+        ].join("\n"),
+        {
+          HOME: osHome,
+          OPENCLAW_HOME: openclawHome,
+          OPENCLAW_GIT_DIR: undefined,
+          TERM: "dumb",
+        },
+      );
+    } finally {
+      rmSync(tmp, { force: true, recursive: true });
+    }
+
+    expect(result?.status).toBe(0);
+    const output = result?.stdout ?? "";
+    expect(output).toContain(`git=${join(openclawHome, "openclaw")}`);
+    expect(output).toContain(`workspace=${join(openclawHome, ".openclaw", "workspace")}`);
+    expect(output).toContain(
+      `workspaceProfile=${join(openclawHome, ".openclaw", "workspace-work")}`,
+    );
+    const mkdirParentIndex = script.indexOf('mkdir -p "$(dirname "$repo_dir")"');
+    const cloneIndex = script.indexOf(
+      'run_quiet_step "Cloning OpenClaw" git clone "$repo_url" "$repo_dir"',
+    );
+    expect(mkdirParentIndex).toBeGreaterThan(-1);
+    expect(cloneIndex).toBeGreaterThan(-1);
+    expect(mkdirParentIndex).toBeLessThan(cloneIndex);
+  });
+
+  it("skips bootstrap onboarding when legacy HOME config exists with OPENCLAW_HOME", () => {
+    const tmp = mkdtempSync(join(tmpdir(), "openclaw-install-legacy-config-"));
+    const osHome = join(tmp, "os-home");
+    const openclawHome = join(tmp, "openclaw-home");
+    const legacyConfigDir = join(osHome, ".openclaw");
+    const bootstrapDir = join(openclawHome, ".openclaw", "workspace");
+    mkdirSync(legacyConfigDir, { recursive: true });
+    mkdirSync(bootstrapDir, { recursive: true });
+    writeFileSync(join(legacyConfigDir, "openclaw.json"), "{}\n");
+    writeFileSync(join(bootstrapDir, "BOOTSTRAP.md"), "# bootstrap\n");
+
+    let result: ReturnType<typeof runInstallShell> | undefined;
+    try {
+      result = runInstallShell(
+        [
+          `cd ${JSON.stringify(process.cwd())}`,
+          `source ${JSON.stringify(SCRIPT_PATH)}`,
+          "NO_ONBOARD=0",
+          "run_bootstrap_onboarding_if_needed",
+        ].join("\n"),
+        {
+          HOME: osHome,
+          OPENCLAW_HOME: openclawHome,
+          OPENCLAW_CONFIG_PATH: undefined,
+          TERM: "dumb",
+        },
+      );
+    } finally {
+      rmSync(tmp, { force: true, recursive: true });
+    }
+
+    expect(result?.status).toBe(0);
+    expect(result?.stdout ?? "").not.toContain("BOOTSTRAP.md found");
+    expect(result?.stderr ?? "").toBe("");
+  });
+
   it("rejects OpenClaw GitHub source targets for npm installs", () => {
     const result = runInstallShell(`
       set -euo pipefail