diff --git a/paper-server/src/main/java/io/papermc/paper/plugin/PluginInitializerManager.java b/paper-server/src/main/java/io/papermc/paper/plugin/PluginInitializerManager.java
index 70413fddd23c..3200aef1ba5d 100644
--- a/paper-server/src/main/java/io/papermc/paper/plugin/PluginInitializerManager.java
+++ b/paper-server/src/main/java/io/papermc/paper/plugin/PluginInitializerManager.java
@@ -117,6 +117,10 @@ public static void load(OptionSet optionSet) throws Exception {
         java.util.List<Path> files = ((java.util.List<File>) optionSet.valuesOf("add-plugin")).stream().map(File::toPath).toList();
         io.papermc.paper.plugin.util.EntrypointUtil.registerProvidersFromSource(io.papermc.paper.plugin.provider.source.PluginFlagProviderSource.INSTANCE, files);
 
+        @SuppressWarnings("unchecked")
+        java.util.List<Path> dirs = ((java.util.List<File>) optionSet.valuesOf("add-plugin-dir")).stream().map(File::toPath).toList();
+        dirs.forEach(pluginDir -> io.papermc.paper.plugin.util.EntrypointUtil.registerProvidersFromSource(io.papermc.paper.plugin.provider.source.DirectoryProviderSource.INSTANCE_NO_CREATE, pluginDir));
+
         final Set<String> paperPluginNames = new TreeSet<>();
         final Set<String> legacyPluginNames = new TreeSet<>();
         LaunchEntryPointHandler.INSTANCE.getStorage().forEach((entrypoint, providerStorage) -> {
diff --git a/paper-server/src/main/java/io/papermc/paper/plugin/provider/source/DirectoryProviderSource.java b/paper-server/src/main/java/io/papermc/paper/plugin/provider/source/DirectoryProviderSource.java
index 0846d3a904e4..00dbd17a2378 100644
--- a/paper-server/src/main/java/io/papermc/paper/plugin/provider/source/DirectoryProviderSource.java
+++ b/paper-server/src/main/java/io/papermc/paper/plugin/provider/source/DirectoryProviderSource.java
@@ -16,14 +16,25 @@
  */
 public class DirectoryProviderSource implements ProviderSource<Path, List<Path>> {
 
-    public static final DirectoryProviderSource INSTANCE = new DirectoryProviderSource();
+    public static final DirectoryProviderSource INSTANCE = new DirectoryProviderSource(true);
+    public static final DirectoryProviderSource INSTANCE_NO_CREATE = new DirectoryProviderSource(false);
     private static final FileProviderSource FILE_PROVIDER_SOURCE = new FileProviderSource("Directory '%s'"::formatted, false); // Paper - Remap plugins
     private static final Logger LOGGER = LogUtils.getClassLogger();
 
+    private final boolean createDirectory;
+
+    public DirectoryProviderSource(final boolean createDirectory) {
+        this.createDirectory = createDirectory;
+    }
+
     @Override
     public List<Path> prepareContext(Path context) throws IOException {
         // Symlink happy, create file if missing.
         if (!Files.isDirectory(context)) {
+            if (!this.createDirectory) {
+                return List.of();
+            }
+
             Files.createDirectories(context);
         }
 
diff --git a/paper-server/src/main/java/org/bukkit/craftbukkit/Main.java b/paper-server/src/main/java/org/bukkit/craftbukkit/Main.java
index 4cfb502c2ca7..9d4d97fcb0f3 100644
--- a/paper-server/src/main/java/org/bukkit/craftbukkit/Main.java
+++ b/paper-server/src/main/java/org/bukkit/craftbukkit/Main.java
@@ -146,10 +146,11 @@ public static void main(String[] args) {
                         .describedAs("Yml file");
 
                 this.acceptsAll(asList("paper-dir", "paper-settings-directory"), "Directory for Paper settings")
-                    .withRequiredArg()
-                    .ofType(File.class)
-                    .defaultsTo(new File(io.papermc.paper.configuration.PaperConfigurations.CONFIG_DIR))
-                    .describedAs("Config directory");
+                        .withRequiredArg()
+                        .ofType(File.class)
+                        .defaultsTo(new File(io.papermc.paper.configuration.PaperConfigurations.CONFIG_DIR))
+                        .describedAs("Config directory");
+
                 this.acceptsAll(asList("paper", "paper-settings"), "File for Paper settings")
                         .withRequiredArg()
                         .ofType(File.class)
@@ -162,6 +163,12 @@ public static void main(String[] args) {
                         .defaultsTo(new File[] {})
                         .describedAs("Jar file");
 
+                this.acceptsAll(asList("add-plugin-dir", "add-extra-plugin-dir"), "Specify paths to extra plugin directories to be loaded in addition to the plugins folder. This argument can be specified multiple times, once for each extra plugin dir path.")
+                        .withRequiredArg()
+                        .ofType(File.class)
+                        .defaultsTo(new File[] {})
+                        .describedAs("Plugin directory");
+
                 this.accepts("server-name", "Name of the server")
                         .withRequiredArg()
                         .ofType(String.class)