diff --git a/packages/server/src/app.ts b/packages/server/src/app.ts
index 6f63715cfb..e9a5661093 100644
--- a/packages/server/src/app.ts
+++ b/packages/server/src/app.ts
@@ -138,7 +138,12 @@ module.exports = server.listen(env.PORT || 0, async () => {
   }
 
   // monitor plugin directory if required
-  if (env.SELF_HOSTED && !env.MULTI_TENANCY && env.PLUGINS_DIR && fs.existsSync(env.PLUGINS_DIR)) {
+  if (
+    env.SELF_HOSTED &&
+    !env.MULTI_TENANCY &&
+    env.PLUGINS_DIR &&
+    fs.existsSync(env.PLUGINS_DIR)
+  ) {
     const watchPath = path.join(env.PLUGINS_DIR, "./**/dist/*.tar.gz")
     chokidar
       .watch(watchPath, {
diff --git a/packages/server/src/environment.js b/packages/server/src/environment.js
index 5a7aa61b9d..5524159a78 100644
--- a/packages/server/src/environment.js
+++ b/packages/server/src/environment.js
@@ -77,7 +77,7 @@ module.exports = {
   SQL_MAX_ROWS: process.env.SQL_MAX_ROWS,
   BB_ADMIN_USER_EMAIL: process.env.BB_ADMIN_USER_EMAIL,
   BB_ADMIN_USER_PASSWORD: process.env.BB_ADMIN_USER_PASSWORD,
-  PLUGINS_DIR: process.env.PLUGINS_DIR,
+  PLUGINS_DIR: process.env.PLUGINS_DIR || "/plugins",
   // flags
   ALLOW_DEV_AUTOMATIONS: process.env.ALLOW_DEV_AUTOMATIONS,
   DISABLE_THREADING: process.env.DISABLE_THREADING,