diff --git a/pkg/manager/manager.go b/pkg/manager/manager.go
index 349851cc2..638332619 100644
--- a/pkg/manager/manager.go
+++ b/pkg/manager/manager.go
@@ -58,7 +58,6 @@ func GetInstance() *singleton {
 
 func Initialize() *singleton {
 	once.Do(func() {
-		_ = utils.EnsureDir(paths.GetStashHomeDirectory())
 		cfg, err := config.Initialize()
 
 		if err != nil {
@@ -269,6 +268,14 @@ func setSetupDefaults(input *models.SetupInput) {
 func (s *singleton) Setup(input models.SetupInput) error {
 	setSetupDefaults(&input)
 
+	// create the config directory if it does not exist
+	configDir := filepath.Dir(input.ConfigLocation)
+	if exists, _ := utils.DirExists(configDir); !exists {
+		if err := os.Mkdir(configDir, 0755); err != nil {
+			return fmt.Errorf("abc: %s", err.Error())
+		}
+	}
+
 	// create the generated directory if it does not exist
 	if exists, _ := utils.DirExists(input.GeneratedLocation); !exists {
 		if err := os.Mkdir(input.GeneratedLocation, 0755); err != nil {
diff --git a/ui/v2.5/src/components/Changelog/versions/v090.md b/ui/v2.5/src/components/Changelog/versions/v090.md
index b2157a772..f4f3ea661 100644
--- a/ui/v2.5/src/components/Changelog/versions/v090.md
+++ b/ui/v2.5/src/components/Changelog/versions/v090.md
@@ -15,6 +15,7 @@
 * Added de-DE language option. ([#1578](https://github.com/stashapp/stash/pull/1578))
 
 ### 🐛 Bug fixes
+* Create .stash directory in $HOME only if required. ([#1623](https://github.com/stashapp/stash/pull/1623))
 * Include stash id when scraping performer from stash-box. ([#1608](https://github.com/stashapp/stash/pull/1608))
 * Fix infinity framerate values causing resolver error. ([#1607](https://github.com/stashapp/stash/pull/1607))
 * Fix unsetting performer gender not working correctly. ([#1606](https://github.com/stashapp/stash/pull/1606))