diff --git a/scripts/modules/addon_utils.py b/scripts/modules/addon_utils.py
index 3b87ea09e64..360f59ab258 100644
--- a/scripts/modules/addon_utils.py
+++ b/scripts/modules/addon_utils.py
@@ -69,7 +69,7 @@ def _paths_with_extension_repos():
         for repo in _preferences.filepaths.extension_repos:
             if not repo.enabled:
                 continue
-            dirpath = repo.directory_or_default
+            dirpath = repo.directory
             if not os.path.isdir(dirpath):
                 continue
             addon_paths.append((dirpath, "%s.%s" % (_ext_base_pkg_idname, repo.module)))
@@ -774,7 +774,7 @@ def _extension_dirpath_from_preferences():
         for repo in _preferences.filepaths.extension_repos:
             if not repo.enabled:
                 continue
-            repos_dict[repo.module] = repo.directory_or_default
+            repos_dict[repo.module] = repo.directory
     return repos_dict
 
 
diff --git a/scripts/modules/bpy_types.py b/scripts/modules/bpy_types.py
index d7faf00135a..dd5cbd2b49c 100644
--- a/scripts/modules/bpy_types.py
+++ b/scripts/modules/bpy_types.py
@@ -1316,10 +1316,10 @@ class UserExtensionRepo(StructRNA):
     __slots__ = ()
 
     @property
-    def directory_or_default(self):
+    def directory(self):
         """Return ``directory`` or a default path derived from the users scripts path."""
-        if directory := self.directory:
-            return directory
+        if self.use_custom_directory:
+            return self.custom_directory
         import os
         import bpy
         return os.path.join(bpy.utils.user_resource('SCRIPTS', path="extensions"), self.module)
diff --git a/scripts/startup/bl_ui/space_userpref.py b/scripts/startup/bl_ui/space_userpref.py
index 60bf05d714c..8467d1e0570 100644
--- a/scripts/startup/bl_ui/space_userpref.py
+++ b/scripts/startup/bl_ui/space_userpref.py
@@ -1603,6 +1603,15 @@ class USERPREF_UL_extension_repos(UIList):
         elif self.layout_type == 'GRID':
             layout.alignment = 'CENTER'
             layout.prop(repo, "name", text="", emboss=False)
+
+        # Show an error icon if this repository has unusable settings.
+        if repo.enabled:
+            if (
+                    (repo.use_custom_directory and repo.custom_directory == "") or
+                    (repo.use_remote_path and repo.remote_path == "")
+            ):
+                layout.label(text="", icon='ERROR')
+
         layout.prop(repo, "enabled", text="", emboss=False, icon='CHECKBOX_HLT' if repo.enabled else 'CHECKBOX_DEHLT')
 
 
@@ -2049,8 +2058,8 @@ class USERPREF_PT_extensions_repos(Panel):
         )
 
         col = row.column(align=True)
-        col.operator("preferences.extension_repo_add", text="", icon='ADD')
-        props = col.operator("preferences.extension_repo_remove", text="", icon='REMOVE')
+        col.operator_menu_enum("preferences.extension_repo_add", "type", text="", icon='ADD')
+        props = col.operator_menu_enum("preferences.extension_repo_remove", "type", text="", icon='REMOVE')
         props.index = active_library_index
 
         try:
@@ -2063,10 +2072,29 @@ class USERPREF_PT_extensions_repos(Panel):
 
         layout.separator()
 
-        layout.prop(active_repo, "remote_path")
+        layout.prop(active_repo, "use_remote_path", text="Use Remote URL")
+        row = layout.row()
+        if active_repo.use_remote_path:
+            if active_repo.remote_path == "":
+                row.alert = True
+        else:
+            row.active = False
+        row.prop(active_repo, "remote_path", text="")
 
         if layout_panel := self._panel_layout_kludge(layout, text="Advanced"):
-            layout_panel.prop(active_repo, "directory")
+
+            layout_panel.prop(active_repo, "use_custom_directory")
+
+            row = layout_panel.row()
+            if active_repo.use_custom_directory:
+                if active_repo.custom_directory == "":
+                    row.alert = True
+            else:
+                row.active = False
+            row.prop(active_repo, "custom_directory", text="")
+
+            layout_panel.separator()
+
             row = layout_panel.row()
             row.prop(active_repo, "use_cache")
             row.prop(active_repo, "module")
diff --git a/source/blender/blenkernel/BKE_preferences.h b/source/blender/blenkernel/BKE_preferences.h
index 6a4e8987caa..fec295c8d13 100644
--- a/source/blender/blenkernel/BKE_preferences.h
+++ b/source/blender/blenkernel/BKE_preferences.h
@@ -82,7 +82,7 @@ void BKE_preferences_asset_library_default_add(struct UserDef *userdef) ATTR_NON
 bUserExtensionRepo *BKE_preferences_extension_repo_add(UserDef *userdef,
                                                        const char *name,
                                                        const char *module,
-                                                       const char *dirpath);
+                                                       const char *custom_dirpath);
 void BKE_preferences_extension_repo_remove(UserDef *userdef, bUserExtensionRepo *repo);
 
 void BKE_preferences_extension_repo_name_set(UserDef *userdef,
@@ -92,7 +92,11 @@ void BKE_preferences_extension_repo_module_set(UserDef *userdef,
                                                bUserExtensionRepo *repo,
                                                const char *module);
 
-void BKE_preferences_extension_repo_path_set(bUserExtensionRepo *repo, const char *path);
+void BKE_preferences_extension_repo_custom_dirpath_set(bUserExtensionRepo *repo, const char *path);
+void BKE_preferences_extension_repo_dirpath_get(const bUserExtensionRepo *repo,
+                                                char *dirpath,
+                                                int dirpath_maxncpy);
+
 bUserExtensionRepo *BKE_preferences_extension_repo_find_index(const UserDef *userdef, int index);
 bUserExtensionRepo *BKE_preferences_extension_repo_find_by_module(const UserDef *userdef,
                                                                   const char *module);
diff --git a/source/blender/blenkernel/intern/preferences.cc b/source/blender/blenkernel/intern/preferences.cc
index cf33818713f..88bc0d78407 100644
--- a/source/blender/blenkernel/intern/preferences.cc
+++ b/source/blender/blenkernel/intern/preferences.cc
@@ -159,7 +159,7 @@ static size_t strncpy_py_module(char *dst, const char *src, const size_t dst_max
 bUserExtensionRepo *BKE_preferences_extension_repo_add(UserDef *userdef,
                                                        const char *name,
                                                        const char *module,
-                                                       const char *dirpath)
+                                                       const char *custom_dirpath)
 {
   bUserExtensionRepo *repo = DNA_struct_default_alloc(bUserExtensionRepo);
   BLI_addtail(&userdef->extension_repos, repo);
@@ -171,9 +171,9 @@ bUserExtensionRepo *BKE_preferences_extension_repo_add(UserDef *userdef,
   BKE_preferences_extension_repo_module_set(userdef, repo, module);
 
   /* Set the directory. */
-  STRNCPY(repo->dirpath, dirpath);
-  BLI_path_normalize(repo->dirpath);
-  BLI_path_slash_rstrip(repo->dirpath);
+  STRNCPY(repo->custom_dirpath, custom_dirpath);
+  BLI_path_normalize(repo->custom_dirpath);
+  BLI_path_slash_rstrip(repo->custom_dirpath);
 
   /* While not a strict rule, ignored paths that already exist, *
    * pointing to the same path is going to logical problems with package-management. */
@@ -181,8 +181,8 @@ bUserExtensionRepo *BKE_preferences_extension_repo_add(UserDef *userdef,
     if (repo == repo_iter) {
       continue;
     }
-    if (BLI_path_cmp(repo->dirpath, repo_iter->dirpath) == 0) {
-      repo->dirpath[0] = '\0';
+    if (BLI_path_cmp(repo->custom_dirpath, repo_iter->custom_dirpath) == 0) {
+      repo->custom_dirpath[0] = '\0';
       break;
     }
   }
@@ -228,9 +228,29 @@ void BKE_preferences_extension_repo_module_set(UserDef *userdef,
                  sizeof(repo->module));
 }
 
-void BKE_preferences_extension_repo_path_set(bUserExtensionRepo *repo, const char *path)
+void BKE_preferences_extension_repo_custom_dirpath_set(bUserExtensionRepo *repo, const char *path)
 {
-  STRNCPY(repo->dirpath, path);
+  STRNCPY(repo->custom_dirpath, path);
+}
+
+void BKE_preferences_extension_repo_dirpath_get(const bUserExtensionRepo *repo,
+                                                char *dirpath,
+                                                const int dirpath_maxncpy)
+{
+  if (repo->flag & USER_EXTENSION_REPO_FLAG_USE_CUSTOM_DIRECTORY) {
+    BLI_strncpy(dirpath, repo->custom_dirpath, dirpath_maxncpy);
+    return;
+  }
+
+  char subdir[16 + sizeof(bUserExtensionRepo::module)];
+  BLI_string_join(subdir, sizeof(subdir), "extensions", SEP_STR, repo->module);
+  const std::optional<std::string> path = BKE_appdir_folder_id(BLENDER_USER_SCRIPTS, subdir);
+  if (path.has_value()) {
+    BLI_strncpy(dirpath, path.value().c_str(), dirpath_maxncpy);
+  }
+  else {
+    dirpath[0] = '\0';
+  }
 }
 
 bUserExtensionRepo *BKE_preferences_extension_repo_find_index(const UserDef *userdef, int index)
diff --git a/source/blender/editors/space_userpref/CMakeLists.txt b/source/blender/editors/space_userpref/CMakeLists.txt
index ec89b79795e..b144f36295c 100644
--- a/source/blender/editors/space_userpref/CMakeLists.txt
+++ b/source/blender/editors/space_userpref/CMakeLists.txt
@@ -6,6 +6,7 @@ set(INC
   ../include
   ../../blenkernel
   ../../blenloader
+  ../../blentranslation
   ../../makesrna
   ../../windowmanager
 
diff --git a/source/blender/editors/space_userpref/userpref_ops.cc b/source/blender/editors/space_userpref/userpref_ops.cc
index a339284c5e9..23e7fd948e3 100644
--- a/source/blender/editors/space_userpref/userpref_ops.cc
+++ b/source/blender/editors/space_userpref/userpref_ops.cc
@@ -7,6 +7,7 @@
  */
 
 #include <cstring>
+#include <fmt/format.h>
 
 #include "DNA_screen_types.h"
 #include "DNA_space_types.h"
@@ -15,6 +16,7 @@
 #ifdef WIN32
 #  include "BLI_winstuff.h"
 #endif
+#include "BLI_fileops.h"
 #include "BLI_path_util.h"
 
 #include "BKE_callbacks.h"
@@ -24,6 +26,8 @@
 
 #include "BKE_report.h"
 
+#include "BLT_translation.h"
+
 #include "RNA_access.hh"
 #include "RNA_define.hh"
 #include "RNA_types.hh"
@@ -238,21 +242,42 @@ static void PREFERENCES_OT_asset_library_remove(wmOperatorType *ot)
 /** \name Add Extension Repository Operator
  * \{ */
 
+enum class bUserExtensionRepoAddType {
+  Online = 0,
+  Local = 1,
+};
+
 static int preferences_extension_repo_add_exec(bContext *C, wmOperator *op)
 {
-  char name[FILE_MAXFILE];
-  char directory[FILE_MAX];
+  const bUserExtensionRepoAddType repo_type = bUserExtensionRepoAddType(
+      RNA_enum_get(op->ptr, "type"));
 
   Main *bmain = CTX_data_main(C);
   BKE_callback_exec_null(bmain, BKE_CB_EVT_EXTENSION_REPOS_UPDATE_PRE);
 
-  RNA_string_get(op->ptr, "directory", directory);
-  BLI_path_slash_rstrip(directory);
+  char name[sizeof(bUserExtensionRepo::name)];
+  char custom_directory[FILE_MAX] = "";
 
-  BLI_path_split_file_part(directory, name, sizeof(name));
+  const bool use_custom_directory = RNA_boolean_get(op->ptr, "use_custom_directory");
+  RNA_string_get(op->ptr, "name", name);
 
-  const char *module = name;
-  bUserExtensionRepo *new_repo = BKE_preferences_extension_repo_add(&U, name, module, directory);
+  if (use_custom_directory) {
+    RNA_string_get(op->ptr, "custom_directory", custom_directory);
+    BLI_path_slash_rstrip(custom_directory);
+  }
+
+  const char *module = custom_directory[0] ? BLI_path_basename(custom_directory) : name;
+  bUserExtensionRepo *new_repo = BKE_preferences_extension_repo_add(
+      &U, name, module, custom_directory);
+
+  if (use_custom_directory) {
+    new_repo->flag |= USER_EXTENSION_REPO_FLAG_USE_CUSTOM_DIRECTORY;
+  }
+
+  if (repo_type == bUserExtensionRepoAddType::Online) {
+    RNA_string_get(op->ptr, "remote_path", new_repo->remote_path);
+    new_repo->flag |= USER_EXTENSION_REPO_FLAG_USE_REMOTE_PATH;
+  }
 
   /* Activate new repository in the UI for further setup. */
   U.active_extension_repo = BLI_findindex(&U.extension_repos, new_repo);
@@ -266,16 +291,49 @@ static int preferences_extension_repo_add_exec(bContext *C, wmOperator *op)
   return OPERATOR_FINISHED;
 }
 
-static int preferences_extension_repo_add_invoke(bContext *C,
-                                                 wmOperator *op,
-                                                 const wmEvent * /*event*/)
+static int preferences_extension_repo_add_invoke(bContext *C, wmOperator *op, const wmEvent *event)
 {
-  if (!RNA_struct_property_is_set(op->ptr, "directory")) {
-    WM_event_add_fileselect(C, op);
-    return OPERATOR_RUNNING_MODAL;
+  const bUserExtensionRepoAddType repo_type = bUserExtensionRepoAddType(
+      RNA_enum_get(op->ptr, "type"));
+  PropertyRNA *prop_name = RNA_struct_find_property(op->ptr, "name");
+  if (!RNA_property_is_set(op->ptr, prop_name)) {
+    const char *name_default = nullptr;
+    if (repo_type == bUserExtensionRepoAddType::Online) {
+      name_default = "Online Repository";
+    }
+    else {
+      name_default = "User Repository";
+    }
+    RNA_property_string_set(op->ptr, prop_name, name_default);
   }
 
-  return preferences_extension_repo_add_exec(C, op);
+  return WM_operator_props_popup_confirm(C, op, event);
+}
+
+static bool preferences_extension_repo_add_poll_property(const bContext * /*C*/,
+                                                         wmOperator *op,
+                                                         const PropertyRNA *prop)
+{
+  PointerRNA *ptr = op->ptr;
+
+  const char *prop_id = RNA_property_identifier(prop);
+  const bUserExtensionRepoAddType repo_type = bUserExtensionRepoAddType(RNA_enum_get(ptr, "type"));
+
+  /* Only show remote_path for remote repositories. */
+  if (STREQ(prop_id, "remote_path")) {
+    if (repo_type != bUserExtensionRepoAddType::Online) {
+      return false;
+    }
+  }
+
+  if (STREQ(prop_id, "custom_directory")) {
+    if (!RNA_boolean_get(ptr, "use_custom_directory")) {
+      return false;
+    }
+  }
+
+  /* Else, show it! */
+  return true;
 }
 
 static void PREFERENCES_OT_extension_repo_add(wmOperatorType *ot)
@@ -284,18 +342,52 @@ static void PREFERENCES_OT_extension_repo_add(wmOperatorType *ot)
   ot->idname = "PREFERENCES_OT_extension_repo_add";
   ot->description = "Add a directory to be used as a local extension repository";
 
-  ot->exec = preferences_extension_repo_add_exec;
   ot->invoke = preferences_extension_repo_add_invoke;
+  ot->exec = preferences_extension_repo_add_exec;
+  ot->poll_property = preferences_extension_repo_add_poll_property;
 
-  ot->flag = OPTYPE_INTERNAL;
+  ot->flag = OPTYPE_INTERNAL | OPTYPE_REGISTER;
 
-  WM_operator_properties_filesel(ot,
-                                 FILE_TYPE_FOLDER,
-                                 FILE_SPECIAL,
-                                 FILE_OPENFILE,
-                                 WM_FILESEL_DIRECTORY,
-                                 FILE_DEFAULTDISPLAY,
-                                 FILE_SORT_DEFAULT);
+  static const EnumPropertyItem repo_type_items[] = {
+      {int(bUserExtensionRepoAddType::Online),
+       "ONLINE",
+       ICON_WORLD,
+       "Add Online Repository",
+       "Add a repository referencing an remote repository "
+       "with support for listing and updating extensions"},
+      {int(bUserExtensionRepoAddType::Local),
+       "LOCAL",
+       ICON_DISK_DRIVE,
+       "Add Local Repository",
+       "Add a repository managed manually without referencing an external repository"},
+      {0, nullptr, 0, nullptr, nullptr},
+  };
+
+  PropertyRNA *prop;
+
+  prop = RNA_def_string(ot->srna, "name", nullptr, sizeof(bUserExtensionRepo::name), "Name", "");
+  RNA_def_property_flag(prop, PROP_SKIP_SAVE);
+
+  prop = RNA_def_string(
+      ot->srna, "remote_path", nullptr, sizeof(bUserExtensionRepo::remote_path), "URL", "");
+  RNA_def_property_flag(prop, PROP_SKIP_SAVE);
+
+  prop = RNA_def_boolean(ot->srna, "use_custom_directory", false, "Custom Directory", "");
+  RNA_def_property_flag(prop, PROP_SKIP_SAVE);
+
+  /* WARNING: `RNA_def_string_dir_path` should be used but the file selector crashes from
+   * #WM_operator_props_popup_confirm as it closes the popup before showing the file-selector. */
+  prop = RNA_def_string(ot->srna,
+                        "custom_directory",
+                        nullptr,
+                        sizeof(bUserExtensionRepo::remote_path),
+                        "Directory",
+                        "");
+  RNA_def_property_flag(prop, PROP_SKIP_SAVE);
+
+  ot->prop = RNA_def_enum(
+      ot->srna, "type", repo_type_items, 0, "Type", "The kind of repository to add");
+  RNA_def_property_flag(ot->prop, PROP_SKIP_SAVE | PROP_HIDDEN);
 }
 
 /** \} */
@@ -304,6 +396,11 @@ static void PREFERENCES_OT_extension_repo_add(wmOperatorType *ot)
 /** \name Remove Extension Repository Operator
  * \{ */
 
+enum class bUserExtensionRepoRemoveType {
+  RepoOnly = 0,
+  RepoWithDirectory = 1,
+};
+
 static bool preferences_extension_repo_remove_poll(bContext *C)
 {
   if (BLI_listbase_is_empty(&U.extension_repos)) {
@@ -313,9 +410,49 @@ static bool preferences_extension_repo_remove_poll(bContext *C)
   return true;
 }
 
+static int preferences_extension_repo_remove_invoke(bContext *C,
+                                                    wmOperator *op,
+                                                    const wmEvent * /*event*/)
+{
+  const int index = RNA_int_get(op->ptr, "index");
+  bUserExtensionRepoRemoveType repo_type = bUserExtensionRepoRemoveType(
+      RNA_enum_get(op->ptr, "type"));
+  bUserExtensionRepo *repo = static_cast<bUserExtensionRepo *>(
+      BLI_findlink(&U.extension_repos, index));
+
+  if (!repo) {
+    return OPERATOR_CANCELLED;
+  }
+  std::string message;
+  if (repo_type == bUserExtensionRepoRemoveType::RepoWithDirectory) {
+    char dirpath[FILE_MAX];
+    BKE_preferences_extension_repo_dirpath_get(repo, dirpath, sizeof(dirpath));
+
+    if (dirpath[0]) {
+      message = fmt::format(IFACE_("Remove all files in \"{}\"."), dirpath);
+    }
+    else {
+      message = IFACE_("Remove, local files not found.");
+      repo_type = bUserExtensionRepoRemoveType::RepoOnly;
+    }
+  }
+  else {
+    message = IFACE_("Remove, keeping local files.");
+  }
+
+  const char *confirm_text = (repo_type == bUserExtensionRepoRemoveType::RepoWithDirectory) ?
+                                 IFACE_("Remove Repository & Files") :
+                                 IFACE_("Remove Repository");
+
+  return WM_operator_confirm_ex(
+      C, op, nullptr, message.c_str(), confirm_text, ALERT_ICON_WARNING, true);
+}
+
 static int preferences_extension_repo_remove_exec(bContext *C, wmOperator *op)
 {
   const int index = RNA_int_get(op->ptr, "index");
+  const bUserExtensionRepoRemoveType repo_type = bUserExtensionRepoRemoveType(
+      RNA_enum_get(op->ptr, "type"));
   bUserExtensionRepo *repo = static_cast<bUserExtensionRepo *>(
       BLI_findlink(&U.extension_repos, index));
   if (!repo) {
@@ -325,6 +462,19 @@ static int preferences_extension_repo_remove_exec(bContext *C, wmOperator *op)
   Main *bmain = CTX_data_main(C);
   BKE_callback_exec_null(bmain, BKE_CB_EVT_EXTENSION_REPOS_UPDATE_PRE);
 
+  if (repo_type == bUserExtensionRepoRemoveType::RepoWithDirectory) {
+    char dirpath[FILE_MAX];
+    BKE_preferences_extension_repo_dirpath_get(repo, dirpath, sizeof(dirpath));
+    if (dirpath[0] && BLI_is_dir(dirpath)) {
+      if (BLI_delete(dirpath, true, true) != 0) {
+        BKE_reportf(op->reports,
+                    RPT_ERROR,
+                    "Error removing directory: %s",
+                    errno ? strerror(errno) : "unknown");
+      }
+    }
+  }
+
   BKE_preferences_extension_repo_remove(&U, repo);
   const int count_remaining = BLI_listbase_count(&U.extension_repos);
   /* Update active repo index to be in range. */
@@ -345,12 +495,27 @@ static void PREFERENCES_OT_extension_repo_remove(wmOperatorType *ot)
   ot->idname = "PREFERENCES_OT_extension_repo_remove";
   ot->description = "Remove an extension repository";
 
+  ot->invoke = preferences_extension_repo_remove_invoke;
   ot->exec = preferences_extension_repo_remove_exec;
   ot->poll = preferences_extension_repo_remove_poll;
 
   ot->flag = OPTYPE_INTERNAL;
 
+  static const EnumPropertyItem repo_type_items[] = {
+      {int(bUserExtensionRepoRemoveType::RepoOnly), "REPO_ONLY", 0, "Remove Repository"},
+      {int(bUserExtensionRepoRemoveType::RepoWithDirectory),
+       "REPO_AND_DIRECTORY",
+       0,
+       "Remove Repository & Files",
+       "Delete all associated local files when removing"},
+      {0, nullptr, 0, nullptr, nullptr},
+  };
+
   RNA_def_int(ot->srna, "index", 0, 0, INT_MAX, "Index", "", 0, 1000);
+
+  ot->prop = RNA_def_enum(
+      ot->srna, "type", repo_type_items, 0, "Type", "Method for removing the repository");
+  RNA_def_property_flag(ot->prop, PROP_SKIP_SAVE | PROP_HIDDEN);
 }
 
 /** \} */
diff --git a/source/blender/makesdna/DNA_userdef_defaults.h b/source/blender/makesdna/DNA_userdef_defaults.h
index f4da9e4191b..6bd35d28ce0 100644
--- a/source/blender/makesdna/DNA_userdef_defaults.h
+++ b/source/blender/makesdna/DNA_userdef_defaults.h
@@ -33,7 +33,7 @@
   { \
     .name = {'\0'}, \
     .module = {'\0'}, \
-    .dirpath = {'\0'}, \
+    .custom_dirpath = {'\0'}, \
     .remote_path = {'\0'}, \
     .flag = 0, \
   }
diff --git a/source/blender/makesdna/DNA_userdef_types.h b/source/blender/makesdna/DNA_userdef_types.h
index 7761ef6aafc..53a66012f99 100644
--- a/source/blender/makesdna/DNA_userdef_types.h
+++ b/source/blender/makesdna/DNA_userdef_types.h
@@ -627,8 +627,8 @@ typedef struct bUserExtensionRepo {
    * The "local" directory where extensions are stored.
    * When unset, use `{BLENDER_USER_SCRIPTS}/extensions/{bUserExtensionRepo::module}`.
    */
-  char dirpath[1024];     /* FILE_MAX */
-  char remote_path[1024]; /* FILE_MAX */
+  char custom_dirpath[1024]; /* FILE_MAX */
+  char remote_path[1024];    /* FILE_MAX */
 
   int flag;
   char _pad0[4];
@@ -638,6 +638,8 @@ typedef enum eUserExtensionRepo_Flag {
   /** Maintain disk cache. */
   USER_EXTENSION_REPO_FLAG_NO_CACHE = 1 << 0,
   USER_EXTENSION_REPO_FLAG_DISABLED = 1 << 1,
+  USER_EXTENSION_REPO_FLAG_USE_CUSTOM_DIRECTORY = 1 << 2,
+  USER_EXTENSION_REPO_FLAG_USE_REMOTE_PATH = 1 << 3,
 } eUserExtensionRepo_Flag;
 
 typedef struct SolidLight {
diff --git a/source/blender/makesrna/intern/rna_userdef.cc b/source/blender/makesrna/intern/rna_userdef.cc
index dd631353f22..44f4f336c94 100644
--- a/source/blender/makesrna/intern/rna_userdef.cc
+++ b/source/blender/makesrna/intern/rna_userdef.cc
@@ -378,17 +378,36 @@ static void rna_userdef_extension_repo_directory_set(PointerRNA *ptr, const char
   Main *bmain = G.main;
   bUserExtensionRepo *repo = (bUserExtensionRepo *)ptr->data;
   BKE_callback_exec_null(bmain, BKE_CB_EVT_EXTENSION_REPOS_UPDATE_PRE);
-  BKE_preferences_extension_repo_path_set(repo, value);
+  BKE_preferences_extension_repo_custom_dirpath_set(repo, value);
+  BKE_callback_exec_null(bmain, BKE_CB_EVT_EXTENSION_REPOS_UPDATE_POST);
+}
+
+static void rna_userdef_extension_repo_generic_flag_set_impl(PointerRNA *ptr,
+                                                             const bool value,
+                                                             const int flag)
+{
+  Main *bmain = G.main;
+  bUserExtensionRepo *repo = (bUserExtensionRepo *)ptr->data;
+  BKE_callback_exec_null(bmain, BKE_CB_EVT_EXTENSION_REPOS_UPDATE_PRE);
+  SET_FLAG_FROM_TEST(repo->flag, value, flag);
   BKE_callback_exec_null(bmain, BKE_CB_EVT_EXTENSION_REPOS_UPDATE_POST);
 }
 
 static void rna_userdef_extension_repo_enabled_set(PointerRNA *ptr, bool value)
 {
-  Main *bmain = G.main;
-  bUserExtensionRepo *repo = (bUserExtensionRepo *)ptr->data;
-  BKE_callback_exec_null(bmain, BKE_CB_EVT_EXTENSION_REPOS_UPDATE_PRE);
-  SET_FLAG_FROM_TEST(repo->flag, !value, USER_EXTENSION_REPO_FLAG_DISABLED);
-  BKE_callback_exec_null(bmain, BKE_CB_EVT_EXTENSION_REPOS_UPDATE_POST);
+  rna_userdef_extension_repo_generic_flag_set_impl(ptr, !value, USER_EXTENSION_REPO_FLAG_DISABLED);
+}
+
+static void rna_userdef_extension_repo_use_custom_directory_set(PointerRNA *ptr, bool value)
+{
+  rna_userdef_extension_repo_generic_flag_set_impl(
+      ptr, value, USER_EXTENSION_REPO_FLAG_USE_CUSTOM_DIRECTORY);
+}
+
+static void rna_userdef_extension_repo_use_remote_path_set(PointerRNA *ptr, bool value)
+{
+  rna_userdef_extension_repo_generic_flag_set_impl(
+      ptr, value, USER_EXTENSION_REPO_FLAG_USE_REMOTE_PATH);
 }
 
 static void rna_userdef_script_autoexec_update(Main * /*bmain*/,
@@ -489,16 +508,22 @@ static void rna_userdef_asset_library_remove(ReportList *reports, PointerRNA *pt
 
 static bUserExtensionRepo *rna_userdef_extension_repo_new(const char *name,
                                                           const char *module,
-                                                          const char *directory,
+                                                          const char *custom_directory,
                                                           const char *remote_path)
 {
   Main *bmain = G.main;
   BKE_callback_exec_null(bmain, BKE_CB_EVT_EXTENSION_REPOS_UPDATE_PRE);
 
   bUserExtensionRepo *repo = BKE_preferences_extension_repo_add(
-      &U, name ? name : "", module ? module : "", directory ? directory : "");
+      &U, name ? name : "", module ? module : "", custom_directory ? custom_directory : "");
+
   if (remote_path) {
     STRNCPY(repo->remote_path, remote_path);
+    repo->flag |= USER_EXTENSION_REPO_FLAG_USE_REMOTE_PATH;
+  }
+
+  if (repo->custom_dirpath[0]) {
+    repo->flag |= USER_EXTENSION_REPO_FLAG_USE_CUSTOM_DIRECTORY;
   }
 
   BKE_callback_exec_null(bmain, BKE_CB_EVT_EXTENSION_REPOS_UPDATE_POST);
@@ -6615,12 +6640,9 @@ static void rna_def_userdef_filepaths_extension_repo(BlenderRNA *brna)
   RNA_def_property_string_funcs(prop, nullptr, nullptr, "rna_userdef_extension_repo_module_set");
   RNA_def_property_update(prop, 0, "rna_userdef_update");
 
-  prop = RNA_def_property(srna, "directory", PROP_STRING, PROP_DIRPATH);
-  RNA_def_property_string_sdna(prop, nullptr, "dirpath");
-  RNA_def_property_ui_text(prop,
-                           "Local Directory",
-                           "The local directory containing extensions. "
-                           "When unset, a path is used based on the user scripts path");
+  prop = RNA_def_property(srna, "custom_directory", PROP_STRING, PROP_DIRPATH);
+  RNA_def_property_string_sdna(prop, nullptr, "custom_dirpath");
+  RNA_def_property_ui_text(prop, "Custom Directory", "The local directory containing extensions");
   RNA_def_property_translation_context(prop, BLT_I18NCONTEXT_EDITOR_FILEBROWSER);
   RNA_def_property_string_funcs(
       prop, nullptr, nullptr, "rna_userdef_extension_repo_directory_set");
@@ -6646,6 +6668,19 @@ static void rna_def_userdef_filepaths_extension_repo(BlenderRNA *brna)
   RNA_def_property_boolean_negative_sdna(prop, nullptr, "flag", USER_EXTENSION_REPO_FLAG_DISABLED);
   RNA_def_property_ui_text(prop, "Enabled", "Enable the repository");
   RNA_def_property_boolean_funcs(prop, nullptr, "rna_userdef_extension_repo_enabled_set");
+
+  prop = RNA_def_property(srna, "use_custom_directory", PROP_BOOLEAN, PROP_NONE);
+  RNA_def_property_boolean_sdna(
+      prop, nullptr, "flag", USER_EXTENSION_REPO_FLAG_USE_CUSTOM_DIRECTORY);
+  RNA_def_property_ui_text(
+      prop, "Custom Directory", "Manually set the path for extensions to be stored");
+  RNA_def_property_boolean_funcs(
+      prop, nullptr, "rna_userdef_extension_repo_use_custom_directory_set");
+
+  prop = RNA_def_property(srna, "use_remote_path", PROP_BOOLEAN, PROP_NONE);
+  RNA_def_property_boolean_sdna(prop, nullptr, "flag", USER_EXTENSION_REPO_FLAG_USE_REMOTE_PATH);
+  RNA_def_property_ui_text(prop, "Use Remote", "Synchonize the repository with a remote URL/path");
+  RNA_def_property_boolean_funcs(prop, nullptr, "rna_userdef_extension_repo_use_remote_path_set");
 }
 
 static void rna_def_userdef_script_directory(BlenderRNA *brna)
@@ -6760,8 +6795,12 @@ static void rna_def_userdef_extension_repos_collection(BlenderRNA *brna, Propert
 
   RNA_def_string(func, "name", nullptr, sizeof(bUserExtensionRepo::name), "Name", "");
   RNA_def_string(func, "module", nullptr, sizeof(bUserExtensionRepo::module), "Module", "");
-  RNA_def_string(
-      func, "directory", nullptr, sizeof(bUserExtensionRepo::dirpath), "Directories", "");
+  RNA_def_string(func,
+                 "custom_directory",
+                 nullptr,
+                 sizeof(bUserExtensionRepo::custom_dirpath),
+                 "Custom Directory",
+                 "");
   RNA_def_string(
       func, "remote_path", nullptr, sizeof(bUserExtensionRepo::remote_path), "Remote Path", "");