diff --git a/CHANGELOG.md b/CHANGELOG.md
index 441d8e95..659e1aec 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -13,6 +13,13 @@ changes you may need to make.
 
 [breaking7]: https://recyclarr.dev/wiki/upgrade-guide/v7.0/
 
+### Added
+
+- YAML: New `includes` subdirectory intended to hold only include templates. Relative paths
+  specified in the `config` include directive are resolved starting at this new directory. Relative
+  paths to include templates located under the `configs` directory is now **DEPRECATED**. See the
+  "File Structure" page on the wiki for more details.
+
 ### Changed
 
 - **BREAKING**: The app data directory on OSX has changed. It now lives at `~/Library/Application
diff --git a/src/Recyclarr.Cli/Console/Setup/AppPathSetupTask.cs b/src/Recyclarr.Cli/Console/Setup/AppPathSetupTask.cs
index 07eeaed5..cdd70bb5 100644
--- a/src/Recyclarr.Cli/Console/Setup/AppPathSetupTask.cs
+++ b/src/Recyclarr.Cli/Console/Setup/AppPathSetupTask.cs
@@ -13,6 +13,7 @@ public class AppPathSetupTask(ILogger log, IAppPaths paths) : IBaseCommandSetupT
         paths.CacheDirectory.Create();
         paths.LogDirectory.Create();
         paths.ConfigsDirectory.Create();
+        paths.IncludesDirectory.Create();
     }
 
     public void OnFinish()
diff --git a/src/Recyclarr.Config/Parsing/PostProcessing/ConfigMerging/ConfigIncludeProcessor.cs b/src/Recyclarr.Config/Parsing/PostProcessing/ConfigMerging/ConfigIncludeProcessor.cs
index 55df0825..4fecc65e 100644
--- a/src/Recyclarr.Config/Parsing/PostProcessing/ConfigMerging/ConfigIncludeProcessor.cs
+++ b/src/Recyclarr.Config/Parsing/PostProcessing/ConfigMerging/ConfigIncludeProcessor.cs
@@ -4,13 +4,43 @@ using Recyclarr.TrashGuide;
 
 namespace Recyclarr.Config.Parsing.PostProcessing.ConfigMerging;
 
-public class ConfigIncludeProcessor(IFileSystem fs, IAppPaths paths) : IIncludeProcessor
+public class ConfigIncludeProcessor(IFileSystem fs, IAppPaths paths, ILogger log) : IIncludeProcessor
 {
     public bool CanProcess(IYamlInclude includeDirective)
     {
         return includeDirective is ConfigYamlInclude;
     }
 
+    private IFileInfo? ConvertToAbsolute(string path)
+    {
+        if (fs.Path.IsPathRooted(path))
+        {
+            log.Debug("Path processed as absolute: {Path}", path);
+            return fs.FileInfo.New(path);
+        }
+
+        var fsPath = paths.IncludesDirectory.File(path);
+        if (fsPath.Exists)
+        {
+            log.Debug("Path rooted to the includes directory: {Path}", path);
+            return fsPath;
+        }
+
+        fsPath = paths.ConfigsDirectory.File(path);
+        // ReSharper disable once InvertIf
+        if (fsPath.Exists)
+        {
+            log.Warning(
+                "DEPRECATED: Include templates inside the `configs` directory are no longer supported. " +
+                "These files should be relocated to the new sibling `includes` directory instead. " +
+                "See: https://recyclarr.dev/wiki/upgrade-guide/v8.0/#include-dir");
+
+            return fsPath;
+        }
+
+        return null;
+    }
+
     public IFileInfo GetPathToConfig(IYamlInclude includeDirective, SupportedServices serviceType)
     {
         var include = (ConfigYamlInclude) includeDirective;
@@ -20,16 +50,10 @@ public class ConfigIncludeProcessor(IFileSystem fs, IAppPaths paths) : IIncludeP
             throw new YamlIncludeException("`config` property is required.");
         }
 
-        var rooted = fs.Path.IsPathRooted(include.Config);
-
-        var configFile = rooted
-            ? fs.FileInfo.New(include.Config)
-            : paths.ConfigsDirectory.File(include.Config);
-
-        if (!configFile.Exists)
+        var configFile = ConvertToAbsolute(include.Config);
+        if (configFile?.Exists != true)
         {
-            var pathType = rooted ? "Absolute" : "Relative";
-            throw new YamlIncludeException($"{pathType} include path does not exist: {configFile.FullName}");
+            throw new YamlIncludeException($"Include path could not be resolved: {include.Config}");
         }
 
         return configFile;
diff --git a/src/Recyclarr.Platform/AppPaths.cs b/src/Recyclarr.Platform/AppPaths.cs
index f0224a59..deab2605 100644
--- a/src/Recyclarr.Platform/AppPaths.cs
+++ b/src/Recyclarr.Platform/AppPaths.cs
@@ -11,4 +11,5 @@ public class AppPaths(IDirectoryInfo appDataPath) : IAppPaths
     public IDirectoryInfo ReposDirectory => AppDataDirectory.SubDirectory("repositories");
     public IDirectoryInfo CacheDirectory => AppDataDirectory.SubDirectory("cache");
     public IDirectoryInfo ConfigsDirectory => AppDataDirectory.SubDirectory("configs");
+    public IDirectoryInfo IncludesDirectory => AppDataDirectory.SubDirectory("includes");
 }
diff --git a/src/Recyclarr.Platform/IAppPaths.cs b/src/Recyclarr.Platform/IAppPaths.cs
index 64f847fe..8f2834bc 100644
--- a/src/Recyclarr.Platform/IAppPaths.cs
+++ b/src/Recyclarr.Platform/IAppPaths.cs
@@ -9,4 +9,5 @@ public interface IAppPaths
     IDirectoryInfo ReposDirectory { get; }
     IDirectoryInfo CacheDirectory { get; }
     IDirectoryInfo ConfigsDirectory { get; }
+    IDirectoryInfo IncludesDirectory { get; }
 }
diff --git a/tests/Recyclarr.Cli.IntegrationTests/BaseCommandSetupIntegrationTest.cs b/tests/Recyclarr.Cli.IntegrationTests/BaseCommandSetupIntegrationTest.cs
index 5993ab29..418f66b6 100644
--- a/tests/Recyclarr.Cli.IntegrationTests/BaseCommandSetupIntegrationTest.cs
+++ b/tests/Recyclarr.Cli.IntegrationTests/BaseCommandSetupIntegrationTest.cs
@@ -76,7 +76,8 @@ internal class BaseCommandSetupIntegrationTest : CliIntegrationFixture
         {
             Paths.CacheDirectory.FullName,
             Paths.LogDirectory.FullName,
-            Paths.ConfigsDirectory.FullName
+            Paths.ConfigsDirectory.FullName,
+            Paths.IncludesDirectory.FullName
         };
 
         Fs.LeafDirectories().Should().BeEquivalentTo(expectedDirs);
diff --git a/tests/Recyclarr.Tests/Config/Parsing/PostProcessing/ConfigMerging/ConfigIncludeProcessorTest.cs b/tests/Recyclarr.Tests/Config/Parsing/PostProcessing/ConfigMerging/ConfigIncludeProcessorTest.cs
index c31c8116..62935892 100644
--- a/tests/Recyclarr.Tests/Config/Parsing/PostProcessing/ConfigMerging/ConfigIncludeProcessorTest.cs
+++ b/tests/Recyclarr.Tests/Config/Parsing/PostProcessing/ConfigMerging/ConfigIncludeProcessorTest.cs
@@ -35,7 +35,7 @@ public class ConfigIncludeProcessorTest
         [Frozen] IAppPaths paths,
         ConfigIncludeProcessor sut)
     {
-        fs.AddEmptyFile(paths.ConfigsDirectory.File("foo/bar/config.yml"));
+        fs.AddEmptyFile(paths.IncludesDirectory.File("foo/bar/config.yml"));
 
         var includeDirective = new ConfigYamlInclude
         {
@@ -44,7 +44,7 @@ public class ConfigIncludeProcessorTest
 
         var path = sut.GetPathToConfig(includeDirective, default);
 
-        path.FullName.Should().Be(paths.ConfigsDirectory.File("foo/bar/config.yml").FullName);
+        path.FullName.Should().Be(paths.IncludesDirectory.File("foo/bar/config.yml").FullName);
     }
 
     [Test, AutoMockData]
@@ -78,7 +78,7 @@ public class ConfigIncludeProcessorTest
 
         var act = () => sut.GetPathToConfig(includeDirective, default);
 
-        act.Should().Throw<YamlIncludeException>().WithMessage("Relative*not exist*");
+        act.Should().Throw<YamlIncludeException>();
     }
 
     [Test, AutoMockData]
@@ -95,6 +95,6 @@ public class ConfigIncludeProcessorTest
 
         var act = () => sut.GetPathToConfig(includeDirective, default);
 
-        act.Should().Throw<YamlIncludeException>().WithMessage("Absolute*not exist*");
+        act.Should().Throw<YamlIncludeException>();
     }
 }