diff --git a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/azure.test.ts b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/azure.test.ts
index 065ebaefa5..ca5c29e9ce 100644
--- a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/azure.test.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/azure.test.ts
@@ -132,6 +132,16 @@ describe('AzurePreparer', () => {
   });
 
   it('return the temp directory with the path to the folder if it is specified', async () => {
+    const preparer = new AzurePreparer(ConfigReader.fromConfigs([]));
+    mockEntity.spec.path = './template/test/1/2/3';
+    const response = await preparer.prepare(mockEntity, {});
+
+    expect(response.split('\\').join('/')).toMatch(
+      /\/template\/test\/1\/2\/3$/,
+    );
+  });
+
+  it('return the working directory with the path to the folder if it is specified', async () => {
     const preparer = new AzurePreparer(ConfigReader.fromConfigs([]));
     mockEntity.spec.path = './template/test/1/2/3';
     const response = await preparer.prepare(mockEntity, {
@@ -139,7 +149,7 @@ describe('AzurePreparer', () => {
     });
 
     expect(response).toBe(
-      `/workDir/graphql-starter-static/template/test/1/2/3`,
+      '/workDir/graphql-starter-static/template/test/1/2/3',
     );
   });
 });
diff --git a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/azure.ts b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/azure.ts
index aaf8508c8e..bd5458b329 100644
--- a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/azure.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/azure.ts
@@ -13,6 +13,7 @@
  * See the License for the specific language governing permissions and
  * limitations under the License.
  */
+import os from 'os';
 import fs from 'fs-extra';
 import path from 'path';
 import { TemplateEntityV1alpha1 } from '@backstage/catalog-model';
@@ -33,10 +34,10 @@ export class AzurePreparer implements PreparerBase {
 
   async prepare(
     template: TemplateEntityV1alpha1,
-    opts: { workingDirectory: string },
+    opts: { workingDirectory?: string },
   ): Promise<string> {
     const { protocol, location } = parseLocationAnnotation(template);
-    const { workingDirectory } = opts;
+    const workingDirectory = opts.workingDirectory ?? os.tmpdir();
 
     if (!['azure/api', 'url'].includes(protocol)) {
       throw new InputError(
diff --git a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/file.ts b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/file.ts
index 828238ae08..b97e4ae08b 100644
--- a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/file.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/file.ts
@@ -13,6 +13,7 @@
  * See the License for the specific language governing permissions and
  * limitations under the License.
  */
+import os from 'os';
 import fs from 'fs-extra';
 import path from 'path';
 import { TemplateEntityV1alpha1 } from '@backstage/catalog-model';
@@ -23,10 +24,10 @@ import { PreparerBase } from './types';
 export class FilePreparer implements PreparerBase {
   async prepare(
     template: TemplateEntityV1alpha1,
-    opts: { workingDirectory: string },
+    opts: { workingDirectory?: string },
   ): Promise<string> {
     const { protocol, location } = parseLocationAnnotation(template);
-    const { workingDirectory } = opts;
+    const workingDirectory = opts.workingDirectory ?? os.tmpdir();
 
     if (protocol !== 'file') {
       throw new InputError(
diff --git a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/github.test.ts b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/github.test.ts
index 29655f7ee9..d652d8aa35 100644
--- a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/github.test.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/github.test.ts
@@ -99,7 +99,18 @@ describe('GitHubPreparer', () => {
       },
     );
   });
+
   it('return the temp directory with the path to the folder if it is specified', async () => {
+    const preparer = new GithubPreparer();
+    mockEntity.spec.path = './template/test/1/2/3';
+    const response = await preparer.prepare(mockEntity, {});
+
+    expect(response.split('\\').join('/')).toMatch(
+      /\/template\/test\/1\/2\/3$/,
+    );
+  });
+
+  it('return the working directory with the path to the folder if it is specified', async () => {
     const preparer = new GithubPreparer();
     mockEntity.spec.path = './template/test/1/2/3';
     const response = await preparer.prepare(mockEntity, {
@@ -107,7 +118,7 @@ describe('GitHubPreparer', () => {
     });
 
     expect(response).toBe(
-      `/workDir/graphql-starter-static/template/test/1/2/3`,
+      '/workDir/graphql-starter-static/template/test/1/2/3',
     );
   });
 
diff --git a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/github.ts b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/github.ts
index 863b760d03..1987c416b3 100644
--- a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/github.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/github.ts
@@ -13,6 +13,7 @@
  * See the License for the specific language governing permissions and
  * limitations under the License.
  */
+import os from 'os';
 import fs from 'fs-extra';
 import path from 'path';
 import { TemplateEntityV1alpha1 } from '@backstage/catalog-model';
@@ -31,10 +32,10 @@ export class GithubPreparer implements PreparerBase {
 
   async prepare(
     template: TemplateEntityV1alpha1,
-    opts: { workingDirectory: string },
+    opts: { workingDirectory?: string },
   ): Promise<string> {
     const { protocol, location } = parseLocationAnnotation(template);
-    const { workingDirectory } = opts;
+    const workingDirectory = opts.workingDirectory ?? os.tmpdir();
     const { token } = this;
 
     if (!['github', 'url'].includes(protocol)) {
diff --git a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/gitlab.test.ts b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/gitlab.test.ts
index 8df853ac06..3ee9dd103d 100644
--- a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/gitlab.test.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/gitlab.test.ts
@@ -138,12 +138,22 @@ describe('GitLabPreparer', () => {
       const preparer = new GitlabPreparer(ConfigReader.fromConfigs([]));
       mockEntity = mockEntityWithProtocol(protocol);
       mockEntity.spec.path = './template/test/1/2/3';
+      const response = await preparer.prepare(mockEntity, {});
+
+      expect(response.split('\\').join('/')).toMatch(
+        /\/template\/test\/1\/2\/3$/,
+      );
+    });
+
+    it('return the working directory with the path to the folder if it is specified', async () => {
+      const preparer = new GitlabPreparer(ConfigReader.fromConfigs([]));
+      mockEntity.spec.path = './template/test/1/2/3';
       const response = await preparer.prepare(mockEntity, {
         workingDirectory: '/workDir',
       });
 
       expect(response).toBe(
-        `/workDir/graphql-starter-static/template/test/1/2/3`,
+        '/workDir/graphql-starter-static/template/test/1/2/3',
       );
     });
   });
diff --git a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/gitlab.ts b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/gitlab.ts
index 5be72f85b5..55fc846bb5 100644
--- a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/gitlab.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/gitlab.ts
@@ -13,6 +13,7 @@
  * See the License for the specific language governing permissions and
  * limitations under the License.
  */
+import os from 'os';
 import fs from 'fs-extra';
 import path from 'path';
 import { TemplateEntityV1alpha1 } from '@backstage/catalog-model';
@@ -34,10 +35,10 @@ export class GitlabPreparer implements PreparerBase {
 
   async prepare(
     template: TemplateEntityV1alpha1,
-    opts: { workingDirectory: string },
+    opts: { workingDirectory?: string },
   ): Promise<string> {
     const { protocol, location } = parseLocationAnnotation(template);
-    const { workingDirectory } = opts;
+    const workingDirectory = opts.workingDirectory ?? os.tmpdir();
 
     if (!['gitlab', 'gitlab/api', 'url'].includes(protocol)) {
       throw new InputError(
diff --git a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/types.ts b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/types.ts
index 940d2b4178..1a28b316c6 100644
--- a/plugins/scaffolder-backend/src/scaffolder/stages/prepare/types.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/stages/prepare/types.ts
@@ -25,7 +25,7 @@ export type PreparerBase = {
    */
   prepare(
     template: TemplateEntityV1alpha1,
-    opts: { logger: Logger; workingDirectory: string },
+    opts: { logger: Logger; workingDirectory?: string },
   ): Promise<string>;
 };
 
diff --git a/plugins/scaffolder-backend/src/service/router.test.ts b/plugins/scaffolder-backend/src/service/router.test.ts
index bca17aa029..fae7ee8beb 100644
--- a/plugins/scaffolder-backend/src/service/router.test.ts
+++ b/plugins/scaffolder-backend/src/service/router.test.ts
@@ -25,7 +25,6 @@ jest.doMock('fs-extra', () => ({
   },
 }));
 
-import os from 'os';
 import { getVoidLogger } from '@backstage/backend-common';
 import { ConfigReader } from '@backstage/config';
 import express from 'express';
@@ -114,7 +113,7 @@ describe('createRouter - working directory', () => {
     });
   });
 
-  it('should default to OS temp-dir when no working directory is configured', async () => {
+  it('should not pass along anything when no working directory is configured', async () => {
     const router = await createRouter({
       logger: getVoidLogger(),
       preparers: mockPreparers,
@@ -132,7 +131,6 @@ describe('createRouter - working directory', () => {
 
     expect(mockPrepare).toBeCalledWith(expect.anything(), {
       logger: expect.anything(),
-      workingDirectory: os.tmpdir(),
     });
   });
 });
diff --git a/plugins/scaffolder-backend/src/service/router.ts b/plugins/scaffolder-backend/src/service/router.ts
index e66728ac91..bcb0896c6e 100644
--- a/plugins/scaffolder-backend/src/service/router.ts
+++ b/plugins/scaffolder-backend/src/service/router.ts
@@ -60,22 +60,24 @@ export async function createRouter(
   const logger = parentLogger.child({ plugin: 'scaffolder' });
   const jobProcessor = new JobProcessor();
 
-  const workingDirectory =
-    config.getOptionalString('backend.workingDirectory') ?? os.tmpdir();
-  try {
-    // Check if working directory exists and is writable
-    await fs.promises.access(
-      workingDirectory,
-      fs.constants.F_OK | fs.constants.W_OK,
-    );
-    logger.info(`using working directory: ${workingDirectory}`);
-  } catch (err) {
-    logger.error(
-      `working directory ${workingDirectory} ${
-        err.code === 'ENOENT' ? 'does not exist' : 'is not writable'
-      }`,
-    );
-    throw err;
+  let workingDirectory: string;
+  if (config.has('backend.workingDirectory')) {
+    workingDirectory = config.getString('backend.workingDirectory');
+    try {
+      // Check if working directory exists and is writable
+      await fs.promises.access(
+        workingDirectory,
+        fs.constants.F_OK | fs.constants.W_OK,
+      );
+      logger.info(`using working directory: ${workingDirectory}`);
+    } catch (err) {
+      logger.error(
+        `working directory ${workingDirectory} ${
+          err.code === 'ENOENT' ? 'does not exist' : 'is not writable'
+        }`,
+      );
+      throw err;
+    }
   }
 
   router