diff --git a/roles/awx/templates/tower_config.yaml.j2 b/roles/awx/templates/tower_config.yaml.j2
index ad5cf831..77152541 100644
--- a/roles/awx/templates/tower_config.yaml.j2
+++ b/roles/awx/templates/tower_config.yaml.j2
@@ -34,7 +34,10 @@ data:
     ALLOWED_HOSTS = ['*']
     
     INTERNAL_API_URL = 'http://127.0.0.1:8052'
-    
+
+    # Sets Ansible Collection path
+    AWX_ANSIBLE_COLLECTIONS_PATHS = '/var/lib/awx/vendor/awx_ansible_collections'
+
     # Container environments don't like chroots
     AWX_PROOT_ENABLED = False