diff --git a/README.md b/README.md
index a6463c2a..27bce8d9 100644
--- a/README.md
+++ b/README.md
@@ -46,6 +46,7 @@ port | Web port to use
 host | IP or Hostname to listen on
 type | Which kind of server to use, can be 'linux', 'windows' or 'wine'
 additionalConfigurationOptions | Additional configuration options appended to server.cfg file
+modsPath | Path where game mods are stored. Leave empty to use game directory
 parameters | Extra startup parameters added to servers and headless clients
 serverMods | Mods that always and only will be used by the game servers
 auth | If both username and password is set, HTTP Basic Auth will be used
diff --git a/app.js b/app.js
index e8ddd73a..03eee3da 100644
--- a/app.js
+++ b/app.js
@@ -31,13 +31,13 @@ app.use(serveStatic(path.join(__dirname, 'public')))
 
 var logs = new Logs(config)
 
-var manager = new Manager(config, logs)
-manager.load()
-
 var missions = new Missions(config)
 var mods = new Mods(config)
 mods.updateMods()
 
+var manager = new Manager(config, logs, mods)
+manager.load()
+
 var settings = new Settings(config)
 
 app.use('/api/logs', require('./routes/logs')(logs))
diff --git a/config.js.example b/config.js.example
index 2731db86..e2d0c80e 100644
--- a/config.js.example
+++ b/config.js.example
@@ -1,6 +1,7 @@
 module.exports = {
   game: 'arma3', // arma3, arma2oa, arma2, arma1, cwa, ofpresistance, ofp
   path: 'path-to-arma3-directory',
+  modsPath: '', // optional: path to mod directories, relative to game directory
   port: 3000,
   host: '0.0.0.0', // Can be either an IP or a Hostname
   type: 'linux', // Can be either linux, windows or wine
diff --git a/lib/manager.js b/lib/manager.js
index b7edca7f..132727b8 100644
--- a/lib/manager.js
+++ b/lib/manager.js
@@ -5,9 +5,10 @@ var Server = require('./server')
 
 var filePath = 'servers.json'
 
-var Manager = function (config, logs) {
+var Manager = function (config, logs, mods) {
   this.config = config
   this.logs = logs
+  this.mods = mods
   this.serversArr = []
   this.serversHash = {}
 }
@@ -41,7 +42,7 @@ Manager.prototype.removeServer = function (id) {
 }
 
 Manager.prototype._addServer = function (data) {
-  var server = new Server(this.config, this.logs, data)
+  var server = new Server(this.config, this.logs, this.mods, data)
   this.serversArr.push(server)
   this.serversArr.sort(function (a, b) {
     return a.title.localeCompare(b.title)
diff --git a/lib/mods.js b/lib/mods.js
index 012bcf18..6c24face 100644
--- a/lib/mods.js
+++ b/lib/mods.js
@@ -8,11 +8,11 @@ var Mods = function (config) {
   this.mods = []
 }
 
-Mods.prototype = new events.EventEmitter()
+Mods.prototype = Object.create(events.EventEmitter.prototype)
 
 Mods.prototype.delete = function (mod, cb) {
   var self = this
-  fs.rmrf(path.join(this.config.path, mod), function (err) {
+  fs.rmrf(self.getAbsoluteModPath(mod), function (err) {
     cb(err)
 
     if (!err) {
@@ -23,7 +23,7 @@ Mods.prototype.delete = function (mod, cb) {
 
 Mods.prototype.updateMods = function () {
   var self = this
-  glob('**/{@*,gm,vn}/addons', { cwd: self.config.path }, function (err, files) {
+  glob('**/{@*,gm,vn}/addons', { cwd: self.getAbsoluteModsPath() }, function (err, files) {
     if (err) {
       console.log(err)
     } else {
@@ -40,4 +40,25 @@ Mods.prototype.updateMods = function () {
   })
 }
 
+Mods.prototype.getAbsoluteModsPath = function () {
+  if (this.config.modsPath) {
+    if (path.isAbsolute(this.config.modsPath)) {
+      return this.config.modsPath
+    }
+    return path.join(this.config.path, this.config.modsPath)
+  }
+  return this.config.path
+}
+
+Mods.prototype.getApplicableModPath = function (mod) {
+  if (!this.config.modsPath) {
+    return mod
+  }
+  return path.join(this.config.modsPath, mod)
+}
+
+Mods.prototype.getAbsoluteModPath = function (mod) {
+  return path.join(this.getAbsoluteModsPath(), mod)
+}
+
 module.exports = Mods
diff --git a/lib/server.js b/lib/server.js
index 65f39166..f9387790 100644
--- a/lib/server.js
+++ b/lib/server.js
@@ -32,9 +32,10 @@ var createServerTitle = function (title) {
   return title
 }
 
-var Server = function (config, logs, options) {
+var Server = function (config, logs, mods, options) {
   this.config = config
   this.logs = logs
+  this.modsManager = mods
   this.update(options)
 }
 
@@ -134,6 +135,7 @@ Server.prototype.start = function () {
     return this
   }
 
+  var self = this
   var parameters = this.getParameters()
   var server = new ArmaServer.Server({
     additionalConfigurationOptions: this.getAdditionalConfigurationOptions(),
@@ -149,7 +151,9 @@ Server.prototype.start = function () {
     hostname: createServerTitle(this.title),
     localClient: this.number_of_headless_clients > 0 ? ['127.0.0.1'] : null,
     missions: this.missions,
-    mods: this.mods,
+    mods: this.mods.map(function (mod) {
+      return self.modsManager.getApplicableModPath(mod)
+    }),
     motd: (this.motd && this.motd.split('\n')) || null,
     parameters: parameters,
     password: this.password,
@@ -164,7 +168,6 @@ Server.prototype.start = function () {
   })
   server.writeServerConfig()
   var instance = server.start()
-  var self = this
 
   var logStream = null
   if (this.config.type === 'linux') {
@@ -225,7 +228,9 @@ Server.prototype.startHeadlessClients = function () {
       filePatching: self.file_patching,
       game: config.game,
       host: '127.0.0.1',
-      mods: self.mods,
+      mods: self.mods.map(function (mod) {
+        return self.modsManager.getApplicableModPath(mod)
+      }),
       parameters: parameters,
       password: self.password,
       path: self.config.path,
diff --git a/test/lib/mods.js b/test/lib/mods.js
new file mode 100644
index 00000000..e6bc9b1f
--- /dev/null
+++ b/test/lib/mods.js
@@ -0,0 +1,82 @@
+var path = require('path')
+var os = require('os')
+require('should')
+
+function isWindows () {
+  return os.type() === 'Windows_NT'
+}
+
+var Mods = require('../../lib/mods.js')
+
+describe('Mods', function () {
+  var rootPrefix = '/'
+  if (isWindows()) {
+    rootPrefix = 'C:'
+  }
+  var absoluteArmaPath = path.join(rootPrefix, 'foo', 'arma')
+  var absoluteModsPath = path.join(rootPrefix, 'foo', 'mods')
+  var relativeModsPath = path.join('..', 'mods')
+
+  describe('getAbsoluteModsPath() / getAbsoluteModPath(mod)', function () {
+    describe('when no modsPath is given', function () {
+      it('returns path', function () {
+        var mods = new Mods({ path: absoluteArmaPath })
+        mods.getAbsoluteModsPath().should.eql(absoluteArmaPath)
+        mods.getAbsoluteModPath('x').should.eql(path.join(absoluteArmaPath, 'x'))
+      })
+    })
+    describe('when modsPath is', function () {
+      it('relative, it returns absolute path', function () {
+        var mods = new Mods({ path: absoluteArmaPath, modsPath: relativeModsPath })
+        mods.getAbsoluteModsPath().should.eql(absoluteModsPath)
+        mods.getAbsoluteModPath('x').should.eql(path.join(absoluteModsPath, 'x'))
+      })
+      it('absolute, it returns absolute path', function () {
+        var mods = new Mods({ path: absoluteArmaPath, modsPath: absoluteModsPath })
+        mods.getAbsoluteModsPath().should.eql(absoluteModsPath)
+        mods.getAbsoluteModPath('x').should.eql(path.join(absoluteModsPath, 'x'))
+      })
+    })
+  })
+  describe('getApplicableModPath()', function () {
+    it('returns mod name if no modsPath is given', function () {
+      var mods = new Mods({ path: absoluteArmaPath })
+      mods.getApplicableModPath('x').should.eql('x')
+    })
+    it('returns relative path if relative modsPath is given', function () {
+      var mods = new Mods({ path: absoluteArmaPath, modsPath: relativeModsPath })
+      mods.getApplicableModPath('x').should.eql(path.join(relativeModsPath, 'x'))
+    })
+    it('returns absolute path if modsPath is absolute', function () {
+      var mods = new Mods({ path: absoluteArmaPath, modsPath: absoluteModsPath })
+      mods.getApplicableModPath('x').should.eql(path.join(absoluteModsPath, 'x'))
+    })
+  })
+
+  describe('updateMods()', function () {
+    it('finds mods in arma dir', function (done) {
+      var mods = new Mods({ path: path.join(__dirname, '..', 'resources', 'armaPath') })
+      mods.on('mods', function (modList) {
+        modList.should.eql([{ name: '@armaMod' }])
+        done()
+      })
+      mods.updateMods()
+    })
+    it('finds mods in modsPath dir', function (done) {
+      var mods = new Mods({ path: path.join(__dirname, '..', 'resources', 'armaPath'), modsPath: path.join(__dirname, '..', 'resources', 'modPath') })
+      mods.on('mods', function (modList) {
+        modList.should.eql([{ name: '@modPathMod' }])
+        done()
+      })
+      mods.updateMods()
+    })
+    it('finds mods in relative modsPath dir', function (done) {
+      var mods = new Mods({ path: path.join(__dirname, '..', 'resources', 'armaPath'), modsPath: path.join('..', 'modPath') })
+      mods.on('mods', function (modList) {
+        modList.should.eql([{ name: '@modPathMod' }])
+        done()
+      })
+      mods.updateMods()
+    })
+  })
+})
diff --git a/test/lib/server.js b/test/lib/server.js
index 3dfa552b..9ab3b7b6 100644
--- a/test/lib/server.js
+++ b/test/lib/server.js
@@ -5,14 +5,14 @@ var Server = require('../../lib/server.js')
 describe('Server', function () {
   describe('generateId()', function () {
     it('should include title', function () {
-      var server = new Server(null, null, { title: 'title.with.lot.of.dots' })
+      var server = new Server(null, null, null, { title: 'title.with.lot.of.dots' })
       server.generateId().should.eql('title-with-lot-of-dots')
     })
   })
 
   describe('toJSON()', function () {
     it('should include title', function () {
-      var server = new Server(null, null, { title: 'test' })
+      var server = new Server(null, null, null, { title: 'test' })
       server.toJSON().should.have.property('title', 'test')
     })
   })
diff --git a/test/resources/armaPath/@armaMod/addons/.keep b/test/resources/armaPath/@armaMod/addons/.keep
new file mode 100644
index 00000000..e69de29b
diff --git a/test/resources/modPath/@modPathMod/addons/.keep b/test/resources/modPath/@modPathMod/addons/.keep
new file mode 100644
index 00000000..e69de29b