diff --git a/buildpack/stage.py b/buildpack/stage.py
index e29b0d5fa..94b603a57 100755
--- a/buildpack/stage.py
+++ b/buildpack/stage.py
@@ -204,7 +204,7 @@ def cleanup_dependency_cache(cached_dir, dependency_list):
     fluentbit.stage(BUILDPACK_DIR, DOT_LOCAL_LOCATION, CACHE_DIR)
     mx_java_agent.stage(BUILDPACK_DIR, DOT_LOCAL_LOCATION, CACHE_DIR, runtime_version)
     telegraf.stage(BUILDPACK_DIR, DOT_LOCAL_LOCATION, CACHE_DIR, runtime_version)
-    datadog.stage(BUILDPACK_DIR, DOT_LOCAL_LOCATION, CACHE_DIR)
+    datadog.stage(BUILDPACK_DIR, BUILD_DIR, CACHE_DIR)
     metering.stage(BUILDPACK_DIR, BUILD_DIR, CACHE_DIR)
     database.stage(BUILDPACK_DIR, BUILD_DIR)
     runtime.stage(BUILDPACK_DIR, BUILD_DIR, CACHE_DIR)
diff --git a/buildpack/telemetry/datadog.py b/buildpack/telemetry/datadog.py
index 2ee3c258b..90364f2fc 100644
--- a/buildpack/telemetry/datadog.py
+++ b/buildpack/telemetry/datadog.py
@@ -9,9 +9,11 @@
 # - Telegraf: PostgreSQL metrics, replicating the Datadog metric names
 # - Telegraf: Database diskstorage size metric
 
+import glob
 import json
 import logging
 import os
+import shutil
 import socket
 import subprocess
 from collections import OrderedDict
@@ -27,8 +29,7 @@
 NAMESPACE = "datadog"
 TRACE_AGENT_DEPENDENCY = f"{NAMESPACE}.trace-agent"
 
-ROOT_DIR = os.path.abspath(".local")
-SIDECAR_ROOT_DIR = os.path.join(ROOT_DIR, NAMESPACE)
+ROOT_DIR = os.path.abspath(".datadog")
 AGENT_USER_CHECKS_DIR = os.path.abspath("/home/vcap/app/datadog_integrations")
 
 STATSD_PORT = 8125
@@ -36,7 +37,8 @@
 
 
 def _get_agent_dir(root=ROOT_DIR):
-    return os.path.join(root, NAMESPACE, "lib")
+    # This would be something like /home/vcap/app/.datadog
+    return os.path.join(root)
 
 
 def _get_user_checks_dir():
@@ -194,7 +196,7 @@ def get_statsd_port():
 
 def _set_up_dd_java_agent(m2ee, model_version, runtime_version, jmx_config_files):
     jar = os.path.join(
-        SIDECAR_ROOT_DIR,
+        ROOT_DIR,
         os.path.basename(util.get_dependency(TRACE_AGENT_DEPENDENCY)["artifact"]),
     )
 
@@ -517,13 +519,13 @@ def _download(buildpack_dir, build_path, cache_dir):
 
     util.resolve_dependency(
         f"{NAMESPACE}.buildpack",
-        os.path.join(build_path, NAMESPACE),
+        os.path.join(build_path, ".datadog"),
         buildpack_dir=buildpack_dir,
         cache_dir=cache_dir,
     )
     util.resolve_dependency(
         TRACE_AGENT_DEPENDENCY,
-        os.path.join(build_path, NAMESPACE),
+        os.path.join(build_path, ".datadog"),
         buildpack_dir=buildpack_dir,
         cache_dir=cache_dir,
         unpack=False,
@@ -554,6 +556,20 @@ def _patch_run_datadog_script(script_dir):
                 file_handler.write(line)
         file_handler.truncate()
 
+def _prep_datadog_dir(datadog_install_path):
+    # Tries to replicate what the datadog-cloudfoundry-buildpack
+    # supply script does before running the datadog startup script.
+    # The DD buildpack assumes /home/vcap/app/.datadog to be the default
+    # directory for all configs and binaries though it provides DATADOG_DIR
+    # as an environment variable. So here we try to move all files under lib/
+    # to /home/vcap/app/.datadog/
+    datadog_lib_path = os.path.join(datadog_install_path, "lib")
+    files = glob.glob(datadog_lib_path)
+    for f in files:
+        shutil.move(f, datadog_install_path)
+    # finally cleanup up the lib/ dir
+    shutil.rmtree(datadog_lib_path)
+
 
 def stage(buildpack_path, build_path, cache_path):
     if not is_enabled():
@@ -562,12 +578,14 @@ def stage(buildpack_path, build_path, cache_path):
     logging.debug("Staging Datadog...")
     _download(buildpack_path, build_path, cache_path)
 
-    logging.debug("Setting Datadog Agent script permissions if required...")
-    util.set_executable(f"{_get_agent_dir(build_path)}/*.sh")
+    logging.debug("Prepping the DATADOG_DIR ...")
+    _prep_datadog_dir(_get_agent_dir())
 
-    logging.debug("Patching run-datadog.sh...")
-    _patch_run_datadog_script(_get_agent_dir(build_path))
+    #logging.debug("Setting Datadog Agent script permissions if required...")
+    #util.set_executable(f"{_get_agent_dir(build_path)}/*.sh")
 
+    logging.debug("Patching run-datadog.sh...")
+    _patch_run_datadog_script(_get_agent_dir())
 
 def run(model_version, runtime_version):
     if not is_enabled():