diff --git a/install-catalog/action.yml b/install-catalog/action.yml
index 0d88bc36..851d7977 100644
--- a/install-catalog/action.yml
+++ b/install-catalog/action.yml
@@ -32,8 +32,12 @@ inputs:
     required: true
 
   target-url:
-    description: 'Target URL of Power Platform environment for catalog item installation.'
-    required: true
+    description: '(deprecated) Target URL of Power Platform environment for catalog item installation.'
+    required: false
+
+  target-environment:
+    description: 'Url or ID of the target environment for catalog item installation.'
+    required: false
 
   settings:
     description: 'Runtime Package Settings for the installation framework to execute. The format of the string must be `key=value|key=value`.'
diff --git a/src/actions/install-catalog/index.ts b/src/actions/install-catalog/index.ts
index 7023685d..9c4d9587 100644
--- a/src/actions/install-catalog/index.ts
+++ b/src/actions/install-catalog/index.ts
@@ -25,6 +25,7 @@ export async function main (): Promise<void> {
         environmentUrl: getEnvironmentUrl(),
         catalogItemId: parameterMap['catalog-item-id'],
         targetEnvironmentUrl: parameterMap['target-url'],
+        targetEnvironment: parameterMap['target-environment'],
         settings: parameterMap['settings'],
         targetVersion: parameterMap['target-version'],
         pollStatus: parameterMap['poll-status'],
diff --git a/src/test/installCatalog.test.ts b/src/test/installCatalog.test.ts
index eb8f8c22..4599f287 100644
--- a/src/test/installCatalog.test.ts
+++ b/src/test/installCatalog.test.ts
@@ -39,7 +39,8 @@ describe("install-catalog tests", () => {
             credentials: credentials,
             environmentUrl: mockEnvironmentUrl,
             catalogItemId: { name: 'catalog-item-id', required: true, defaultValue: undefined },
-            targetEnvironmentUrl: { name: 'target-url', required: true, defaultValue: undefined },
+            targetEnvironmentUrl: { name: 'target-url', required: false, defaultValue: undefined },
+            targetEnvironment: { name: 'target-environment', required: false, defaultValue: undefined },
             settings: { name: 'settings', required: false, defaultValue: undefined },
             targetVersion: { name: 'target-version', required: false, defaultValue: undefined },
             pollStatus: { name: 'poll-status', required: false, defaultValue: 'false' },