diff --git a/examples/development/python/poetry/poetry-pyproject-subdir/README.md b/examples/development/python/poetry/poetry-pyproject-subdir/README.md
new file mode 100644
index 00000000000..17e37ac7545
--- /dev/null
+++ b/examples/development/python/poetry/poetry-pyproject-subdir/README.md
@@ -0,0 +1,4 @@
+## Poetry in a monorepo
+
+This example demonstrates using a poetry project in a sub-folder (`services` in this case)
+by specifying the `DEVBOX_PYPROJECT_DIR` that the poetry plugin can use.
diff --git a/examples/development/python/poetry/poetry-pyproject-subdir/devbox.json b/examples/development/python/poetry/poetry-pyproject-subdir/devbox.json
new file mode 100644
index 00000000000..18966fbe677
--- /dev/null
+++ b/examples/development/python/poetry/poetry-pyproject-subdir/devbox.json
@@ -0,0 +1,24 @@
+{
+  "packages": [
+    "poetry@latest",
+    "python3@latest"
+  ],
+  "env": {
+    "DEVBOX_PYPROJECT_DIR": "$PWD/service"
+  },
+  "shell": {
+    "init_hook": [
+      "echo 'Welcome to devbox!' > /dev/null"
+    ],
+    "scripts": {
+      "install-service":[
+        "cd service",
+        "poetry install"
+      ],
+      "run_test": [
+        "devbox run install-service",
+        "cd service && poetry run pytest"
+      ]
+    }
+  }
+}
diff --git a/examples/development/python/poetry/poetry-pyproject-subdir/devbox.lock b/examples/development/python/poetry/poetry-pyproject-subdir/devbox.lock
new file mode 100644
index 00000000000..4d937b172b7
--- /dev/null
+++ b/examples/development/python/poetry/poetry-pyproject-subdir/devbox.lock
@@ -0,0 +1,47 @@
+{
+  "lockfile_version": "1",
+  "packages": {
+    "poetry@latest": {
+      "last_modified": "2023-10-15T14:24:03Z",
+      "plugin_version": "0.0.3",
+      "resolved": "github:NixOS/nixpkgs/12bdeb01ff9e2d3917e6a44037ed7df6e6c3df9d#poetry",
+      "source": "devbox-search",
+      "version": "1.6.1",
+      "systems": {
+        "aarch64-darwin": {
+          "store_path": "/nix/store/i7q6kxa3ac7c57zalr4vwa04c1bll3xd-python3.10-poetry-1.6.1"
+        },
+        "aarch64-linux": {
+          "store_path": "/nix/store/7va0dmf3m4iswxfwrynp76290lcffzm1-python3.10-poetry-1.6.1"
+        },
+        "x86_64-darwin": {
+          "store_path": "/nix/store/ymnfx9pbc4y9zp5rg8zcbxq3c14rhz1d-python3.10-poetry-1.6.1"
+        },
+        "x86_64-linux": {
+          "store_path": "/nix/store/s2sqjwgm0h2ak2zvkvvbiw9fz4vsr5il-python3.10-poetry-1.6.1"
+        }
+      }
+    },
+    "python3@latest": {
+      "last_modified": "2023-10-06T07:35:11Z",
+      "plugin_version": "0.0.1",
+      "resolved": "github:NixOS/nixpkgs/a2eb207f45e4a14a1e3019d9e3863d1e208e2295#python3",
+      "source": "devbox-search",
+      "version": "3.10.12",
+      "systems": {
+        "aarch64-darwin": {
+          "store_path": "/nix/store/g5cm6iik6p4k39cj9k7a6sg2p09hl7wf-python3-3.10.12"
+        },
+        "aarch64-linux": {
+          "store_path": "/nix/store/idpjrasbr9n8kij11s5mphrw770sf13s-python3-3.10.12"
+        },
+        "x86_64-darwin": {
+          "store_path": "/nix/store/aa3nnkfyif67k6861vd77g4cm4rgbqh8-python3-3.10.12"
+        },
+        "x86_64-linux": {
+          "store_path": "/nix/store/pzf6dnxg8gf04xazzjdwarm7s03cbrgz-python3-3.10.12"
+        }
+      }
+    }
+  }
+}
diff --git a/examples/development/python/poetry/poetry-pyproject-subdir/frontend/.empty b/examples/development/python/poetry/poetry-pyproject-subdir/frontend/.empty
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/examples/development/python/poetry/poetry-pyproject-subdir/service/poetry.lock b/examples/development/python/poetry/poetry-pyproject-subdir/service/poetry.lock
new file mode 100644
index 00000000000..3db023c7b9d
--- /dev/null
+++ b/examples/development/python/poetry/poetry-pyproject-subdir/service/poetry.lock
@@ -0,0 +1,115 @@
+# This file is automatically @generated by Poetry 1.6.1 and should not be changed by hand.
+
+[[package]]
+name = "colorama"
+version = "0.4.6"
+description = "Cross-platform colored terminal text."
+optional = false
+python-versions = "!=3.0.*,!=3.1.*,!=3.2.*,!=3.3.*,!=3.4.*,!=3.5.*,!=3.6.*,>=2.7"
+files = [
+    {file = "colorama-0.4.6-py2.py3-none-any.whl", hash = "sha256:4f1d9991f5acc0ca119f9d443620b77f9d6b33703e51011c16baf57afb285fc6"},
+    {file = "colorama-0.4.6.tar.gz", hash = "sha256:08695f5cb7ed6e0531a20572697297273c47b8cae5a63ffc6d6ed5c201be6e44"},
+]
+
+[[package]]
+name = "emoji"
+version = "2.8.0"
+description = "Emoji for Python"
+optional = false
+python-versions = ">=2.7, !=3.0.*, !=3.1.*, !=3.2.*, !=3.3.*"
+files = [
+    {file = "emoji-2.8.0-py2.py3-none-any.whl", hash = "sha256:a8468fd836b7ecb6d1eac054c9a591701ce0ccd6c6f7779ad71b66f76664df90"},
+    {file = "emoji-2.8.0.tar.gz", hash = "sha256:8d8b5dec3c507444b58890e598fc895fcec022b3f5acb49497c6ccc5208b8b00"},
+]
+
+[package.extras]
+dev = ["coverage", "coveralls", "pytest"]
+
+[[package]]
+name = "exceptiongroup"
+version = "1.1.3"
+description = "Backport of PEP 654 (exception groups)"
+optional = false
+python-versions = ">=3.7"
+files = [
+    {file = "exceptiongroup-1.1.3-py3-none-any.whl", hash = "sha256:343280667a4585d195ca1cf9cef84a4e178c4b6cf2274caef9859782b567d5e3"},
+    {file = "exceptiongroup-1.1.3.tar.gz", hash = "sha256:097acd85d473d75af5bb98e41b61ff7fe35efe6675e4f9370ec6ec5126d160e9"},
+]
+
+[package.extras]
+test = ["pytest (>=6)"]
+
+[[package]]
+name = "iniconfig"
+version = "2.0.0"
+description = "brain-dead simple config-ini parsing"
+optional = false
+python-versions = ">=3.7"
+files = [
+    {file = "iniconfig-2.0.0-py3-none-any.whl", hash = "sha256:b6a85871a79d2e3b22d2d1b94ac2824226a63c6b741c88f7ae975f18b6778374"},
+    {file = "iniconfig-2.0.0.tar.gz", hash = "sha256:2d91e135bf72d31a410b17c16da610a82cb55f6b0477d1a902134b24a455b8b3"},
+]
+
+[[package]]
+name = "packaging"
+version = "23.2"
+description = "Core utilities for Python packages"
+optional = false
+python-versions = ">=3.7"
+files = [
+    {file = "packaging-23.2-py3-none-any.whl", hash = "sha256:8c491190033a9af7e1d931d0b5dacc2ef47509b34dd0de67ed209b5203fc88c7"},
+    {file = "packaging-23.2.tar.gz", hash = "sha256:048fb0e9405036518eaaf48a55953c750c11e1a1b68e0dd1a9d62ed0c092cfc5"},
+]
+
+[[package]]
+name = "pluggy"
+version = "1.3.0"
+description = "plugin and hook calling mechanisms for python"
+optional = false
+python-versions = ">=3.8"
+files = [
+    {file = "pluggy-1.3.0-py3-none-any.whl", hash = "sha256:d89c696a773f8bd377d18e5ecda92b7a3793cbe66c87060a6fb58c7b6e1061f7"},
+    {file = "pluggy-1.3.0.tar.gz", hash = "sha256:cf61ae8f126ac6f7c451172cf30e3e43d3ca77615509771b3a984a0730651e12"},
+]
+
+[package.extras]
+dev = ["pre-commit", "tox"]
+testing = ["pytest", "pytest-benchmark"]
+
+[[package]]
+name = "pytest"
+version = "7.4.2"
+description = "pytest: simple powerful testing with Python"
+optional = false
+python-versions = ">=3.7"
+files = [
+    {file = "pytest-7.4.2-py3-none-any.whl", hash = "sha256:1d881c6124e08ff0a1bb75ba3ec0bfd8b5354a01c194ddd5a0a870a48d99b002"},
+    {file = "pytest-7.4.2.tar.gz", hash = "sha256:a766259cfab564a2ad52cb1aae1b881a75c3eb7e34ca3779697c23ed47c47069"},
+]
+
+[package.dependencies]
+colorama = {version = "*", markers = "sys_platform == \"win32\""}
+exceptiongroup = {version = ">=1.0.0rc8", markers = "python_version < \"3.11\""}
+iniconfig = "*"
+packaging = "*"
+pluggy = ">=0.12,<2.0"
+tomli = {version = ">=1.0.0", markers = "python_version < \"3.11\""}
+
+[package.extras]
+testing = ["argcomplete", "attrs (>=19.2.0)", "hypothesis (>=3.56)", "mock", "nose", "pygments (>=2.7.2)", "requests", "setuptools", "xmlschema"]
+
+[[package]]
+name = "tomli"
+version = "2.0.1"
+description = "A lil' TOML parser"
+optional = false
+python-versions = ">=3.7"
+files = [
+    {file = "tomli-2.0.1-py3-none-any.whl", hash = "sha256:939de3e7a6161af0c887ef91b7d41a53e7c5a1ca976325f429cb46ea9bc30ecc"},
+    {file = "tomli-2.0.1.tar.gz", hash = "sha256:de526c12914f0c550d15924c62d72abc48d6fe7364aa87328337a31007fe8a4f"},
+]
+
+[metadata]
+lock-version = "2.0"
+python-versions = "^3.8"
+content-hash = "4bd7c2b783a03ead5ba2b81e78a1d22dc6278fd61be0fbf1fdb8467439bd6fd8"
diff --git a/examples/development/python/poetry/poetry-pyproject-subdir/service/pyproject.toml b/examples/development/python/poetry/poetry-pyproject-subdir/service/pyproject.toml
new file mode 100644
index 00000000000..201494bbab3
--- /dev/null
+++ b/examples/development/python/poetry/poetry-pyproject-subdir/service/pyproject.toml
@@ -0,0 +1,16 @@
+[tool.poetry]
+name = "poetry-pyproject-subdir-service"
+version = "0.1.0"
+description = ""
+authors = ["Savil Srivastava <676452+savil@users.noreply.github.com>"]
+
+[tool.poetry.dependencies]
+python = "^3.8"
+emoji = "^2.1.0"
+
+[tool.poetry.dev-dependencies]
+pytest = "^7.2.2"
+
+[build-system]
+requires = ["poetry-core>=1.0.0"]
+build-backend = "poetry.core.masonry.api"
diff --git a/examples/development/python/poetry/poetry-pyproject-subdir/service/test_with_pytest.py b/examples/development/python/poetry/poetry-pyproject-subdir/service/test_with_pytest.py
new file mode 100644
index 00000000000..a199017a71e
--- /dev/null
+++ b/examples/development/python/poetry/poetry-pyproject-subdir/service/test_with_pytest.py
@@ -0,0 +1,6 @@
+
+def test_always_passes():
+    assert True
+
+#def test_always_fails():
+#    assert False
diff --git a/plugins/poetry.json b/plugins/poetry.json
index c45784c6e6b..7e658b8bbea 100644
--- a/plugins/poetry.json
+++ b/plugins/poetry.json
@@ -1,8 +1,9 @@
 {
     "name": "poetry",
     "version": "0.0.3",
-    "readme": "This plugin automatically configures poetry to use the version of python installed in your Devbox shell, instead of the Python version that it is bundled with. Your pyproject.toml must be in the same directory as your devbox.json.",
+    "readme": "This plugin automatically configures poetry to use the version of python installed in your Devbox shell, instead of the Python version that it is bundled with. The pyproject.toml location can be configured by setting DEVBOX_PYPROJECT_DIR (defaults to the devbox.json's directory).",
     "env": {
+        "DEVBOX_DEFAULT_PYPROJECT_DIR": "{{ .DevboxProjectDir }}",
         "POETRY_VIRTUALENVS_IN_PROJECT": "true",
         "POETRY_VIRTUALENVS_CREATE": "true",
         "POETRY_VIRTUALENVS_PATH": "{{.Virtenv}}/.virtualenvs"
diff --git a/plugins/poetry/initHook.sh b/plugins/poetry/initHook.sh
index b01c5be40f2..9cdd7933995 100644
--- a/plugins/poetry/initHook.sh
+++ b/plugins/poetry/initHook.sh
@@ -1,4 +1,4 @@
 #!/bin/sh
 
-poetry env use $(command -v python) --no-interaction
+poetry env use $(command -v python) --directory="${DEVBOX_PYPROJECT_DIR:-$DEVBOX_DEFAULT_PYPROJECT_DIR}" --no-interaction