diff --git a/scripts/setupvars/setupvars.bat b/scripts/setupvars/setupvars.bat
index 4cbaba1a1ff2da..ec466e0f53336d 100644
--- a/scripts/setupvars/setupvars.bat
+++ b/scripts/setupvars/setupvars.bat
@@ -34,9 +34,9 @@ goto :opencv_done
 :opencv_done
 
 :: Model Optimizer
-if exist %INTEL_OPENVINO_DIR%\tools\model_optimizer (
-set PYTHONPATH=%INTEL_OPENVINO_DIR%\tools\model_optimizer;%PYTHONPATH%
-set "PATH=%INTEL_OPENVINO_DIR%\tools\model_optimizer;%PATH%"
+if exist %INTEL_OPENVINO_DIR%\tools\mo (
+set PYTHONPATH=%INTEL_OPENVINO_DIR%\tools\mo;%PYTHONPATH%
+set "PATH=%INTEL_OPENVINO_DIR%\tools\mo;%PATH%"
 )
 
 :: OpenVINO runtime
diff --git a/scripts/setupvars/setupvars.sh b/scripts/setupvars/setupvars.sh
index deaf26adad911b..d59b8ebf8d726a 100755
--- a/scripts/setupvars/setupvars.sh
+++ b/scripts/setupvars/setupvars.sh
@@ -72,8 +72,8 @@ if [ -f "$INTEL_OPENVINO_DIR/extras/dl_streamer/setupvars.sh" ]; then
     source "$INTEL_OPENVINO_DIR/extras/dl_streamer/setupvars.sh"
 fi
 
-export PATH="$INTEL_OPENVINO_DIR/tools/model_optimizer${PATH:+:$PATH}"
-export PYTHONPATH="$INTEL_OPENVINO_DIR/tools/model_optimizer${PYTHONPATH:+:$PYTHONPATH}"
+export PATH="$INTEL_OPENVINO_DIR/tools/mo${PATH:+:$PATH}"
+export PYTHONPATH="$INTEL_OPENVINO_DIR/tools/mo${PYTHONPATH:+:$PYTHONPATH}"
 
 if [ -e "$INTEL_OPENVINO_DIR/tools/post_training_optimization_toolkit" ]; then
     export PYTHONPATH="$INTEL_OPENVINO_DIR/tools/post_training_optimization_toolkit:$PYTHONPATH"