diff --git a/README.md b/README.md
index 3df3d34c9..0b3e64047 100644
--- a/README.md
+++ b/README.md
@@ -540,6 +540,16 @@ Type: `boolean`
 
 Allow BrighterScript features (classes, interfaces, etc...) to be included in BrightScript (`.brs`) files, and force those files to be transpiled.
 
+#### `bslibDestinationDir`
+
+Type: `string`
+
+Override the destination directory for the bslib.brs file.  Use this if you want
+to customize where the bslib.brs file is located in the staging directory.  Note
+that using a location outside of `source` will break scripts inside `source`
+that depend on bslib.brs.  Defaults to `source`.
+
+
 ## Ignore errors and warnings on a per-line basis
 In addition to disabling an entire class of errors in `bsconfig.json` by using `ignoreErrorCodes`, you may also disable errors for a subset of the complier rules within a file with the following comment flags:
  - `bs:disable-next-line`
diff --git a/src/BsConfig.ts b/src/BsConfig.ts
index 40fd49cc9..8dc633e7a 100644
--- a/src/BsConfig.ts
+++ b/src/BsConfig.ts
@@ -182,4 +182,12 @@ export interface BsConfig {
      * @default false
      */
     allowBrighterScriptInBrightScript?: boolean;
+
+    /**
+     * Override the destination directory for the bslib.brs file.  Use this if
+     * you want to customize where the bslib.brs file is located in the staging
+     * directory.  Note that using a location outside of `source` will break
+     * scripts inside `source` that depend on bslib.brs.  Defaults to `source`.
+     */
+    bslibDestinationDir?: string;
 }
diff --git a/src/Program.spec.ts b/src/Program.spec.ts
index 4f1c54848..7e559757e 100644
--- a/src/Program.spec.ts
+++ b/src/Program.spec.ts
@@ -1785,6 +1785,16 @@ describe('Program', () => {
         expect(fsExtra.pathExistsSync(s`${stagingDir}/source/bslib.brs`)).is.true;
     });
 
+    it('copies the bslib.brs file to optionally specified directory', async () => {
+        fsExtra.ensureDirSync(program.options.stagingDir);
+        program.options.bslibDestinationDir = 'source/opt';
+        program.validate();
+
+        await program.transpile([], program.options.stagingDir);
+
+        expect(fsExtra.pathExistsSync(s`${stagingDir}/source/opt/bslib.brs`)).is.true;
+    });
+
     describe('getTranspiledFileContents', () => {
         it('fires plugin events', async () => {
             const file = program.setFile('source/main.brs', trim`
@@ -2079,6 +2089,24 @@ describe('Program', () => {
             `);
         });
 
+        it('uses custom bslib path when specified in .xml file', async () => {
+            program.options.bslibDestinationDir = 'source/opt';
+            program.setFile('components/Component1.xml', trim`
+                <?xml version="1.0" encoding="utf-8" ?>
+                <component name="Component1" extends="Scene">
+                </component>
+            `);
+            await program.transpile([], program.options.stagingDir);
+            expect(trimMap(
+                fsExtra.readFileSync(s`${stagingDir}/components/Component1.xml`).toString()
+            )).to.eql(trim`
+                <?xml version="1.0" encoding="utf-8" ?>
+                <component name="Component1" extends="Scene">
+                    <script type="text/brightscript" uri="pkg:/source/opt/bslib.brs" />
+                </component>
+            `);
+        });
+
         it('uses sourceRoot when provided for brs files', async () => {
             let sourceRoot = s`${tempDir}/sourceRootFolder`;
             program = new Program({
diff --git a/src/Program.ts b/src/Program.ts
index 6cad08a06..6eb765688 100644
--- a/src/Program.ts
+++ b/src/Program.ts
@@ -136,7 +136,7 @@ export class Program {
 
             //default to the embedded version
         } else {
-            return `source${path.sep}bslib.brs`;
+            return `${this.options.bslibDestinationDir}${path.sep}bslib.brs`;
         }
     }
 
@@ -1244,7 +1244,7 @@ export class Program {
 
         //if there's no bslib file already loaded into the program, copy it to the staging directory
         if (!this.getFile(bslibAliasedRokuModulesPkgPath) && !this.getFile(s`source/bslib.brs`)) {
-            promises.push(util.copyBslibToStaging(stagingDir));
+            promises.push(util.copyBslibToStaging(stagingDir, this.options.bslibDestinationDir));
         }
         await Promise.all(promises);
 
diff --git a/src/util.spec.ts b/src/util.spec.ts
index 3c0ec7adb..9aab50b0b 100644
--- a/src/util.spec.ts
+++ b/src/util.spec.ts
@@ -349,6 +349,16 @@ describe('util', () => {
             let config = util.normalizeAndResolveConfig({ watch: true });
             expect(config.watch).to.be.true;
         });
+
+        it('sets default value for bslibDestinationDir', () => {
+            expect(util.normalizeConfig(<any>{ }).bslibDestinationDir).to.equal('source');
+        });
+
+        it('strips leading and/or trailing slashes from bslibDestinationDir', () => {
+            ['source/opt', '/source/opt', 'source/opt/', '/source/opt/'].forEach(input => {
+                expect(util.normalizeConfig(<any>{ bslibDestinationDir: input }).bslibDestinationDir).to.equal('source/opt');
+            });
+        });
     });
 
     describe('areArraysEqual', () => {
@@ -556,6 +566,16 @@ describe('util', () => {
                 )
             ).not.to.be.null;
         });
+
+        it('copies from local bslib dependency to optionally specified destination directory', async () => {
+            await util.copyBslibToStaging(tempDir, 'source/opt');
+            expect(fsExtra.pathExistsSync(`${tempDir}/source/opt/bslib.brs`)).to.be.true;
+            expect(
+                /^function bslib_toString\(/mg.exec(
+                    fsExtra.readFileSync(`${tempDir}/source/opt/bslib.brs`).toString()
+                )
+            ).not.to.be.null;
+        });
     });
 
     describe('rangesIntersect', () => {
diff --git a/src/util.ts b/src/util.ts
index 29e0b29bc..9fb8d575d 100644
--- a/src/util.ts
+++ b/src/util.ts
@@ -349,6 +349,11 @@ export class Util {
             config.logLevel = LogLevel[(config.logLevel as string).toLowerCase()];
         }
         config.logLevel = config.logLevel ?? LogLevel.log;
+        config.bslibDestinationDir = config.bslibDestinationDir ?? 'source';
+        if (config.bslibDestinationDir !== 'source') {
+            // strip leading and trailing slashes
+            config.bslibDestinationDir = config.bslibDestinationDir.replace(/^(\/*)(.*?)(\/*)$/, '$2');
+        }
         return config;
     }
 
@@ -1223,9 +1228,9 @@ export class Util {
     /**
      * Copy the version of bslib from local node_modules to the staging folder
      */
-    public async copyBslibToStaging(stagingDir: string) {
+    public async copyBslibToStaging(stagingDir: string, bslibDestinationDir = 'source') {
         //copy bslib to the output directory
-        await fsExtra.ensureDir(standardizePath(`${stagingDir}/source`));
+        await fsExtra.ensureDir(standardizePath(`${stagingDir}/${bslibDestinationDir}`));
         // eslint-disable-next-line
         const bslib = require('@rokucommunity/bslib');
         let source = bslib.source as string;
@@ -1243,7 +1248,7 @@ export class Util {
             const position = positions[i];
             source = source.slice(0, position) + 'bslib_' + source.slice(position);
         }
-        await fsExtra.writeFile(`${stagingDir}/source/bslib.brs`, source);
+        await fsExtra.writeFile(`${stagingDir}/${bslibDestinationDir}/bslib.brs`, source);
     }
 
     /**