diff --git a/packages/kbn-plugin-generator/index.js b/packages/kbn-plugin-generator/index.js
index 15adce7f01c8e..5417649db1a39 100644
--- a/packages/kbn-plugin-generator/index.js
+++ b/packages/kbn-plugin-generator/index.js
@@ -54,9 +54,8 @@ exports.run = function run(argv) {
   }
 
   const name = options._[0];
-  const isKibanaPlugin = options.internal;
   const template = resolve(__dirname, './sao_template');
-  const kibanaPlugins = resolve(__dirname, isKibanaPlugin ? '../../src/plugins' : '../../plugins');
+  const kibanaPlugins = resolve(process.cwd(), 'plugins');
   const targetPath = resolve(kibanaPlugins, snakeCase(name));
 
   sao({
@@ -64,7 +63,6 @@ exports.run = function run(argv) {
     targetPath: targetPath,
     configOptions: {
       name,
-      isKibanaPlugin,
       targetPath,
     },
   }).catch(error => {
diff --git a/packages/kbn-plugin-generator/sao_template/sao.js b/packages/kbn-plugin-generator/sao_template/sao.js
index aed4b9a02838f..f8d13b1229b7b 100755
--- a/packages/kbn-plugin-generator/sao_template/sao.js
+++ b/packages/kbn-plugin-generator/sao_template/sao.js
@@ -17,7 +17,8 @@
  * under the License.
  */
 
-const { relative } = require('path');
+const { relative, resolve } = require('path');
+const fs = require('fs');
 
 const startCase = require('lodash.startcase');
 const camelCase = require('lodash.camelcase');
@@ -29,9 +30,54 @@ const pkg = require('../package.json');
 const kibanaPkgPath = require.resolve('../../../package.json');
 const kibanaPkg = require(kibanaPkgPath); // eslint-disable-line import/no-dynamic-require
 
-module.exports = function({ name, targetPath, isKibanaPlugin }) {
+async function gitInit(dir) {
+  // Only plugins in /plugins get git init
+  try {
+    await execa('git', ['init', dir]);
+    console.log(`Git repo initialized in ${dir}`);
+  } catch (error) {
+    console.error(error);
+    throw new Error(`Failure to git init ${dir}: ${error.all || error}`);
+  }
+}
+
+async function moveToCustomFolder(from, to) {
+  try {
+    await execa('mv', [from, to]);
+  } catch (error) {
+    console.error(error);
+    throw new Error(`Failure to move plugin to ${to}: ${error.all || error}`);
+  }
+}
+
+async function eslintPlugin(dir) {
+  try {
+    await execa('yarn', ['lint:es', `./${dir}/**/*.ts*`, '--no-ignore', '--fix']);
+  } catch (error) {
+    console.error(error);
+    throw new Error(`Failure when running prettier on the generated output: ${error.all || error}`);
+  }
+}
+
+module.exports = function({ name, targetPath }) {
   return {
     prompts: {
+      customPath: {
+        message: 'Would you like to create the plugin in a different folder?',
+        default: '/plugins',
+        filter(value) {
+          // Keep default value empty
+          if (value === '/plugins') return '';
+          return value;
+        },
+        validate(customPath) {
+          const p = resolve(process.cwd(), customPath);
+          const exists = fs.existsSync(p);
+          if (!exists)
+            return `Folder should exist relative to the kibana root folder. Consider /src/plugins or /x-pack/plugins.`;
+          return true;
+        },
+      },
       description: {
         message: 'Provide a short description',
         default: 'An awesome Kibana plugin',
@@ -64,7 +110,9 @@ module.exports = function({ name, targetPath, isKibanaPlugin }) {
       generateEslint: {
         type: 'confirm',
         message: 'Would you like to use a custom eslint file?',
-        default: !isKibanaPlugin,
+        default({ customPath }) {
+          return !customPath;
+        },
       },
     },
     filters: {
@@ -86,31 +134,32 @@ module.exports = function({ name, targetPath, isKibanaPlugin }) {
           camelCase,
           snakeCase,
           name,
-          isKibanaPlugin,
+          // kibana plugins are placed in a the non default path
+          isKibanaPlugin: !answers.customPath,
           kbnVersion: answers.kbnVersion,
           upperCamelCaseName: name.charAt(0).toUpperCase() + camelCase(name).slice(1),
           hasUi: !!answers.generateApp,
           hasServer: !!answers.generateApi,
           hasScss: !!answers.generateScss,
-          relRoot: isKibanaPlugin ? '../../../..' : '../../..',
+          relRoot: relative(resolve(answers.customPath || targetPath, 'public'), process.cwd()),
         },
         answers
       ),
     enforceNewFolder: true,
     installDependencies: false,
-    gitInit: !isKibanaPlugin,
-    async post({ log }) {
-      const dir = relative(process.cwd(), targetPath);
+    async post({ log, answers }) {
+      let dir = relative(process.cwd(), targetPath);
+      if (answers.customPath) {
+        // Move to custom path
+        moveToCustomFolder(targetPath, answers.customPath);
+        dir = relative(process.cwd(), resolve(answers.customPath, snakeCase(name)));
+      } else {
+        // Init git only in the default path
+        await gitInit(dir);
+      }
 
       // Apply eslint to the generated plugin
-      try {
-        await execa('yarn', ['lint:es', `./${dir}/**/*.ts*`, '--no-ignore', '--fix']);
-      } catch (error) {
-        console.error(error);
-        throw new Error(
-          `Failure when running prettier on the generated output: ${error.all || error}`
-        );
-      }
+      eslintPlugin(dir);
 
       log.success(chalk`🎉