diff --git a/backend/open_webui/__init__.py b/backend/open_webui/__init__.py
index 6765c8f50..c6578c214 100644
--- a/backend/open_webui/__init__.py
+++ b/backend/open_webui/__init__.py
@@ -9,8 +9,6 @@ import uvicorn
 app = typer.Typer()
 
 KEY_FILE = Path.cwd() / ".webui_secret_key"
-if (frontend_build_dir := Path(__file__).parent / "frontend").exists():
-    os.environ["FRONTEND_BUILD_DIR"] = str(frontend_build_dir)
 
 
 @app.command()
diff --git a/backend/open_webui/env.py b/backend/open_webui/env.py
index 53745e7f3..b803b5863 100644
--- a/backend/open_webui/env.py
+++ b/backend/open_webui/env.py
@@ -188,14 +188,28 @@ WEBUI_BUILD_HASH = os.environ.get("WEBUI_BUILD_HASH", "dev-build")
 DATA_DIR = Path(os.getenv("DATA_DIR", BACKEND_DIR / "data")).resolve()
 
 if PIP_INSTALL:
+    NEW_DATA_DIR = Path(os.getenv("DATA_DIR", OPEN_WEBUI_DIR / "data")).resolve()
+    NEW_DATA_DIR.mkdir(parents=True, exist_ok=True)
+
     # Check if the data directory exists in the package directory
     if DATA_DIR.exists():
-        log.info(f"Moving {DATA_DIR} to {OPEN_WEBUI_DIR / 'data'}")
-        shutil.move(str(DATA_DIR), str(OPEN_WEBUI_DIR / "data"))
+        log.info(f"Moving {DATA_DIR} to {NEW_DATA_DIR}")
+        for item in DATA_DIR.iterdir():
+            dest = NEW_DATA_DIR / item.name
+            if item.is_dir():
+                shutil.copytree(item, dest, dirs_exist_ok=True)
+            else:
+                shutil.copy2(item, dest)
+
     DATA_DIR = OPEN_WEBUI_DIR / "data"
 
 
 FRONTEND_BUILD_DIR = Path(os.getenv("FRONTEND_BUILD_DIR", BASE_DIR / "build")).resolve()
+if PIP_INSTALL:
+    FRONTEND_BUILD_DIR = Path(
+        os.getenv("FRONTEND_BUILD_DIR", OPEN_WEBUI_DIR / "frontend")
+    ).resolve()
+
 
 RESET_CONFIG_ON_START = (
     os.environ.get("RESET_CONFIG_ON_START", "False").lower() == "true"
diff --git a/package-lock.json b/package-lock.json
index a11e69317..c24bde703 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
 	"name": "open-webui",
-	"version": "0.3.17.dev5",
+	"version": "0.3.17.dev6",
 	"lockfileVersion": 3,
 	"requires": true,
 	"packages": {
 		"": {
 			"name": "open-webui",
-			"version": "0.3.17.dev5",
+			"version": "0.3.17.dev6",
 			"dependencies": {
 				"@codemirror/lang-javascript": "^6.2.2",
 				"@codemirror/lang-python": "^6.1.6",
diff --git a/package.json b/package.json
index ac45c9eda..e9e9b7ada 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
 	"name": "open-webui",
-	"version": "0.3.17.dev5",
+	"version": "0.3.17.dev6",
 	"private": true,
 	"scripts": {
 		"dev": "npm run pyodide:fetch && vite dev --host",