diff --git a/src/core/prompts/instructions/create-mode.ts b/src/core/prompts/instructions/create-mode.ts
index ea99a66901..0b6abb4ea6 100644
--- a/src/core/prompts/instructions/create-mode.ts
+++ b/src/core/prompts/instructions/create-mode.ts
@@ -2,11 +2,13 @@ import * as path from "path"
 import * as vscode from "vscode"
 
 import { GlobalFileNames } from "../../../shared/globalFileNames"
+import { getSettingsDirectoryPath } from "../../../utils/storage"
 
 export async function createModeInstructions(context: vscode.ExtensionContext | undefined): Promise<string> {
 	if (!context) throw new Error("Missing VSCode Extension Context")
 
-	const settingsDir = path.join(context.globalStorageUri.fsPath, "settings")
+	// Use getSettingsDirectoryPath to honor custom storage path setting
+	const settingsDir = await getSettingsDirectoryPath(context.globalStorageUri.fsPath)
 	const customModesPath = path.join(settingsDir, GlobalFileNames.customModes)
 
 	return `
diff --git a/src/utils/globalContext.ts b/src/utils/globalContext.ts
index 882501850d..f4dfdb3162 100644
--- a/src/utils/globalContext.ts
+++ b/src/utils/globalContext.ts
@@ -1,13 +1,13 @@
-import { mkdir } from "fs/promises"
-import { join } from "path"
 import { ExtensionContext } from "vscode"
+import { getSettingsDirectoryPath } from "./storage"
 
 export async function getGlobalFsPath(context: ExtensionContext): Promise<string> {
 	return context.globalStorageUri.fsPath
 }
 
 export async function ensureSettingsDirectoryExists(context: ExtensionContext): Promise<string> {
-	const settingsDir = join(context.globalStorageUri.fsPath, "settings")
-	await mkdir(settingsDir, { recursive: true })
+	// Use getSettingsDirectoryPath to honor custom storage path setting
+	const settingsDir = await getSettingsDirectoryPath(context.globalStorageUri.fsPath)
+	// getSettingsDirectoryPath already creates the directory, so no need to call mkdir
 	return settingsDir
 }
diff --git a/src/utils/migrateSettings.ts b/src/utils/migrateSettings.ts
index 0ddd553610..143cc9d7db 100644
--- a/src/utils/migrateSettings.ts
+++ b/src/utils/migrateSettings.ts
@@ -3,6 +3,7 @@ import * as path from "path"
 import * as fs from "fs/promises"
 import { fileExistsAtPath } from "./fs"
 import { GlobalFileNames } from "../shared/globalFileNames"
+import { getSettingsDirectoryPath } from "./storage"
 import * as yaml from "yaml"
 
 const deprecatedCustomModesJSONFilename = "custom_modes.json"
@@ -26,7 +27,8 @@ export async function migrateSettings(
 	]
 
 	try {
-		const settingsDir = path.join(context.globalStorageUri.fsPath, "settings")
+		// Use getSettingsDirectoryPath to honor custom storage path setting
+		const settingsDir = await getSettingsDirectoryPath(context.globalStorageUri.fsPath)
 
 		// Check if settings directory exists first
 		if (!(await fileExistsAtPath(settingsDir))) {