diff --git a/pkg/state/state.go b/pkg/state/state.go
index 929bc5cc..67cd83a3 100644
--- a/pkg/state/state.go
+++ b/pkg/state/state.go
@@ -1215,7 +1215,7 @@ func (st *HelmState) PrepareCharts(helm helmexec.Interface, dir string, concurre
 				chartFetchedByGoGetter := chartPath != chartName
 
 				if !chartFetchedByGoGetter {
-					ociChartPath, err := st.getOCIChart(release, dir, helm)
+					ociChartPath, err := st.getOCIChart(release, dir, helm, opts.OutputDirTemplate)
 					if err != nil {
 						results <- &chartPrepareResult{err: fmt.Errorf("release %q: %w", release.Name, err)}
 
@@ -3646,7 +3646,7 @@ func (st *HelmState) Reverse() {
 	}
 }
 
-func (st *HelmState) getOCIChart(release *ReleaseSpec, tempDir string, helm helmexec.Interface) (*string, error) {
+func (st *HelmState) getOCIChart(release *ReleaseSpec, tempDir string, helm helmexec.Interface, outputDirTemplate string) (*string, error) {
 	qualifiedChartName, chartName, chartVersion, err := st.getOCIQualifiedChartName(release, helm)
 	if err != nil {
 		return nil, err
@@ -3656,21 +3656,7 @@ func (st *HelmState) getOCIChart(release *ReleaseSpec, tempDir string, helm helm
 		return nil, nil
 	}
 
-	pathElems := []string{
-		tempDir,
-	}
-
-	if release.Namespace != "" {
-		pathElems = append(pathElems, release.Namespace)
-	}
-
-	if release.KubeContext != "" {
-		pathElems = append(pathElems, release.KubeContext)
-	}
-
-	pathElems = append(pathElems, release.Name, chartName, safeVersionPath(chartVersion))
-
-	chartPath := filepath.Join(pathElems...)
+	chartPath, _ := st.getOCIChartPath(tempDir, release, chartName, chartVersion, outputDirTemplate)
 
 	if st.fs.DirectoryExistsAt(chartPath) {
 		st.logger.Debugf("chart already exists at %s", chartPath)
@@ -3754,3 +3740,23 @@ func (st *HelmState) FullFilePath() (string, error) {
 	}
 	return filepath.Join(wd, st.basePath, st.FilePath), err
 }
+
+func (st *HelmState) getOCIChartPath(tempDir string, release *ReleaseSpec, chartName, chartVersion, outputDirTemplate string) (string, error) {
+	if outputDirTemplate != "" {
+		return generateChartPath(chartName, tempDir, release, outputDirTemplate)
+	}
+
+	pathElems := []string{tempDir}
+
+	if release.Namespace != "" {
+		pathElems = append(pathElems, release.Namespace)
+	}
+
+	if release.KubeContext != "" {
+		pathElems = append(pathElems, release.KubeContext)
+	}
+
+	pathElems = append(pathElems, release.Name, chartName, safeVersionPath(chartVersion))
+
+	return filepath.Join(pathElems...), nil
+}
diff --git a/pkg/state/state_test.go b/pkg/state/state_test.go
index e835bc45..a18ca3b1 100644
--- a/pkg/state/state_test.go
+++ b/pkg/state/state_test.go
@@ -3724,3 +3724,69 @@ func TestHelmState_appendApiVersionsFlags(t *testing.T) {
 		})
 	}
 }
+
+func TestGetOCIChartPath(t *testing.T) {
+	tests := []struct {
+		name              string
+		tempDir           string
+		release           *ReleaseSpec
+		chartName         string
+		chartVersion      string
+		outputDirTemplate string
+		expectedPath      string
+		expectedErr       bool
+	}{
+		{
+			name:    "OCI chart with template",
+			tempDir: "charts",
+			release: &ReleaseSpec{
+				Name:  "karpenter",
+				Chart: "karpenter/karpenter",
+			},
+			chartName:         "karpenter",
+			chartVersion:      "0.37.0",
+			outputDirTemplate: "{{ .OutputDir }}/",
+			expectedPath:      "charts/",
+			expectedErr:       false,
+		},
+		{
+			name:    "OCI chart with template containing unknown values",
+			tempDir: "charts",
+			release: &ReleaseSpec{
+				Name:  "karpenter",
+				Chart: "karpenter/karpenter",
+			},
+			chartName:         "karpenter",
+			chartVersion:      "0.37.0",
+			outputDirTemplate: "{{ .SomethingThatDoesNotExist }}/",
+			expectedPath:      "",
+			expectedErr:       true,
+		},
+		{
+			name:    "OCI chart without template",
+			tempDir: "charts",
+			release: &ReleaseSpec{
+				Name:  "karpenter",
+				Chart: "karpenter/karpenter",
+			},
+			chartName:    "karpenter",
+			chartVersion: "0.37.0",
+			expectedPath: "charts/karpenter/karpenter/0.37.0",
+			expectedErr:  false,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			st := &HelmState{}
+			path, err := st.getOCIChartPath(tt.tempDir, tt.release, tt.chartName, tt.chartVersion, tt.outputDirTemplate)
+
+			if tt.expectedErr {
+				require.Error(t, err)
+			} else {
+				require.NoError(t, err)
+				require.Equal(t, tt.expectedPath, path)
+			}
+		})
+	}
+}