diff --git a/.github/workflows/ansible-centos-check.yml b/.github/workflows/ansible-centos-check.yml
index 7a5931c..1bf67a5 100644
--- a/.github/workflows/ansible-centos-check.yml
+++ b/.github/workflows/ansible-centos-check.yml
@@ -17,7 +17,11 @@ jobs:
         '    __sshd_skip_virt_env: "{{ __sshd_skip_virt_env }}"'
         '    __sshd_config_file: "{{ __sshd_config_file }}"'
         >> tasks/variables.yml
-    - run: "sed -i -e '/public: true/d' tests/tasks/restore.yml tests/tests_duplicate_role.yml"
+    - run: >-
+        sed -i -e '/public: true/d'
+        tests/tasks/restore.yml
+        tests/tests_duplicate_role.yml
+        tests/tests_os_defaults.yml
     - run: "sed -i -e 's/ansible.builtin.//g' */*.yml */*/*.yml"
 
     - name: ansible check with centos 6
diff --git a/README.md b/README.md
index bfc4f91..f541156 100644
--- a/README.md
+++ b/README.md
@@ -59,8 +59,7 @@ If set to *false*, the role will be completely disabled. Defaults to *true*.
 If set to *true*, don't apply default values. This means that you must have a
 complete set of configuration defaults via either the `sshd` dict, or
 `sshd_Key` variables. Defaults to *false* unless `sshd_config_namespace` is
-set or `sshd_config_file` points to the drop-in directory defined by
-`__sshd_drop_in_dir` to avoid recursive include.
+set or `sshd_config_file` points to a drop-in directory to avoid recursive include.
 
 * `sshd_manage_service`
 
@@ -167,17 +166,17 @@ The path where the openssh configuration produced by this role should be saved.
 This is useful mostly when generating configuration snippets to Include from
 drop-in directory (default in Fedora and RHEL9).
 
-When this path points to system drop-in directory (defined with internal
-variable `__sshd_drop_in_dir`), the main configuration file (defined with
-internal variable `__sshd_main_config_file`) is checked to contain the
-default `Include` directive from `__sshd_defaults` dict.
+When this path points to a drop-in directory (like
+`/etc/ssh/sshd_confg.d/00-custom.conf`), the main configuration file (defined
+with the variable `sshd_main_config_file`) is checked to contain a proper
+`Include` directive.
 
 * `sshd_config_namespace`
 
 By default (*null*), the role defines whole content of the configuration file
 including system defaults. You can use this variable to invoke this role from
-other roles or from multiple places in a single playbook on systems that do not
-support drop-in directory. The `sshd_skip_defaults` is ignored and no system
+other roles or from multiple places in a single playbook as an alternative to
+using a drop-in directory. The `sshd_skip_defaults` is ignored and no system
 defaults are used in this case.
 
 When this variable is set, the role places the configuration that you specify
diff --git a/defaults/main.yml b/defaults/main.yml
index d12e7ce..f35e3b3 100644
--- a/defaults/main.yml
+++ b/defaults/main.yml
@@ -57,6 +57,9 @@ sshd_binary: "{{ __sshd_binary }}"
 sshd_service: "{{ __sshd_service }}"
 sshd_sftp_server: "{{ __sshd_sftp_server }}"
 
+sshd_drop_in_dir_mode: "{{ __sshd_drop_in_dir_mode }}"
+sshd_main_config_file: "{{ __sshd_main_config_file }}"
+
 # This lists by default all hostkeys as rendered in the generated configuration
 # file ("auto"). Before attempting to run sshd (either for verification of
 # configuration or restarting), we make sure the keys exist and have correct
diff --git a/meta/10_top.j2 b/meta/10_top.j2
index 6b78bff..1e297fe 100644
--- a/meta/10_top.j2
+++ b/meta/10_top.j2
@@ -20,8 +20,9 @@
 {%     set value = override %}
 {%   elif sshd[key] is defined %}
 {%     set value = sshd[key] %}
-{%   elif __sshd_drop_in_dir and sshd_config_file.startswith(__sshd_drop_in_dir)  %}
-{#     The drop-in directory does not use the defaults from main file to avoid recursion #}
+{%   elif sshd_main_config_file is not none
+       and sshd_config_file | dirname != sshd_main_config_file | dirname %}
+{#     Do not use the defaults from main file to avoid recursion #}
 {%   elif __sshd_defaults[key] is defined and not sshd_skip_defaults %}
 {%     if key == 'HostKey' and __sshd_fips_mode %}
 {%       set value = __sshd_defaults[key] | difference(__sshd_hostkeys_nofips) %}
diff --git a/tasks/install.yml b/tasks/install.yml
index 8d249a5..1ec071a 100644
--- a/tasks/install.yml
+++ b/tasks/install.yml
@@ -119,7 +119,7 @@
         group: root
         mode: "{{ __sshd_runtime_directory_mode }}"
       when:
-        - __sshd_runtime_directory | d(false)
+        - __sshd_runtime_directory is not none
 
     - name: Create the complete configuration file
       ansible.builtin.include_tasks: install_config.yml
diff --git a/tasks/install_config.yml b/tasks/install_config.yml
index fd222c7..0067e40 100644
--- a/tasks/install_config.yml
+++ b/tasks/install_config.yml
@@ -1,4 +1,13 @@
 ---
+- name: Create a directory for drop-in configuration snippets
+  ansible.builtin.file:
+    path: "{{ sshd_config_file | dirname }}"
+    state: directory
+    mode: "{{ sshd_drop_in_dir_mode }}"
+  when:
+    - sshd_main_config_file is not none
+    - sshd_config_file | dirname != sshd_main_config_file | dirname
+
 - name: Create the complete configuration file
   ansible.builtin.template:
     src: sshd_config.j2
@@ -18,8 +27,8 @@
 - name: Make sure the include path is present in the main sshd_config
   ansible.builtin.lineinfile:
     insertbefore: BOF
-    line: "Include {{ __sshd_defaults['Include'] }}"
-    path: "{{ __sshd_main_config_file }}"
+    line: "Include {{ sshd_config_file | dirname }}/*.conf"
+    path: "{{ sshd_main_config_file }}"
     owner: "{{ sshd_config_owner }}"
     group: "{{ sshd_config_group }}"
     mode: "{{ sshd_config_mode }}"
@@ -32,7 +41,5 @@
     backup: "{{ sshd_backup }}"
   notify: reload_sshd
   when:
-    - __sshd_defaults['Include'] | d(false)
-    - __sshd_main_config_file is not none
-    - __sshd_drop_in_dir is not none
-    - sshd_config_file.startswith(__sshd_drop_in_dir)
+    - sshd_main_config_file is not none
+    - sshd_config_file | dirname != sshd_main_config_file | dirname
diff --git a/templates/sshd_config.j2 b/templates/sshd_config.j2
index c18b6d3..2899f0a 100644
--- a/templates/sshd_config.j2
+++ b/templates/sshd_config.j2
@@ -21,8 +21,9 @@
 {%     set value = override %}
 {%   elif sshd[key] is defined %}
 {%     set value = sshd[key] %}
-{%   elif __sshd_drop_in_dir and sshd_config_file.startswith(__sshd_drop_in_dir)  %}
-{#     The drop-in directory does not use the defaults from main file to avoid recursion #}
+{%   elif sshd_main_config_file is not none
+       and sshd_config_file | dirname != sshd_main_config_file | dirname %}
+{#     Do not use the defaults from main file to avoid recursion #}
 {%   elif __sshd_defaults[key] is defined and not sshd_skip_defaults %}
 {%     if key == 'HostKey' and __sshd_fips_mode %}
 {%       set value = __sshd_defaults[key] | difference(__sshd_hostkeys_nofips) %}
diff --git a/templates/sshd_config_snippet.j2 b/templates/sshd_config_snippet.j2
index f437802..0ece8ed 100644
--- a/templates/sshd_config_snippet.j2
+++ b/templates/sshd_config_snippet.j2
@@ -20,8 +20,9 @@
 {%     set value = override %}
 {%   elif sshd[key] is defined %}
 {%     set value = sshd[key] %}
-{%   elif __sshd_drop_in_dir and sshd_config_file.startswith(__sshd_drop_in_dir)  %}
-{#     The drop-in directory does not use the defaults from main file to avoid recursion #}
+{%   elif sshd_main_config_file is not none
+       and sshd_config_file | dirname != sshd_main_config_file | dirname %}
+{#     Do not use the defaults from main file to avoid recursion #}
 {%   elif __sshd_defaults[key] is defined and not sshd_skip_defaults %}
 {%     if key == 'HostKey' and __sshd_fips_mode %}
 {%       set value = __sshd_defaults[key] | difference(__sshd_hostkeys_nofips) %}
diff --git a/tests/tests_include_present.yml b/tests/tests_include_present.yml
index c54221b..08ad532 100644
--- a/tests/tests_include_present.yml
+++ b/tests/tests_include_present.yml
@@ -81,3 +81,85 @@
 
     - name: "Restore configuration files"
       ansible.builtin.include_tasks: tasks/restore.yml
+
+- hosts: all
+  vars:
+    __sshd_test_backup_files:
+      - /etc/ssh/custom_sshd_config
+      - /etc/ssh/custom_sshd_config.d/custom-drop-in
+
+  tasks:
+    - name: Run only for a specific OS with an capable OpenSSH version
+      ansible.builtin.meta: end_play
+      when:
+        ansible_facts['distribution'] != 'Ubuntu'
+        or ansible_facts['distribution_major_version']|int != 20
+
+    - name: "Backup configuration files"
+      ansible.builtin.include_tasks: tasks/backup.yml
+
+    - name: Create dummy main configuration file
+      # Normally, this should not be needed. For test, however, we need a file
+      # different to the one in the first play.
+      file:
+        path: /etc/ssh/custom_sshd_config
+        state: touch
+
+    - name: Create a new configuration in a custom drop-in directory
+      ansible.builtin.include_role:
+        name: ansible-sshd
+      vars:
+        sshd_config_file: /etc/ssh/custom_sshd_config.d/custom-drop-in
+        sshd_main_config_file: /etc/ssh/custom_sshd_config
+        sshd_drop_in_dir_mode: '0770'
+        sshd:
+          Banner: /etc/include-issue
+          Ciphers: aes192-ctr
+
+    - name: Verify the options are correctly set
+      block:
+        - name: Flush handlers
+          ansible.builtin.meta: flush_handlers
+
+        - name: Print custom drop-in configuration file
+          ansible.builtin.slurp:
+            src: /etc/ssh/custom_sshd_config.d/custom-drop-in
+          register: custom_drop_in
+
+        - name: Print the custom configuration file
+          ansible.builtin.slurp:
+            src: /etc/ssh/custom_sshd_config
+          register: custom_config
+
+        - name: Check content of custom drop-in configuration file
+          ansible.builtin.assert:
+            that:
+              - "'Banner /etc/include-issue' in custom_drop_in.content | b64decode"
+              - "'Ciphers aes192-ctr' in custom_drop_in.content | b64decode"
+              - "'Include /etc/ssh/custom_sshd_config.d/*.conf' not in custom_drop_in.content | b64decode"
+              - "'Subsystem sftp  /usr/libexec/openssh/sftp-server' not in custom_drop_in.content | b64decode"
+              - "'Subsystem	sftp	/usr/lib/openssh/sftp-server' not in custom_drop_in.content | b64decode"
+
+        - name: Check common content of the custom configuration file
+          ansible.builtin.assert:
+            that:
+              - "'Banner /etc/include-issue' not in custom_config.content | b64decode"
+              - "'Ciphers aes192-ctr' not in custom_config.content | b64decode"
+              - "'Include /etc/ssh/custom_sshd_config.d/*.conf' in custom_config.content | b64decode"
+
+        - name: Read drop in directory mode
+          ansible.builtin.stat:
+            path: "/etc/ssh/custom_sshd_config.d"
+          register: drop_in_dir_stat
+
+        - name: Check drop in directory mode has been set correctly
+          assert:
+            that:
+              - drop_in_dir_stat.stat.isdir | bool
+              - drop_in_dir_stat.stat.mode == '0770'
+            msg: "effective mode: {{ drop_in_dir_stat.stat.mode }}, desired mode: 0770"
+
+      tags: tests::verify
+
+    - name: "Restore configuration files"
+      ansible.builtin.include_tasks: tasks/restore.yml
diff --git a/tests/tests_os_defaults.yml b/tests/tests_os_defaults.yml
index 3d7e38f..f4ac537 100644
--- a/tests/tests_os_defaults.yml
+++ b/tests/tests_os_defaults.yml
@@ -27,6 +27,7 @@
     - name: Configure sshd
       ansible.builtin.include_role:
         name: ansible-sshd
+        public: true
 
     - name: Show effective configuration after running role (role defaults)
       ansible.builtin.command: sshd -T
@@ -41,5 +42,17 @@
         # RHEL6/CentOS6 images have modified sshd_config, different from what is in rpm package
         - not (ansible_facts['os_family'] == 'RedHat' and ansible_facts['distribution_major_version'] == '6')
 
+    - name: Read drop in directory mode
+      ansible.builtin.stat:
+        path: "{{ __sshd_defaults.Include | dirname }}"
+      register: drop_in_dir_stat
+      when: __sshd_defaults.Include is defined
+
+    - name: Check drop in directory mode has not changed
+      assert:
+        that:
+          - drop_in_dir_stat.stat.mode == __sshd_drop_in_dir_mode
+      when: __sshd_defaults.Include is defined
+
     - name: Restore configuration files
       ansible.builtin.include_tasks: tasks/restore.yml
diff --git a/vars/Fedora.yml b/vars/Fedora.yml
index cbf709c..5dbad3e 100644
--- a/vars/Fedora.yml
+++ b/vars/Fedora.yml
@@ -23,5 +23,5 @@ __sshd_hostkeys_nofips:
 __sshd_hostkey_group: ssh_keys
 __sshd_hostkey_mode: "0640"
 
-__sshd_drop_in_dir: /etc/ssh/sshd_config.d/
+__sshd_drop_in_dir_mode: '0700'
 __sshd_main_config_file: /etc/ssh/sshd_config
diff --git a/vars/RedHat_9.yml b/vars/RedHat_9.yml
index 6f4ca73..7c4fc1d 100644
--- a/vars/RedHat_9.yml
+++ b/vars/RedHat_9.yml
@@ -23,5 +23,5 @@ __sshd_hostkeys_nofips:
 __sshd_hostkey_group: ssh_keys
 __sshd_hostkey_mode: "0640"
 
-__sshd_drop_in_dir: /etc/ssh/sshd_config.d/
+__sshd_drop_in_dir_mode: '0700'
 __sshd_main_config_file: /etc/ssh/sshd_config
diff --git a/vars/Ubuntu_22.yml b/vars/Ubuntu_22.yml
index 5658e14..fc3df96 100644
--- a/vars/Ubuntu_22.yml
+++ b/vars/Ubuntu_22.yml
@@ -19,5 +19,5 @@ __sshd_defaults:
 
 __sshd_runtime_directory: /run/sshd
 
-__sshd_drop_in_dir: /etc/ssh/sshd_config.d/
+__sshd_drop_in_dir_mode: '0755'
 __sshd_main_config_file: /etc/ssh/sshd_config
diff --git a/vars/main.yml b/vars/main.yml
index a44b5fb..b9ceb08 100644
--- a/vars/main.yml
+++ b/vars/main.yml
@@ -31,15 +31,14 @@ __sshd_os_supported: no
 __sshd_sysconfig_supports_crypto_policy: false
 __sshd_sysconfig_supports_use_strong_rng: false
 
-__sshd_runtime_directory: false
+__sshd_runtime_directory: ~
 __sshd_runtime_directory_mode: "0755"
 
-# If the system supports drop-in directory, it is configured in this variable. It is used
-# to distinguish if we are writing a configuration snippet or we should write defaults.
-__sshd_drop_in_dir: false
 # this is the path to the main sshd_config which is checked for Include directive when
 # drop-in directory is used
-__sshd_main_config_file: false
+__sshd_main_config_file: ~
+
+__sshd_drop_in_dir_mode: '0755'
 
 # The list of hostkeys to check when there are none listed in configuration file.
 # This is usually the case when the selection is up to the OpenSSH defaults or