diff --git a/libmamba/include/mamba/util/environment.hpp b/libmamba/include/mamba/util/environment.hpp
index f3fc75bced..0d6784d28c 100644
--- a/libmamba/include/mamba/util/environment.hpp
+++ b/libmamba/include/mamba/util/environment.hpp
@@ -62,6 +62,16 @@ namespace mamba::util
      */
     [[nodiscard]] auto user_home_dir() -> std::string;
 
+#ifndef _WIN32
+    /**
+     * Return the directory to zsh dotfiles.
+     *
+     * This function checks for the `ZDOTDIR` environment variable and falls back to the user's
+     * home directory if it is not set.
+     */
+    [[nodiscard]] auto zsh_home_dir() -> std::string;
+#endif  // _WIN32
+
     /**
      * Return the current user config directory.
      *
diff --git a/libmamba/src/core/shell_init.cpp b/libmamba/src/core/shell_init.cpp
index 4f3e4b0d6d..2e4d30b523 100644
--- a/libmamba/src/core/shell_init.cpp
+++ b/libmamba/src/core/shell_init.cpp
@@ -1284,6 +1284,7 @@ namespace mamba
         }
         else if (shell == "zsh")
         {
+            home = util::zsh_home_dir();
             fs::u8path zshrc_path = home / ".zshrc";
             modify_rc_file(context, zshrc_path, conda_prefix, shell, mamba_exe);
         }
@@ -1358,6 +1359,7 @@ namespace mamba
         }
         else if (shell == "zsh")
         {
+            home = util::zsh_home_dir();
             fs::u8path zshrc_path = home / ".zshrc";
             reset_rc_file(context, zshrc_path, shell, mamba_exe);
         }
@@ -1424,6 +1426,7 @@ namespace mamba
         }
         else if (shell == "zsh")
         {
+            home = util::zsh_home_dir();
             config_path = home / ".zshrc";
         }
         else if (shell == "xonsh")
diff --git a/libmamba/src/util/environment.cpp b/libmamba/src/util/environment.cpp
index 29ef25c30f..e34a1f6835 100644
--- a/libmamba/src/util/environment.cpp
+++ b/libmamba/src/util/environment.cpp
@@ -292,6 +292,15 @@ namespace mamba::util
         throw std::runtime_error("HOME not set.");
     }
 
+    auto zsh_home_dir() -> std::string
+    {
+        if (auto maybe_zdotdir = get_env("ZDOTDIR").value_or(""); !maybe_zdotdir.empty())
+        {
+            return maybe_zdotdir;
+        }
+        return user_home_dir();
+    }
+
     auto user_config_dir() -> std::string
     {
         if (auto maybe_dir = get_env("XDG_CONFIG_HOME").value_or(""); !maybe_dir.empty())
diff --git a/libmamba/tests/src/util/test_environment.cpp b/libmamba/tests/src/util/test_environment.cpp
index d3903a3e1c..d43a4825d7 100644
--- a/libmamba/tests/src/util/test_environment.cpp
+++ b/libmamba/tests/src/util/test_environment.cpp
@@ -166,6 +166,29 @@ namespace
         }
     }
 
+    TEST_CASE("zsh_home_dir", "[mamba::util]")
+    {
+        if (on_win)
+        {
+            return;
+        }
+
+        const auto restore = mambatests::EnvironmentCleaner();
+
+        SECTION("ZDOTDIR set")
+        {
+            set_env("ZDOTDIR", "/user/mamba/.zsh");
+            REQUIRE(zsh_home_dir() == "/user/mamba/.zsh");
+        }
+
+        SECTION("ZDOTDIR not set")
+        {
+            unset_env("ZDOTDIR");
+            set_env("HOME", "/user/mamba");
+            REQUIRE(zsh_home_dir() == user_home_dir());
+        }
+    }
+
     TEST_CASE("user_xdg", "[mamba::util]")
     {
         const auto restore = mambatests::EnvironmentCleaner();