diff --git a/modules/rpm-ostree/README.md b/modules/rpm-ostree/README.md
index 03a8383..5a524e4 100644
--- a/modules/rpm-ostree/README.md
+++ b/modules/rpm-ostree/README.md
@@ -2,14 +2,24 @@
 
 The [`rpm-ostree`](https://coreos.github.io/rpm-ostree/) module offers pseudo-declarative package and repository management using `rpm-ostree`.
 
-The module first downloads the repository files from repositories declared under `repos:` into `/etc/yum.repos.d/`. The magic string `%OS_VERSION%` is substituted with the current VERSION_ID (major Fedora version), which can be used, for example, for pulling correct versions of repositories from [Fedora's Copr](https://copr.fedorainfracloud.org/).
+The module first downloads the repository files from URLs declared under `repos:` into `/etc/yum.repos.d/`. The magic string `%OS_VERSION%` is substituted with the current VERSION_ID (major Fedora version), which can be used, for example, for pulling correct versions of repositories from [Fedora's Copr](https://copr.fedorainfracloud.org/).
 
+You can also add repository files directly into your git repository if URLs are not provided. For example:
+```yml
+repos:
+   - my-repository.repo # copies in .repo file from files/rpm-ostree/my-repository.repo to /etc/yum.repos.d/
+```
 If you use a repo that requires adding custom keys (eg. Brave Browser), you can import the keys by declaring the key URLs under `keys:`. The magic string acts the same as it does in `repos`.
 
 Then the module installs the packages declared under `install:` using `rpm-ostree install`, it removes the packages declared under `remove:` using `rpm-ostree override remove`. If there are packages declared under both `install:` and `remove:` a hybrid command `rpm-ostree remove <packages> --install <packages>` is used, which should allow you to switch required packages for other ones.
 
 Installing RPM packages directly from a `http(s)` url that points to the RPM file is also supported, you can just put the URLs under `install:` and they'll be installed along with the other packages. The magic string `%OS_VERSION%` is substituted with the current VERSION_ID (major Fedora version) like with the `repos:` property.
 
+If an RPM is not available in a repository or as an URL, you can also install it directly from a file in your git repository. For example:
+```yml
+install:
+   - weird-package.rpm # tries to install files/rpm-ostree/weird-package.rpm
+```
 The module can also replace base RPM packages with packages from COPR repo. Under `replace:`, the module finds every pair of keys `- from-repo:` and `packages:`. (Multiple pairs are supported.) The module downloads the COPR repository file declared by `- from-repo:` into `/etc/yum.repos.d/`, and from that repository replaces packages declared under `packages:` using the command `rpm-ostree override replace`. The COPR repository file is then deleted. The magic string `%OS_VERSION%` is substituted with the current VERSION_ID (major Fedora version) as already said above. At the moment, only COPR repo is supported.
 
 :::note
diff --git a/modules/rpm-ostree/module.yml b/modules/rpm-ostree/module.yml
index 42803f0..497bf08 100644
--- a/modules/rpm-ostree/module.yml
+++ b/modules/rpm-ostree/module.yml
@@ -21,4 +21,4 @@ example: |
       packages:
         - mutter
         - mutter-common
-        - gdm
\ No newline at end of file
+        - gdm
diff --git a/modules/rpm-ostree/rpm-ostree.sh b/modules/rpm-ostree/rpm-ostree.sh
index bf1afbf..f200dbe 100644
--- a/modules/rpm-ostree/rpm-ostree.sh
+++ b/modules/rpm-ostree/rpm-ostree.sh
@@ -8,8 +8,12 @@ get_yaml_array REPOS '.repos[]' "$1"
 if [[ ${#REPOS[@]} -gt 0 ]]; then
     echo "Adding repositories"
     for REPO in "${REPOS[@]}"; do
-        REPO="${REPO//%OS_VERSION%/${OS_VERSION}}"
-        curl --output-dir "/etc/yum.repos.d/" -O "${REPO//[$'\t\r\n ']}"
+    REPO="${REPO//%OS_VERSION%/${OS_VERSION}}"
+        if [[ "${REPO}" =~ ^https?:\/\/.* ]]; then
+          curl --output-dir "/etc/yum.repos.d/" -O "${REPO//[$'\t\r\n ']}"
+        elif [[ ! "${REPO}" =~ ^https?:\/\/.* ]] && [[ "${REPO}" == *".repo" ]] && [[ -f "${CONFIG_DIRECTORY}/rpm-ostree/${REPO}" ]]; then
+          cp "${CONFIG_DIRECTORY}/rpm-ostree/${REPO}" "/etc/yum.repos.d/${REPO##*/}"
+        fi  
     done
 fi
 
@@ -33,48 +37,86 @@ if [[ ${#OPTFIX[@]} -gt 0 ]]; then
     for OPTPKG in "${OPTFIX[@]}"; do
         OPTPKG="${OPTPKG%\"}"
         OPTPKG="${OPTPKG#\"}"
-        OPTPKG=$(printf "$OPTPKG")
         mkdir -p "/usr/lib/opt/${OPTPKG}"
         ln -s "../../usr/lib/opt/${OPTPKG}" "/var/opt/${OPTPKG}"
         echo "Created symlinks for ${OPTPKG}"
     done
 fi
 
-get_yaml_array INSTALL '.install[]' "$1"
-get_yaml_array REMOVE '.remove[]' "$1"
+get_yaml_array INSTALL_PKGS '.install[]' "$1"
+get_yaml_array REMOVE_PKGS '.remove[]' "$1"
 
-if [[ ${#INSTALL[@]} -gt 0 ]]; then
-    for PKG in "${INSTALL[@]}"; do
-        if [[ "$PKG" =~ ^https?:\/\/.* ]]; then
-            REPLACED_PKG="${PKG//%OS_VERSION%/${OS_VERSION}}"
-            echo "Installing directly from URL: ${REPLACED_PKG}"
-            rpm-ostree install "$REPLACED_PKG"
-            INSTALL=( "${INSTALL[@]/$PKG}" ) # delete URL from install array
-        fi
-    done
-fi
-
-# The installation is done with some wordsplitting hacks
-# because of errors when doing array destructuring at the installation step.
-# This is different from other ublue projects and could be investigated further.
-INSTALL_STR=$(echo "${INSTALL[*]}" | tr -d '\n')
-REMOVE_STR=$(echo "${REMOVE[*]}" | tr -d '\n')
+CLASSIC_INSTALL=false
+HTTPS_INSTALL=false
+LOCAL_INSTALL=false
 
 # Install and remove RPM packages
-if [[ ${#INSTALL[@]} -gt 0 && ${#REMOVE[@]} -gt 0 ]]; then
+# Sort classic, URL & local packages
+if [[ ${#INSTALL_PKGS[@]} -gt 0 ]]; then
+  for PKG in "${INSTALL_PKGS[@]}"; do
+      if [[ "${PKG}" =~ ^https?:\/\/.* ]]; then
+        VERSION_SUBSTITUTED_PKG="${PKG//%OS_VERSION%/${OS_VERSION}}"    
+        HTTPS_INSTALL=true
+        HTTPS_PKGS+=("${VERSION_SUBSTITUTED_PKG}")
+      elif [[ ! "${PKG}" =~ ^https?:\/\/.* ]] && [[ -f "${CONFIG_DIRECTORY}/rpm-ostree/${PKG}" ]]; then
+        LOCAL_INSTALL=true
+        LOCAL_PKGS+=("${CONFIG_DIRECTORY}/rpm-ostree/${PKG}")
+      else
+        CLASSIC_INSTALL=true
+        CLASSIC_PKGS+=("${PKG}")
+      fi
+  done
+fi
+
+echo_rpm_install() {
+    if ${CLASSIC_INSTALL} && ! ${HTTPS_INSTALL} && ! ${LOCAL_INSTALL}; then
+      echo "Installing: ${CLASSIC_PKGS[*]}"
+    elif ! ${CLASSIC_INSTALL} && ${HTTPS_INSTALL} && ! ${LOCAL_INSTALL}; then
+      echo "Installing package(s) directly from URL: ${HTTPS_PKGS[*]}"
+    elif ! ${CLASSIC_INSTALL} && ! ${HTTPS_INSTALL} && ${LOCAL_INSTALL}; then
+      echo "Installing local package(s): ${LOCAL_PKGS[*]}"
+    elif ${CLASSIC_INSTALL} && ${HTTPS_INSTALL} && ! ${LOCAL_INSTALL}; then
+      echo "Installing: ${CLASSIC_PKGS[*]}"
+      echo "Installing package(s) directly from URL: ${HTTPS_PKGS[*]}"
+    elif ${CLASSIC_INSTALL} && ! ${HTTPS_INSTALL} && ${LOCAL_INSTALL}; then
+      echo "Installing: ${CLASSIC_PKGS[*]}"
+      echo "Installing local package(s): ${LOCAL_PKGS[*]}"
+    elif ! ${CLASSIC_INSTALL} && ${HTTPS_INSTALL} && ${LOCAL_INSTALL}; then
+      echo "Installing package(s) directly from URL: ${HTTPS_PKGS[*]}"    
+      echo "Installing local package(s): ${LOCAL_PKGS[*]}"
+    elif ${CLASSIC_INSTALL} && ${HTTPS_INSTALL} && ${LOCAL_INSTALL}; then
+      echo "Installing: ${CLASSIC_PKGS[*]}"
+      echo "Installing package(s) directly from URL: ${HTTPS_PKGS[*]}"
+      echo "Installing local package(s): ${LOCAL_PKGS[*]}"
+    fi
+}
+
+if [[ ${#INSTALL_PKGS[@]} -gt 0 && ${#REMOVE_PKGS[@]} -gt 0 ]]; then
     echo "Installing & Removing RPMs"
-    echo "Installing: ${INSTALL_STR[*]}"
-    echo "Removing: ${REMOVE_STR[*]}"
+    echo_rpm_install
+    echo "Removing: ${REMOVE_PKGS[*]}"
     # Doing both actions in one command allows for replacing required packages with alternatives
-    rpm-ostree override remove $REMOVE_STR $(printf -- "--install=%s " $INSTALL_STR)
-elif [[ ${#INSTALL[@]} -gt 0 ]]; then
+    # When --install= flag is used, URLs & local packages are not supported
+    if ${CLASSIC_INSTALL} && ! ${HTTPS_INSTALL} && ! ${LOCAL_INSTALL}; then
+      rpm-ostree override remove "${REMOVE_PKGS[@]}" $(printf -- "--install=%s " "${CLASSIC_PKGS[@]}")
+    elif ${CLASSIC_INSTALL} && ${HTTPS_INSTALL} && ! ${LOCAL_INSTALL}; then
+      rpm-ostree override remove "${REMOVE_PKGS[@]}" $(printf -- "--install=%s " "${CLASSIC_PKGS[@]}")
+      rpm-ostree install "${HTTPS_PKGS[@]}"
+    elif ${CLASSIC_INSTALL} && ! ${HTTPS_INSTALL} && ! ${LOCAL_INSTALL}; then
+      rpm-ostree override remove "${REMOVE_PKGS[@]}" $(printf -- "--install=%s " "${CLASSIC_PKGS[@]}")    
+      rpm-ostree install "${LOCAL_PKGS[@]}"
+    elif ${CLASSIC_INSTALL} && ${HTTPS_INSTALL} && ${LOCAL_INSTALL}; then
+      rpm-ostree override remove "${REMOVE_PKGS[@]}" $(printf -- "--install=%s " "${CLASSIC_PKGS[@]}")
+      rpm-ostree install "${HTTPS_PKGS[@]}" "${LOCAL_PKGS[@]}"
+    fi  
+elif [[ ${#INSTALL_PKGS[@]} -gt 0 ]]; then
     echo "Installing RPMs"
-    echo "Installing: ${INSTALL_STR[*]}"
-    rpm-ostree install $INSTALL_STR
-elif [[ ${#REMOVE[@]} -gt 0 ]]; then
+    echo_rpm_install
+    rpm-ostree install "${INSTALL_PKGS[@]}"
+elif [[ ${#REMOVE_PKGS[@]} -gt 0 ]]; then
     echo "Removing RPMs"
-    echo "Removing: ${REMOVE_STR[*]}"
-    rpm-ostree override remove $REMOVE_STR
+    echo "Removing: ${REMOVE_PKGS[*]}"
+    rpm-ostree override remove "${REMOVE_PKGS[@]}"
 fi
 
 get_yaml_array REPLACE '.replace[]' "$1"
@@ -108,7 +150,7 @@ if [[ ${#REPLACE[@]} -gt 0 ]]; then
             exit 1
         fi
 
-        echo "Replacing packages from repository: '${REPO_NAME}' owned by '${MAINTAINER}'"
+        echo "Replacing packages from COPR repository: '${REPO_NAME}' owned by '${MAINTAINER}'"
         echo "Replacing: ${REPLACE_STR}"
 
         curl --output-dir "/etc/yum.repos.d/" -O "${REPO//[$'\t\r\n ']}"