diff --git a/modules/rpm-ostree/README.md b/modules/rpm-ostree/README.md
index 03a8383..126e3b6 100644
--- a/modules/rpm-ostree/README.md
+++ b/modules/rpm-ostree/README.md
@@ -4,12 +4,24 @@ The [`rpm-ostree`](https://coreos.github.io/rpm-ostree/) module offers pseudo-de
 
 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/).
 
+You can also have local repos inserted in this file location (make the directory if it doesn't exist):  
+```
+files/rpm-ostree/my-repository.repo
+files/rpm-ostree/my-image/my-2nd-repository.repo
+```
+
 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.
 
+Installing local RPM packages from the file location is supported. You can insert those RPMs in this file location (make the directory if it doesn't exist):  
+```
+files/rpm-ostree/my-package.rpm
+files/rpm-ostree/my-image/somepackage.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..62d80a0 100644
--- a/modules/rpm-ostree/module.yml
+++ b/modules/rpm-ostree/module.yml
@@ -5,6 +5,7 @@ example: |
   repos:
     - https://copr.fedorainfracloud.org/coprs/atim/starship/repo/fedora-%OS_VERSION%/atim-starship-fedora-%OS_VERSION%.repo # when including COPR repos, use the %OS_VERSION% magic string
     - https://brave-browser-rpm-release.s3.brave.com/brave-browser.repo
+    - my-local-repository.repo # local repo located in `files/rpm-ostree/my-local-repository.repo`
   keys:
     - https://brave-browser-rpm-release.s3.brave.com/brave-core.asc
   optfix:
@@ -16,9 +17,11 @@ example: |
   remove:
     - firefox
     - firefox-langpacks
+    - my-local-package.rpm # local package located in `files/rpm-ostree/my-local-package.rpm`
+    - some-folder/my-local-package-2.rpm # local package located in `files/rpm-ostree/some-folder/my-local-package-2.rpm`
   replace:
     - from-repo: https://copr.fedorainfracloud.org/coprs/trixieua/mutter-patched/repo/fedora-%OS_VERSION%/trixieua-mutter-patched-fedora-%OS_VERSION%.repo
       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..ef8f279 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
 
@@ -43,16 +47,22 @@ fi
 get_yaml_array INSTALL '.install[]' "$1"
 get_yaml_array REMOVE '.remove[]' "$1"
 
+# Install and remove RPM packages
+# Sort classic, URL & local packages
 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
+    if [[ "$PKG" =~ ^https?:\/\/.* ]]; then
+      VERSION_SUBSTITUTED_PKG="${PKG//%OS_VERSION%/${OS_VERSION}}"    
+      HTTPS_INSTALL=true
+      HTTPS_PKG+=("${VERSION_SUBSTITUTED_PKG}")
+    elif [[ ! "$PKG" =~ ^https?:\/\/.* ]] && [[ -f "${CONFIG_DIRECTORY}/rpm-ostree/${PKG}" ]]; then
+      LOCAL_INSTALL=true
+      LOCAL_PKG+=("${PKG}")
+    else
+      CLASSIC_INSTALL=true
+      CLASSIC_PKG+=("${PKG}")
+    fi
+done
 
 # The installation is done with some wordsplitting hacks
 # because of errors when doing array destructuring at the installation step.
@@ -60,16 +70,38 @@ fi
 INSTALL_STR=$(echo "${INSTALL[*]}" | tr -d '\n')
 REMOVE_STR=$(echo "${REMOVE[*]}" | tr -d '\n')
 
-# Install and remove RPM packages
+echo_rpm_install() {
+    if ${CLASSIC_INSTALL} && ! ${HTTPS_INSTALL} && ! ${LOCAL_INSTALL}; then
+      echo "Installing: ${CLASSIC_PKG[*]}"
+    elif ! ${CLASSIC_INSTALL} && ${HTTPS_INSTALL} && ! ${LOCAL_INSTALL}; then
+      echo "Installing package(s) directly from URL: ${HTTPS_PKG[*]}"
+    elif ! ${CLASSIC_INSTALL} && ! ${HTTPS_INSTALL} && ${LOCAL_INSTALL}; then
+      echo "Installing local package(s): ${LOCAL_PKG[*]}"
+    elif ${CLASSIC_INSTALL} && ${HTTPS_INSTALL} && ! ${LOCAL_INSTALL}; then
+      echo "Installing: ${CLASSIC_PKG[*]}"
+      echo "Installing package(s) directly from URL: ${HTTPS_PKG[*]}"
+    elif ${CLASSIC_INSTALL} && ! ${HTTPS_INSTALL} && ${LOCAL_INSTALL}; then
+      echo "Installing: ${CLASSIC_PKG[*]}"
+      echo "Installing local package(s): ${LOCAL_PKG[*]}"
+    elif ! ${CLASSIC_INSTALL} && ${HTTPS_INSTALL} && ${LOCAL_INSTALL}; then
+      echo "Installing package(s) directly from URL: ${HTTPS_PKG[*]}"    
+      echo "Installing local package(s): ${LOCAL_PKG[*]}"
+    elif ${CLASSIC_INSTALL} && ${HTTPS_INSTALL} && ${LOCAL_INSTALL}; then
+      echo "Installing: ${CLASSIC_PKG[*]}"
+      echo "Installing package(s) directly from URL: ${HTTPS_PKG[*]}"
+      echo "Installing local package(s): ${LOCAL_PKG[*]}"
+    fi
+}
+
 if [[ ${#INSTALL[@]} -gt 0 && ${#REMOVE[@]} -gt 0 ]]; then
     echo "Installing & Removing RPMs"
-    echo "Installing: ${INSTALL_STR[*]}"
+    echo_rpm_install
     echo "Removing: ${REMOVE_STR[*]}"
     # 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
     echo "Installing RPMs"
-    echo "Installing: ${INSTALL_STR[*]}"
+    echo_rpm_install
     rpm-ostree install $INSTALL_STR
 elif [[ ${#REMOVE[@]} -gt 0 ]]; then
     echo "Removing RPMs"
@@ -108,7 +140,7 @@ 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 ']}"