diff --git a/pkg/systemd/quadlet/unitdirs.go b/pkg/systemd/quadlet/unitdirs.go
index ee3b8932788..e14153cdb3d 100644
--- a/pkg/systemd/quadlet/unitdirs.go
+++ b/pkg/systemd/quadlet/unitdirs.go
@@ -11,6 +11,7 @@ import (
 	"strings"
 
 	"go.podman.io/podman/v6/pkg/logiface"
+	"go.podman.io/podman/v6/pkg/util"
 )
 
 // This returns whether a file has an extension recognized as a valid Quadlet unit type.
@@ -230,6 +231,12 @@ func getRootlessDirs(paths *searchPaths, nonNumericFilter, userLevelFilter func(
 	}
 
 	configDir, err := os.UserConfigDir()
+	if os.Getenv("XDG_CONFIG_HOME") == "" {
+		home, found := os.LookupEnv("HOME")
+		if !found || home == "" || home == string(os.PathSeparator) {
+			configDir, err = util.GetRootlessConfigHomeDir()
+		}
+	}
 	if err != nil {
 		logiface.Errorf("Warning: %v", err)
 		return
diff --git a/pkg/util/utils_linux_test.go b/pkg/util/utils_linux_test.go
index 9d75a20c8f4..1c0a2fcf4de 100644
--- a/pkg/util/utils_linux_test.go
+++ b/pkg/util/utils_linux_test.go
@@ -1,9 +1,31 @@
 package util
 
 import (
+	"os/user"
+	"path/filepath"
 	"testing"
 )
 
+func TestGetRootlessConfigHomeDirWithRootHome(t *testing.T) {
+	u, err := user.Current()
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	t.Setenv("XDG_CONFIG_HOME", "")
+	t.Setenv("HOME", "/")
+
+	configDir, err := GetRootlessConfigHomeDir()
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	expected := filepath.Join(u.HomeDir, ".config")
+	if configDir != expected {
+		t.Fatalf("expected %q, got %q", expected, configDir)
+	}
+}
+
 func TestIsVirtualConsoleDevice(t *testing.T) {
 	testcases := []struct {
 		expectedResult bool
diff --git a/pkg/util/utils_supported.go b/pkg/util/utils_supported.go
index 2c1469f8869..36ee0321962 100644
--- a/pkg/util/utils_supported.go
+++ b/pkg/util/utils_supported.go
@@ -6,7 +6,10 @@ package util
 //  should work to take darwin from this
 
 import (
+	"os"
+	"os/user"
 	"path/filepath"
+	"strconv"
 
 	"go.podman.io/podman/v6/pkg/rootless"
 	"go.podman.io/storage/pkg/homedir"
@@ -22,6 +25,13 @@ func GetRootlessRuntimeDir() (string, error) {
 
 // GetRootlessConfigHomeDir returns the config home directory when running as non root
 func GetRootlessConfigHomeDir() (string, error) {
+	if os.Getenv("XDG_CONFIG_HOME") == "" && os.Getenv("HOME") == string(os.PathSeparator) {
+		u, err := user.LookupId(strconv.Itoa(rootless.GetRootlessUID()))
+		if err == nil && u.HomeDir != "" {
+			return filepath.Join(u.HomeDir, ".config"), nil
+		}
+	}
+
 	return homedir.GetConfigHome()
 }