diff --git a/changelog.md b/changelog.md
index 18996fa5..ecc358c6 100644
--- a/changelog.md
+++ b/changelog.md
@@ -2,6 +2,8 @@
 
 ### [Latest]
 
+- Allow configurable virtual dataset creation directory [#117](https://github.com/umami-hep/umami-preprocessing/pull/117)
+
 - Add campaign year reweighting/resampling to Xbb configs [#118](https://github.com/umami-hep/umami-preprocessing/pull/118)
 
 ### [v0.3.0](https://github.com/umami-hep/umami-preprocessing/releases/tag/v0.3.0) (23.02.2026)
diff --git a/docs/configuration.md b/docs/configuration.md
index dc85c1fe..445fe2d0 100644
--- a/docs/configuration.md
+++ b/docs/configuration.md
@@ -40,6 +40,11 @@ Below is an example and a table explaining each setting.
 |`pattern`|`str` or `list[str]`| A single pattern or a list of pattern that match h5 files in a downloaded dataset. H5 files matching each pattern will be transparently merged using virtual datasets. | *Required* |
 |`equal_jets`|`bool`| Only relevant when providing a list of patterns. If `True`, the same number of jets from each DSID are selected. This is required for e.g. in Xbb QCD where each DSID belongs to a different slice, and the resampling would break if you tried to resample with one or more slices missing. If `False` this is not enforced, allowing for larger numbers of available jets. | `True` |
 
+The virtual dataset files created from wildcard patterns are by default stored alongside the input ntuples.
+If you have no write access to the input ntuples directory and would like to collect all VDS files in an accessible directory instead, set `vds_dir` in the global config (see [Global Config](#global-config)).
+Each pattern gets its own VDS file named after its DSID directory (e.g. `vds_dir/user.wlai.601589.e8547_..._output_vds.h5`).
+
+
 
 ### Global Cuts
 
diff --git a/tests/unit/classes/test_components.py b/tests/unit/classes/test_components.py
new file mode 100644
index 00000000..cd885f2f
--- /dev/null
+++ b/tests/unit/classes/test_components.py
@@ -0,0 +1,60 @@
+from __future__ import annotations
+
+from pathlib import Path
+
+# import pytest
+from ftag import Cuts, Flavours, Sample
+from ftag.mock import get_mock_file
+
+import upp.classes.components as components_module
+from upp.classes.components import Component
+from upp.classes.region import Region
+
+
+def make_component(tmp_path: Path, vds_dir: Path | None) -> Component:
+    fname = get_mock_file()[0]
+    sample = Sample(pattern=fname, name="test", vds_dir=vds_dir)
+    return Component(
+        region=Region(name="lowpt", cuts=Cuts.empty()),
+        sample=sample,
+        flavour=Flavours.bjets,
+        global_cuts=Cuts.empty(),
+        dirname=tmp_path / "components" / "sub",
+        num_jets=100,
+        num_jets_estimate_available=0,
+        equal_jets=True,
+    )
+
+
+def test_setup_reader_passes_vds_dir(tmp_path, monkeypatch):
+    """setup_reader forwards vds_dir from sample to H5Reader when set."""
+    vds_dir = tmp_path / "vds"
+    comp = make_component(tmp_path, vds_dir=vds_dir)
+
+    captured = {}
+
+    class _H5Reader:
+        def __init__(self, **kwargs):
+            captured.update(kwargs)
+
+    monkeypatch.setattr(components_module, "H5Reader", _H5Reader)
+    comp.setup_reader(batch_size=100)
+
+    assert "vds_dir" in captured
+    assert captured["vds_dir"] == vds_dir
+
+
+def test_setup_reader_no_vds_dir(tmp_path, monkeypatch):
+    """setup_reader does not inject vds_dir when sample.vds_dir is None."""
+    comp = make_component(tmp_path, vds_dir=None)
+
+    captured = {}
+
+    class _H5Reader:
+        def __init__(self, **kwargs):
+            captured.update(kwargs)
+
+    monkeypatch.setattr(components_module, "H5Reader", _H5Reader)
+    comp.setup_reader(batch_size=100)
+
+    assert "vds_dir" not in captured
diff --git a/upp/classes/components.py b/upp/classes/components.py
index babd90a4..89638627 100644
--- a/upp/classes/components.py
+++ b/upp/classes/components.py
@@ -86,6 +86,9 @@ def setup_reader(
         if fname is None:
             fname = self.sample.path
 
+        if "vds_dir" not in kwargs and self.sample.vds_dir is not None:
+            kwargs["vds_dir"] = self.sample.vds_dir
+
         self.reader = H5Reader(
             fname=fname,
             batch_size=batch_size,
@@ -337,6 +340,7 @@ def from_config(cls, config: PreprocessingConfig) -> Components:
                 ntuple_dir=config.ntuple_dir,
                 name=component["sample"]["name"],
                 skip_checks=config.skip_checks,
+                vds_dir=config.vds_dir,
             )
 
             # Create the Component instances for the different flavours
diff --git a/upp/classes/preprocessing_config.py b/upp/classes/preprocessing_config.py
index 2c279f08..59ac2fbe 100644
--- a/upp/classes/preprocessing_config.py
+++ b/upp/classes/preprocessing_config.py
@@ -119,6 +119,9 @@ class PreprocessingConfig:
         Skip checks for the input files. This is used for grid submission
     skip_config_copy : bool, optional
         Decide, if the config copying is skipped or not. By default False
+    vds_dir : Path | None, optional
+        Directory name for creation of virtual datasets. By default None
+        If none is given, virtual datasets is created next to input ntuples
     """
 
     config_path: Path
@@ -142,6 +145,7 @@ class PreprocessingConfig:
     num_jets_per_output_file: int | None = None
     skip_checks: bool = False
     skip_config_copy: bool = False
+    vds_dir: Path | None = None
 
     def __post_init__(self):
         # postprocess paths
diff --git a/upp/stages/plot.py b/upp/stages/plot.py
index f5d5e7d9..f66b7836 100644
--- a/upp/stages/plot.py
+++ b/upp/stages/plot.py
@@ -178,6 +178,7 @@ def plot_resampling_dists(config: PreprocessingConfig, stage: str) -> None:
             jets_name=config.jets_name,
             shuffle=False,
             equal_jets=True,
+            vds_dir=config.vds_dir,
         ).load(
             {config.jets_name: vars_to_load},
             num_jets=config.num_jets_estimate_plotting,
diff --git a/upp/stages/resampling.py b/upp/stages/resampling.py
index ff0f243c..b0aa67af 100644
--- a/upp/stages/resampling.py
+++ b/upp/stages/resampling.py
@@ -332,6 +332,7 @@ def run_on_region(
                 jets_name=self.jets_name,
                 equal_jets=equal_jets_flag,
                 transform=self.transform,
+                vds_dir=sample.vds_dir,
             )
 
             # Define a stream of jets with the cuts for the region and the variables used
diff --git a/upp/utils/check_input_samples.py b/upp/utils/check_input_samples.py
index 2d43ecfa..100e1dc2 100644
--- a/upp/utils/check_input_samples.py
+++ b/upp/utils/check_input_samples.py
@@ -211,6 +211,7 @@ def run_input_sample_check(
                 fname=config.ntuple_dir / sample,
                 batch_size=config.batch_size,
                 jets_name=config.jets_name,
+                vds_dir=getattr(config, "vds_dir", None),
             ).num_jets
 
         # Drop the pattern