diff --git a/lnbits/app.py b/lnbits/app.py
index bb0c4c8da..2a50117f5 100644
--- a/lnbits/app.py
+++ b/lnbits/app.py
@@ -382,6 +382,10 @@ async def restore_installed_extension(app: FastAPI, ext: InstallableExtension):
 
 
 def register_custom_extensions_path():
+    upgrades_dir = settings.lnbits_extensions_upgrade_path
+    shutil.rmtree(upgrades_dir, True)
+    Path(upgrades_dir).mkdir(parents=True, exist_ok=True)
+
     if settings.has_default_extension_path:
         return
     default_ext_path = os.path.join("lnbits", "extensions")
diff --git a/lnbits/core/models/extensions.py b/lnbits/core/models/extensions.py
index d155c1e9f..976f150af 100644
--- a/lnbits/core/models/extensions.py
+++ b/lnbits/core/models/extensions.py
@@ -456,6 +456,7 @@ class InstallableExtension(BaseModel):
 
         shutil.rmtree(self.ext_dir, True)
         shutil.copytree(Path(self.ext_upgrade_dir), Path(self.ext_dir))
+        shutil.rmtree(self.ext_upgrade_dir, True)
         logger.info(f"Extension {self.name} ({self.installed_version}) extracted.")
 
     def clean_extension_files(self):