diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index 0f33e20..04d540d 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -105,3 +105,21 @@ jobs:
       - name: Install default version
         uses: ./
       - run: uvx ruff --version
+  test-tool-install:
+    runs-on: ${{ matrix.os }}
+    strategy:
+      matrix:
+        os:
+          [
+            ubuntu-latest,
+            macos-latest,
+            macos-14,
+            windows-latest,
+            oracle-aarch64,
+          ]
+    steps:
+      - uses: actions/checkout@v4
+      - name: Install default version
+        uses: ./
+      - run: uv tool install ruff
+      - run: ruff --version
diff --git a/README.md b/README.md
index af31171..99994c6 100644
--- a/README.md
+++ b/README.md
@@ -13,11 +13,13 @@ Set up your GitHub Actions workflow with a specific version of [uv](https://docs
 - [Usage](#usage)
   - [Install the latest version (default)](#install-the-latest-version-default)
   - [Install a specific version](#install-a-specific-version)
+  - [Install a version by supplying a semver range](#install-a-version-by-supplying-a-semver-range)
   - [Validate checksum](#validate-checksum)
   - [Enable Caching](#enable-caching)
     - [Cache dependency glob](#cache-dependency-glob)
   - [Local cache path](#local-cache-path)
   - [GitHub authentication token](#github-authentication-token)
+  - [UV_TOOL_BIN_DIR](#uv_tool_bin_dir)
 - [How it works](#how-it-works)
 - [FAQ](#faq)
 
@@ -178,6 +180,23 @@ are not sufficient, you can provide a custom GitHub token with the necessary per
     github-token: ${{ secrets.CUSTOM_GITHUB_TOKEN }}
 ```
 
+### UV_TOOL_BIN_DIR
+
+On Windows `UV_TOOL_BIN_DIR` is set to the `TMP` dir.
+On GitHub hosted runners this is on the much faster `D:` drive.
+This path is also automatically added to the PATH.
+
+On all other platforms the tool binaries get installed to the [default location](https://docs.astral.sh/uv/concepts/tools/#the-bin-directory).
+
+If you want to change this behaviour (especially on self-hosted runners) you can use the `tool-bin-dir` input:
+
+```yaml
+- name: Install the latest version of uv with a custom tool bin dir
+  uses: astral-sh/setup-uv@v3
+  with:
+    tool-bin-dir: "/path/to/tool/bin"
+```
+
 ## How it works
 
 This action downloads uv from the uv repo's official
diff --git a/action.yml b/action.yml
index d9d77a2..1dbf8f4 100644
--- a/action.yml
+++ b/action.yml
@@ -29,6 +29,9 @@ inputs:
   cache-local-path:
     description: "Local path to store the cache."
     default: ""
+  tool-bin-dir:
+    description: "Custom path to set UV_TOOL_BIN_DIR to."
+    required: false
 outputs:
   uv-version:
     description: "The installed uv version. Useful when using latest."
diff --git a/dist/save-cache/index.js b/dist/save-cache/index.js
index 2cf89c1..6adb8c4 100644
--- a/dist/save-cache/index.js
+++ b/dist/save-cache/index.js
@@ -83008,7 +83008,7 @@ var __importDefault = (this && this.__importDefault) || function (mod) {
     return (mod && mod.__esModule) ? mod : { "default": mod };
 };
 Object.defineProperty(exports, "__esModule", ({ value: true }));
-exports.cacheDependencyGlob = exports.githubToken = exports.cacheLocalPath = exports.cacheSuffix = exports.enableCache = exports.checkSum = exports.version = void 0;
+exports.githubToken = exports.toolBinDir = exports.cacheDependencyGlob = exports.cacheLocalPath = exports.cacheSuffix = exports.enableCache = exports.checkSum = exports.version = void 0;
 const core = __importStar(__nccwpck_require__(2186));
 const path_1 = __importDefault(__nccwpck_require__(1017));
 exports.version = core.getInput("version");
@@ -83016,8 +83016,19 @@ exports.checkSum = core.getInput("checksum");
 exports.enableCache = core.getInput("enable-cache") === "true";
 exports.cacheSuffix = core.getInput("cache-suffix") || "";
 exports.cacheLocalPath = getCacheLocalPath();
-exports.githubToken = core.getInput("github-token");
 exports.cacheDependencyGlob = core.getInput("cache-dependency-glob");
+exports.toolBinDir = getToolBinDir();
+exports.githubToken = core.getInput("github-token");
+function getToolBinDir() {
+    const toolBinDirInput = core.getInput("tool-bin-dir");
+    if (toolBinDirInput !== "") {
+        return toolBinDirInput;
+    }
+    if (process.platform === "win32") {
+        return "D:\\a\\_temp\\uv-tool-bin-dir";
+    }
+    return undefined;
+}
 function getCacheLocalPath() {
     const cacheLocalPathInput = core.getInput("cache-local-path");
     if (cacheLocalPathInput !== "") {
diff --git a/dist/setup/index.js b/dist/setup/index.js
index 3b70965..a13cbd0 100644
--- a/dist/setup/index.js
+++ b/dist/setup/index.js
@@ -90033,6 +90033,7 @@ function run() {
             }
             const setupResult = yield setupUv(platform, arch, inputs_1.version, inputs_1.checkSum, inputs_1.githubToken);
             addUvToPath(setupResult.uvDir);
+            addToolBinToPath();
             core.setOutput("uv-version", setupResult.version);
             core.info(`Successfully installed uv version ${setupResult.version}`);
             addMatchers();
@@ -90076,6 +90077,14 @@ function addUvToPath(cachedPath) {
     core.addPath(cachedPath);
     core.info(`Added ${cachedPath} to the path`);
 }
+function addToolBinToPath() {
+    if (inputs_1.toolBinDir !== undefined) {
+        core.exportVariable("UV_TOOL_BIN_DIR", inputs_1.toolBinDir);
+        core.info(`Set UV_TOOL_BIN_DIR to ${inputs_1.toolBinDir}`);
+        core.addPath(inputs_1.toolBinDir);
+        core.info(`Added ${inputs_1.toolBinDir} to the path`);
+    }
+}
 function setCacheDir(cacheLocalPath) {
     core.exportVariable("UV_CACHE_DIR", cacheLocalPath);
     core.info(`Set UV_CACHE_DIR to ${cacheLocalPath}`);
@@ -90135,7 +90144,7 @@ var __importDefault = (this && this.__importDefault) || function (mod) {
     return (mod && mod.__esModule) ? mod : { "default": mod };
 };
 Object.defineProperty(exports, "__esModule", ({ value: true }));
-exports.cacheDependencyGlob = exports.githubToken = exports.cacheLocalPath = exports.cacheSuffix = exports.enableCache = exports.checkSum = exports.version = void 0;
+exports.githubToken = exports.toolBinDir = exports.cacheDependencyGlob = exports.cacheLocalPath = exports.cacheSuffix = exports.enableCache = exports.checkSum = exports.version = void 0;
 const core = __importStar(__nccwpck_require__(2186));
 const path_1 = __importDefault(__nccwpck_require__(1017));
 exports.version = core.getInput("version");
@@ -90143,8 +90152,19 @@ exports.checkSum = core.getInput("checksum");
 exports.enableCache = core.getInput("enable-cache") === "true";
 exports.cacheSuffix = core.getInput("cache-suffix") || "";
 exports.cacheLocalPath = getCacheLocalPath();
-exports.githubToken = core.getInput("github-token");
 exports.cacheDependencyGlob = core.getInput("cache-dependency-glob");
+exports.toolBinDir = getToolBinDir();
+exports.githubToken = core.getInput("github-token");
+function getToolBinDir() {
+    const toolBinDirInput = core.getInput("tool-bin-dir");
+    if (toolBinDirInput !== "") {
+        return toolBinDirInput;
+    }
+    if (process.platform === "win32") {
+        return "D:\\a\\_temp\\uv-tool-bin-dir";
+    }
+    return undefined;
+}
 function getCacheLocalPath() {
     const cacheLocalPathInput = core.getInput("cache-local-path");
     if (cacheLocalPathInput !== "") {
diff --git a/src/setup-uv.ts b/src/setup-uv.ts
index 6d9d7e5..9486201 100644
--- a/src/setup-uv.ts
+++ b/src/setup-uv.ts
@@ -18,6 +18,7 @@ import {
   checkSum,
   enableCache,
   githubToken,
+  toolBinDir,
   version,
 } from "./utils/inputs";
 
@@ -41,6 +42,7 @@ async function run(): Promise<void> {
     );
 
     addUvToPath(setupResult.uvDir);
+    addToolBinToPath();
     core.setOutput("uv-version", setupResult.version);
     core.info(`Successfully installed uv version ${setupResult.version}`);
 
@@ -102,6 +104,15 @@ function addUvToPath(cachedPath: string): void {
   core.info(`Added ${cachedPath} to the path`);
 }
 
+function addToolBinToPath(): void {
+  if (toolBinDir !== undefined) {
+    core.exportVariable("UV_TOOL_BIN_DIR", toolBinDir);
+    core.info(`Set UV_TOOL_BIN_DIR to ${toolBinDir}`);
+    core.addPath(toolBinDir);
+    core.info(`Added ${toolBinDir} to the path`);
+  }
+}
+
 function setCacheDir(cacheLocalPath: string): void {
   core.exportVariable("UV_CACHE_DIR", cacheLocalPath);
   core.info(`Set UV_CACHE_DIR to ${cacheLocalPath}`);
diff --git a/src/utils/inputs.ts b/src/utils/inputs.ts
index 66eec47..126d962 100644
--- a/src/utils/inputs.ts
+++ b/src/utils/inputs.ts
@@ -6,8 +6,20 @@ export const checkSum = core.getInput("checksum");
 export const enableCache = core.getInput("enable-cache") === "true";
 export const cacheSuffix = core.getInput("cache-suffix") || "";
 export const cacheLocalPath = getCacheLocalPath();
-export const githubToken = core.getInput("github-token");
 export const cacheDependencyGlob = core.getInput("cache-dependency-glob");
+export const toolBinDir = getToolBinDir();
+export const githubToken = core.getInput("github-token");
+
+function getToolBinDir(): string | undefined {
+  const toolBinDirInput = core.getInput("tool-bin-dir");
+  if (toolBinDirInput !== "") {
+    return toolBinDirInput;
+  }
+  if (process.platform === "win32") {
+    return "D:\\a\\_temp\\uv-tool-bin-dir";
+  }
+  return undefined;
+}
 
 function getCacheLocalPath(): string {
   const cacheLocalPathInput = core.getInput("cache-local-path");