diff --git a/src/main/java/net/fabricmc/loader/impl/FabricLoaderImpl.java b/src/main/java/net/fabricmc/loader/impl/FabricLoaderImpl.java
index d8efdf9a4..4aaaf42cc 100644
--- a/src/main/java/net/fabricmc/loader/impl/FabricLoaderImpl.java
+++ b/src/main/java/net/fabricmc/loader/impl/FabricLoaderImpl.java
@@ -190,9 +190,12 @@ private void setup() throws ModResolutionException {
 		boolean remapRegularMods = isDevelopmentEnvironment();
 		ModDiscoverer discoverer = new ModDiscoverer();
 		discoverer.addCandidateFinder(new ClasspathModCandidateFinder());
-		discoverer.addCandidateFinder(new DirectoryModCandidateFinder(gameDir.resolve("mods"), remapRegularMods));
 		discoverer.addCandidateFinder(new ArgumentModCandidateFinder(remapRegularMods));
 
+		Path modsFolder = gameDir.resolve("mods");
+		discoverer.addCandidateFinder(new DirectoryModCandidateFinder(modsFolder, remapRegularMods, true));
+		discoverer.addCandidateFinder(new DirectoryModCandidateFinder(modsFolder.resolve(getGameProvider().getNormalizedGameVersion()), remapRegularMods, false));
+
 		modCandidates = discoverer.discoverMods(this);
 		modCandidates = ModResolver.resolve(modCandidates);
 
diff --git a/src/main/java/net/fabricmc/loader/impl/discovery/DirectoryModCandidateFinder.java b/src/main/java/net/fabricmc/loader/impl/discovery/DirectoryModCandidateFinder.java
index eefcd4989..d7c5e4e0b 100644
--- a/src/main/java/net/fabricmc/loader/impl/discovery/DirectoryModCandidateFinder.java
+++ b/src/main/java/net/fabricmc/loader/impl/discovery/DirectoryModCandidateFinder.java
@@ -31,15 +31,21 @@
 public class DirectoryModCandidateFinder implements ModCandidateFinder {
 	private final Path path;
 	private final boolean requiresRemap;
+	private final boolean shouldCreateFolder;
 
 	public DirectoryModCandidateFinder(Path path, boolean requiresRemap) {
+		this(path, requiresRemap, true);
+	}
+
+	public DirectoryModCandidateFinder(Path path, boolean requiresRemap, boolean shouldCreateFolder) {
 		this.path = path;
 		this.requiresRemap = requiresRemap;
+		this.shouldCreateFolder = shouldCreateFolder;
 	}
 
 	@Override
 	public void findCandidates(ModCandidateConsumer out) {
-		if (!Files.exists(path)) {
+		if (shouldCreateFolder && !Files.exists(path)) {
 			try {
 				Files.createDirectory(path);
 			} catch (IOException e) {
@@ -47,6 +53,11 @@ public void findCandidates(ModCandidateConsumer out) {
 			}
 		}
 
+		// If the folder does not exist at this point it shouldn't be searched for mods
+		if (!Files.exists(path)) {
+			return;
+		}
+
 		if (!Files.isDirectory(path)) {
 			throw new RuntimeException(path + " is not a directory!");
 		}