diff --git a/pkg/rke2/config.go b/pkg/rke2/config.go
index c2419c90..44c71051 100644
--- a/pkg/rke2/config.go
+++ b/pkg/rke2/config.go
@@ -310,13 +310,16 @@ func newRKE2ServerConfig(opts ServerConfigOpts) (*rke2ServerConfig, []bootstrapv
 			})
 		}
 
-		rke2ServerConfig.EtcdSnapshotDir = opts.ServerConfig.Etcd.BackupConfig.Directory
-		rke2ServerConfig.EtcdSnapshotName = opts.ServerConfig.Etcd.BackupConfig.SnapshotName
-		rke2ServerConfig.EtcdSnapshotRetention = opts.ServerConfig.Etcd.BackupConfig.Retention
-		rke2ServerConfig.EtcdSnapshotScheduleCron = opts.ServerConfig.Etcd.BackupConfig.ScheduleCron
+		rke2ServerConfig.EtcdSnapshotDir = opts.ServerConfig.Etcd.BackupConfig.S3.Folder
 		rke2ServerConfig.EtcdS3SkipSslVerify = !opts.ServerConfig.Etcd.BackupConfig.S3.EnforceSSLVerify
+	} else {
+		rke2ServerConfig.EtcdSnapshotDir = opts.ServerConfig.Etcd.BackupConfig.Directory
 	}
 
+	rke2ServerConfig.EtcdSnapshotName = opts.ServerConfig.Etcd.BackupConfig.SnapshotName
+	rke2ServerConfig.EtcdSnapshotRetention = opts.ServerConfig.Etcd.BackupConfig.Retention
+	rke2ServerConfig.EtcdSnapshotScheduleCron = opts.ServerConfig.Etcd.BackupConfig.ScheduleCron
+
 	if opts.ServerConfig.Etcd.CustomConfig != nil {
 		rke2ServerConfig.EtcdArgs = opts.ServerConfig.Etcd.CustomConfig.ExtraArgs
 		rke2ServerConfig.EtcdImage = opts.ServerConfig.Etcd.CustomConfig.OverrideImage
diff --git a/pkg/rke2/config_test.go b/pkg/rke2/config_test.go
index 3c9cfe2d..1fae3760 100644
--- a/pkg/rke2/config_test.go
+++ b/pkg/rke2/config_test.go
@@ -122,6 +122,7 @@ var _ = Describe("RKE2ServerConfig", func() {
 							Bucket:           "testbucket",
 							Region:           "testregion",
 							Endpoint:         "testendpoint",
+							Folder:           "testfolder",
 							EnforceSSLVerify: true,
 						},
 						Directory:    "testdir",
@@ -195,7 +196,11 @@ var _ = Describe("RKE2ServerConfig", func() {
 		Expect(rke2ServerConfig.EtcdS3Folder).To(Equal(serverConfig.Etcd.BackupConfig.S3.Folder))
 		Expect(rke2ServerConfig.EtcdS3Endpoint).To(Equal(serverConfig.Etcd.BackupConfig.S3.Endpoint))
 		Expect(rke2ServerConfig.EtcdS3EndpointCA).To(Equal("/etc/rancher/rke2/etcd-s3-ca.crt"))
-		Expect(rke2ServerConfig.EtcdSnapshotDir).To(Equal(serverConfig.Etcd.BackupConfig.Directory))
+		if serverConfig.Etcd.BackupConfig.S3 != nil {
+			Expect(rke2ServerConfig.EtcdSnapshotDir).To(Equal(serverConfig.Etcd.BackupConfig.S3.Folder))
+		} else {
+			Expect(rke2ServerConfig.EtcdSnapshotDir).To(Equal(serverConfig.Etcd.BackupConfig.Directory))
+		}
 		Expect(rke2ServerConfig.EtcdSnapshotName).To(Equal(serverConfig.Etcd.BackupConfig.SnapshotName))
 		Expect(rke2ServerConfig.EtcdSnapshotRetention).To(Equal(serverConfig.Etcd.BackupConfig.Retention))
 		Expect(rke2ServerConfig.EtcdSnapshotScheduleCron).To(Equal(serverConfig.Etcd.BackupConfig.ScheduleCron))