diff --git a/README.md b/README.md
index 269d8c9f9eaf..adb03f7d34d6 100644
--- a/README.md
+++ b/README.md
@@ -49,7 +49,7 @@ docker run -it --rm --pull=always \
     -e SANDBOX_RUNTIME_CONTAINER_IMAGE=docker.all-hands.dev/all-hands-ai/runtime:0.16-nikolaik \
     -e LOG_ALL_EVENTS=true \
     -v /var/run/docker.sock:/var/run/docker.sock \
-    -v ~/.openhands:/home/openhands/.openhands \
+    -v ~/.openhands-state:/home/openhands/.openhands-state \
     -p 3000:3000 \
     --add-host host.docker.internal:host-gateway \
     --name openhands-app \
diff --git a/containers/app/Dockerfile b/containers/app/Dockerfile
index 67753cbe2c2d..59bd6968e917 100644
--- a/containers/app/Dockerfile
+++ b/containers/app/Dockerfile
@@ -43,7 +43,7 @@ ENV WORKSPACE_BASE=/opt/workspace_base
 ENV OPENHANDS_BUILD_VERSION=$OPENHANDS_BUILD_VERSION
 ENV SANDBOX_USER_ID=0
 ENV FILE_STORE=local
-ENV FILE_STORE_PATH=~/.openhands
+ENV FILE_STORE_PATH=~/.openhands-state
 RUN mkdir -p $WORKSPACE_BASE
 
 RUN apt-get update -y \