diff --git a/lib/Api.js b/lib/Api.js
index 4147c81e9..bf38c53b8 100644
--- a/lib/Api.js
+++ b/lib/Api.js
@@ -239,9 +239,8 @@ class Api {
             .addPlugin(plugin, installOptions)
             .then(() => {
                 if (plugin != null && isSwiftPackagePlugin(plugin)) {
-                    const packagePath = path.join(this.locations.root, 'CordovaPlugins', 'Package.swift');
-                    const spm = new SwiftPackage(packagePath);
-                    spm.addPlugin(plugin);
+                    const spm = new SwiftPackage(this.locations.root);
+                    spm.addPlugin(plugin, installOptions);
                 }
             })
             .then(() => {
@@ -293,8 +292,7 @@ class Api {
             .removePlugin(plugin, uninstallOptions)
             .then(() => {
                 if (plugin != null && isSwiftPackagePlugin(plugin)) {
-                    const packagePath = path.join(this.locations.root, 'CordovaPlugins', 'Package.swift');
-                    const spm = new SwiftPackage(packagePath);
+                    const spm = new SwiftPackage(this.locations.root);
                     spm.removePlugin(plugin);
                 }
             })
diff --git a/lib/SwiftPackage.js b/lib/SwiftPackage.js
index 460c86dc4..2ecf17b3c 100644
--- a/lib/SwiftPackage.js
+++ b/lib/SwiftPackage.js
@@ -18,38 +18,67 @@
 */
 
 const fs = require('node:fs');
+const path = require('node:path');
 const CordovaError = require('cordova-common').CordovaError;
 
 class SwiftPackage {
-    constructor (packagePath) {
-        this.path = packagePath;
+    constructor (projectRoot) {
+        this.root = projectRoot;
+        this.path = path.join(this.root, 'CordovaPlugins', 'Package.swift');
 
         if (!fs.existsSync(this.path)) {
             throw new CordovaError('Package.swift is not found.');
         }
     }
 
-    _pluginReference (plugin) {
+    _pluginReference (plugin, opts = {}) {
+        let pluginPath = path.relative(path.dirname(this.path), path.join(this.root, 'packages', plugin.id));
+        if (opts.link) {
+            pluginPath = path.relative(path.dirname(this.path), plugin.dir);
+        }
+
         return `
-package.dependencies.append(.package(name: "${plugin.id}", path: "../../../plugins/${plugin.id}"))
+package.dependencies.append(.package(name: "${plugin.id}", path: "${pluginPath.replaceAll(path.sep, path.posix.sep)}"))
 package.targets.first?.dependencies.append(.product(name: "${plugin.id}", package: "${plugin.id}"))
 `;
     }
 
-    addPlugin (plugin) {
+    addPlugin (plugin, opts = {}) {
+        if (!opts.link) {
+            // Copy the plugin into the packages directory
+            fs.cpSync(plugin.dir, path.join(this.root, 'packages', plugin.id), { recursive: true });
+
+            const pkgSwiftPath = path.join(this.root, 'packages', plugin.id, 'Package.swift');
+            const pkg_fd = fs.openSync(pkgSwiftPath, 'r+');
+
+            let packageContent = fs.readFileSync(pkg_fd, 'utf8');
+            packageContent = packageContent.replace(/\(.*url.+cordova-ios.+\)/gm, '(name: "cordova-ios", path: "../cordova-ios")');
+
+            fs.ftruncateSync(pkg_fd);
+            fs.writeSync(pkg_fd, packageContent, 0, 'utf8');
+            fs.closeSync(pkg_fd);
+        }
+
         const fd = fs.openSync(this.path, 'a');
-        fs.writeFileSync(fd, this._pluginReference(plugin), 'utf8');
+        fs.writeFileSync(fd, this._pluginReference(plugin, opts), 'utf8');
         fs.closeSync(fd);
     }
 
     removePlugin (plugin) {
         const fd = fs.openSync(this.path, 'r+');
 
+        if (fs.existsSync(path.join(this.root, 'packages', plugin.id))) {
+            fs.rmSync(path.join(this.root, 'packages', plugin.id), { recursive: true, force: true });
+        }
+
         let packageContent = fs.readFileSync(fd, 'utf8');
+
+        // We don't know if it was originally linked or not, so try to remove both
         packageContent = packageContent.replace(this._pluginReference(plugin), '');
+        packageContent = packageContent.replace(this._pluginReference(plugin, { link: true }), '');
 
         fs.ftruncateSync(fd);
-        fs.writeFileSync(fd, packageContent, 'utf8');
+        fs.writeSync(fd, packageContent, 0, 'utf8');
         fs.closeSync(fd);
     }
 }
diff --git a/tests/spec/unit/Api.spec.js b/tests/spec/unit/Api.spec.js
index 2c3b90fe8..d2498d067 100644
--- a/tests/spec/unit/Api.spec.js
+++ b/tests/spec/unit/Api.spec.js
@@ -167,7 +167,7 @@ describe('Platform Api', () => {
                 it('should add the plugin reference to Package.swift', () => {
                     return api.addPlugin(swift_plugin)
                         .then(() => {
-                            expect(swiftPackage_mock.addPlugin).toHaveBeenCalledWith(swift_plugin);
+                            expect(swiftPackage_mock.addPlugin).toHaveBeenCalledWith(swift_plugin, jasmine.any(Object));
                         });
                 });
             });
diff --git a/tests/spec/unit/SwiftPackage.spec.js b/tests/spec/unit/SwiftPackage.spec.js
index da11dc461..016969e81 100644
--- a/tests/spec/unit/SwiftPackage.spec.js
+++ b/tests/spec/unit/SwiftPackage.spec.js
@@ -27,56 +27,102 @@ tmp.setGracefulCleanup();
 const fixturePackage = fs.readFileSync(path.join(__dirname, 'fixtures', 'test-Package.swift'), 'utf-8');
 
 describe('SwiftPackage', () => {
+    let tmpDir;
+    beforeEach(() => {
+        tmpDir = tmp.dirSync();
+    });
+
+    afterEach(() => {
+        fs.rmSync(tmpDir.name, { recursive: true, force: true });
+    });
+
     it('should error if Package.swift file does not exist', () => {
         expect(() => {
-            const _ = new SwiftPackage('dummypath');
+            const _ = new SwiftPackage(tmpDir.name);
             expect(_).not.toEqual(null); // To avoid ESLINT error "Do not use 'new' for side effects"
         }).toThrow();
     });
 
     describe('addPlugin', () => {
         const my_plugin = {
-            id: 'my-plugin'
+            id: 'my-plugin',
+            dir: path.join(__dirname, 'fixtures', 'org.test.plugins.swiftpackageplugin')
         };
 
         let pkg;
-        let tmpFile;
         beforeEach(() => {
-            tmpFile = tmp.fileSync({ discardDescriptor: true });
-            fs.writeFileSync(tmpFile.name, fixturePackage, 'utf8');
+            fs.mkdirSync(path.join(tmpDir.name, 'CordovaPlugins'));
+            fs.writeFileSync(path.join(tmpDir.name, 'CordovaPlugins', 'Package.swift'), fixturePackage, 'utf8');
 
-            pkg = new SwiftPackage(tmpFile.name);
+            pkg = new SwiftPackage(tmpDir.name);
         });
 
         it('should add plugin references to the package file', () => {
             pkg.addPlugin(my_plugin);
 
-            const content = fs.readFileSync(tmpFile.name, 'utf8');
-            expect(content).toContain('.package(name: "my-plugin"');
+            const pkgPath = path.join(tmpDir.name, 'CordovaPlugins', 'Package.swift');
+            const content = fs.readFileSync(pkgPath, 'utf8');
+            expect(content).toContain('.package(name: "my-plugin", path: "../packages/my-plugin")');
             expect(content).toContain('.product(name: "my-plugin", package: "my-plugin")');
         });
+
+        it('should copy the plugin into the packages directory', () => {
+            pkg.addPlugin(my_plugin);
+
+            expect(fs.existsSync(path.join(tmpDir.name, 'packages', 'my-plugin'))).toBeTruthy();
+        });
+
+        it('should add plugin references to the package file when linked', () => {
+            pkg.addPlugin(my_plugin, { link: true });
+
+            const pkgPath = path.join(tmpDir.name, 'CordovaPlugins', 'Package.swift');
+            const content = fs.readFileSync(pkgPath, 'utf8');
+
+            expect(content).toContain('.package(name: "my-plugin", path: "');
+            expect(content).not.toContain('.package(name: "my-plugin", path: "../packages/my-plugin")');
+            expect(content).toContain('.product(name: "my-plugin", package: "my-plugin")');
+        });
+
+        it('should copy a linked plugin into the packages directory', () => {
+            pkg.addPlugin(my_plugin, { link: true });
+
+            expect(fs.existsSync(path.join(tmpDir.name, 'packages', 'my-plugin'))).toBeFalsy();
+        });
     });
 
     describe('removePlugin', () => {
         const my_plugin = {
-            id: 'my-plugin'
+            id: 'my-plugin',
+            dir: path.join(__dirname, 'fixtures', 'org.test.plugins.swiftpackageplugin')
         };
 
         let pkg;
-        let tmpFile;
         beforeEach(() => {
-            tmpFile = tmp.fileSync({ discardDescriptor: true });
+            fs.mkdirSync(path.join(tmpDir.name, 'CordovaPlugins'));
+            const pkgPath = path.join(tmpDir.name, 'CordovaPlugins', 'Package.swift');
+            fs.writeFileSync(pkgPath, fixturePackage, 'utf8');
 
-            pkg = new SwiftPackage(tmpFile.name);
-            fs.writeFileSync(tmpFile.name, fixturePackage + pkg._pluginReference(my_plugin), 'utf8');
+            pkg = new SwiftPackage(tmpDir.name);
+            fs.writeFileSync(pkgPath, fixturePackage + pkg._pluginReference(my_plugin), 'utf8');
         });
 
-        it('should add plugin references to the package file', () => {
+        it('should remove plugin references to the package file', () => {
             pkg.removePlugin(my_plugin);
 
-            const content = fs.readFileSync(tmpFile.name, 'utf8');
+            const content = fs.readFileSync(path.join(tmpDir.name, 'CordovaPlugins', 'Package.swift'), 'utf8');
             expect(content).not.toContain('.package(name: "my-plugin"');
             expect(content).not.toContain('.product(name: "my-plugin", package: "my-plugin")');
         });
+
+        it('should remove the plugin from the packages directory', () => {
+            fs.mkdirSync(path.join(tmpDir.name, 'packages', 'my-plugin'), { recursive: true });
+            fs.writeFileSync(path.join(tmpDir.name, 'packages', 'my-plugin', 'test.txt'), 'Test', 'utf-8');
+
+            expect(fs.existsSync(path.join(tmpDir.name, 'packages', 'my-plugin'))).toBeTruthy();
+
+            pkg.removePlugin(my_plugin);
+
+            expect(fs.existsSync(path.join(tmpDir.name, 'packages', 'my-plugin'))).toBeFalsy();
+        });
     });
 });