diff --git a/CMakeLists.txt b/CMakeLists.txt
index d3b2c674e..d57174aa8 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -93,8 +93,11 @@ message(STATUS "-------------------------------------------\n")
 set(GZ_PHYSICS_RESOURCE_DIR "${CMAKE_SOURCE_DIR}/resources")
 
 # Plugin install dirs
+set(GZ_PHYSICS_ENGINE_RELATIVE_INSTALL_DIR
+  ${GZ_LIB_INSTALL_DIR}/gz-${GZ_DESIGNATION}-${PROJECT_VERSION_MAJOR}/engine-plugins
+)
 set(GZ_PHYSICS_ENGINE_INSTALL_DIR
-  ${CMAKE_INSTALL_PREFIX}/${GZ_LIB_INSTALL_DIR}/gz-${GZ_DESIGNATION}-${PROJECT_VERSION_MAJOR}/engine-plugins
+  ${CMAKE_INSTALL_PREFIX}/${GZ_PHYSICS_ENGINE_RELATIVE_INSTALL_DIR}
 )
 
 #============================================================================
diff --git a/dartsim/CMakeLists.txt b/dartsim/CMakeLists.txt
index 2b328b09d..35b416bb3 100644
--- a/dartsim/CMakeLists.txt
+++ b/dartsim/CMakeLists.txt
@@ -90,7 +90,9 @@ gz_build_tests(
     ${PROJECT_LIBRARY_TARGET_NAME}-sdf
     ${PROJECT_LIBRARY_TARGET_NAME}-heightmap
     ${PROJECT_LIBRARY_TARGET_NAME}-mesh
-  TEST_LIST tests)
+  TEST_LIST tests
+  ENVIRONMENT
+    GZ_PHYSICS_INSTALL_PREFIX=${CMAKE_INSTALL_PREFIX})
 
 foreach(test ${tests})
 
diff --git a/include/gz/physics/InstallationDirectories.hh b/include/gz/physics/InstallationDirectories.hh
new file mode 100644
index 000000000..a8b975ce9
--- /dev/null
+++ b/include/gz/physics/InstallationDirectories.hh
@@ -0,0 +1,43 @@
+/*
+ * Copyright (C) 2023 Open Source Robotics Foundation
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ *
+ */
+
+#ifndef GZ_PHYSICS_INSTALLATION_DIRECTORIES_HH_
+#define GZ_PHYSICS_INSTALLATION_DIRECTORIES_HH_
+
+#include <string>
+
+#include <gz/physics/config.hh>
+#include <gz/physics/Export.hh>
+
+namespace gz
+{
+  namespace physics
+  {
+    inline namespace GZ_PHYSICS_VERSION_NAMESPACE {
+
+    /// \brief getInstallPrefix return the install prefix of the library
+    /// i.e. CMAKE_INSTALL_PREFIX unless the library has been moved
+    GZ_PHYSICS_VISIBLE std::string getInstallPrefix();
+
+    /// \brief getEngineInstallDir return the install directory of the engines
+    GZ_PHYSICS_VISIBLE std::string getEngineInstallDir();
+
+    }
+  }
+}
+
+#endif
diff --git a/include/gz/physics/config.hh.in b/include/gz/physics/config.hh.in
index 75e9338e2..d0c68462d 100644
--- a/include/gz/physics/config.hh.in
+++ b/include/gz/physics/config.hh.in
@@ -28,7 +28,7 @@
 #define GZ_PHYSICS_VERSION "${PROJECT_VERSION}"
 #define GZ_PHYSICS_VERSION_FULL "${PROJECT_VERSION_FULL}"
 
-#define GZ_PHYSICS_ENGINE_INSTALL_DIR "${GZ_PHYSICS_ENGINE_INSTALL_DIR}"
+#define GZ_PHYSICS_ENGINE_INSTALL_DIR _Pragma ("GCC warning \"'GZ_PHYSICS_ENGINE_INSTALL_DIR' macro is deprecated, use gz::physics::getEngineInstallDir() function instead. \"") "${GZ_PHYSICS_ENGINE_INSTALL_DIR}"
 
 #define GZ_PHYSICS_VERSION_HEADER "Gazebo Physics, version ${PROJECT_VERSION_FULL}\nCopyright (C) 2017 Open Source Robotics Foundation.\nReleased under the Apache 2.0 License.\n\n"
 
diff --git a/src/CMakeLists.txt b/src/CMakeLists.txt
index 14f4f830f..3f57a1355 100644
--- a/src/CMakeLists.txt
+++ b/src/CMakeLists.txt
@@ -1,6 +1,14 @@
 gz_get_libsources_and_unittests(sources gtest_sources)
 gz_create_core_library(SOURCES ${sources} CXX_STANDARD 17)
+gz_add_get_install_prefix_impl(GET_INSTALL_PREFIX_FUNCTION gz::physics::getInstallPrefix
+                               GET_INSTALL_PREFIX_HEADER gz/physics/InstallationDirectories.hh
+                               OVERRIDE_INSTALL_PREFIX_ENV_VARIABLE GZ_PHYSICS_INSTALL_PREFIX)
 
+set_property(
+  SOURCE InstallationDirectories.cc
+  PROPERTY COMPILE_DEFINITIONS
+  GZ_PHYSICS_ENGINE_RELATIVE_INSTALL_DIR="${GZ_PHYSICS_ENGINE_RELATIVE_INSTALL_DIR}"
+)
 
 target_link_libraries(${PROJECT_LIBRARY_TARGET_NAME}
   PUBLIC
@@ -9,9 +17,16 @@ target_link_libraries(${PROJECT_LIBRARY_TARGET_NAME}
     gz-plugin${GZ_PLUGIN_VER}::register
     Eigen3::Eigen)
 
+if(WIN32)
+  target_link_libraries(${PROJECT_LIBRARY_TARGET_NAME}
+    PRIVATE shlwapi)
+endif()
+
 gz_build_tests(
   TYPE UNIT
-  SOURCES ${gtest_sources})
+  SOURCES ${gtest_sources}
+  ENVIRONMENT
+    GZ_PHYSICS_INSTALL_PREFIX=${CMAKE_INSTALL_PREFIX})
 
 if(TARGET UNIT_FindFeatures_TEST)
   target_link_libraries(UNIT_FindFeatures_TEST
diff --git a/src/InstallationDirectories.cc b/src/InstallationDirectories.cc
new file mode 100644
index 000000000..7b9bcf459
--- /dev/null
+++ b/src/InstallationDirectories.cc
@@ -0,0 +1,155 @@
+/*
+ * Copyright (C) 2023 Open Source Robotics Foundation
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ *
+*/
+
+#include <regex>
+
+#include <gz/physics/config.hh>
+#include <gz/physics/InstallationDirectories.hh>
+
+#ifdef _WIN32
+#include <shlwapi.h>
+#endif
+
+namespace gz
+{
+namespace physics
+{
+inline namespace GZ_PHYSICS_VERSION_NAMESPACE {
+
+// We locally import the gz::common::joinPaths function
+// See https://github.com/gazebosim/gz-physics/pull/507#discussion_r1186919267
+// for more details
+
+// Function imported from
+// https://github.com/gazebosim/gz-common/blob/ignition-common4_4.6.2/src/FilesystemBoost.cc#L507
+#ifndef WIN32
+static const char preferred_separator = '/';
+#else  // Windows
+static const char preferred_separator = '\\';
+#endif
+const std::string separator(const std::string &_p)
+{
+  return _p + preferred_separator;
+}
+
+// Function imported from
+// https://github.com/gazebosim/gz-common/blob/ignition-common4_4.6.2/src/Filesystem.cc#L227
+std::string checkWindowsPath(const std::string _path)
+{
+  if (_path.empty())
+    return _path;
+
+  // Check if this is a http or https, if so change backslashes generated by
+  // jointPaths to '/'
+  if ((_path.size() > 7 && 0 == _path.compare(0, 7, "http://")) ||
+      (_path.size() > 8 && 0 == _path.compare(0, 8, "https://")))
+  {
+    return std::regex_replace(_path, std::regex(R"(\\)"), "/");
+  }
+
+  // This is a Windows path, convert all '/' into backslashes
+  std::string result = std::regex_replace(_path, std::regex(R"(/)"), "\\");
+  std::string drive_letters;
+
+  // only Windows contains absolute paths starting with drive letters
+  if (result.length() > 3 && 0 == result.compare(1, 2, ":\\"))
+  {
+    drive_letters = result.substr(0, 3);
+    result = result.substr(3);
+  }
+  result = drive_letters + std::regex_replace(
+    result, std::regex("[<>:\"|?*]"), "");
+  return result;
+}
+
+// Function imported from
+// https://github.com/gazebosim/gz-common/blob/ignition-common4_4.6.2/src/Filesystem.cc#L256
+std::string joinPaths(const std::string &_path1,
+                      const std::string &_path2)
+{
+
+  /// This function is used to avoid duplicated path separators at the
+  /// beginning/end of the string, and between the two paths being joined.
+  /// \param[in] _path This is the string to sanitize.
+  /// \param[in] _stripLeading True if the leading separator should be
+  /// removed.
+  auto sanitizeSlashes = [](const std::string &_path,
+                            bool _stripLeading = false)
+  {
+    // Shortcut
+    if (_path.empty())
+      return _path;
+
+    std::string result = _path;
+
+    // Use the appropriate character for each platform.
+#ifndef _WIN32
+    char replacement = '/';
+#else
+    char replacement = '\\';
+#endif
+
+    // Sanitize the start of the path.
+    size_t index = 0;
+    size_t leadingIndex = _stripLeading ? 0 : 1;
+    for (; index < result.length() && result[index] == replacement; ++index)
+    {
+    }
+    if (index > leadingIndex)
+      result.erase(leadingIndex, index-leadingIndex);
+
+    // Sanitize the end of the path.
+    index = result.length()-1;
+    for (; index <  result.length() && result[index] == replacement; --index)
+    {
+    }
+    index += 1;
+    if (index < result.length()-1)
+        result.erase(index+1);
+    return result;
+  };
+
+  std::string path;
+#ifndef _WIN32
+  path = sanitizeSlashes(sanitizeSlashes(separator(_path1)) +
+      sanitizeSlashes(_path2, true));
+#else  // _WIN32
+  std::string path1 = sanitizeSlashes(checkWindowsPath(_path1));
+  std::string path2 = sanitizeSlashes(checkWindowsPath(_path2), true);
+  std::vector<char> combined(path1.length() + path2.length() + 2);
+  if (::PathCombineA(combined.data(), path1.c_str(), path2.c_str()) != NULL)
+  {
+    path = sanitizeSlashes(checkWindowsPath(std::string(combined.data())));
+  }
+  else
+  {
+    path = sanitizeSlashes(checkWindowsPath(separator(path1) + path2));
+  }
+#endif  // _WIN32
+  return path;
+}
+
+
+std::string getEngineInstallDir()
+{
+  return gz::physics::joinPaths(
+      getInstallPrefix(), GZ_PHYSICS_ENGINE_RELATIVE_INSTALL_DIR);
+}
+
+}
+}
+}
diff --git a/test/integration/CMakeLists.txt b/test/integration/CMakeLists.txt
index a7c565c75..6cf8c9eb6 100644
--- a/test/integration/CMakeLists.txt
+++ b/test/integration/CMakeLists.txt
@@ -14,7 +14,9 @@ gz_build_tests(
     gz-plugin${GZ_PLUGIN_VER}::loader
   INCLUDE_DIRS
     ${PROJECT_SOURCE_DIR}/src
-  TEST_LIST list)
+  TEST_LIST list
+  ENVIRONMENT
+    GZ_PHYSICS_INSTALL_PREFIX=${CMAKE_INSTALL_PREFIX})
 
 if (BUILD_TESTING)
   foreach(test ${list})
diff --git a/test/performance/CMakeLists.txt b/test/performance/CMakeLists.txt
index 1034620fa..6a1627d67 100644
--- a/test/performance/CMakeLists.txt
+++ b/test/performance/CMakeLists.txt
@@ -12,4 +12,6 @@ gz_build_tests(
   SOURCES ${tests}
   INCLUDE_DIRS     
     ${PROJECT_SOURCE_DIR}/src
+  ENVIRONMENT
+    GZ_PHYSICS_INSTALL_PREFIX=${CMAKE_INSTALL_PREFIX}
 )
diff --git a/test/regression/CMakeLists.txt b/test/regression/CMakeLists.txt
index f56c54cd5..b7f08a009 100644
--- a/test/regression/CMakeLists.txt
+++ b/test/regression/CMakeLists.txt
@@ -2,4 +2,6 @@ gz_get_sources(tests)
 
 gz_build_tests(
   TYPE REGRESSION
-  SOURCES ${tests})
+  SOURCES ${tests}
+  ENVIRONMENT
+    GZ_PHYSICS_INSTALL_PREFIX=${CMAKE_INSTALL_PREFIX})
diff --git a/tpe/lib/CMakeLists.txt b/tpe/lib/CMakeLists.txt
index ef5979fbd..7b18a37f2 100644
--- a/tpe/lib/CMakeLists.txt
+++ b/tpe/lib/CMakeLists.txt
@@ -25,4 +25,6 @@ gz_build_tests(
     ${PROJECT_LIBRARY_TARGET_NAME}-sdf
     ${PROJECT_LIBRARY_TARGET_NAME}-mesh
     ${tpelib_target}
-  TEST_LIST tests)
+  TEST_LIST tests
+  ENVIRONMENT
+    GZ_PHYSICS_INSTALL_PREFIX=${CMAKE_INSTALL_PREFIX})
diff --git a/tpe/plugin/CMakeLists.txt b/tpe/plugin/CMakeLists.txt
index f3075af5b..3d73d6828 100644
--- a/tpe/plugin/CMakeLists.txt
+++ b/tpe/plugin/CMakeLists.txt
@@ -59,7 +59,9 @@ gz_build_tests(
     gz-common${GZ_COMMON_VER}::gz-common${GZ_COMMON_VER}
     ${PROJECT_LIBRARY_TARGET_NAME}-sdf
     ${PROJECT_LIBRARY_TARGET_NAME}-mesh
-  TEST_LIST tests)
+  TEST_LIST tests
+  ENVIRONMENT
+    GZ_PHYSICS_INSTALL_PREFIX=${CMAKE_INSTALL_PREFIX})
 
 foreach(test ${tests})