diff --git a/modules/programs/sketchybar.nix b/modules/programs/sketchybar.nix
index 71952701..7df44b62 100644
--- a/modules/programs/sketchybar.nix
+++ b/modules/programs/sketchybar.nix
@@ -45,12 +45,11 @@ in
     };
 
     config = mkOption {
-      type = with types; nullOr (either lines path);
-      default = "";
+      type = types.nullOr (lib.hm.types.sourceFileOrLines ".config/sketchybar" "sketchybarrc");
+      default = null;
       example = literalExpression ''
-        # Bash example
-        #!/usr/bin/env bash
-
+        # String example - inline configuration
+        '''
         # Define colors
         export COLOR_BLACK="0xff181926"
         export COLOR_WHITE="0xffcad3f5"
@@ -75,12 +74,28 @@ in
 
         # Update the bar
         sketchybar --update
+        '''
+
+        # Or directory example - for complex configurations
+        # {
+        #   source = ./path/to/sketchybar-config;
+        #   recursive = true;
+        # }
       '';
       description = ''
-        The complete sketchybar configuration content.
-        This should be written in the language specified by configType (bash or lua).
+        The sketchybar configuration. Can be specified as:
 
-        The appropriate shebang will be automatically added.
+        1. A string containing the configuration content directly
+        2. An attribute set with 'source' pointing to a directory containing
+           the full configuration, and optionally 'recursive = true' to
+           recursively copy all files
+        3. An attribute set with 'text' containing inline configuration
+
+        When using a string or 'text', the appropriate shebang will be
+        automatically added based on configType (bash or lua).
+
+        When using a directory source, it should contain a file named
+        "sketchybarrc" which serves as the main entry point.
       '';
     };
 
@@ -222,26 +237,6 @@ in
 
     home.packages = [ cfg.finalPackage ];
 
-    xdg.configFile."sketchybar/sketchybarrc".source = lib.mkIf (cfg.config != "") (
-      pkgs.writeTextFile {
-        name = "sketchybarrc";
-        text =
-          if cfg.configType == "lua" then
-            ''
-              #!/usr/bin/env lua
-              -- Generated by home-manager
-              ${cfg.config}
-            ''
-          else
-            ''
-              #!/usr/bin/env bash
-              # Generated by home-manager
-              ${cfg.config}
-            '';
-        executable = true;
-      }
-    );
-
     launchd.agents.sketchybar = {
       enable = cfg.service.enable;
       config = {
@@ -253,5 +248,38 @@ in
         StandardOutPath = cfg.service.outLogFile;
       };
     };
+
+    xdg.configFile = lib.mkIf (cfg.config != null) (
+      if cfg.config.source != null && cfg.config.recursive then
+        {
+          "sketchybar" = {
+            inherit (cfg.config) source recursive;
+          };
+        }
+      else if cfg.config.source != null then
+        {
+          "sketchybar/sketchybarrc".source = cfg.config.source;
+        }
+      else
+        {
+          "sketchybar/sketchybarrc".source = pkgs.writeTextFile {
+            name = "sketchybarrc";
+            text =
+              if cfg.configType == "lua" then
+                ''
+                  #!/usr/bin/env lua
+                  -- Generated by home-manager
+                  ${cfg.config.text}
+                ''
+              else
+                ''
+                  #!/usr/bin/env bash
+                  # Generated by home-manager
+                  ${cfg.config.text}
+                '';
+            executable = true;
+          };
+        }
+    );
   };
 }
diff --git a/tests/modules/programs/sketchybar/default.nix b/tests/modules/programs/sketchybar/default.nix
index 0b77ac43..64efb79a 100644
--- a/tests/modules/programs/sketchybar/default.nix
+++ b/tests/modules/programs/sketchybar/default.nix
@@ -1,6 +1,7 @@
 {
-  sketchybar = ./sketchybar.nix; # Bash configuration with validation
-  sketchybar-lua-config = ./sketchybar-lua-config.nix; # Lua configuration with validation
-  sketchybar-invalid-lua-config = ./sketchybar-invalid-lua-config.nix; # Tests error on missing sbarLua
-  sketchybar-service-integration = ./sketchybar-service-integration.nix; # Service integration with validation
+  sketchybar = ./sketchybar.nix;
+  sketchybar-directory-config = ./sketchybar-directory-config.nix;
+  sketchybar-invalid-lua-config = ./sketchybar-invalid-lua-config.nix;
+  sketchybar-lua-config = ./sketchybar-lua-config.nix;
+  sketchybar-service-integration = ./sketchybar-service-integration.nix;
 }
diff --git a/tests/modules/programs/sketchybar/sketchybar-directory-config.nix b/tests/modules/programs/sketchybar/sketchybar-directory-config.nix
new file mode 100644
index 00000000..b1a64818
--- /dev/null
+++ b/tests/modules/programs/sketchybar/sketchybar-directory-config.nix
@@ -0,0 +1,62 @@
+{ config, pkgs, ... }:
+
+let
+  # Create a mock directory structure for testing
+  configDir = pkgs.runCommand "sketchybar-config" { } ''
+        mkdir -p $out/plugins
+        cat > $out/sketchybarrc <<EOF
+    #!/usr/bin/env bash
+    # Main configuration file
+    source "$CONFIG_DIR/plugins/battery.sh"
+    source "$CONFIG_DIR/plugins/clock.sh"
+
+    sketchybar --bar height=32 position=top
+    sketchybar --update
+    EOF
+        chmod +x $out/sketchybarrc
+
+        cat > $out/plugins/battery.sh <<EOF
+    #!/usr/bin/env bash
+    sketchybar --add item battery right \\
+               --set battery script="\$CONFIG_DIR/plugins/battery.sh" \\
+                             update_freq=10
+    EOF
+
+        cat > $out/plugins/clock.sh <<EOF
+    #!/usr/bin/env bash
+    sketchybar --add item clock right \\
+               --set clock script="date '+%H:%M'" \\
+                           update_freq=60
+    EOF
+  '';
+in
+{
+  programs.sketchybar = {
+    enable = true;
+    package = config.lib.test.mkStubPackage {
+      name = "sketchybar";
+      buildScript = ''
+        mkdir -p $out/bin
+        touch $out/bin/sketchybar
+        chmod 755 $out/bin/sketchybar
+      '';
+    };
+
+    configType = "bash";
+
+    config = {
+      source = configDir;
+      recursive = true;
+    };
+  };
+
+  nmt.script = ''
+    assertFileExists home-files/.config/sketchybar/sketchybarrc
+    assertFileExists home-files/.config/sketchybar/plugins/battery.sh
+    assertFileExists home-files/.config/sketchybar/plugins/clock.sh
+
+    # Verify the main config file is executable
+    [[ -x home-files/.config/sketchybar/sketchybarrc ]] || \
+      echo "sketchybarrc should be executable"
+  '';
+}
diff --git a/tests/modules/programs/sketchybar/sketchybar-lua-config.nix b/tests/modules/programs/sketchybar/sketchybar-lua-config.nix
index 80db975d..f01785a1 100644
--- a/tests/modules/programs/sketchybar/sketchybar-lua-config.nix
+++ b/tests/modules/programs/sketchybar/sketchybar-lua-config.nix
@@ -64,7 +64,6 @@ in
       sbar:update()'';
   };
 
-  # Validate the generated Lua configuration file
   nmt.script = ''
     assertFileContent \
       home-files/.config/sketchybar/sketchybarrc \
diff --git a/tests/modules/programs/sketchybar/sketchybar-service-expected.plist b/tests/modules/programs/sketchybar/sketchybar-service-expected.plist
index d29337e7..e2e3be34 100644
--- a/tests/modules/programs/sketchybar/sketchybar-service-expected.plist
+++ b/tests/modules/programs/sketchybar/sketchybar-service-expected.plist
@@ -9,7 +9,7 @@
 	<key>ProcessType</key>
 	<string>Interactive</string>
 	<key>Program</key>
-	<string>/@sketchybar@/bin/sketchybar</string>
+	<string>/nix/store/00000000000000000000000000000000-sketchybar/bin/sketchybar</string>
 	<key>RunAtLoad</key>
 	<true/>
 	<key>StandardErrorPath</key>
diff --git a/tests/modules/programs/sketchybar/sketchybar-service-integration.nix b/tests/modules/programs/sketchybar/sketchybar-service-integration.nix
index c4de01c7..9c7bfb12 100644
--- a/tests/modules/programs/sketchybar/sketchybar-service-integration.nix
+++ b/tests/modules/programs/sketchybar/sketchybar-service-integration.nix
@@ -38,7 +38,6 @@ in
       sketchybar --update
     '';
 
-    # Enable the integrated service
     service = {
       enable = true;
       errorLogFile = "/home/hm-user/Library/Logs/sketchybar/sketchybar.err.log";
@@ -46,16 +45,12 @@ in
     };
   };
 
-  # Change home directory for the test
   home.homeDirectory = "/home/hm-user";
 
-  # Validate the generated config files
   nmt.script = ''
-    # Verify config file exists
     assertFileExists home-files/.config/sketchybar/sketchybarrc
 
-    # Verify service file exists and matches expected content
-    serviceFile=LaunchAgents/org.nix-community.home.sketchybar.plist
+    serviceFile=$(normalizeStorePaths LaunchAgents/org.nix-community.home.sketchybar.plist)
     assertFileExists "$serviceFile"
     assertFileContent "$serviceFile" ${./sketchybar-service-expected.plist}
   '';