diff --git a/src/main/groovy/io/openliberty/tools/gradle/tasks/AbstractLibertyTask.groovy b/src/main/groovy/io/openliberty/tools/gradle/tasks/AbstractLibertyTask.groovy
index d43ec2a3..66126577 100644
--- a/src/main/groovy/io/openliberty/tools/gradle/tasks/AbstractLibertyTask.groovy
+++ b/src/main/groovy/io/openliberty/tools/gradle/tasks/AbstractLibertyTask.groovy
@@ -32,6 +32,21 @@ abstract class AbstractLibertyTask extends DefaultTask {
     protected String springBootVersion
     protected Task springBootTask
 
+    protected boolean isInstallDirChanged(Project project) {
+
+        XmlParser pluginXmlParser = new XmlParser()
+        Node libertyPluginConfig = pluginXmlParser.parse(new File(project.buildDir, 'liberty-plugin-config.xml'))
+        if (!libertyPluginConfig.getAt('installDirectory').isEmpty()) {
+            Node installDirNode = libertyPluginConfig.getAt('installDirectory').get(0)
+            File previousInstallDir = new File(installDirNode.text())
+            File currentInstallDir = getInstallDir(project)
+            if (previousInstallDir.exists() && previousInstallDir.equals(currentInstallDir)) {
+                return false
+            }
+        }
+        return true
+    }
+
     protected getInstallDir = { Project project ->
         return Liberty.getInstallDir(project);
     }
diff --git a/src/main/groovy/io/openliberty/tools/gradle/tasks/AbstractServerTask.groovy b/src/main/groovy/io/openliberty/tools/gradle/tasks/AbstractServerTask.groovy
index 1c5fd5a3..01c41fcb 100644
--- a/src/main/groovy/io/openliberty/tools/gradle/tasks/AbstractServerTask.groovy
+++ b/src/main/groovy/io/openliberty/tools/gradle/tasks/AbstractServerTask.groovy
@@ -380,6 +380,8 @@ abstract class AbstractServerTask extends AbstractLibertyTask {
         if (serverEnvPath != null && !serverEnvPath.isEmpty()) {
             logger.info("Update server configuration file server.env from " + serverEnvPath)
         }
+
+        writeServerPropertiesToXml(project)
     }
 
     private void loadLibertyConfigFromProperties() {
diff --git a/src/main/groovy/io/openliberty/tools/gradle/tasks/CreateTask.groovy b/src/main/groovy/io/openliberty/tools/gradle/tasks/CreateTask.groovy
index 7db22dc4..2b3a51b6 100644
--- a/src/main/groovy/io/openliberty/tools/gradle/tasks/CreateTask.groovy
+++ b/src/main/groovy/io/openliberty/tools/gradle/tasks/CreateTask.groovy
@@ -1,5 +1,5 @@
 /**
- * (C) Copyright IBM Corporation 2014, 2023.
+ * (C) Copyright IBM Corporation 2014, 2024.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -22,6 +22,7 @@ import org.gradle.api.tasks.InputFile
 import org.gradle.api.tasks.Optional
 import org.gradle.api.tasks.TaskAction
 import org.gradle.api.logging.LogLevel
+import org.gradle.api.Project
 
 class CreateTask extends AbstractServerTask {
 
@@ -33,7 +34,7 @@ class CreateTask extends AbstractServerTask {
             group 'Liberty'
         })
         outputs.upToDateWhen {
-            getServerDir(project).exists() && (new File(getServerDir(project), 'server.xml')).exists()
+            getServerDir(project).exists() && (new File(getServerDir(project), 'server.xml')).exists() && !isServerDirChanged(project)
         }
     }
 
@@ -93,7 +94,25 @@ class CreateTask extends AbstractServerTask {
             logger.warn("The " + serverXmlFile.getAbsolutePath() + " does not exist. Copying over the defaultServer template server.xml file.")
         }
         copyConfigFiles()
-        writeServerPropertiesToXml(project)
+    }
+
+    protected boolean isServerDirChanged(Project project) {
+        if (!project.buildDir.exists() || !(new File(project.buildDir, 'liberty-plugin-config.xml')).exists()) {
+            return false
+        }
+
+        XmlParser pluginXmlParser = new XmlParser()
+        Node libertyPluginConfig = pluginXmlParser.parse(new File(project.buildDir, 'liberty-plugin-config.xml'))
+        if (!libertyPluginConfig.getAt('serverDirectory').isEmpty()) {
+            File currentDir = getServerDir(project)
+            File previousDir = new File(libertyPluginConfig.getAt('serverDirectory')[0].value)
+            if (previousDir.exists() && previousDir.equals(currentDir)) {
+                return false
+            }
+            return true
+        }
+        // if serverDirectory did not exist in the xml file, do not consider this as a change 
+        return false
     }
 
     File getLibertyPropertyFile(File libertyPropertyFile, String fileName) {
diff --git a/src/main/groovy/io/openliberty/tools/gradle/tasks/DevTask.groovy b/src/main/groovy/io/openliberty/tools/gradle/tasks/DevTask.groovy
index b0a8b639..292b7b65 100644
--- a/src/main/groovy/io/openliberty/tools/gradle/tasks/DevTask.groovy
+++ b/src/main/groovy/io/openliberty/tools/gradle/tasks/DevTask.groovy
@@ -1260,9 +1260,12 @@ class DevTask extends AbstractFeatureTask {
                 }
                 
                 if (!isNewInstallation) {
-                    logger.info("Skipping installLiberty task for existing installation.")
-                    // will this cause an issue when changing the runtime? Customer would be forced to cleanup first?
-                    gradleBuildLauncher.addArguments("--exclude-task", "installLiberty"); // skip installing Liberty at startup since it was already installed
+                    // if the install dir changed or this is the first dev mode run on this project, need to give installLiberty task 
+                    // a chance to check validity of installation and update info in liberty plugin config xml file.
+                    if (!isInstallDirChanged(project, serverInstallDir)) {
+                        logger.info("Skipping installLiberty task for existing installation.")
+                        gradleBuildLauncher.addArguments("--exclude-task", "installLiberty"); // skip installing Liberty at startup since it is the same installation as previous dev mode run
+                    }
                     if (skipInstallFeature) {
                         logger.info("Skipping installFeature task due to skipInstallFeature configuration.")
                         gradleBuildLauncher.addArguments("--exclude-task", "installFeature"); // skip installing features at startup since flag was set
@@ -1324,6 +1327,26 @@ class DevTask extends AbstractFeatureTask {
         }
     }
 
+    private boolean isInstallDirChanged(Project project, File currentInstallDir) {
+        if (project.buildDir.exists() && new File(project.buildDir, 'liberty-plugin-config.xml').exists()) {
+            XmlParser pluginXmlParser = new XmlParser()
+            Node libertyPluginConfig = pluginXmlParser.parse(new File(project.buildDir, 'liberty-plugin-config.xml'))
+            if (!libertyPluginConfig.getAt('installDirectory').isEmpty()) {
+                Node installDirNode = libertyPluginConfig.getAt('installDirectory').get(0)
+                String installDirValue = installDirNode.text()
+                File previousInstallDir = new File(installDirValue)
+                if (previousInstallDir.exists() && previousInstallDir.equals(currentInstallDir)) {
+                    return false
+                } else {
+                    logger.info("Detected change in installDir location from "+installDirValue+" to "+currentInstallDir.getAbsolutePath())
+                    return true
+                }
+            }
+        }
+        return true
+    }
+
+
     private void addLibertyRuntimeProperties(BuildLauncher gradleBuildLauncher) {
         Set<Entry<Object, Object>> entries = project.getProperties().entrySet()
         for (Entry<Object, Object> entry : entries) {
diff --git a/src/main/groovy/io/openliberty/tools/gradle/tasks/InstallLibertyTask.groovy b/src/main/groovy/io/openliberty/tools/gradle/tasks/InstallLibertyTask.groovy
index 4b98602d..9bf24623 100644
--- a/src/main/groovy/io/openliberty/tools/gradle/tasks/InstallLibertyTask.groovy
+++ b/src/main/groovy/io/openliberty/tools/gradle/tasks/InstallLibertyTask.groovy
@@ -1,5 +1,5 @@
 /**
- * (C) Copyright IBM Corporation 2014, 2023.
+ * (C) Copyright IBM Corporation 2014, 2024.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -16,6 +16,7 @@
 package io.openliberty.tools.gradle.tasks
 
 import javax.xml.parsers.*
+import groovy.xml.StreamingMarkupBuilder
 
 import org.gradle.api.Project
 import org.gradle.api.tasks.TaskAction
@@ -52,7 +53,8 @@ class InstallLibertyTask extends AbstractLibertyTask {
         outputs.upToDateWhen {
             // ensure a Liberty installation exists at the install directory
             getInstallDir(project).exists() && new File(getInstallDir(project), 'lib/ws-launch.jar').exists() && 
-            project.buildDir.exists() && new File(project.buildDir, 'liberty-plugin-config.xml').exists()
+            project.buildDir.exists() && new File(project.buildDir, 'liberty-plugin-config.xml').exists() &&
+            !isInstallDirChanged(project)
         }
     }
 
@@ -109,7 +111,9 @@ class InstallLibertyTask extends AbstractLibertyTask {
     @TaskAction
     void install() {
         // If installDir is set, then use the configured wlp or throw error if it is invalid
-        if(project.liberty.installDir != null && isLibertyInstalledAndValid(project)) {
+        boolean isExisting = false
+        if((project.liberty.installDir != null || project.hasProperty('liberty.installDir')) && isLibertyInstalledAndValid(project)) {
+            isExisting = true
             logger.info ("Liberty is already installed at: " + getInstallDir(project))
         } else {
             def params = buildInstallLibertyMap(project)
@@ -125,25 +129,94 @@ class InstallLibertyTask extends AbstractLibertyTask {
                 process.waitFor()
             }
         }
+        createPluginXmlFile(isExisting)
+    }
+
+    protected void updatePluginXmlFile() {
+        XmlParser pluginXmlParser = new XmlParser()
+        Node libertyPluginConfig = pluginXmlParser.parse(new File(project.buildDir, 'liberty-plugin-config.xml'))
+
+        Node installDirNode = libertyPluginConfig.getAt('installDirectory').isEmpty() ? libertyPluginConfig.appendNode('installDirectory') : libertyPluginConfig.getAt('installDirectory').get(0)
+        installDirNode.setValue(getInstallDir(project).toString())
+        //logger.info ("Updating liberty-plugin-config.xml installDirectory: " + getInstallDir(project).toString())
+
+        if (project.liberty.installDir != null || project.hasProperty('liberty.installDir')) {
+            // remove stale nodes
+            if (!libertyPluginConfig.getAt('assemblyArchive').isEmpty()) {
+                //logger.info ("Updating liberty-plugin-config.xml to remove assemblyArchive")
+                libertyPluginConfig.remove(libertyPluginConfig.getAt('assemblyArchive').get(0))
+            }
+            if (!libertyPluginConfig.getAt('assemblyArtifact').isEmpty()) {
+                //logger.info ("Updating liberty-plugin-config.xml to remove assemblyArtifact")
+                libertyPluginConfig.remove(libertyPluginConfig.getAt('assemblyArtifact').get(0))
+            }
+        } else if (detachedCoords != null) {
+            //logger.info ("Updating liberty-plugin-config.xml to update assemblyArtifact and assemblyArchive")
+            Node assemblyArchive = libertyPluginConfig.getAt('assemblyArchive').isEmpty() ? libertyPluginConfig.appendNode('assemblyArchive') : libertyPluginConfig.getAt('assemblyArchive').get(0)
+            Node assemblyArtifact = libertyPluginConfig.getAt('assemblyArtifact').isEmpty() ? libertyPluginConfig.appendNode('assemblyArtifact') : libertyPluginConfig.getAt('assemblyArtifact').get(0)
+ 
+            //removes the child nodes from the assemblyArtifact element
+            assemblyArtifact.value = ""
+
+            String[] coords = detachedCoords.split(":")
+
+            assemblyArtifact.appendNode('groupId', coords[0])
+            assemblyArtifact.appendNode('artifactId', coords[1])
+            assemblyArtifact.appendNode('version', coords[2])
+            assemblyArtifact.appendNode('type', 'zip')
+
+            assemblyArchive.setValue(detachedConfigFilePath)
+
+        } else if (project.configurations.libertyRuntime != null) {
+            //logger.info ("Updating liberty-plugin-config.xml to update assemblyArtifact and assemblyArchive")
+            Node assemblyArchive = libertyPluginConfig.getAt('assemblyArchive').isEmpty() ? libertyPluginConfig.appendNode('assemblyArchive') : libertyPluginConfig.getAt('assemblyArchive').get(0)
+            Node assemblyArtifact = libertyPluginConfig.getAt('assemblyArtifact').isEmpty() ? libertyPluginConfig.appendNode('assemblyArtifact') : libertyPluginConfig.getAt('assemblyArtifact').get(0)
+            
+            //removes the child nodes from the assemblyArtifact element
+            assemblyArtifact.value = ""
+
+            project.configurations.libertyRuntime.dependencies.each { libertyArtifact ->
+
+                assemblyArtifact.appendNode('groupId', libertyArtifact.group)
+                assemblyArtifact.appendNode('artifactId',libertyArtifact.name )
+                assemblyArtifact.appendNode('version', libertyArtifact.version)
+                assemblyArtifact.appendNode('type', 'zip')
+
+                assemblyArchive.setValue(project.configurations.libertyRuntime.resolvedConfiguration.resolvedArtifacts.getAt(0).file.toString())
+            }
+        }
+
+        new File( project.buildDir, 'liberty-plugin-config.xml' ).withWriter('UTF-8') { output ->
+            output << new StreamingMarkupBuilder().bind { mkp.xmlDeclaration(encoding: 'UTF-8', version: '1.0' ) }
+            XmlNodePrinter printer = new XmlNodePrinter( new PrintWriter(output) )
+            printer.preserveWhitespace = true
+            printer.print( libertyPluginConfig )
+        }
+
+        logger.info ("Updating Liberty plugin config info at ${project.buildDir}/liberty-plugin-config.xml.")
 
-        createPluginXmlFile()
     }
 
-    protected void createPluginXmlFile() {
+    protected void createPluginXmlFile(boolean isExisting) {
         if(!this.state.upToDate) {
             if (!project.buildDir.exists()) {
                 logger.info ("Creating missing project buildDir at ${project.buildDir}.")
                 project.buildDir.mkdirs()
             }
 
-            new File(project.buildDir, 'liberty-plugin-config.xml').withWriter { writer ->
-                def xmlDoc = new MarkupBuilder(writer)
-                xmlDoc.mkp.xmlDeclaration(version: "1.0", encoding: "UTF-8")
-                xmlDoc.'liberty-plugin-config'('version':'2.0') {
-                    outputLibertyPropertiesToXml(xmlDoc)
+            // if the file already exists, update it instead of replacing it
+            if (new File(project.buildDir, 'liberty-plugin-config.xml').exists()) {
+                updatePluginXmlFile()
+            } else {
+                new File(project.buildDir, 'liberty-plugin-config.xml').withWriter { writer ->
+                    def xmlDoc = new MarkupBuilder(writer)
+                    xmlDoc.mkp.xmlDeclaration(version: "1.0", encoding: "UTF-8")
+                    xmlDoc.'liberty-plugin-config'('version':'2.0') {
+                        outputLibertyPropertiesToXml(xmlDoc, isExisting)
+                    }
                 }
+                logger.info ("Creating Liberty plugin config info to ${project.buildDir}/liberty-plugin-config.xml.")
             }
-            logger.info ("Adding Liberty plugin config info to ${project.buildDir}/liberty-plugin-config.xml.")
         }
     }
 
@@ -269,9 +342,14 @@ class InstallLibertyTask extends AbstractLibertyTask {
         return result
     }
 
-    protected void outputLibertyPropertiesToXml(MarkupBuilder xmlDoc) {
+    protected void outputLibertyPropertiesToXml(MarkupBuilder xmlDoc, boolean isExisting) {
         xmlDoc.installDirectory (getInstallDir(project).toString())
 
+        // should only include assemblyArtifact and assemblyArchive if using an installation that was installed by our plugin
+        if (isExisting && ((project.liberty.installDir != null) || project.hasProperty('liberty.installDir'))) {
+            return
+        }
+
         if (detachedCoords != null) {
             String[] coords = detachedCoords.split(":")
             xmlDoc.assemblyArtifact {
diff --git a/src/test/groovy/io/openliberty/tools/gradle/TestCreateConfigDirUpToDate.groovy b/src/test/groovy/io/openliberty/tools/gradle/TestCreateConfigDirUpToDate.groovy
index 432f725f..3f9c39cb 100644
--- a/src/test/groovy/io/openliberty/tools/gradle/TestCreateConfigDirUpToDate.groovy
+++ b/src/test/groovy/io/openliberty/tools/gradle/TestCreateConfigDirUpToDate.groovy
@@ -55,10 +55,10 @@ public class TestCreateConfigDirUpToDate extends AbstractIntegrationTest {
             testFileMessageString = "\\build\\testBuilds\\test-create-config-dir-up-to-date\\src\\main\\liberty\\config\\test.txt has changed."
         } 
 
-        assert result.getOutput().contains(configDirMessageString)
-        assert result.getOutput().contains(testFileMessageString)
+        assert result.getOutput().contains(configDirMessageString) : "configDirMessageString not found in output: "+result.getOutput()
+        assert result.getOutput().contains(testFileMessageString) : "testFileMessageString not found in output: "+result.getOutput()
 
         //Check updated file was copied to server directory
-        assert serverTestTextFile.text.contains('Test Comment 2')
+        assert serverTestTextFile.text.contains('Test Comment 2') : "Test Comment 2 not found in "+serverTestTextFile.text
     }
 }
\ No newline at end of file