diff --git a/platform.json b/platform.json
index e35acae6c..5d0e6cdaa 100644
--- a/platform.json
+++ b/platform.json
@@ -99,8 +99,8 @@
       "type": "tool",
       "optional": false,
       "owner": "pioarduino",
-      "package-version": "5.3.0",
-      "version": "https://github.com/pioarduino/esp_install/releases/download/v5.3.0/esp_install-v5.3.0.zip"
+      "package-version": "5.3.1",
+      "version": "https://github.com/pioarduino/esp_install/releases/download/v5.3.1/esp_install-v5.3.1.zip"
     },
     "contrib-piohome": {
       "optional": true,
diff --git a/platform.py b/platform.py
index c69e728e7..eb9bfa9da 100644
--- a/platform.py
+++ b/platform.py
@@ -77,8 +77,10 @@
 if IS_WINDOWS:
     os.environ["PLATFORMIO_SYSTEM_TYPE"] = "windows_amd64"
 
-# Clear IDF_TOOLS_PATH, if set tools may be installed in the wrong place
-os.environ["IDF_TOOLS_PATH"] = ""
+# Set IDF_TOOLS_PATH to Pio core_dir
+PROJECT_CORE_DIR=ProjectConfig.get_instance().get("platformio", "core_dir")
+IDF_TOOLS_PATH=os.path.join(PROJECT_CORE_DIR)
+os.environ["IDF_TOOLS_PATH"] = IDF_TOOLS_PATH
 
 # Global variables
 python_exe = get_pythonexe_path()
@@ -478,11 +480,8 @@ def _install_with_idf_tools(self, tool_name: str, paths: Dict[str, str]) -> bool
             return False
 
         # Copy tool files
-        tools_path_default = os.path.join(
-            os.path.expanduser("~"), ".platformio"
-        )
         target_package_path = os.path.join(
-            tools_path_default, "tools", tool_name, "package.json"
+            IDF_TOOLS_PATH, "tools", tool_name, "package.json"
         )
 
         if not safe_copy_file(paths['package_path'], target_package_path):
@@ -490,7 +489,7 @@ def _install_with_idf_tools(self, tool_name: str, paths: Dict[str, str]) -> bool
 
         safe_remove_directory(paths['tool_path'])
 
-        tl_path = f"file://{os.path.join(tools_path_default, 'tools', tool_name)}"
+        tl_path = f"file://{os.path.join(IDF_TOOLS_PATH, 'tools', tool_name)}"
         pm.install(tl_path)
 
         logger.info(f"Tool {tool_name} successfully installed")