diff --git a/packages/grafana-toolkit/src/cli/tasks/plugin.ci.ts b/packages/grafana-toolkit/src/cli/tasks/plugin.ci.ts
index a0c18f77fa4..e7a3f5264b2 100644
--- a/packages/grafana-toolkit/src/cli/tasks/plugin.ci.ts
+++ b/packages/grafana-toolkit/src/cli/tasks/plugin.ci.ts
@@ -3,6 +3,7 @@ import { pluginBuildRunner } from './plugin.build';
 import { restoreCwd } from '../utils/cwd';
 import { S3Client } from '../../plugins/aws';
 import { getPluginJson } from '../../config/utils/pluginValidation';
+import { getPluginId } from '../../config/utils/getPluginId';
 import { PluginMeta } from '@grafana/data';
 
 // @ts-ignore
@@ -129,12 +130,16 @@ const packagePluginRunner: TaskRunner<PluginCIOptions> = async () => {
   const start = Date.now();
   const ciDir = getCiFolder();
   const packagesDir = path.resolve(ciDir, 'packages');
-  const distDir = path.resolve(ciDir, 'dist');
+  let distDir = path.resolve(ciDir, 'dist');
   const docsDir = path.resolve(ciDir, 'docs');
   const grafanaEnvDir = path.resolve(ciDir, 'grafana-test-env');
   await execa('rimraf', [packagesDir, distDir, grafanaEnvDir]);
   fs.mkdirSync(packagesDir);
   fs.mkdirSync(distDir);
+
+  // Updating the dist dir to have a pluginId named directory in it
+  // The zip needs to contain the plugin code wrapped in directory with a pluginId name
+  distDir = path.resolve(ciDir, `dist/${getPluginId()}`);
   fs.mkdirSync(grafanaEnvDir);
 
   console.log('Build Dist Folder');
@@ -184,7 +189,7 @@ const packagePluginRunner: TaskRunner<PluginCIOptions> = async () => {
     plugin: await getPackageDetails(zipFile, distDir),
   };
 
-  console.log('Setup Grafan Environment');
+  console.log('Setup Grafana Environment');
   let p = path.resolve(grafanaEnvDir, 'plugins', pluginInfo.id);
   fs.mkdirSync(p, { recursive: true });
   await execa('unzip', [zipFile, '-d', p]);