diff --git a/CHANGELOG.md b/CHANGELOG.md
index 80012b62d8..52fdece33a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,7 @@
 * The Realm Transformer and Realm Gradle Plugin now supports the Gradle Configuration Cache. (Issue [#7299](https://github.com/realm/realm-java/issues/7299)) 
 
 ### Fixed
+* [RealmApp] Setting `AppConfiguration.syncRootDirectory()` didn't have any effect beside creating the new folder. Realms were still placed in the default location. 
 * [RealmApp] Bug where progress notifiers continue to be called after the download of a synced realm is complete. (Issue [Realm Core #4919](https://github.com/realm/realm-core/issues/4919)) 
 * [RealmApp] User being left in the logged in state when the user's refresh token expires. (Issue [Realm Core #4882](https://github.com/realm/realm-core/issues/4882), since v10)
 * Using "sort", "distinct", or "limit" as field name in query expression would cause an "Invalid predicate" error. (Issue [#7545](), since v10.X.X)
diff --git a/dependencies.list b/dependencies.list
index 3ea41ad4c8..59739f1c8a 100644
--- a/dependencies.list
+++ b/dependencies.list
@@ -4,7 +4,7 @@ REALM_CORE=11.6.0
 
 # Version of MongoDB Realm used by integration tests
 # See https://github.com/realm/ci/packages/147854 for available versions
-MONGODB_REALM_SERVER=2021-11-28
+MONGODB_REALM_SERVER=2021-12-01
 
 # Common Android settings across projects
 GRADLE_BUILD_TOOLS=7.1.0-beta03
diff --git a/realm/realm-library/src/androidTestObjectServer/kotlin/io/realm/AppConfigurationTests.kt b/realm/realm-library/src/androidTestObjectServer/kotlin/io/realm/AppConfigurationTests.kt
index 0f873b493d..8d1d1d89de 100644
--- a/realm/realm-library/src/androidTestObjectServer/kotlin/io/realm/AppConfigurationTests.kt
+++ b/realm/realm-library/src/androidTestObjectServer/kotlin/io/realm/AppConfigurationTests.kt
@@ -128,7 +128,7 @@ class AppConfigurationTests {
     @Test
     fun syncRootDirectory_default() {
         val config = AppConfiguration.Builder("app-id").build()
-        val expectedDefaultRoot = File(InstrumentationRegistry.getInstrumentation().targetContext.filesDir, "mongodb-realm")
+        val expectedDefaultRoot = InstrumentationRegistry.getInstrumentation().targetContext.filesDir
         assertEquals(expectedDefaultRoot, config.syncRootDirectory)
     }
 
diff --git a/realm/realm-library/src/androidTestObjectServer/kotlin/io/realm/mongodb/sync/SyncedRealmTests.kt b/realm/realm-library/src/androidTestObjectServer/kotlin/io/realm/mongodb/sync/SyncedRealmTests.kt
index 8846805dc7..ed5e182eaf 100644
--- a/realm/realm-library/src/androidTestObjectServer/kotlin/io/realm/mongodb/sync/SyncedRealmTests.kt
+++ b/realm/realm-library/src/androidTestObjectServer/kotlin/io/realm/mongodb/sync/SyncedRealmTests.kt
@@ -974,6 +974,31 @@ class SyncedRealmTests {
         }
     }
 
+    @Test
+    fun customSyncRoot() {
+        app.close()
+        Realm.init(InstrumentationRegistry.getInstrumentation().targetContext)
+        val defaultRoot = File(Realm.getApplicationContext()!!.filesDir, "mongodb-realm")
+        val root = File(Realm.getApplicationContext()!!.filesDir, "my-custom-dir")
+        if (defaultRoot.exists()) { assertTrue(defaultRoot.deleteRecursively()) }
+        if (root.exists()) { assertTrue(root.deleteRecursively()) }
+
+        app = TestApp(builder = { it.syncRootDirectory(root) })
+        assertTrue("Root folder wasn't created", root.exists())
+        assertFalse("Default folder was created", defaultRoot.exists())
+
+        try {
+            val user: User = createNewUser()
+            val config = createDefaultConfig(user)
+            assertTrue("Wrong path: ${config.path}", config.path.contains("/my-custom-dir/mongodb-realm/"))
+            Realm.getInstance(config).close()
+            assertTrue(File(config.path).exists())
+            assertFalse("Default folder was created", defaultRoot.exists())
+        } finally {
+            assertTrue(root.deleteRecursively())
+        }
+    }
+
     private fun createDefaultConfig(user: User, partitionValue: String = defaultPartitionValue): SyncConfiguration {
         return SyncConfiguration.Builder(user, partitionValue)
                 .modules(DefaultSyncSchema())
diff --git a/realm/realm-library/src/objectServer/java/io/realm/mongodb/App.java b/realm/realm-library/src/objectServer/java/io/realm/mongodb/App.java
index f5928201b7..96cd2c242b 100644
--- a/realm/realm-library/src/objectServer/java/io/realm/mongodb/App.java
+++ b/realm/realm-library/src/objectServer/java/io/realm/mongodb/App.java
@@ -184,12 +184,12 @@ public App(AppConfiguration config) {
     private OsApp init(AppConfiguration config) {
         String userAgentBindingInfo = getBindingInfo();
         String appDefinedUserAgent = getAppInfo(config);
-        String syncDir = getSyncBaseDirectory();
+        String syncDir = getSyncBaseDirectory(config);
 
         return new OsApp(config, userAgentBindingInfo, appDefinedUserAgent, syncDir);
     }
 
-    private String getSyncBaseDirectory() {
+    private String getSyncBaseDirectory(AppConfiguration config) {
         Context context = Realm.getApplicationContext();
         if (context == null) {
             throw new IllegalStateException("Call Realm.init() first.");
@@ -213,7 +213,7 @@ private String getSyncBaseDirectory() {
                 throw new IllegalStateException(e);
             }
         } else {
-            syncDir = context.getFilesDir().getPath();
+            syncDir = config.getSyncRootDirectory().getPath();
         }
         return syncDir;
     }
diff --git a/realm/realm-library/src/objectServer/java/io/realm/mongodb/AppConfiguration.java b/realm/realm-library/src/objectServer/java/io/realm/mongodb/AppConfiguration.java
index 09e2e02e39..eb42d9d160 100644
--- a/realm/realm-library/src/objectServer/java/io/realm/mongodb/AppConfiguration.java
+++ b/realm/realm-library/src/objectServer/java/io/realm/mongodb/AppConfiguration.java
@@ -415,11 +415,6 @@ public Builder(String appId) {
             if (context == null) {
                 throw new IllegalStateException("Call `Realm.init(Context)` before calling this method.");
             }
-            File rootDir = new File(context.getFilesDir(), "mongodb-realm");
-            if (!rootDir.exists() && !rootDir.mkdir()) {
-                throw new IllegalStateException("Could not create Sync root dir: " + rootDir.getAbsolutePath());
-            }
-            syncRootDir = rootDir;
         }
 
         /**
@@ -638,6 +633,11 @@ public Builder httpLogObfuscator(@Nullable HttpLogObfuscator httpLogObfuscator)
          * @return the AppConfiguration that can be used to create a {@link App}.
          */
         public AppConfiguration build() {
+            // Initialize default sync root if none has been defined.
+            if (syncRootDir == null) {
+                syncRootDir = Realm.getApplicationContext().getFilesDir();
+            }
+
             return new AppConfiguration(appId,
                     appName,
                     appVersion,