diff --git a/Modules/Panels/Settings/Tabs/ColorScheme/SchemeDownloader.qml b/Modules/Panels/Settings/Tabs/ColorScheme/SchemeDownloader.qml
index 0bd650a1..1c7b4016 100644
--- a/Modules/Panels/Settings/Tabs/ColorScheme/SchemeDownloader.qml
+++ b/Modules/Panels/Settings/Tabs/ColorScheme/SchemeDownloader.qml
@@ -521,7 +521,7 @@ Popup {
       return;
     }
 
-    var targetDir = ColorSchemeService.schemesDirectory + "/" + schemeName;
+    var targetDir = ColorSchemeService.downloadedSchemesDirectory + "/" + schemeName;
     var downloadScript = "mkdir -p '" + targetDir + "'\n";
 
     // Build download script for all files
@@ -612,6 +612,17 @@ Popup {
     return false;
   }
 
+  function isSchemeDownloaded(schemeName) {
+    // Check if scheme is in the downloaded directory (not preinstalled)
+    for (var i = 0; i < ColorSchemeService.schemes.length; i++) {
+      var path = ColorSchemeService.schemes[i];
+      if ((path.indexOf("/" + schemeName + "/") !== -1 || path.indexOf("/" + schemeName + ".json") !== -1) && path.indexOf(ColorSchemeService.downloadedSchemesDirectory) !== -1) {
+        return true;
+      }
+    }
+    return false;
+  }
+
   function deleteScheme(schemeName) {
     if (downloading) {
       return;
@@ -624,7 +635,8 @@ Popup {
     var deletedSchemeDisplayName = ColorSchemeService.getBasename(schemeName);
     var needsReset = (currentScheme === deletedSchemeDisplayName);
 
-    var targetDir = ColorSchemeService.schemesDirectory + "/" + schemeName;
+    // Only allow deleting downloaded schemes, not preinstalled ones
+    var targetDir = ColorSchemeService.downloadedSchemesDirectory + "/" + schemeName;
     var deleteScript = "rm -rf '" + targetDir + "'";
 
     var deleteProcess = Qt.createQmlObject(`
@@ -897,12 +909,14 @@ Popup {
               NIconButton {
                 property bool isDownloading: downloading && downloadingScheme === schemeRow.schemeName
                 property bool isInstalled: root.isSchemeInstalled(schemeRow.schemeName)
+                property bool isDownloaded: root.isSchemeDownloaded(schemeRow.schemeName)
 
-                icon: isDownloading ? "" : (isInstalled ? "trash" : "download")
-                tooltipText: isDownloading ? I18n.tr("settings.color-scheme.download.downloading") : (isInstalled ? I18n.tr("settings.color-scheme.download.delete") : I18n.tr("settings.color-scheme.download.download"))
+                icon: isDownloading ? "" : (isDownloaded ? "trash" : "download")
+                tooltipText: isDownloading ? I18n.tr("settings.color-scheme.download.downloading") : (isDownloaded ? I18n.tr("settings.color-scheme.download.delete") : I18n.tr("settings.color-scheme.download.download"))
                 enabled: !downloading
                 Layout.alignment: Qt.AlignVCenter
-                onClicked: isInstalled ? root.deleteScheme(schemeRow.schemeName) : root.downloadScheme(modelData)
+                visible: !isInstalled || isDownloaded // Show button only if not installed (can download) or if downloaded (can delete)
+                onClicked: isDownloaded ? root.deleteScheme(schemeRow.schemeName) : root.downloadScheme(modelData)
 
                 NBusyIndicator {
                   anchors.centerIn: parent
diff --git a/Services/Theming/ColorSchemeService.qml b/Services/Theming/ColorSchemeService.qml
index ddc1be9e..4e7d7879 100644
--- a/Services/Theming/ColorSchemeService.qml
+++ b/Services/Theming/ColorSchemeService.qml
@@ -13,6 +13,7 @@ Singleton {
   property var schemes: []
   property bool scanning: false
   property string schemesDirectory: Quickshell.shellDir + "/Assets/ColorScheme"
+  property string downloadedSchemesDirectory: Settings.configDir + "colorschemes"
   property string colorsJsonFilePath: Settings.configDir + "colors.json"
 
   Connections {
@@ -43,8 +44,11 @@ Singleton {
     Logger.d("ColorScheme", "Load colorScheme");
     scanning = true;
     schemes = [];
-    // Use find command to locate all scheme.json files
-    findProcess.command = ["find", schemesDirectory, "-name", "*.json", "-type", "f"];
+    // Use find command to locate all scheme.json files in both directories
+    // First ensure the downloaded schemes directory exists
+    Quickshell.execDetached(["mkdir", "-p", downloadedSchemesDirectory]);
+    // Find in both preinstalled and downloaded directories
+    findProcess.command = ["find", schemesDirectory, downloadedSchemesDirectory, "-name", "*.json", "-type", "f"];
     findProcess.running = true;
   }
 
@@ -81,7 +85,17 @@ Singleton {
     } else if (schemeName === "Tokyo Night") {
       schemeName = "Tokyo-Night";
     }
-    return schemesDirectory + "/" + schemeName + "/" + schemeName + ".json";
+    // Check preinstalled directory first, then downloaded directory
+    var preinstalledPath = schemesDirectory + "/" + schemeName + "/" + schemeName + ".json";
+    var downloadedPath = downloadedSchemesDirectory + "/" + schemeName + "/" + schemeName + ".json";
+    // Try to find the scheme in the loaded schemes list to determine which directory it's in
+    for (var i = 0; i < schemes.length; i++) {
+      if (schemes[i].indexOf("/" + schemeName + "/") !== -1 || schemes[i].indexOf("/" + schemeName + ".json") !== -1) {
+        return schemes[i];
+      }
+    }
+    // Fallback: prefer preinstalled, then downloaded
+    return preinstalledPath;
   }
 
   function applyScheme(nameOrPath) {
diff --git a/Services/Theming/TemplateProcessor.qml b/Services/Theming/TemplateProcessor.qml
index f74f536d..e7f93cfd 100644
--- a/Services/Theming/TemplateProcessor.qml
+++ b/Services/Theming/TemplateProcessor.qml
@@ -5,6 +5,7 @@ import Quickshell
 import Quickshell.Io
 import qs.Commons
 import qs.Services.System
+import qs.Services.Theming
 import qs.Services.UI
 
 Singleton {
@@ -329,7 +330,26 @@ Singleton {
       extension = ".toml";
     }
 
-    return `${Quickshell.shellDir}/Assets/ColorScheme/${colorScheme}/terminal/${terminal}/${colorScheme}-${mode}${extension}`;
+    const fileName = `${colorScheme}-${mode}${extension}`;
+    const relativePath = `terminal/${terminal}/${fileName}`;
+
+    // Try to find the scheme in the loaded schemes list to determine which directory it's in
+    for (let i = 0; i < ColorSchemeService.schemes.length; i++) {
+      const schemeJsonPath = ColorSchemeService.schemes[i];
+      // Check if this is the scheme we're looking for
+      if (schemeJsonPath.indexOf(`/${colorScheme}/`) !== -1 || schemeJsonPath.indexOf(`/${colorScheme}.json`) !== -1) {
+        // Extract the scheme directory from the JSON path
+        // JSON path is like: /path/to/scheme/SchemeName/SchemeName.json
+        // We need: /path/to/scheme/SchemeName/terminal/...
+        const schemeDir = schemeJsonPath.substring(0, schemeJsonPath.lastIndexOf('/'));
+        return `${schemeDir}/${relativePath}`;
+      }
+    }
+
+    // Fallback: try downloaded first, then preinstalled
+    const downloadedPath = `${ColorSchemeService.downloadedSchemesDirectory}/${colorScheme}/${relativePath}`;
+    const preinstalledPath = `${ColorSchemeService.schemesDirectory}/${colorScheme}/${relativePath}`;
+    return preinstalledPath;
   }
 
   // ================================================================================