diff --git a/changelog.d/20240315_163331_dawoud.sheraz_tutor_997.md b/changelog.d/20240315_163331_dawoud.sheraz_tutor_997.md
new file mode 100644
index 0000000..e72ce49
--- /dev/null
+++ b/changelog.d/20240315_163331_dawoud.sheraz_tutor_997.md
@@ -0,0 +1 @@
+- [BugFix] Ensure mounted installable packages are installed as expected upon initialization. (by @dawoudsheraz)
diff --git a/tutor/commands/jobs.py b/tutor/commands/jobs.py
index f6795fe..3d8e845 100644
--- a/tutor/commands/jobs.py
+++ b/tutor/commands/jobs.py
@@ -45,7 +45,7 @@ def _add_core_init_tasks() -> None:
         hooks.Filters.CLI_DO_INIT_TASKS.add_item(
             (
                 "lms",
-                env.read_core_template_file("jobs", "init", "mounted-edx-platform.sh"),
+                env.read_core_template_file("jobs", "init", "mounted-directories.sh"),
             ),
             # If edx-platform is mounted, then we may need to perform some setup
             # before other initialization scripts can be run.
diff --git a/tutor/templates/jobs/init/mounted-directories.sh b/tutor/templates/jobs/init/mounted-directories.sh
new file mode 100644
index 0000000..e10dc7b
--- /dev/null
+++ b/tutor/templates/jobs/init/mounted-directories.sh
@@ -0,0 +1,43 @@
+# The initialization job contains various re-install operations needed to be done
+# on mounted directories (edx-platform, /mnt/*xblock, /mnt/<edx-ora, search, enterprise>)
+# 1. /mnt/*
+# Whenever xblocks or other installable packages are mounted, during the image build, they are copied over to container
+# and installed. This results in egg_info generation for the mounted directories. However, the egg_info is not carried
+# over to host. When the containers are launched, the host directories without egg_info are mounted on runtime
+# and disappear from pip list.
+#
+# 2. edx-platform
+# When a new local copy of edx-platform is bind-mounted, certain build
+# artifacts from the openedx image's edx-platform directory are lost.
+# We regenerate them here.
+
+
+for mounted_dir in /mnt/*; do
+    if [ -f $mounted_dir/setup.py ] && ! ls $mounted_dir/*.egg-info >/dev/null 2>&1 ; then
+        echo "Unable to locate egg-info in $mounted_dir"
+        pip install -e $mounted_dir
+    fi
+done
+
+if [ -f /openedx/edx-platform/bindmount-canary ] ; then
+	# If this file exists, then edx-platform has not been bind-mounted,
+	# so no build artifacts need to be regenerated.
+	echo "Using edx-platform from image (not bind-mount)."
+	echo "No extra setup is required."
+	exit
+fi
+
+echo "Performing additional setup for bind-mounted edx-platform."
+set -x # Echo out executed lines
+
+# Regenerate Open_edX.egg-info
+pip install -e .
+
+# Regenerate node_modules
+npm clean-install
+
+# Regenerate static assets.
+openedx-assets build --env=dev
+
+set -x
+echo "Done setting up bind-mounted edx-platform."
diff --git a/tutor/templates/jobs/init/mounted-edx-platform.sh b/tutor/templates/jobs/init/mounted-edx-platform.sh
deleted file mode 100644
index 9516654..0000000
--- a/tutor/templates/jobs/init/mounted-edx-platform.sh
+++ /dev/null
@@ -1,26 +0,0 @@
-# When a new local copy of edx-platform is bind-mounted, certain build
-# artifacts from the openedx image's edx-platform directory are lost.
-# We regenerate them here.
-
-if [ -f /openedx/edx-platform/bindmount-canary ] ; then
-	# If this file exists, then edx-platform has not been bind-mounted,
-	# so no build artifacts need to be regenerated.
-	echo "Using edx-platform from image (not bind-mount)."
-	echo "No extra setup is required."
-	exit
-fi
-
-echo "Performing additional setup for bind-mounted edx-platform."
-set -x # Echo out executed lines
-
-# Regenerate Open_edX.egg-info
-pip install -e .
-
-# Regenerate node_modules
-npm clean-install
-
-# Regenerate static assets.
-openedx-assets build --env=dev
-
-set -x
-echo "Done setting up bind-mounted edx-platform."