diff --git a/docker/docker-entrypoint.sh b/docker/docker-entrypoint.sh
index f79d934e..8277123c 100755
--- a/docker/docker-entrypoint.sh
+++ b/docker/docker-entrypoint.sh
@@ -107,6 +107,16 @@ if [ -d "$SCRIPTS_SOURCE_DIR" ]; then
         chmod +x "$INTERNAL_SCRIPTS_DIR/upgrade-watchdog.sh"
         echo "✓ Upgrade watchdog script deployed"
 
+        # Backward compatibility: also deploy to /data/scripts/ for older sidecar configs
+        # that still reference the old path (command: /data/scripts/upgrade-watchdog.sh)
+        # Only deploy if /data/scripts exists or can be created (skip if bind-mounted with other content)
+        LEGACY_SCRIPTS_DIR="/data/scripts"
+        if mkdir -p "$LEGACY_SCRIPTS_DIR" 2>/dev/null; then
+            cp "$SCRIPTS_SOURCE_DIR/upgrade-watchdog.sh" "$LEGACY_SCRIPTS_DIR/upgrade-watchdog.sh"
+            chmod +x "$LEGACY_SCRIPTS_DIR/upgrade-watchdog.sh"
+            echo "✓ Upgrade watchdog script also deployed to $LEGACY_SCRIPTS_DIR (backward compat)"
+        fi
+
         # Audit log the deployment
         if [ -w "$(dirname "$AUDIT_LOG")" ]; then
             echo "{\"timestamp\":\"$(date -u +"%Y-%m-%dT%H:%M:%SZ")\",\"event\":\"upgrade_script_deployed\",\"script_hash\":\"$SCRIPT_HASH\",\"version\":\"${npm_package_version:-unknown}\",\"user\":\"system\"}" >> "$AUDIT_LOG" 2>/dev/null || true
diff --git a/docs/configuration/auto-upgrade.md b/docs/configuration/auto-upgrade.md
index 7801ee23..bd84c36c 100644
--- a/docs/configuration/auto-upgrade.md
+++ b/docs/configuration/auto-upgrade.md
@@ -48,7 +48,7 @@ The auto-upgrade feature uses a **watchdog sidecar** container that:
 ### Docker Compose Setup
 
 ::: info
-The upgrade watchdog script is automatically deployed to `/data/scripts/` by the MeshMonitor container on startup. No manual script download is required.
+The upgrade watchdog script is automatically deployed to `/data/.meshmonitor-internal/` by the MeshMonitor container on startup. No manual script download is required.
 :::
 
 1. **Enable the watchdog sidecar** by using the upgrade overlay:
diff --git a/scripts/upgrade-watchdog.sh b/scripts/upgrade-watchdog.sh
index 2b78326d..674dc19d 100755
--- a/scripts/upgrade-watchdog.sh
+++ b/scripts/upgrade-watchdog.sh
@@ -166,17 +166,21 @@ pull_image() {
 recreate_container() {
   log "Recreating container: $CONTAINER_NAME"
 
-  # Resolve compose directory - try configured path, then standard mount point
+  # Resolve compose directory - try configured path, then known mount points
+  # Older sidecar configs used /data/compose, current uses /compose
   local compose_dir=""
   if [ -d "$COMPOSE_PROJECT_DIR" ] && [ -f "$COMPOSE_PROJECT_DIR/docker-compose.yml" ]; then
     compose_dir="$COMPOSE_PROJECT_DIR"
   elif [ -d "/compose" ] && [ -f "/compose/docker-compose.yml" ]; then
     log_warn "COMPOSE_PROJECT_DIR=$COMPOSE_PROJECT_DIR not found, falling back to /compose"
     compose_dir="/compose"
+  elif [ -d "/data/compose" ] && [ -f "/data/compose/docker-compose.yml" ]; then
+    log_warn "Falling back to legacy path /data/compose - please update COMPOSE_PROJECT_DIR to /compose"
+    compose_dir="/data/compose"
   fi
 
   if [ -z "$compose_dir" ]; then
-    log_error "No docker-compose.yml found at $COMPOSE_PROJECT_DIR or /compose"
+    log_error "No docker-compose.yml found at $COMPOSE_PROJECT_DIR, /compose, or /data/compose"
     log_error "The upgrade sidecar requires Docker Compose files to recreate containers safely."
     log_error "Mount your compose directory to /compose in the sidecar container."
     return 1
@@ -486,6 +490,19 @@ main() {
   log "Compose project: $COMPOSE_PROJECT_DIR"
   log "=================================================="
 
+  # Warn if running from the legacy script path
+  SCRIPT_PATH="$(readlink -f "$0" 2>/dev/null || echo "$0")"
+  case "$SCRIPT_PATH" in
+    /data/scripts/*)
+      log_warn "=================================================="
+      log_warn "Running from legacy path: $SCRIPT_PATH"
+      log_warn "Please update your docker-compose.upgrade.yml to use:"
+      log_warn "  command: /data/.meshmonitor-internal/upgrade-watchdog.sh"
+      log_warn "See: https://github.com/Yeraze/meshmonitor/blob/main/docker-compose.upgrade.yml"
+      log_warn "=================================================="
+      ;;
+  esac
+
   # Initialize status
   write_status "ready"