diff --git a/release_notes.md b/release_notes.md
index c5d38cf64a..7df13bb969 100644
--- a/release_notes.md
+++ b/release_notes.md
@@ -5,3 +5,4 @@
 -->
 - Add JitTrace Files for v4.1046
 - Update Java Worker Version to [2.19.4](https://github.com/Azure/azure-functions-java-worker/releases/tag/2.19.4)
+- Logging environment value of LocalSitePackagesPath in RunFromPackageHandler (#11541)
\ No newline at end of file
diff --git a/src/WebJobs.Script.WebHost/Management/LinuxSpecialization/RunFromPackageHandler.cs b/src/WebJobs.Script.WebHost/Management/LinuxSpecialization/RunFromPackageHandler.cs
index 104c044e5a..8d1dd3bb0d 100644
--- a/src/WebJobs.Script.WebHost/Management/LinuxSpecialization/RunFromPackageHandler.cs
+++ b/src/WebJobs.Script.WebHost/Management/LinuxSpecialization/RunFromPackageHandler.cs
@@ -1,4 +1,4 @@
-// Copyright (c) .NET Foundation. All rights reserved.
+// Copyright (c) .NET Foundation. All rights reserved.
 // Licensed under the MIT License. See License.txt in the project root for license information.
 
 using System;
@@ -49,10 +49,11 @@ public async Task<bool> ApplyRunFromPackageContext(RunFromPackageContext pkgCont
                 // So extracting to /home/site/wwwroot can interfere with other running instances
                 // Instead extract to localSitePackagesPath and bind to /home/site/wwwroot
                 // home will continue to point to azure file share
-                var localSitePackagesPath = azureFilesMounted
-                    ? _environment.GetEnvironmentVariableOrDefault(EnvironmentSettingNames.LocalSitePackages,
-                        EnvironmentSettingNames.DefaultLocalSitePackagesPath)
-                    : string.Empty;
+                var localSitePackagesEnvValue = _environment.GetEnvironmentVariable(EnvironmentSettingNames.LocalSitePackages);
+                var resolvedLocalSitePackagesPath = localSitePackagesEnvValue ?? EnvironmentSettingNames.DefaultLocalSitePackagesPath;
+                _logger.LogDebug("Environment variable '{LocalSitePackagesEnvVarName}' value: '{LocalSitePackagesEnvValue}'. Resolved path: '{ResolvedLocalSitePackagesPath}'", EnvironmentSettingNames.LocalSitePackages, localSitePackagesEnvValue, resolvedLocalSitePackagesPath);
+
+                var localSitePackagesPath = azureFilesMounted ? resolvedLocalSitePackagesPath : string.Empty;
 
                 // download zip
                 string filePath = await _packageDownloadHandler.Download(pkgContext);
diff --git a/test/WebJobs.Script.Tests.Integration/Management/InstanceManagerTests.cs b/test/WebJobs.Script.Tests.Integration/Management/InstanceManagerTests.cs
index 1fdae1cdcf..68c8dae366 100644
--- a/test/WebJobs.Script.Tests.Integration/Management/InstanceManagerTests.cs
+++ b/test/WebJobs.Script.Tests.Integration/Management/InstanceManagerTests.cs
@@ -1,4 +1,4 @@
-// Copyright (c) .NET Foundation. All rights reserved.
+// Copyright (c) .NET Foundation. All rights reserved.
 // Licensed under the MIT License. See License.txt in the project root for license information.
 
 using System;
@@ -222,12 +222,13 @@ public async Task StartAssignment_Succeeds_With_NonEmpty_ScmRunFromPackage_Blob(
 
             var logs = _loggerProvider.GetAllLogMessages().Select(p => p.FormattedMessage).ToArray();
 
-            if (logs.Length == 10)
+            if (logs.Length == 11)
             {
                 Assert.Collection(logs,
                     p => Assert.StartsWith("Starting Assignment", p),
                     p => Assert.StartsWith("Applying 1 app setting(s)", p),
                     p => Assert.EndsWith("points to an existing blob: True", p),
+                    p => Assert.StartsWith("Environment variable 'LocalSitePackagesPath'", p),
                     p => Assert.StartsWith("Unsquashing remote zip", p),
                     p => Assert.StartsWith("Running: ", p),
                     p => Assert.StartsWith("Output:", p),
@@ -1606,12 +1607,13 @@ public async Task AssignInstanceAsync_Succeeds_With_NonEmpty_ScmRunFromPackage_B
 
             var logs = _loggerProvider.GetAllLogMessages().Select(p => p.FormattedMessage).ToArray();
 
-            if (logs.Length == 10)
+            if (logs.Length == 11)
             {
                 Assert.Collection(logs,
                     p => Assert.StartsWith("Starting Assignment", p),
                     p => Assert.StartsWith("Applying 1 app setting(s)", p),
                     p => Assert.EndsWith("points to an existing blob: True", p),
+                    p => Assert.StartsWith("Environment variable 'LocalSitePackagesPath'", p),
                     p => Assert.StartsWith("Unsquashing remote zip", p),
                     p => Assert.StartsWith("Running: ", p),
                     p => Assert.StartsWith("Output:", p),