diff --git a/features/plugin-install.feature b/features/plugin-install.feature
index 8f828329..6275c93b 100644
--- a/features/plugin-install.feature
+++ b/features/plugin-install.feature
@@ -472,3 +472,29 @@ Feature: Install WordPress plugins
       """
       active-network
       """
+
+  Scenario: Install plugin from a zip file with a custom --slug
+    Given a WP install
+
+    When I run `wp plugin install https://github.com/wp-cli-test/generic-example-plugin/archive/refs/heads/master.zip --slug=my-custom-plugin`
+    Then STDOUT should contain:
+      """
+      Renamed 'generic-example-plugin-master' to 'my-custom-plugin'.
+      """
+    And STDOUT should contain:
+      """
+      Plugin installed successfully.
+      """
+    And the wp-content/plugins/my-custom-plugin directory should exist
+    And the wp-content/plugins/generic-example-plugin-master directory should not exist
+    And the return code should be 0
+
+  Scenario: Error when --slug is used with multiple plugins
+    Given a WP install
+
+    When I try `wp plugin install hello-dolly akismet --slug=my-plugin`
+    Then STDERR should contain:
+      """
+      Error: The --slug option can only be used when installing a single item.
+      """
+    And the return code should be 1
diff --git a/features/theme-install.feature b/features/theme-install.feature
index 52373006..a5406cc6 100644
--- a/features/theme-install.feature
+++ b/features/theme-install.feature
@@ -186,3 +186,29 @@ Feature: Install WordPress themes
       """
       active
       """
+
+  Scenario: Install theme from a zip file with a custom --slug
+    Given a WP install
+
+    When I run `wp theme install https://github.com/wp-cli-test/generic-example-theme/archive/refs/heads/master.zip --slug=my-custom-theme`
+    Then STDOUT should contain:
+      """
+      Renamed 'generic-example-theme-master' to 'my-custom-theme'.
+      """
+    And STDOUT should contain:
+      """
+      Theme installed successfully.
+      """
+    And the wp-content/themes/my-custom-theme directory should exist
+    And the wp-content/themes/generic-example-theme-master directory should not exist
+    And the return code should be 0
+
+  Scenario: Error when --slug is used with multiple themes
+    Given a WP install
+
+    When I try `wp theme install twentytwelve twentyeleven --slug=my-theme`
+    Then STDERR should contain:
+      """
+      Error: The --slug option can only be used when installing a single item.
+      """
+    And the return code should be 1
diff --git a/src/Plugin_Command.php b/src/Plugin_Command.php
index 1c3ac3a2..0fb12a8c 100644
--- a/src/Plugin_Command.php
+++ b/src/Plugin_Command.php
@@ -1165,6 +1165,9 @@ protected function filter_item_list( $items, $args ) {
 	 * [--with-dependencies]
 	 * : If set, the command will also install all required dependencies of the plugin as specified in the 'Requires Plugins' header.
 	 *
+	 * [--slug=<slug>]
+	 * : Use this as the target directory name when installing from a zip file. Cannot be used when installing multiple plugins.
+	 *
 	 * ## EXAMPLES
 	 *
 	 *     # Install the latest version from wordpress.org and activate
diff --git a/src/Theme_Command.php b/src/Theme_Command.php
index 00dfe3da..7ea769c1 100644
--- a/src/Theme_Command.php
+++ b/src/Theme_Command.php
@@ -612,6 +612,9 @@ protected function filter_item_list( $items, $args ) {
 	 * [--insecure]
 	 * : Retry downloads without certificate validation if TLS handshake fails. Note: This makes the request vulnerable to a MITM attack.
 	 *
+	 * [--slug=<slug>]
+	 * : Use this as the target directory name when installing from a zip file. Cannot be used when installing multiple themes.
+	 *
 	 * ## EXAMPLES
 	 *
 	 *     # Install the latest version from wordpress.org and activate
diff --git a/src/WP_CLI/CommandWithUpgrade.php b/src/WP_CLI/CommandWithUpgrade.php
index d1623c97..4ee663db 100755
--- a/src/WP_CLI/CommandWithUpgrade.php
+++ b/src/WP_CLI/CommandWithUpgrade.php
@@ -185,8 +185,14 @@ private function show_legend( $items ) {
 	}
 
 	public function install( $args, $assoc_args ) {
-		$successes = 0;
-		$errors    = 0;
+		$successes   = 0;
+		$errors      = 0;
+		$custom_slug = Utils\get_flag_value( $assoc_args, 'slug', false );
+
+		if ( $custom_slug && count( $args ) > 1 ) {
+			WP_CLI::error( 'The --slug option can only be used when installing a single item.' );
+		}
+
 		foreach ( $args as $slug ) {
 
 			if ( empty( $slug ) ) {
@@ -263,10 +269,32 @@ public function install( $args, $assoc_args ) {
 				$file_upgrader = $this->get_upgrader( $assoc_args );
 
 				$filter = false;
-				// If a GitHub URL, do some guessing as to the correct plugin/theme directory.
-				if ( $is_remote && 'github.com' === Utils\parse_url( $slug, PHP_URL_HOST )
+				if ( $custom_slug ) {
+					// If --slug is specified, rename the extracted directory to the provided slug.
+					$filter = function ( $source ) use ( $custom_slug ) {
+						/**
+						 * @var \WP_Filesystem_Base $wp_filesystem
+						 */
+						global $wp_filesystem;
+
+						$source_dir = Utils\basename( $source ); // `$source` is trailing-slashed path to the unzipped archive directory.
+						if ( $source_dir === $custom_slug ) {
+							return $source;
+						}
+						$new_path = substr_replace( $source, $custom_slug, (int) strrpos( $source, $source_dir ), strlen( $source_dir ) );
+
+						if ( $wp_filesystem->move( $source, $new_path ) ) {
+							WP_CLI::log( sprintf( "Renamed '%s' to '%s'.", $source_dir, $custom_slug ) );
+							return $new_path;
+						}
+
+						return new WP_Error( 'wpcli_install_slug', "Couldn't rename to '{$custom_slug}'." );
+					};
+					add_filter( 'upgrader_source_selection', $filter, 10 );
+				} elseif ( $is_remote && 'github.com' === Utils\parse_url( $slug, PHP_URL_HOST )
 						// Don't attempt to rename ZIPs uploaded to the releases page or coming from a raw source.
 						&& ! preg_match( '#github\.com/[^/]+/[^/]+/(?:releases/download|raw)/#', $slug ) ) {
+					// If a GitHub URL, do some guessing as to the correct plugin/theme directory.
 
 					$filter = function ( $source ) use ( $slug ) {
 						/**