diff --git a/docs/2.0/docs/accountfactory/architecture/index.md b/docs/2.0/docs/accountfactory/architecture/index.md
index d3c94c905..fb0e9f5a5 100644
--- a/docs/2.0/docs/accountfactory/architecture/index.md
+++ b/docs/2.0/docs/accountfactory/architecture/index.md
@@ -6,7 +6,7 @@ Account Factory uses Gruntwork's [AWS Control Tower Multi Account Factory](/refe
In your `infrastructure-live-root` repository, the `_new-account-requests` directory acts as input for the Gruntwork Control Tower Module. The module, functioning within your management account, employs AWS Control Tower to efficiently provision new accounts and manage existing ones.
-Pipelines tracks each provisioned account as a new base directory containing Terragrunt units in your `infrastructure-live-root` repository.
+Pipelines tracks each provisioned account as a new base directory containing Terragrunt units in your `infrastructure-live-root` repository. By default, newly vended accounts live directly at the repository root (`{repo_root}/{account_name}/…`). You can place them under a subdirectory instead by setting the [`new_account_parent_path`](/2.0/reference/accountfactory/configurations-as-code#new_account_parent_path) attribute on the `account_factory` block; for example, `new_account_parent_path = "aws"` will vend accounts at `{repo_root}/aws/{account_name}/…`. The `_new-account-requests/` request directory and the `accounts.yml` file remain at the repository root regardless of this setting.
diff --git a/docs/2.0/reference/accountfactory/configurations-as-code.md b/docs/2.0/reference/accountfactory/configurations-as-code.md
index 5a79fc647..8e0fb9111 100644
--- a/docs/2.0/reference/accountfactory/configurations-as-code.md
+++ b/docs/2.0/reference/accountfactory/configurations-as-code.md
@@ -298,6 +298,29 @@ account_factory {
+### new_account_parent_path
+
+
+
+
+ A repo-relative subdirectory under which newly vended accounts are created. When set to a value such as `"aws"`, Account Factory will vend new AWS accounts into `{repo_root}/aws/{account_name}/…` instead of `{repo_root}/{account_name}/…`. The default is `""`, meaning new accounts are vended at the repository root (today's behavior).
+
+ This setting affects only newly vended accounts. Existing accounts are not relocated, and the `_new-account-requests/` directory and the `accounts.yml` file continue to live at the repository root.
+
+ The value must be a relative subpath. Leading and trailing slashes are stripped silently (`"/aws/"` is equivalent to `"aws"`). Paths containing `..` segments are rejected at config-load time.
+
+
+
+
+ ```hcl
+ account_factory {
+ new_account_parent_path = "aws"
+ }
+ ```
+
+
+
+
### pipelines_read_token_name