diff --git a/docs/sources/setup-grafana/start-restart-grafana.md b/docs/sources/setup-grafana/start-restart-grafana.md
index 0cba9899590..f0c4e570b87 100644
--- a/docs/sources/setup-grafana/start-restart-grafana.md
+++ b/docs/sources/setup-grafana/start-restart-grafana.md
@@ -128,7 +128,7 @@ services:
     restart: unless-stopped
     environment:
       - TERM=linux
-      - GF_INSTALL_PLUGINS=grafana-clock-panel,grafana-polystat-panel
+      - GF_PLUGINS_PREINSTALL=grafana-clock-panel,grafana-polystat-panel
     ports:
       - '3000:3000'
     volumes:
diff --git a/packaging/docker/run.sh b/packaging/docker/run.sh
index ac1f9ea45a6..a4c91b49379 100755
--- a/packaging/docker/run.sh
+++ b/packaging/docker/run.sh
@@ -63,18 +63,21 @@ done
 export HOME="$GF_PATHS_HOME"
 
 if [ ! -z "${GF_INSTALL_PLUGINS}" ]; then
-  OLDIFS=$IFS
-  IFS=','
-  for plugin in ${GF_INSTALL_PLUGINS}; do
-    IFS=$OLDIFS
-    if [[ $plugin =~ .*\;.* ]]; then
-        pluginUrl=$(echo "$plugin" | cut -d';' -f 1)
-        pluginInstallFolder=$(echo "$plugin" | cut -d';' -f 2)
-        grafana cli --pluginUrl ${pluginUrl} --pluginsDir "${GF_PATHS_PLUGINS}" plugins install "${pluginInstallFolder}"
-    else
-        grafana cli --pluginsDir "${GF_PATHS_PLUGINS}" plugins install ${plugin}
-    fi
-  done
+  >&2 echo "\033[0;33mWARN\033[0m: GF_INSTALL_PLUGINS is deprecated. Use GF_PLUGINS_PREINSTALL or GF_PLUGINS_PREINSTALL_SYNC instead. Checkout the documentation for more info."
+  if [ "${GF_INSTALL_PLUGINS_FORCE}" = "true" ]; then
+    OLDIFS=$IFS
+    IFS=','
+    for plugin in ${GF_INSTALL_PLUGINS}; do
+        IFS=$OLDIFS
+        if [[ $plugin =~ .*\;.* ]]; then
+            pluginUrl=$(echo "$plugin" | cut -d';' -f 1)
+            pluginInstallFolder=$(echo "$plugin" | cut -d';' -f 2)
+            grafana cli --pluginUrl ${pluginUrl} --pluginsDir "${GF_PATHS_PLUGINS}" plugins install "${pluginInstallFolder}"
+        else
+            grafana cli --pluginsDir "${GF_PATHS_PLUGINS}" plugins install ${plugin}
+        fi
+    done
+  fi
 fi
 
 exec grafana server                                         \
diff --git a/pkg/setting/setting_plugins.go b/pkg/setting/setting_plugins.go
index 3fb980c38da..005950e9611 100644
--- a/pkg/setting/setting_plugins.go
+++ b/pkg/setting/setting_plugins.go
@@ -1,6 +1,8 @@
 package setting
 
 import (
+	"os"
+	"regexp"
 	"strings"
 
 	"gopkg.in/ini.v1"
@@ -34,13 +36,62 @@ func extractPluginSettings(sections []*ini.Section) PluginSettings {
 var (
 	defaultPreinstallPlugins = map[string]InstallPlugin{
 		// Default preinstalled plugins
-		"grafana-lokiexplore-app":      {"grafana-lokiexplore-app", "", ""},
-		"grafana-pyroscope-app":        {"grafana-pyroscope-app", "", ""},
-		"grafana-exploretraces-app":    {"grafana-exploretraces-app", "", ""},
-		"grafana-metricsdrilldown-app": {"grafana-metricsdrilldown-app", "", ""},
+		"grafana-lokiexplore-app":      {ID: "grafana-lokiexplore-app"},
+		"grafana-pyroscope-app":        {ID: "grafana-pyroscope-app"},
+		"grafana-exploretraces-app":    {ID: "grafana-exploretraces-app"},
+		"grafana-metricsdrilldown-app": {ID: "grafana-metricsdrilldown-app"},
 	}
 )
 
+func (cfg *Cfg) migrateInstallPluginsToPreinstallPluginsSync(rawInstallPlugins, installPluginsForce string, preinstallPluginsSync map[string]InstallPlugin) {
+	if strings.ToLower(installPluginsForce) == "true" || rawInstallPlugins == "" {
+		cfg.Logger.Debug("GF_INSTALL_PLUGINS_FORCE is set to true, skipping migration of GF_INSTALL_PLUGINS to GF_PLUGINS_PREINSTALL_SYNC")
+		return
+	}
+	installPluginsEntries := strings.Split(rawInstallPlugins, ",")
+
+	// Format 1: ID only (e.g., "grafana-clock-panel")
+	// Format 2: ID with version (e.g., "grafana-clock-panel 1.0.1")
+	// Format 3: URL with folder (e.g., "https://grafana.com/api/plugins/grafana-clock-panel/versions/latest/download;grafana-clock-panel")
+	pluginRegex := regexp.MustCompile(`(?:([^;]+);)?([^;\s]+)(?:\s+(.+))?`)
+	for _, entry := range installPluginsEntries {
+		trimmedEntry := strings.TrimSpace(entry)
+		if trimmedEntry == "" {
+			continue
+		}
+
+		matches := pluginRegex.FindStringSubmatch(trimmedEntry)
+
+		if matches == nil {
+			cfg.Logger.Debug("No match found for entry: ", trimmedEntry)
+			continue
+		}
+
+		url := ""
+		if len(matches) > 1 {
+			url = strings.TrimSpace(matches[1])
+		}
+
+		id := ""
+		if len(matches) > 2 {
+			id = strings.TrimSpace(matches[2])
+		}
+		if _, exists := preinstallPluginsSync[id]; exists {
+			continue
+		}
+
+		version := ""
+		if len(matches) > 3 {
+			version = strings.TrimSpace(matches[3])
+		}
+		if id != "" {
+			preinstallPluginsSync[id] = InstallPlugin{ID: id, Version: version, URL: url}
+		} else {
+			cfg.Logger.Debug("No ID found for entry: ", trimmedEntry, "matches: ", matches)
+		}
+	}
+}
+
 func (cfg *Cfg) processPreinstallPlugins(rawInstallPlugins []string, preinstallPlugins map[string]InstallPlugin) {
 	// Add the plugins defined in the configuration
 	for _, plugin := range rawInstallPlugins {
@@ -88,6 +139,7 @@ func (cfg *Cfg) readPluginSettings(iniFile *ini.File) error {
 		rawInstallPluginsSync := util.SplitString(pluginsSection.Key("preinstall_sync").MustString(""))
 		preinstallPluginsSync := make(map[string]InstallPlugin)
 		cfg.processPreinstallPlugins(rawInstallPluginsSync, preinstallPluginsSync)
+		cfg.migrateInstallPluginsToPreinstallPluginsSync(os.Getenv("GF_INSTALL_PLUGINS"), os.Getenv("GF_INSTALL_PLUGINS_FORCE"), preinstallPluginsSync)
 		// Remove from the list the plugins that have been disabled
 		for _, disabledPlugin := range cfg.DisablePlugins {
 			delete(preinstallPluginsAsync, disabledPlugin)
diff --git a/pkg/setting/setting_plugins_test.go b/pkg/setting/setting_plugins_test.go
index 1af9c95270f..74425c95a0e 100644
--- a/pkg/setting/setting_plugins_test.go
+++ b/pkg/setting/setting_plugins_test.go
@@ -172,12 +172,12 @@ func Test_readPluginSettings(t *testing.T) {
 			{
 				name:     "should add the default preinstalled plugin and the one defined",
 				rawInput: "plugin1",
-				expected: append(defaultPreinstallPluginsList, InstallPlugin{"plugin1", "", ""}),
+				expected: append(defaultPreinstallPluginsList, InstallPlugin{ID: "plugin1", Version: "", URL: ""}),
 			},
 			{
 				name:     "should add the default preinstalled plugin and the one defined with version",
 				rawInput: "plugin1@1.0.0",
-				expected: append(defaultPreinstallPluginsList, InstallPlugin{"plugin1", "1.0.0", ""}),
+				expected: append(defaultPreinstallPluginsList, InstallPlugin{ID: "plugin1", Version: "1.0.0", URL: ""}),
 			},
 			{
 				name:           "it should remove the disabled plugin",
@@ -207,12 +207,12 @@ func Test_readPluginSettings(t *testing.T) {
 			{
 				name:     "should parse a plugin with version and URL",
 				rawInput: "plugin1@1.0.1@https://example.com/plugin1.tar.gz",
-				expected: append(defaultPreinstallPluginsList, InstallPlugin{"plugin1", "1.0.1", "https://example.com/plugin1.tar.gz"}),
+				expected: append(defaultPreinstallPluginsList, InstallPlugin{ID: "plugin1", Version: "1.0.1", URL: "https://example.com/plugin1.tar.gz"}),
 			},
 			{
 				name:     "should parse a plugin with URL",
 				rawInput: "plugin1@@https://example.com/plugin1.tar.gz",
-				expected: append(defaultPreinstallPluginsList, InstallPlugin{"plugin1", "", "https://example.com/plugin1.tar.gz"}),
+				expected: append(defaultPreinstallPluginsList, InstallPlugin{ID: "plugin1", Version: "", URL: "https://example.com/plugin1.tar.gz"}),
 			},
 			{
 				name:         "when preinstall_async is false, should add all plugins to preinstall_sync",
@@ -272,3 +272,140 @@ func Test_readPluginSettings(t *testing.T) {
 		}
 	})
 }
+
+func Test_migrateInstallPluginsToPreinstallPluginsSync(t *testing.T) {
+	tests := []struct {
+		name                string
+		installPluginsVal   string
+		installPluginsForce string
+		preinstallPlugins   map[string]InstallPlugin
+		expectedPlugins     map[string]InstallPlugin
+	}{
+		{
+			name:              "should return empty map when GF_INSTALL_PLUGINS is not set",
+			installPluginsVal: "",
+			preinstallPlugins: map[string]InstallPlugin{},
+			expectedPlugins:   map[string]InstallPlugin{},
+		},
+		{
+			name:              "should parse URL with folder format",
+			installPluginsVal: "https://grafana.com/grafana/plugins/grafana-piechart-panel/;grafana-piechart-panel",
+			preinstallPlugins: map[string]InstallPlugin{},
+			expectedPlugins: map[string]InstallPlugin{
+				"grafana-piechart-panel": {
+					ID:      "grafana-piechart-panel",
+					Version: "",
+					URL:     "https://grafana.com/grafana/plugins/grafana-piechart-panel/",
+				},
+			},
+		},
+		{
+			name:              "should parse mixed formats",
+			installPluginsVal: "https://github.com/VolkovLabs/business-links/releases/download/v1.2.1/volkovlabs-links-panel-1.2.1.zip;volkovlabs-links-panel,marcusolsson-static-datasource,volkovlabs-variable-panel",
+			preinstallPlugins: map[string]InstallPlugin{},
+			expectedPlugins: map[string]InstallPlugin{
+				"volkovlabs-links-panel": {
+					ID:      "volkovlabs-links-panel",
+					Version: "",
+					URL:     "https://github.com/VolkovLabs/business-links/releases/download/v1.2.1/volkovlabs-links-panel-1.2.1.zip",
+				},
+				"marcusolsson-static-datasource": {
+					ID:      "marcusolsson-static-datasource",
+					Version: "",
+					URL:     "",
+				},
+				"volkovlabs-variable-panel": {
+					ID:      "volkovlabs-variable-panel",
+					Version: "",
+					URL:     "",
+				},
+			},
+		},
+		{
+			name:              "should parse ID with version format",
+			installPluginsVal: "volkovlabs-links-panel 1.2.1,marcusolsson-static-datasource 1.0.0,volkovlabs-variable-panel",
+			preinstallPlugins: map[string]InstallPlugin{},
+			expectedPlugins: map[string]InstallPlugin{
+				"volkovlabs-links-panel": {
+					ID:      "volkovlabs-links-panel",
+					Version: "1.2.1",
+					URL:     "",
+				},
+				"marcusolsson-static-datasource": {
+					ID:      "marcusolsson-static-datasource",
+					Version: "1.0.0",
+					URL:     "",
+				},
+				"volkovlabs-variable-panel": {
+					ID:      "volkovlabs-variable-panel",
+					Version: "",
+					URL:     "",
+				},
+			},
+		},
+		{
+			name:                "should return empty map when GF_INSTALL_PLUGINS_FORCE is true",
+			installPluginsVal:   "grafana-piechart-panel",
+			installPluginsForce: "true",
+			preinstallPlugins:   map[string]InstallPlugin{},
+			expectedPlugins:     map[string]InstallPlugin{},
+		},
+		{
+			name:              "should skip plugins that are already configured",
+			installPluginsVal: "plugin1 1.0.0,plugin2,plugin3",
+			preinstallPlugins: map[string]InstallPlugin{
+				"plugin1": {ID: "plugin1", Version: "1.0.1"},
+				"plugin3": {ID: "plugin3"},
+			},
+			expectedPlugins: map[string]InstallPlugin{
+				"plugin2": {
+					ID: "plugin2",
+				},
+				"plugin3": {
+					ID: "plugin3",
+				},
+				"plugin1": {
+					ID:      "plugin1",
+					Version: "1.0.1",
+				},
+			},
+		},
+		{
+			name:              "should trim the space in the input",
+			installPluginsVal: " plugin1 1.0.0,  plugin2, plugin3   ",
+			preinstallPlugins: map[string]InstallPlugin{},
+			expectedPlugins: map[string]InstallPlugin{
+				"plugin2": {
+					ID: "plugin2",
+				},
+				"plugin3": {
+					ID: "plugin3",
+				},
+				"plugin1": {
+					ID:      "plugin1",
+					Version: "1.0.0",
+				},
+			},
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			cfg := NewCfg()
+
+			cfg.migrateInstallPluginsToPreinstallPluginsSync(tc.installPluginsVal, tc.installPluginsForce, tc.preinstallPlugins)
+			assert.Equal(t, len(tc.expectedPlugins), len(tc.preinstallPlugins), "Number of plugins doesn't match")
+
+			// Check each expected plugin exists with correct values
+			for id, expectedPlugin := range tc.expectedPlugins {
+				actualPlugin, exists := tc.preinstallPlugins[id]
+				assert.True(t, exists, "Expected plugin %s not found", id)
+				if exists {
+					assert.Equal(t, expectedPlugin.ID, actualPlugin.ID, "Plugin ID mismatch for %s", id)
+					assert.Equal(t, expectedPlugin.Version, actualPlugin.Version, "Plugin version mismatch for %s", id)
+					assert.Equal(t, expectedPlugin.URL, actualPlugin.URL, "Plugin URL mismatch for %s", id)
+				}
+			}
+		})
+	}
+}
diff --git a/pkg/setting/setting_test.go b/pkg/setting/setting_test.go
index 9a434a7e2ff..c40f761cad4 100644
--- a/pkg/setting/setting_test.go
+++ b/pkg/setting/setting_test.go
@@ -78,6 +78,18 @@ func TestLoadingSettings(t *testing.T) {
 		require.Equal(t, filepath.Join(cfg.DataPath, "log"), cfg.LogsPath)
 	})
 
+	t.Run("Should be able to override via plugins.preinstall with GF_INSTALL_PLUGINS env var when GF_PLUGINS_PREINSTALL and cfg.plugins.preinstall are not set", func(t *testing.T) {
+		t.Setenv("GF_INSTALL_PLUGINS", "https://grafana.com/grafana/plugins/grafana-piechart-panel/;grafana-piechart-panel")
+
+		cfg := NewCfg()
+		err := cfg.Load(CommandLineArgs{HomePath: "../../"})
+		require.Nil(t, err)
+
+		require.Equal(t, filepath.Join(cfg.HomePath, "data"), cfg.DataPath)
+		require.Equal(t, filepath.Join(cfg.DataPath, "log"), cfg.LogsPath)
+		require.Equal(t, cfg.PreinstallPluginsSync, []InstallPlugin{{ID: "grafana-piechart-panel", Version: "", URL: "https://grafana.com/grafana/plugins/grafana-piechart-panel/"}})
+	})
+
 	t.Run("Should be able to expand parameter from environment variables", func(t *testing.T) {
 		t.Setenv("DEFAULT_IDP_URL", "grafana.com")
 		t.Setenv("GF_AUTH_GENERIC_OAUTH_AUTH_URL", "${DEFAULT_IDP_URL}/auth")