diff --git a/openpype/hosts/houdini/api/lib.py b/openpype/hosts/houdini/api/lib.py
index 67755c1a72..ce89ffe606 100644
--- a/openpype/hosts/houdini/api/lib.py
+++ b/openpype/hosts/houdini/api/lib.py
@@ -789,7 +789,7 @@ def update_houdini_vars_context():
             template_data
         )
 
-        if item["is_dir_path"]:
+        if item["is_directory"]:
             item_value = item_value.replace("\\", "/")
             try:
                 os.makedirs(item_value)
diff --git a/openpype/settings/defaults/project_settings/houdini.json b/openpype/settings/defaults/project_settings/houdini.json
index 111ed2b24d..4f57ee52c6 100644
--- a/openpype/settings/defaults/project_settings/houdini.json
+++ b/openpype/settings/defaults/project_settings/houdini.json
@@ -6,7 +6,7 @@
                 {
                     "var": "JOB",
                     "value": "{root[work]}/{project[name]}/{hierarchy}/{asset}/work/{task[name]}",
-                    "is_dir_path": true
+                    "is_directory": true
                 }
             ]
         }
diff --git a/openpype/settings/entities/schemas/projects_schema/schemas/schema_houdini_general.json b/openpype/settings/entities/schemas/projects_schema/schemas/schema_houdini_general.json
index 3160e657bf..c1e2cae8f0 100644
--- a/openpype/settings/entities/schemas/projects_schema/schemas/schema_houdini_general.json
+++ b/openpype/settings/entities/schemas/projects_schema/schemas/schema_houdini_general.json
@@ -17,6 +17,10 @@
                     "key": "enabled",
                     "label": "Enabled"
                 },
+                {
+                    "type": "label",
+                    "label": "Houdini Vars.<br>If a value is treated as a directory on update it will be ensured the folder exists"
+                },
                 {
                     "type": "list",
                     "key": "houdini_vars",
@@ -37,8 +41,8 @@
                             },
                             {
                                 "type": "boolean",
-                                "key": "is_dir_path",
-                                "label": "is Dir Path"
+                                "key": "is_directory",
+                                "label": "Treat as directory"
                             }
                         ]
                     }
diff --git a/server_addon/houdini/server/settings/general.py b/server_addon/houdini/server/settings/general.py
index 7b3b95f978..0109eec63d 100644
--- a/server_addon/houdini/server/settings/general.py
+++ b/server_addon/houdini/server/settings/general.py
@@ -6,10 +6,16 @@ class HoudiniVarModel(BaseSettingsModel):
     _layout = "expanded"
     var: str = Field("", title="Var")
     value: str = Field("", title="Value")
-    is_dir_path: bool = Field(False, title="is Dir Path")
+    is_directory: bool = Field(False, title="Treat as directory")
 
 
 class UpdateHoudiniVarcontextModel(BaseSettingsModel):
+    """Houdini Vars Note.
+
+    If a value is treated as a directory on update
+    it will be ensured the folder exists.
+    """
+
     enabled: bool = Field(title="Enabled")
     # TODO this was dynamic dictionary '{var: path}'
     houdini_vars: list[HoudiniVarModel] = Field(
@@ -32,7 +38,7 @@ DEFAULT_GENERAL_SETTINGS = {
             {
                 "var": "JOB",
                 "value": "{root[work]}/{project[name]}/{hierarchy}/{asset}/work/{task[name]}",  # noqa
-                "is_dir_path": True
+                "is_directory": True
             }
         ]
     }
diff --git a/website/docs/assets/houdini/update-houdini-vars-context-change.png b/website/docs/assets/houdini/update-houdini-vars-context-change.png
index 76fb723321..74ac8d86c9 100644
Binary files a/website/docs/assets/houdini/update-houdini-vars-context-change.png and b/website/docs/assets/houdini/update-houdini-vars-context-change.png differ