diff --git a/bin/kitchen_gem b/bin/kitchen_gem
new file mode 100644
index 000000000..7bd3d4592
--- /dev/null
+++ b/bin/kitchen_gem
@@ -0,0 +1,12 @@
+#!/bin/bash
+
+# expected to be invoked as kitchen install-gem <gem_name>
+export GEM_HOME="/hab/kitchen"
+env_version=$KITCHEN_VERSION
+
+if [[ -z "$env_version" ]]; then
+# it will install the latest version if a new version installed unless the version env variable was set
+	hab pkg exec $origin/$package gem install -- $@
+else
+	hab pkg exec $origin/$package/$env_version gem install -- $@
+fi
\ No newline at end of file
diff --git a/habitat/plan.sh b/habitat/plan.sh
index d74f0cc15..29239fb3a 100644
--- a/habitat/plan.sh
+++ b/habitat/plan.sh
@@ -36,7 +36,7 @@ do_unpack() {
 
 do_build() {
   echo $(pkg_path_for $_chef_client_ruby)
-  export GEM_HOME="$pkg_prefix/vendor/gems"
+  export GEM_HOME="$pkg_prefix/vendor"
 
   build_line "Setting GEM_PATH=$GEM_HOME"
   export GEM_PATH="$GEM_HOME"
@@ -50,6 +50,7 @@ do_build() {
 }
 
 do_install() {
+  mkdir -p /hab/kitchen
   export GEM_HOME="$pkg_prefix/vendor/gems"
 
   build_line "Setting GEM_PATH=$GEM_HOME"
@@ -58,7 +59,7 @@ do_install() {
   gem install chef-cli
   wrap_ruby_kitchen
   wrap_ruby_chef_cli
-  set_runtime_env "GEM_PATH" "${pkg_prefix}/vendor/gems"
+  set_runtime_env "GEM_PATH" "${pkg_prefix}/vendor/gems;/hab/kitchen"
 }
 
 wrap_ruby_kitchen() {
@@ -95,4 +96,4 @@ EOF
 
 do_strip() {
   return 0
-}
+}
\ No newline at end of file