diff --git a/doc/source/install/index.rst b/doc/source/install/index.rst
index 065916377..df1737d7a 100644
--- a/doc/source/install/index.rst
+++ b/doc/source/install/index.rst
@@ -332,7 +332,9 @@ ansible.cfg) or you can specify the location setting
 .. note::
 
    If you are using a virtual environment ANSIBLE_COLLECTIONS_PATHS is
-   automatically set.
+   automatically set. After Ansible Collections are installed,
+   a symbolic link to to the installation is created in the bifrost playbook
+   directory.
 
 The ``env-setup.sh`` script automatically invokes ``install-deps.sh`` and
 creates a virtual environment for you:
diff --git a/releasenotes/notes/releasenote-4812959d071329fc.yaml b/releasenotes/notes/releasenote-4812959d071329fc.yaml
new file mode 100644
index 000000000..59efcd827
--- /dev/null
+++ b/releasenotes/notes/releasenote-4812959d071329fc.yaml
@@ -0,0 +1,11 @@
+---
+features:
+  - |
+    Added creation of a symbolic link from $VENV/collections directory which
+    contains ansible collections to the playbooks subdirectory of bifrost.
+    This is done in the env-setup.sh script.
+fixes:
+  - |
+    The addition of the symbolic link makes bifrost playbooks independent of
+    the ANSIBLE_COLLECTIONS_PATHS environment variable which wasn't reliably
+    set in some environments.
diff --git a/scripts/env-setup.sh b/scripts/env-setup.sh
index 5d765b645..cbfbbcb5c 100755
--- a/scripts/env-setup.sh
+++ b/scripts/env-setup.sh
@@ -53,6 +53,12 @@ else
     ${ANSIBLE_GALAXY} collection install -r ${ANSIBLE_COLLECTION_REQ} -p ${BIFROST_COLLECTIONS_PATHS}
 fi
 
+# Symlink Collections to the playbook directory. This removes the need of setting
+# ANSIBLE_COLLECTIONS_PATHS environment variable
+if [ ! -e "$(dirname $0)/../playbooks/collections" ]; then
+    echo "Creating a symbolic link to ansible collections in bifrost playbook directory"
+    ln -s ${ANSIBLE_COLLECTIONS_PATHS} "$(dirname $0)/../playbooks/collections"
+fi
 
 echo
 echo "To use bifrost, do"