diff --git a/browser/components/BrowserGlue.sys.mjs b/browser/components/BrowserGlue.sys.mjs
index 5092ec85d7a9..bf1c131ad14d 100644
--- a/browser/components/BrowserGlue.sys.mjs
+++ b/browser/components/BrowserGlue.sys.mjs
@@ -442,6 +442,7 @@ let JSWINDOWACTORS = {
       events: {
         "BackupUI:InitWidget": { wantUntrusted: true },
         "BackupUI:ToggleScheduledBackups": { wantUntrusted: true },
+        "BackupUI:ShowFilepicker": { wantUntrusted: true },
       },
     },
     matches: ["about:preferences*", "about:settings*"],
diff --git a/browser/components/backup/BackupService.sys.mjs b/browser/components/backup/BackupService.sys.mjs
index 4005f6eb00c2..3219cff51eb3 100644
--- a/browser/components/backup/BackupService.sys.mjs
+++ b/browser/components/backup/BackupService.sys.mjs
@@ -6,6 +6,7 @@ import * as DefaultBackupResources from "resource:///modules/backup/BackupResour
 import { AppConstants } from "resource://gre/modules/AppConstants.sys.mjs";
 import { XPCOMUtils } from "resource://gre/modules/XPCOMUtils.sys.mjs";
 
+const BACKUP_DIR_PREF_NAME = "browser.backup.location";
 const SCHEDULED_BACKUPS_ENABLED_PREF_NAME = "browser.backup.scheduled.enabled";
 const lazy = {};
 
@@ -37,6 +38,13 @@ ChromeUtils.defineLazyGetter(lazy, "ZipWriter", () =>
   Components.Constructor("@mozilla.org/zipwriter;1", "nsIZipWriter", "open")
 );
 
+ChromeUtils.defineLazyGetter(lazy, "gFluentStrings", function () {
+  return new Localization(
+    ["branding/brand.ftl", "preview/backupSettings.ftl"],
+    true
+  );
+});
+
 XPCOMUtils.defineLazyPreferenceGetter(
   lazy,
   "scheduledBackupsPref",
@@ -50,6 +58,20 @@ XPCOMUtils.defineLazyPreferenceGetter(
   }
 );
 
+XPCOMUtils.defineLazyPreferenceGetter(
+  lazy,
+  "backupDirPref",
+  BACKUP_DIR_PREF_NAME,
+  Services.dirsvc.get("Docs", Ci.nsIFile)
+    .path /* Default directory is Documents */,
+  async function onUpdateLocationDirPath(_pref, _prevVal, newVal) {
+    let bs = BackupService.get();
+    if (bs) {
+      await bs.onUpdateLocationDirPath(newVal);
+    }
+  }
+);
+
 /**
  * The BackupService class orchestrates the scheduling and creation of profile
  * backups. It also does most of the heavy lifting for the restoration of a
@@ -71,6 +93,13 @@ export class BackupService extends EventTarget {
    */
   #resources = new Map();
 
+  /**
+   * The name of the backup folder. Should be localized.
+   *
+   * @see BACKUP_DIR_NAME
+   */
+  static #backupFolderName = null;
+
   /**
    * Set to true if a backup is currently in progress. Causes stateUpdate()
    * to be called.
@@ -112,7 +141,12 @@ export class BackupService extends EventTarget {
    * @type {object}
    */
   #_state = {
-    backupFilePath: "Documents", // TODO: make save location configurable (bug 1895943)
+    backupDirPath: lazy.backupDirPref,
+    defaultParent: {
+      path: BackupService.DEFAULT_PARENT_DIR_PATH,
+      fileName: PathUtils.filename(BackupService.DEFAULT_PARENT_DIR_PATH),
+      iconURL: this.getIconFromFilePath(BackupService.DEFAULT_PARENT_DIR_PATH),
+    },
     backupInProgress: false,
     scheduledBackupsEnabled: lazy.scheduledBackupsPref,
     encryptionEnabled: false,
@@ -152,6 +186,29 @@ export class BackupService extends EventTarget {
    */
   #encState = undefined;
 
+  /**
+   * The path of the default parent directory for saving backups.
+   * The current default is the Documents directory.
+   *
+   * @returns {string} The path of the default parent directory
+   */
+  static get DEFAULT_PARENT_DIR_PATH() {
+    return Services.dirsvc.get("Docs", Ci.nsIFile).path;
+  }
+
+  /**
+   * The localized name for the user's backup folder.
+   *
+   * @returns {string} The localized backup folder name
+   */
+  static get BACKUP_DIR_NAME() {
+    if (!BackupService.#backupFolderName) {
+      BackupService.#backupFolderName =
+        lazy.gFluentStrings.formatValueSync("backup-folder-name");
+    }
+    return BackupService.#backupFolderName;
+  }
+
   /**
    * The name of the folder within the profile folder where this service reads
    * and writes state to.
@@ -924,6 +981,65 @@ export class BackupService extends EventTarget {
     }
   }
 
+  /**
+   * Sets the parent directory of the backups folder. Calling this function will update
+   * browser.backup.location.
+   *
+   * @param {string} parentDirPath directory path
+   */
+  setParentDirPath(parentDirPath) {
+    try {
+      if (!parentDirPath || !PathUtils.filename(parentDirPath)) {
+        throw new Error("Parent directory path is invalid.");
+      }
+      // Recreate the backups path with the new parent directory.
+      let fullPath = PathUtils.join(
+        parentDirPath,
+        BackupService.BACKUP_DIR_NAME
+      );
+      Services.prefs.setStringPref(BACKUP_DIR_PREF_NAME, fullPath);
+    } catch (e) {
+      lazy.logConsole.error(
+        `Failed to set parent directory ${parentDirPath}. ${e}`
+      );
+    }
+  }
+
+  /**
+   * Updates backupDirPath in the backup service state. Should be called every time the value
+   * for browser.backup.location changes.
+   *
+   * @param {string} newDirPath the new directory path for storing backups
+   */
+  async onUpdateLocationDirPath(newDirPath) {
+    lazy.logConsole.debug(`Updating backup location to ${newDirPath}`);
+
+    this.#_state.backupDirPath = newDirPath;
+    this.stateUpdate();
+  }
+
+  /**
+   * Returns the moz-icon URL of a file. To get the moz-icon URL, the
+   * file path is convered to a fileURI. If there is a problem retreiving
+   * the moz-icon due to an invalid file path, return null instead.
+   *
+   * @param {string} path Path of the file to read its icon from.
+   * @returns {string|null} The moz-icon URL of the specified file, or
+   *  null if the icon cannot be retreived.
+   */
+  getIconFromFilePath(path) {
+    if (!path) {
+      return null;
+    }
+
+    try {
+      let fileURI = PathUtils.toFileURI(path);
+      return `moz-icon:${fileURI}?size=16`;
+    } catch (e) {
+      return null;
+    }
+  }
+
   /**
    * Sets browser.backup.scheduled.enabled to true or false.
    *
diff --git a/browser/components/backup/actors/BackupUIChild.sys.mjs b/browser/components/backup/actors/BackupUIChild.sys.mjs
index b9796425e583..3dfd0b7cd243 100644
--- a/browser/components/backup/actors/BackupUIChild.sys.mjs
+++ b/browser/components/backup/actors/BackupUIChild.sys.mjs
@@ -19,7 +19,7 @@ export class BackupUIChild extends JSWindowActorChild {
    * @param {Event} event
    *   The custom event that the widget fired.
    */
-  handleEvent(event) {
+  async handleEvent(event) {
     /**
      * BackupUI:InitWidget sends a message to the parent to request the BackupService state
      * which will result in a `backupServiceState` property of the widget to be set when that
@@ -31,6 +31,31 @@ export class BackupUIChild extends JSWindowActorChild {
       this.sendAsyncMessage("RequestState");
     } else if (event.type == "BackupUI:ToggleScheduledBackups") {
       this.sendAsyncMessage("ToggleScheduledBackups", event.detail);
+    } else if (event.type == "BackupUI:ShowFilepicker") {
+      let targetNodeName = event.target.nodeName;
+      let { path, filename, iconURL } = await this.sendQuery("ShowFilepicker", {
+        win: event.detail?.win,
+      });
+
+      let widgets = ChromeUtils.nondeterministicGetWeakSetKeys(
+        this.#inittedWidgets
+      );
+
+      for (let widget of widgets) {
+        if (widget.isConnected && widget.nodeName == targetNodeName) {
+          widget.dispatchEvent(
+            new CustomEvent("BackupUI:SelectNewFilepickerPath", {
+              bubbles: true,
+              detail: {
+                path,
+                filename,
+                iconURL,
+              },
+            })
+          );
+          break;
+        }
+      }
     }
   }
 
diff --git a/browser/components/backup/actors/BackupUIParent.sys.mjs b/browser/components/backup/actors/BackupUIParent.sys.mjs
index 908ea4c47781..deebf4a3daf4 100644
--- a/browser/components/backup/actors/BackupUIParent.sys.mjs
+++ b/browser/components/backup/actors/BackupUIParent.sys.mjs
@@ -66,12 +66,49 @@ export class BackupUIParent extends JSWindowActorParent {
    * @param {ReceiveMessageArgument} message
    *   The message received from the BackupUIChild.
    */
-  receiveMessage(message) {
+  async receiveMessage(message) {
     if (message.name == "RequestState") {
       this.sendState();
     } else if (message.name == "ToggleScheduledBackups") {
-      this.#bs.setScheduledBackups(message.data?.isScheduledBackupsEnabled);
+      let { isScheduledBackupsEnabled, parentDirPath } = message.data;
+
+      if (isScheduledBackupsEnabled && parentDirPath) {
+        this.#bs.setParentDirPath(parentDirPath);
+      }
+
+      this.#bs.setScheduledBackups(isScheduledBackupsEnabled);
+
+      return true;
+
+      /**
+       * TODO: (Bug 1900125) we should create a backup at the specified dir path once we turn on
+       * scheduled backups. The backup folder in the chosen directory should contain
+       * the archive file, which we create using BackupService.createArchive implemented in
+       * Bug 1897498.
+       */
+    } else if (message.name == "ShowFilepicker") {
+      let { win } = message.data;
+
+      let fp = Cc["@mozilla.org/filepicker;1"].createInstance(Ci.nsIFilePicker);
+      fp.init(win, "", Ci.nsIFilePicker.modeGetFolder);
+      let result = await new Promise(resolve => fp.open(resolve));
+
+      if (result === Ci.nsIFilePicker.returnCancel) {
+        return false;
+      }
+
+      let path = fp.file.path;
+      let iconURL = this.#bs.getIconFromFilePath(path);
+      let filename = PathUtils.filename(path);
+
+      return {
+        path,
+        filename,
+        iconURL,
+      };
     }
+
+    return null;
   }
 
   /**
diff --git a/browser/components/backup/content/backup-settings.mjs b/browser/components/backup/content/backup-settings.mjs
index 2b3a160d585d..ee069647ad00 100644
--- a/browser/components/backup/content/backup-settings.mjs
+++ b/browser/components/backup/content/backup-settings.mjs
@@ -36,8 +36,9 @@ export default class BackupSettings extends MozLitElement {
   constructor() {
     super();
     this.backupServiceState = {
-      backupFilePath: "Documents", // TODO: make save location configurable (bug 1895943)
+      backupDirPath: "",
       backupInProgress: false,
+      defaultParent: {},
       scheduledBackupsEnabled: false,
     };
   }
@@ -66,6 +67,7 @@ export default class BackupSettings extends MozLitElement {
             bubbles: true,
             composed: true,
             detail: {
+              ...event.detail,
               isScheduledBackupsEnabled: true,
             },
           })
@@ -108,9 +110,12 @@ export default class BackupSettings extends MozLitElement {
   }
 
   turnOnScheduledBackupsDialogTemplate() {
+    let { fileName, path, iconURL } = this.backupServiceState.defaultParent;
     return html`<dialog id="turn-on-scheduled-backups-dialog">
       <turn-on-scheduled-backups
-        .backupFilePath=${this.backupServiceState.backupFilePath}
+        defaultlabel=${fileName}
+        defaultpath=${path}
+        defaulticonurl=${iconURL}
       ></turn-on-scheduled-backups>
     </dialog>`;
   }
diff --git a/browser/components/backup/content/backup-settings.stories.mjs b/browser/components/backup/content/backup-settings.stories.mjs
index 6a570615c654..01310776c4d6 100644
--- a/browser/components/backup/content/backup-settings.stories.mjs
+++ b/browser/components/backup/content/backup-settings.stories.mjs
@@ -22,8 +22,12 @@ const Template = ({ backupServiceState }) => html`
 export const BackingUpNotInProgress = Template.bind({});
 BackingUpNotInProgress.args = {
   backupServiceState: {
-    backupFilePath: "Documents",
+    backupDirPath: "/Some/User/Documents",
     backupInProgress: false,
+    defaultParent: {
+      path: "/Some/User/Documents",
+      fileName: "Documents",
+    },
     scheduledBackupsEnabled: false,
   },
 };
@@ -31,8 +35,12 @@ BackingUpNotInProgress.args = {
 export const BackingUpInProgress = Template.bind({});
 BackingUpInProgress.args = {
   backupServiceState: {
-    backupFilePath: "Documents",
+    backupDirPath: "/Some/User/Documents",
     backupInProgress: true,
+    defaultParent: {
+      path: "/Some/User/Documents",
+      fileName: "Documents",
+    },
     scheduledBackupsEnabled: false,
   },
 };
@@ -40,8 +48,12 @@ BackingUpInProgress.args = {
 export const ScheduledBackupsEnabled = Template.bind({});
 ScheduledBackupsEnabled.args = {
   backupServiceState: {
-    backupFilePath: "Documents",
+    backupDirPath: "/Some/User/Documents",
     backupInProgress: false,
+    defaultParent: {
+      path: "/Some/User/Documents",
+      fileName: "Documents",
+    },
     scheduledBackupsEnabled: true,
   },
 };
diff --git a/browser/components/backup/content/turn-on-scheduled-backups.css b/browser/components/backup/content/turn-on-scheduled-backups.css
index b9b7fffa41ec..1feac6b917a4 100644
--- a/browser/components/backup/content/turn-on-scheduled-backups.css
+++ b/browser/components/backup/content/turn-on-scheduled-backups.css
@@ -53,9 +53,22 @@
       align-items: center;
     }
 
-    #backup-location-filepicker-input {
-      margin: 0;
+    .backup-location-filepicker-input {
       flex: 1;
+      margin-block: var(--space-xsmall);
+      margin-inline-start: 0;
+      padding-inline-start: var(--space-xxlarge);
+      background-repeat: no-repeat;
+      background-size: var(--icon-size-default);
+      background-position: var(--space-small) 50%;
+
+      /* For the placeholder icon */
+      fill: currentColor;
+      -moz-context-properties: fill;
+
+      &:dir(rtl) {
+        background-position: calc(100% - var(--space-small)) 50%;
+      }
     }
   }
 
diff --git a/browser/components/backup/content/turn-on-scheduled-backups.mjs b/browser/components/backup/content/turn-on-scheduled-backups.mjs
index eb1d80c44f05..a661dd3dc238 100644
--- a/browser/components/backup/content/turn-on-scheduled-backups.mjs
+++ b/browser/components/backup/content/turn-on-scheduled-backups.mjs
@@ -10,8 +10,15 @@ import { MozLitElement } from "chrome://global/content/lit-utils.mjs";
  * scheduled backups.
  */
 export default class TurnOnScheduledBackups extends MozLitElement {
+  #placeholderIconURL = "chrome://global/skin/icons/page-portrait.svg";
+
   static properties = {
-    backupFilePath: { type: String },
+    defaultIconURL: { type: String, reflect: true },
+    defaultLabel: { type: String, reflect: true },
+    defaultPath: { type: String, reflect: true },
+    _newIconURL: { type: String },
+    _newLabel: { type: String },
+    _newPath: { type: String },
     showPasswordOptions: { type: Boolean, reflect: true },
   };
 
@@ -19,15 +26,22 @@ export default class TurnOnScheduledBackups extends MozLitElement {
     return {
       cancelButtonEl: "#backup-turn-on-scheduled-cancel-button",
       confirmButtonEl: "#backup-turn-on-scheduled-confirm-button",
+      filePathButtonEl: "#backup-location-filepicker-button",
+      filePathInputCustomEl: "#backup-location-filepicker-input-custom",
+      filePathInputDefaultEl: "#backup-location-filepicker-input-default",
       passwordOptionsCheckboxEl: "#sensitive-data-checkbox-input",
       passwordOptionsExpandedEl: "#passwords",
-      recommendedFolderInputEl: "#backup-location-filepicker-input",
     };
   }
 
   constructor() {
     super();
-    this.backupFilePath = null;
+    this.defaultIconURL = "";
+    this.defaultLabel = "";
+    this.defaultPath = "";
+    this._newIconURL = "";
+    this._newLabel = "";
+    this._newPath = "";
     this.showPasswordOptions = false;
   }
 
@@ -40,10 +54,28 @@ export default class TurnOnScheduledBackups extends MozLitElement {
     this.dispatchEvent(
       new CustomEvent("BackupUI:InitWidget", { bubbles: true })
     );
+
+    this.addEventListener("BackupUI:SelectNewFilepickerPath", this);
   }
 
-  handleChooseLocation() {
-    // TODO: show file picker (bug 1895943)
+  handleEvent(event) {
+    if (event.type == "BackupUI:SelectNewFilepickerPath") {
+      let { path, filename, iconURL } = event.detail;
+      this._newPath = path;
+      this._newLabel = filename;
+      this._newIconURL = iconURL;
+    }
+  }
+
+  async handleChooseLocation() {
+    this.dispatchEvent(
+      new CustomEvent("BackupUI:ShowFilepicker", {
+        bubbles: true,
+        detail: {
+          win: window.browsingContext,
+        },
+      })
+    );
   }
 
   handleCancel() {
@@ -53,14 +85,12 @@ export default class TurnOnScheduledBackups extends MozLitElement {
         composed: true,
       })
     );
-    this.showPasswordOptions = false;
-    this.passwordOptionsCheckboxEl.checked = false;
+    this.resetChanges();
   }
 
   handleConfirm() {
     /**
      * TODO:
-     * We should pass save location to BackupUIParent here (bug 1895943).
      * If encryption is enabled via this dialog, ensure a password is set and pass it to BackupUIParent (bug 1895981).
      * Before confirmation, verify passwords match and FxA format rules (bug 1896772).
      */
@@ -68,16 +98,62 @@ export default class TurnOnScheduledBackups extends MozLitElement {
       new CustomEvent("turnOnScheduledBackups", {
         bubbles: true,
         composed: true,
+        detail: {
+          parentDirPath: this._newPath || this.defaultPath,
+        },
       })
     );
-    this.showPasswordOptions = false;
-    this.passwordOptionsCheckboxEl.checked = false;
+    this.resetChanges();
   }
 
   handleTogglePasswordOptions() {
     this.showPasswordOptions = this.passwordOptionsCheckboxEl?.checked;
   }
 
+  resetChanges() {
+    this._newPath = "";
+    this._newIconURL = "";
+    this._newLabel = "";
+    this.showPasswordOptions = false;
+    this.passwordOptionsCheckboxEl.checked = false;
+  }
+
+  defaultFilePathInputTemplate() {
+    let filename = this.defaultLabel;
+    let iconURL = this.defaultIconURL || this.#placeholderIconURL;
+
+    return html`
+      <input
+        id="backup-location-filepicker-input-default"
+        class="backup-location-filepicker-input"
+        type="text"
+        readonly
+        data-l10n-id="turn-on-scheduled-backups-location-default-folder"
+        data-l10n-args=${JSON.stringify({
+          recommendedFolder: filename,
+        })}
+        data-l10n-attrs="value"
+        style=${`background-image: url(${iconURL})`}
+      />
+    `;
+  }
+
+  customFilePathInputTemplate() {
+    let filename = this._newLabel;
+    let iconURL = this._newIconURL || this.#placeholderIconURL;
+
+    return html`
+      <input
+        id="backup-location-filepicker-input-custom"
+        class="backup-location-filepicker-input"
+        type="text"
+        readonly
+        value=${filename}
+        style=${`background-image: url(${iconURL})`}
+      />
+    `;
+  }
+
   allOptionsTemplate() {
     return html`
       <fieldset id="all-controls">
@@ -87,18 +163,10 @@ export default class TurnOnScheduledBackups extends MozLitElement {
             for="backup-location-filepicker-input"
             data-l10n-id="turn-on-scheduled-backups-location-label"
           ></label>
-          <!-- TODO: show folder icon (bug 1895943) -->
           <div id="backup-location-filepicker">
-            <input
-              id="backup-location-filepicker-input"
-              type="text"
-              readonly
-              data-l10n-id="turn-on-scheduled-backups-location-default-folder"
-              data-l10n-args=${JSON.stringify({
-                recommendedFolder: this.backupFilePath,
-              })}
-              data-l10n-attrs="value"
-            />
+            ${!this._newPath
+              ? this.defaultFilePathInputTemplate()
+              : this.customFilePathInputTemplate()}
             <moz-button
               id="backup-location-filepicker-button"
               @click=${this.handleChooseLocation}
diff --git a/browser/components/backup/content/turn-on-scheduled-backups.stories.mjs b/browser/components/backup/content/turn-on-scheduled-backups.stories.mjs
index 865bf65068f5..f9af84558c7b 100644
--- a/browser/components/backup/content/turn-on-scheduled-backups.stories.mjs
+++ b/browser/components/backup/content/turn-on-scheduled-backups.stories.mjs
@@ -3,7 +3,7 @@
  * file, You can obtain one at http://mozilla.org/MPL/2.0/. */
 
 // eslint-disable-next-line import/no-unresolved
-import { html } from "lit.all.mjs";
+import { html, ifDefined } from "lit.all.mjs";
 import "chrome://global/content/elements/moz-card.mjs";
 import "./turn-on-scheduled-backups.mjs";
 
@@ -16,15 +16,26 @@ export default {
   argTypes: {},
 };
 
-const Template = ({ backupFilePath }) => html`
+const Template = ({ defaultPath, _newPath, defaultLabel, _newLabel }) => html`
   <moz-card style="width: 27.8rem;">
     <turn-on-scheduled-backups
-      .backupFilePath=${backupFilePath}
+      defaultPath=${defaultPath}
+      _newPath=${ifDefined(_newPath)}
+      defaultLabel=${defaultLabel}
+      _newLabel=${ifDefined(_newLabel)}
     ></turn-on-scheduled-backups>
   </moz-card>
 `;
 
-export const RecommendedFolder = Template.bind({});
-RecommendedFolder.args = {
-  backupFilePath: "Documents",
+export const Default = Template.bind({});
+Default.args = {
+  defaultPath: "/Some/User/Documents",
+  defaultLabel: "Documents",
+};
+
+export const CustomLocation = Template.bind({});
+CustomLocation.args = {
+  ...Default.args,
+  _newPath: "/Some/Test/Custom/Dir",
+  _newLabel: "Dir",
 };
diff --git a/browser/components/backup/tests/browser/browser_settings.js b/browser/components/backup/tests/browser/browser_settings.js
index d88400787c7a..ee2c1ac87449 100644
--- a/browser/components/backup/tests/browser/browser_settings.js
+++ b/browser/components/backup/tests/browser/browser_settings.js
@@ -3,6 +3,19 @@
 
 "use strict";
 
+const { BackupService } = ChromeUtils.importESModule(
+  "resource:///modules/backup/BackupService.sys.mjs"
+);
+
+const { MockFilePicker } = SpecialPowers;
+
+add_setup(async () => {
+  MockFilePicker.init(window.browsingContext);
+  registerCleanupFunction(() => {
+    MockFilePicker.cleanup();
+  });
+});
+
 /**
  * Tests that the section for controlling backup in about:preferences is
  * visible, but can also be hidden via a pref.
@@ -87,6 +100,119 @@ add_task(async function test_turn_on_scheduled_backups_confirm() {
   });
 });
 
+/**
+ * Tests that the turn on scheduled backups dialog displays the default input field
+ * and a filepicker to choose a custom backup file path, updates the input field to show
+ * that path, and sets browser.backup.location to the path from the settings page.
+ */
+add_task(async function test_turn_on_custom_location_filepicker() {
+  await BrowserTestUtils.withNewTab("about:preferences", async browser => {
+    const mockCustomParentDir = await IOUtils.createUniqueDirectory(
+      PathUtils.tempDir,
+      "settings-custom-dir-test"
+    );
+    const dummyFile = Cc["@mozilla.org/file/local;1"].createInstance(
+      Ci.nsIFile
+    );
+
+    dummyFile.initWithPath(mockCustomParentDir);
+    let filePickerShownPromise = new Promise(resolve => {
+      MockFilePicker.showCallback = () => {
+        Assert.ok(true, "Filepicker shown");
+        MockFilePicker.setFiles([dummyFile]);
+        resolve();
+      };
+    });
+    MockFilePicker.returnValue = MockFilePicker.returnOK;
+
+    // After setting up mocks, start testing components
+    let settings = browser.contentDocument.querySelector("backup-settings");
+    let turnOnButton = settings.scheduledBackupsButtonEl;
+
+    Assert.ok(
+      turnOnButton,
+      "Button to turn on scheduled backups should be found"
+    );
+
+    await settings.updateComplete;
+    let turnOnScheduledBackups = settings.turnOnScheduledBackupsEl;
+
+    Assert.ok(
+      turnOnScheduledBackups,
+      "turn-on-scheduled-backups should be found"
+    );
+
+    // First verify the default input value and dir path button
+    let filePathInputDefault = turnOnScheduledBackups.filePathInputDefaultEl;
+    let filePathButton = turnOnScheduledBackups.filePathButtonEl;
+    const documentsPath = BackupService.DEFAULT_PARENT_DIR_PATH;
+
+    Assert.ok(
+      filePathInputDefault,
+      "Default input for choosing a file path should be found"
+    );
+    Assert.equal(
+      filePathInputDefault.value,
+      `${PathUtils.filename(documentsPath)} (recommended)`,
+      "Default input displays the expected text"
+    );
+    Assert.ok(
+      filePathButton,
+      "Button for choosing a file path should be found"
+    );
+
+    // Next, verify the filepicker and updated dialog
+    let inputUpdatePromise = BrowserTestUtils.waitForCondition(
+      () => turnOnScheduledBackups.filePathInputCustomEl
+    );
+
+    filePathButton.click();
+
+    await filePickerShownPromise;
+    await turnOnScheduledBackups.updateComplete;
+
+    info("Waiting for file path input to update");
+    await inputUpdatePromise;
+    Assert.ok("Input should have been updated");
+
+    let filePathInputCustom = turnOnScheduledBackups.filePathInputCustomEl;
+    Assert.equal(
+      filePathInputCustom.value,
+      PathUtils.filename(mockCustomParentDir),
+      "Input should display file path from filepicker"
+    );
+
+    // Now close the dialog by confirming choices and verify that backup settings are saved
+    let confirmButton = turnOnScheduledBackups.confirmButtonEl;
+    Assert.ok(confirmButton, "Confirm button should be found");
+
+    let confirmButtonPromise = BrowserTestUtils.waitForEvent(
+      window,
+      "turnOnScheduledBackups"
+    );
+
+    confirmButton.click();
+
+    await confirmButtonPromise;
+    await settings.updateComplete;
+
+    // Backup folder should be joined with the updated path
+    let locationPrefVal = Services.prefs.getStringPref(
+      "browser.backup.location"
+    );
+    Assert.equal(
+      locationPrefVal,
+      PathUtils.join(mockCustomParentDir, BackupService.BACKUP_DIR_NAME),
+      "Backup location pref should be updated"
+    );
+
+    await IOUtils.remove(mockCustomParentDir, {
+      ignoreAbsent: true,
+      recursive: true,
+    });
+  });
+});
+
 /**
  * Tests that the turn off scheduled backups dialog can set
  * browser.backup.scheduled.enabled to false from the settings page.
diff --git a/browser/components/backup/tests/chrome/test_backup_settings.html b/browser/components/backup/tests/chrome/test_backup_settings.html
index 2889ec7e4488..3fae66013bf7 100644
--- a/browser/components/backup/tests/chrome/test_backup_settings.html
+++ b/browser/components/backup/tests/chrome/test_backup_settings.html
@@ -38,8 +38,12 @@
      */
     add_task(async function test_turnOnScheduledBackupsDialog() {
       let settings = document.getElementById("test-backup-settings");
+      const testDefaultName = "test-default-path";
       settings.backupServiceState = {
-        scheduledBackupsEnabled: false,
+        defaultParent: {
+          path: PathUtils.join(PathUtils.tempDir, testDefaultName),
+          fileName: testDefaultName,
+        }
       }
 
       await settings.updateComplete;
@@ -73,7 +77,12 @@
      */
      add_task(async function test_turnOffScheduledBackupsDialog() {
       let settings = document.getElementById("test-backup-settings");
+      const testDefaultName = "test-default-path";
       settings.backupServiceState = {
+        defaultParent: {
+          path: PathUtils.join(PathUtils.tempDir, testDefaultName),
+          fileName: testDefaultName,
+        },
         scheduledBackupsEnabled: true,
       }
 
diff --git a/browser/components/backup/tests/chrome/test_turn_on_scheduled_backups.html b/browser/components/backup/tests/chrome/test_turn_on_scheduled_backups.html
index f4e93a586f30..4ceb4230b666 100644
--- a/browser/components/backup/tests/chrome/test_turn_on_scheduled_backups.html
+++ b/browser/components/backup/tests/chrome/test_turn_on_scheduled_backups.html
@@ -9,6 +9,8 @@
   src="chrome://browser/content/backup/turn-on-scheduled-backups.mjs"
   type="module"
 ></script>
+  <link rel="localization" href="preview/backupSettings.ftl"/>
+  <link rel="localization" href="branding/brand.ftl"/>
   <link rel="stylesheet" href="chrome://mochikit/content/tests/SimpleTest/test.css"/>
   <script>
 
@@ -84,6 +86,41 @@
 
       ok(turnOnScheduledBackups.passwordOptionsExpandedEl, "Passwords expanded options should be found");
     })
+
+    /**
+     * Tests that the dialog displays a default save location for backups and updates to a custom one
+     * if there is one selected.
+     */
+    add_task(async function test_inputs() {
+      let turnOnScheduledBackups = document.getElementById("test-turn-on-scheduled-backups");
+      let inputDefault = turnOnScheduledBackups.filePathInputDefaultEl;
+      ok(inputDefault, "Default input should be found");
+
+      let promise = BrowserTestUtils.waitForCondition(() => inputDefault.value);
+
+      /* Normally we would pass in the default attributes, but for this test, we will
+       * hardcode them since file paths vary across different platforms.
+       */
+      const defaultPathFilename = "testdefaultpath";
+      let defaultPath = PathUtils.join(PathUtils.tempDir, defaultPathFilename);
+      turnOnScheduledBackups.defaultPath = defaultPath;
+      turnOnScheduledBackups.defaultLabel = defaultPathFilename;
+      await turnOnScheduledBackups.updateComplete;
+      await promise;
+
+      is(inputDefault.value, `${defaultPathFilename} (recommended)`, "Default input should not be empty and should contain part of the default path");
+
+      // Now pretend a custom file path was selected
+      const newPathFilename = "testnewpath";
+      let newPath = PathUtils.join(PathUtils.tempDir, newPathFilename);
+      turnOnScheduledBackups._newPath = newPath;
+      turnOnScheduledBackups._newLabel = newPathFilename;
+      await turnOnScheduledBackups.updateComplete;
+
+      let inputCustom = turnOnScheduledBackups.filePathInputCustomEl;
+      ok(inputCustom, "Input should be updated");
+      is(inputCustom.value, newPathFilename, "Input value should be set to the new path");
+    })
   </script>
 </head>
 <body>
diff --git a/browser/locales-preview/backupSettings.ftl b/browser/locales-preview/backupSettings.ftl
index 86486e26e6dc..fff1616c7dbe 100644
--- a/browser/locales-preview/backupSettings.ftl
+++ b/browser/locales-preview/backupSettings.ftl
@@ -2,6 +2,11 @@
 # License, v. 2.0. If a copy of the MPL was not distributed with this
 # file, You can obtain one at http://mozilla.org/MPL/2.0/.
 
+# This string is used to name the folder that users will save backups to.
+# "Restore" is an action and intended for prompting users to select this folder
+# when following backup restoration steps.
+backup-folder-name = Restore { -brand-product-name }
+
 settings-data-backup-header = Backup
 settings-data-backup-toggle = Manage backup