diff --git a/README.md b/README.md
index dd64181..3a57bd1 100644
--- a/README.md
+++ b/README.md
@@ -658,6 +658,7 @@ Avante provides a RAG service, which is a tool for obtaining the required contex
 ```lua
 rag_service = {
   enabled = false, -- Enables the RAG service, requires OPENAI_API_KEY to be set
+  host_mount = os.getenv("HOME"), -- Host mount path for the rag service
   provider = "openai", -- The provider to use for RAG service (e.g. openai or ollama)
   llm_model = "", -- The LLM model to use for RAG service
   embed_model = "", -- The embedding model to use for RAG service
@@ -667,7 +668,13 @@ rag_service = {
 
 Please note that since the RAG service uses OpenAI for embeddings, you must set `OPENAI_API_KEY` environment variable!
 
-Additionally, RAG Service also depends on Docker! (For macOS users, OrbStack is recommended as a Docker alternative)
+Additionally, RAG Service also depends on Docker! (For macOS users, OrbStack is recommended as a Docker alternative).
+`host_mount` is the path that will be mounted to the container, and the default is the home directory. The mount is required
+for the RAG service to access the files in the host machine. It is up to the user to decide if you want to mount the whole
+`/` directory, just the project directory, or the home directory. If you plan using avante and RAG event for projects
+stored outside your home directory, you will need to set the `host_mount` to the root directory of your file system.
+
+The mount will be read only.
 
 ## Web Search Engines
 
diff --git a/lua/avante/config.lua b/lua/avante/config.lua
index 68515cf..f53f53c 100644
--- a/lua/avante/config.lua
+++ b/lua/avante/config.lua
@@ -35,6 +35,7 @@ M._defaults = {
   tokenizer = "tiktoken",
   rag_service = {
     enabled = false, -- Enables the rag service, requires OPENAI_API_KEY to be set
+    host_mount = os.getenv("HOME"), -- Host mount path for the rag service (docker will mount this path)
     runner = "docker", -- The runner for the rag service, (can use docker, or nix)
     provider = "openai", -- The provider to use for RAG service. eg: openai or ollama
     llm_model = "", -- The LLM model to use for RAG service
diff --git a/lua/avante/rag_service.lua b/lua/avante/rag_service.lua
index e0fadac..962b41e 100644
--- a/lua/avante/rag_service.lua
+++ b/lua/avante/rag_service.lua
@@ -2,6 +2,7 @@ local curl = require("plenary.curl")
 local Path = require("plenary.path")
 local Config = require("avante.config")
 local Utils = require("avante.utils")
+local Config = require("avante.config")
 
 local M = {}
 
@@ -69,10 +70,11 @@ function M.launch_rag_service(cb)
       Utils.debug(string.format("container %s not found, starting...", container_name))
     end
     local cmd_ = string.format(
-      "docker run -d -p %d:8000 --name %s -v %s:/data -v /:/host -e DATA_DIR=/data -e RAG_PROVIDER=%s -e %s_API_KEY=%s -e %s_API_BASE=%s -e RAG_LLM_MODEL=%s -e RAG_EMBED_MODEL=%s %s",
+      "docker run --rm -d -p %d:8000 --name %s -v %s:/data -v %s:/host:ro -e DATA_DIR=/data -e RAG_PROVIDER=%s -e %s_API_KEY=%s -e %s_API_BASE=%s -e RAG_LLM_MODEL=%s -e RAG_EMBED_MODEL=%s %s",
       port,
       container_name,
       data_path,
+      Config.rag_service.host_mount,
       Config.rag_service.provider,
       Config.rag_service.provider:upper(),
       openai_api_key,
@@ -182,7 +184,9 @@ function M.to_container_uri(uri)
   local scheme = M.get_scheme(uri)
   if scheme == "file" then
     local path = uri:match("^file://(.*)$")
-    uri = string.format("file:///host%s", path)
+    local host_dir = Config.rag_service.host_mount
+    if path:sub(1, #host_dir) == host_dir then path = "/host" .. path:sub(#host_dir + 1) end
+    uri = string.format("file://%s", path)
   end
   return uri
 end
@@ -190,8 +194,10 @@ end
 function M.to_local_uri(uri)
   local scheme = M.get_scheme(uri)
   if scheme == "file" then
-    local path = uri:match("^file://host(.*)$")
-    uri = string.format("file://%s", path)
+    local path = uri:match("^file:///host(.*)$")
+    local host_dir = Config.rag_service.host_mount
+    local full_path = Path:new(host_dir):joinpath(path:sub(2)):absolute()
+    uri = string.format("file://%s", full_path)
   end
   return uri
 end
diff --git a/tests/rag_service_spec.lua b/tests/rag_service_spec.lua
new file mode 100644
index 0000000..8d685d2
--- /dev/null
+++ b/tests/rag_service_spec.lua
@@ -0,0 +1,38 @@
+local mock = require("luassert.mock")
+local match = require("luassert.match")
+
+describe("RagService", function()
+  local RagService
+  local Config_mock
+
+  before_each(function()
+    -- Load the module before each test
+    RagService = require("avante.rag_service")
+
+    -- Setup common mocks
+    Config_mock = mock(require("avante.config"), true)
+    Config_mock.rag_service = { host_mount = "/home/user" }
+  end)
+
+  after_each(function()
+    -- Clean up after each test
+    package.loaded["avante.rag_service"] = nil
+    mock.revert(Config_mock)
+  end)
+
+  describe("URI conversion functions", function()
+    it("should convert URIs between host and container formats", function()
+      -- Test both directions of conversion
+      local host_uri = "file:///home/user/project/file.txt"
+      local container_uri = "file:///host/project/file.txt"
+
+      -- Host to container
+      local result1 = RagService.to_container_uri(host_uri)
+      assert.equals(container_uri, result1)
+
+      -- Container to host
+      local result2 = RagService.to_local_uri(container_uri)
+      assert.equals(host_uri, result2)
+    end)
+  end)
+end)