diff --git a/docs/cli.md b/docs/cli.md
index 073d975fee9..191ce2c2883 100644
--- a/docs/cli.md
+++ b/docs/cli.md
@@ -225,10 +225,11 @@ If you want to skip this installation, use the `--no-root` option.
 poetry install --no-root
 ```
 
-Similar to `--no-root` you can use `--no-path` to skip path dependencies:
+Similar to `--no-root` you can use `--no-directory` to skip path dependencies:
 
 ```bash
-poetry install --no-path
+poetry install --no-directory
+```
 
 By default `poetry` does not compile Python source files to bytecode during installation.
 This speeds up the installation process, but the first execution may take a little more
@@ -244,7 +245,7 @@ poetry install --compile
 The `--compile` option has no effect if `installer.modern-installation`
 is set to `false` because the old installer always compiles source files to bytecode.
 {{% /note %}}
-```
+
 
 ### Options
 
@@ -254,7 +255,7 @@ is set to `false` because the old installer always compiles source files to byte
 * `--only-root`: Install only the root project, exclude all dependencies.
 * `--sync`: Synchronize the environment with the locked packages and the specified groups.
 * `--no-root`: Do not install the root package (your project).
-* `--no-path`: Skip all path dependencies (including transitive ones).
+* `--no-directory`: Skip all directory path dependencies (including transitive ones).
 * `--dry-run`: Output the operations but do not execute anything (implicitly enables --verbose).
 * `--extras (-E)`: Features to install (multiple values allowed).
 * `--all-extras`: Install all extra features (conflicts with --extras).
diff --git a/docs/faq.md b/docs/faq.md
index 3ef0b7e8dc4..3f5fc8533a5 100644
--- a/docs/faq.md
+++ b/docs/faq.md
@@ -179,10 +179,10 @@ This might look something like this:
 ```text
 FROM python
 COPY pyproject.toml poetry.lock .
-RUN pip install poetry && poetry install --no-root --no-path
+RUN pip install poetry && poetry install --no-root --no-directory
 COPY src/ ./src
 RUN poetry install --no-dev
 ```
 
-The two key options we are using here are `--no-root` (skips installing the project source) and `--no-path` (skips installing any local path dependencies, you can skip this if you don't have any).
+The two key options we are using here are `--no-root` (skips installing the project source) and `--no-directory` (skips installing any local directory path dependencies, you can skip this if you don't have any).
 [More information on the options available for `poetry install`]({{< relref "cli#install" >}}).
diff --git a/src/poetry/console/commands/install.py b/src/poetry/console/commands/install.py
index 7cde2f468b1..9bebfba3ba0 100644
--- a/src/poetry/console/commands/install.py
+++ b/src/poetry/console/commands/install.py
@@ -31,11 +31,12 @@ class InstallCommand(InstallerCommand):
             "no-root", None, "Do not install the root package (the current project)."
         ),
         option(
-            "no-path",
+            "no-directory",
             None,
             (
-                "Do not install any path dependencies "
-                "(useful to install dependencies without source code, e.g. for caching)"
+                "Do not install any directory path dependencies (ones using `package ="
+                ' { path = "..." }`\'; useful to install dependencies without source'
+                " code, e.g. for caching of Docker layers)"
             ),
             flag=True,
             multiple=False,
@@ -158,7 +159,7 @@ def handle(self) -> int:
             with_synchronization = True
 
         self.installer.only_groups(self.activated_groups)
-        self.installer.skip_path(self.option("no-path"))
+        self.installer.skip_directory(self.option("no-directory"))
         self.installer.dry_run(self.option("dry-run"))
         self.installer.requires_synchronization(with_synchronization)
         self.installer.executor.enable_bytecode_compilation(self.option("compile"))
diff --git a/src/poetry/installation/installer.py b/src/poetry/installation/installer.py
index bb39f93fc70..dcd8ef2df31 100644
--- a/src/poetry/installation/installer.py
+++ b/src/poetry/installation/installer.py
@@ -59,7 +59,7 @@ def __init__(
         self._verbose = False
         self._write_lock = True
         self._groups: Iterable[str] | None = None
-        self._skip_path = False
+        self._skip_directory = False
 
         self._execute_operations = True
         self._lock = False
@@ -151,8 +151,8 @@ def update(self, update: bool = True) -> Installer:
 
         return self
 
-    def skip_path(self, skip_path: bool = False) -> Installer:
-        self._skip_path = skip_path
+    def skip_directory(self, skip_directory: bool = False) -> Installer:
+        self._skip_directory = skip_directory
 
         return self
 
@@ -342,7 +342,7 @@ def _do_install(self) -> int:
             ops = solver.solve(use_latest=self._whitelist).calculate_operations(
                 with_uninstalls=self._requires_synchronization,
                 synchronize=self._requires_synchronization,
-                skip_path=self._skip_path,
+                skip_directory=self._skip_directory,
             )
 
         if not self._requires_synchronization:
diff --git a/src/poetry/puzzle/transaction.py b/src/poetry/puzzle/transaction.py
index 947c0af5798..679baa98980 100644
--- a/src/poetry/puzzle/transaction.py
+++ b/src/poetry/puzzle/transaction.py
@@ -30,7 +30,7 @@ def calculate_operations(
         self,
         with_uninstalls: bool = True,
         synchronize: bool = False,
-        skip_path: bool = False,
+        skip_directory: bool = False,
     ) -> list[Operation]:
         from poetry.installation.operations import Install
         from poetry.installation.operations import Uninstall
@@ -74,7 +74,7 @@ def calculate_operations(
                     break
 
             if not installed and (
-                not skip_path or result_package.source_type != "directory"
+                not skip_directory or result_package.source_type != "directory"
             ):
                 operations.append(Install(result_package, priority=priority))
 
diff --git a/tests/console/commands/test_install.py b/tests/console/commands/test_install.py
index b40e670ed9b..8735fb13204 100644
--- a/tests/console/commands/test_install.py
+++ b/tests/console/commands/test_install.py
@@ -285,18 +285,6 @@ def test_dry_run_populates_installer(tester: CommandTester, mocker: MockerFixtur
     assert tester.command.installer._dry_run is True
 
 
-def test_no_path_is_passed_to_installer(tester: CommandTester, mocker: MockerFixture):
-    """
-    The --no-root options is passed to the installer.
-    """
-
-    mocker.patch.object(tester.command.installer, "run", return_value=1)
-
-    tester.execute("--no-path")
-
-    assert tester.command.installer._skip_path is True
-
-
 def test_dry_run_does_not_build(tester: CommandTester, mocker: MockerFixture):
     mocker.patch.object(tester.command.installer, "run", return_value=0)
     mocked_editable_builder = mocker.patch(
@@ -368,6 +356,6 @@ def test_no_path_is_passed_to_installer(tester: CommandTester, mocker: MockerFix
 
     mocker.patch.object(tester.command.installer, "run", return_value=1)
 
-    tester.execute("--no-path")
+    tester.execute("--no-directory")
 
     assert tester.command.installer._skip_path is True
diff --git a/tests/installation/test_installer.py b/tests/installation/test_installer.py
index 6947a5fc863..9462ff8cb5c 100644
--- a/tests/installation/test_installer.py
+++ b/tests/installation/test_installer.py
@@ -1291,7 +1291,7 @@ def test_run_installs_with_local_poetry_directory_transitive_no_path(
     tmpdir: Path,
     fixture_dir: FixtureDirGetter,
 ):
-    """When we set Installer.skip_path(True) no path dependencies should
+    """When we set Installer.skip_directory(True) no path dependencies should
     be installed (including transitive dependencies)
     """
     root_dir = fixture_dir("directory")
@@ -1309,7 +1309,7 @@ def test_run_installs_with_local_poetry_directory_transitive_no_path(
     repo.add_package(get_package("pendulum", "1.4.4"))
     repo.add_package(get_package("cachy", "0.2.0"))
 
-    installer.skip_path(True)
+    installer.skip_directory(True)
 
     installer.run()