diff --git a/changelogs/fragments/dnf-installroot-substitutions.yml b/changelogs/fragments/dnf-installroot-substitutions.yml
new file mode 100644
index 00000000000..aef96f4e2b3
--- /dev/null
+++ b/changelogs/fragments/dnf-installroot-substitutions.yml
@@ -0,0 +1,3 @@
+bugfixes:
+  - dnf - honor installroot for ``cachedir``, ``logdir`` and ``persistdir``
+  - dnf - perform variable substitutions in ``logdir`` and ``persistdir``
diff --git a/lib/ansible/modules/dnf.py b/lib/ansible/modules/dnf.py
index 16b3bcc2b41..44abe0b7ee0 100644
--- a/lib/ansible/modules/dnf.py
+++ b/lib/ansible/modules/dnf.py
@@ -403,7 +403,6 @@ from ansible.module_utils.yumdnf import YumDnf, yumdnf_argument_spec
 # to set proper locale before importing dnf to be able to scrape
 # the output in some cases (FIXME?).
 dnf = None
-libdnf = None
 
 
 class DnfModule(YumDnf):
@@ -484,7 +483,6 @@ class DnfModule(YumDnf):
         os.environ['LANGUAGE'] = os.environ['LANG'] = locale
 
         global dnf
-        global libdnf
         try:
             import dnf
             import dnf.const
@@ -492,7 +490,6 @@ class DnfModule(YumDnf):
             import dnf.package
             import dnf.subject
             import dnf.util
-            import libdnf
             HAS_DNF = True
         except ImportError:
             HAS_DNF = False
@@ -560,9 +557,6 @@ class DnfModule(YumDnf):
         # Load substitutions from the filesystem
         conf.substitutions.update_from_etc(installroot)
 
-        # Substitute variables in cachedir path
-        conf.cachedir = libdnf.conf.ConfigParser.substitute(conf.cachedir, conf.substitutions)
-
         # Handle different DNF versions immutable mutable datatypes and
         # dnf v1/v2/v3
         #
@@ -596,6 +590,11 @@ class DnfModule(YumDnf):
             # setting this to an empty string instead of None appears to mimic the DNF CLI behavior
             conf.substitutions['releasever'] = ''
 
+        # Honor installroot for dnf directories
+        # This will also perform variable substitutions in the paths
+        for opt in ('cachedir', 'logdir', 'persistdir'):
+            conf.prepend_installroot(opt)
+
         # Set skip_broken (in dnf this is strict=0)
         if self.skip_broken:
             conf.strict = 0
diff --git a/test/lib/ansible_test/_util/controller/sanity/mypy/ansible-core.ini b/test/lib/ansible_test/_util/controller/sanity/mypy/ansible-core.ini
index 0a8a3e6b40f..0251f674b51 100644
--- a/test/lib/ansible_test/_util/controller/sanity/mypy/ansible-core.ini
+++ b/test/lib/ansible_test/_util/controller/sanity/mypy/ansible-core.ini
@@ -58,9 +58,6 @@ ignore_missing_imports = True
 [mypy-dnf.*]
 ignore_missing_imports = True
 
-[mypy-libdnf.*]
-ignore_missing_imports = True
-
 [mypy-apt.*]
 ignore_missing_imports = True
 
diff --git a/test/lib/ansible_test/_util/controller/sanity/mypy/modules.ini b/test/lib/ansible_test/_util/controller/sanity/mypy/modules.ini
index ddabecdabb6..b4e7b05eb9f 100644
--- a/test/lib/ansible_test/_util/controller/sanity/mypy/modules.ini
+++ b/test/lib/ansible_test/_util/controller/sanity/mypy/modules.ini
@@ -25,9 +25,6 @@ ignore_missing_imports = True
 [mypy-dnf.*]
 ignore_missing_imports = True
 
-[mypy-libdnf.*]
-ignore_missing_imports = True
-
 [mypy-apt.*]
 ignore_missing_imports = True