diff --git a/changelog/65231.fixed.md b/changelog/65231.fixed.md
new file mode 100644
index 000000000000..50d225e7452f
--- /dev/null
+++ b/changelog/65231.fixed.md
@@ -0,0 +1,2 @@
+Install logrotate config as /etc/logrotate.d/salt-common for Debian packages
+Remove broken /etc/logrotate.d/salt directory from 3006.3 if it exists.
diff --git a/pkg/common/salt-common.logrotate b/pkg/common/logrotate/salt-common
similarity index 100%
rename from pkg/common/salt-common.logrotate
rename to pkg/common/logrotate/salt-common
diff --git a/pkg/debian/salt-common.conffiles b/pkg/debian/salt-common.conffiles
new file mode 100644
index 000000000000..595731d1d020
--- /dev/null
+++ b/pkg/debian/salt-common.conffiles
@@ -0,0 +1 @@
+/etc/logrotate.d/salt-common
diff --git a/pkg/debian/salt-common.dirs b/pkg/debian/salt-common.dirs
index 5c6dd29e224e..381ec1f48ce0 100644
--- a/pkg/debian/salt-common.dirs
+++ b/pkg/debian/salt-common.dirs
@@ -4,3 +4,4 @@
 /usr/share/fish/vendor_completions.d
 /opt/saltstack/salt
 /etc/salt
+/etc/logrotate.d
diff --git a/pkg/debian/salt-common.install b/pkg/debian/salt-common.install
index 09bb9e28099a..4f8dac552ece 100644
--- a/pkg/debian/salt-common.install
+++ b/pkg/debian/salt-common.install
@@ -1,4 +1,4 @@
-pkg/common/salt-common.logrotate /etc/logrotate.d/salt
+pkg/common/logrotate/salt-common /etc/logrotate.d
 pkg/common/fish-completions/salt-cp.fish /usr/share/fish/vendor_completions.d
 pkg/common/fish-completions/salt-call.fish /usr/share/fish/vendor_completions.d
 pkg/common/fish-completions/salt-syndic.fish /usr/share/fish/vendor_completions.d
diff --git a/pkg/debian/salt-common.preinst b/pkg/debian/salt-common.preinst
index 0e4ce9c59f7f..0e45d2399f68 100644
--- a/pkg/debian/salt-common.preinst
+++ b/pkg/debian/salt-common.preinst
@@ -31,5 +31,9 @@ case "$1" in
             -s $SALT_SHELL  \
             -g $SALT_GROUP  \
              $SALT_USER
+
+    # Remove incorrectly installed logrotate config - issue 65231
+    test -d /etc/logrotate.d/salt && rm -r /etc/logrotate.d/salt || /bin/true
+
   ;;
 esac
diff --git a/pkg/rpm/salt.spec b/pkg/rpm/salt.spec
index 6cc4e85c23c3..4659c9fd3433 100644
--- a/pkg/rpm/salt.spec
+++ b/pkg/rpm/salt.spec
@@ -266,7 +266,7 @@ install -p -m 0644 %{_salt_src}/pkg/common/salt-proxy@.service %{buildroot}%{_un
 # Logrotate
 #install -p %{SOURCE10} .
 mkdir -p %{buildroot}%{_sysconfdir}/logrotate.d/
-install -p -m 0644 %{_salt_src}/pkg/common/salt-common.logrotate %{buildroot}%{_sysconfdir}/logrotate.d/salt
+install -p -m 0644 %{_salt_src}/pkg/common/logrotate/salt-common %{buildroot}%{_sysconfdir}/logrotate.d/salt
 
 # Bash completion
 mkdir -p %{buildroot}%{_sysconfdir}/bash_completion.d/
diff --git a/pkg/tests/integration/test_logrotate_config.py b/pkg/tests/integration/test_logrotate_config.py
new file mode 100644
index 000000000000..fea0123b6eb6
--- /dev/null
+++ b/pkg/tests/integration/test_logrotate_config.py
@@ -0,0 +1,46 @@
+"""
+Tests for logrotate config
+"""
+
+import pathlib
+
+import packaging.version
+import pytest
+
+pytestmark = [
+    pytest.mark.skip_unless_on_linux,
+]
+
+
+@pytest.fixture
+def logrotate_config_file(grains):
+    """
+    Fixture for logrotate config file path
+    """
+    if grains["os_family"] == "RedHat":
+        return pathlib.Path("/etc/logrotate.d", "salt")
+    elif grains["os_family"] == "Debian":
+        return pathlib.Path("/etc/logrotate.d", "salt-common")
+
+
+def test_logrotate_config(logrotate_config_file):
+    """
+    Test that logrotate config has been installed in correctly
+    """
+    assert logrotate_config_file.is_file()
+    assert logrotate_config_file.owner() == "root"
+    assert logrotate_config_file.group() == "root"
+
+
+def test_issue_65231_etc_logrotate_salt_dir_removed(install_salt):
+    """
+    Test that /etc/logrotate.d/salt is not a directory
+    """
+    if install_salt.prev_version and packaging.version.parse(
+        install_salt.prev_version
+    ) <= packaging.version.parse("3006.4"):
+        pytest.skip("Testing a downgrade to 3006.4, do not run")
+
+    path = pathlib.Path("/etc/logrotate.d/salt")
+    if path.exists():
+        assert path.is_dir() is False