diff --git a/packages/playground/blueprints/public/blueprint-schema.json b/packages/playground/blueprints/public/blueprint-schema.json
index 374f0a7a7a..be3b07a47a 100644
--- a/packages/playground/blueprints/public/blueprint-schema.json
+++ b/packages/playground/blueprints/public/blueprint-schema.json
@@ -546,33 +546,6 @@
 					},
 					"required": ["file", "step"]
 				},
-				{
-					"type": "object",
-					"additionalProperties": false,
-					"properties": {
-						"progress": {
-							"type": "object",
-							"properties": {
-								"weight": {
-									"type": "number"
-								},
-								"caption": {
-									"type": "string"
-								}
-							},
-							"additionalProperties": false
-						},
-						"step": {
-							"type": "string",
-							"const": "importFile"
-						},
-						"file": {
-							"$ref": "#/definitions/FileReference",
-							"description": "The file to import"
-						}
-					},
-					"required": ["file", "step"]
-				},
 				{
 					"type": "object",
 					"additionalProperties": false,
@@ -620,6 +593,11 @@
 							},
 							"additionalProperties": false
 						},
+						"ifAlreadyInstalled": {
+							"type": "string",
+							"enum": ["overwrite", "skip", "error"],
+							"description": "What to do if the asset already exists."
+						},
 						"step": {
 							"type": "string",
 							"const": "installPlugin",
@@ -652,6 +630,11 @@
 							},
 							"additionalProperties": false
 						},
+						"ifAlreadyInstalled": {
+							"type": "string",
+							"enum": ["overwrite", "skip", "error"],
+							"description": "What to do if the asset already exists."
+						},
 						"step": {
 							"type": "string",
 							"const": "installTheme",
diff --git a/packages/playground/blueprints/src/lib/steps/install-asset.ts b/packages/playground/blueprints/src/lib/steps/install-asset.ts
index ab34418d93..4d21b62b62 100644
--- a/packages/playground/blueprints/src/lib/steps/install-asset.ts
+++ b/packages/playground/blueprints/src/lib/steps/install-asset.ts
@@ -16,6 +16,10 @@ export interface InstallAssetOptions {
 	 * </code>
 	 */
 	targetPath: string;
+	/**
+	 * What to do if the asset already exists.
+	 */
+	ifAlreadyInstalled?: 'overwrite' | 'skip' | 'error';
 }
 
 /**
@@ -23,7 +27,11 @@ export interface InstallAssetOptions {
  */
 export async function installAsset(
 	playground: UniversalPHP,
-	{ targetPath, zipFile }: InstallAssetOptions
+	{
+		targetPath,
+		zipFile,
+		ifAlreadyInstalled = 'overwrite',
+	}: InstallAssetOptions
 ): Promise<{
 	assetFolderPath: string;
 	assetFolderName: string;
@@ -75,6 +83,30 @@ export async function installAsset(
 
 		// Move asset folder to target path
 		const assetFolderPath = `${targetPath}/${assetFolderName}`;
+
+		// Handle the scenario when the asset is already installed.
+		if (await playground.fileExists(assetFolderPath)) {
+			if (!(await playground.isDir(assetFolderPath))) {
+				throw new Error(
+					`Cannot install asset ${assetFolderName} to ${assetFolderPath} because a file with the same name already exists. Note it's a file, not a directory! Is this by mistake?`
+				);
+			}
+			if (ifAlreadyInstalled === 'overwrite') {
+				await playground.rmdir(assetFolderPath, {
+					recursive: true,
+				});
+			} else if (ifAlreadyInstalled === 'skip') {
+				return {
+					assetFolderPath,
+					assetFolderName,
+				};
+			} else {
+				throw new Error(
+					`Cannot install asset ${assetFolderName} to ${targetPath} because it already exists and ` +
+						`the ifAlreadyInstalled option was set to ${ifAlreadyInstalled}`
+				);
+			}
+		}
 		await playground.mv(tmpAssetPath, assetFolderPath);
 
 		return {
diff --git a/packages/playground/blueprints/src/lib/steps/install-plugin.spec.ts b/packages/playground/blueprints/src/lib/steps/install-plugin.spec.ts
index 614c26d78e..834cf9db01 100644
--- a/packages/playground/blueprints/src/lib/steps/install-plugin.spec.ts
+++ b/packages/playground/blueprints/src/lib/steps/install-plugin.spec.ts
@@ -1,113 +1,159 @@
 import { NodePHP } from '@php-wasm/node';
-import { compileBlueprint, runBlueprintSteps } from '../compile';
 import { RecommendedPHPVersion } from '@wp-playground/wordpress';
+import { installPlugin } from './install-plugin';
+import { phpVar } from '@php-wasm/util';
+
+async function zipFiles(
+	php: NodePHP,
+	fileName: string,
+	files: Record<string, string>
+) {
+	const zipFileName = 'test.zip';
+	const zipFilePath = `/${zipFileName}`;
+
+	await php.run({
+		code: `<?php $zip = new ZipArchive(); 
+					 $zip->open("${zipFileName}", ZIPARCHIVE::CREATE); 
+					 $files = ${phpVar(files)};
+					 foreach($files as $path => $content) {
+						$zip->addFromString($path, $content);
+					 }
+					 $zip->close();`,
+	});
 
-describe('Blueprint step installPlugin', () => {
-	let php: NodePHP;
-	beforeEach(async () => {
-		php = await NodePHP.load(RecommendedPHPVersion, {
+	const zip = await php.readFileAsBuffer(zipFilePath);
+	php.unlink(zipFilePath);
+	return new File([zip], fileName);
+}
+
+describe('Blueprint step installPlugin – without a root-level folder', () => {
+	it('should install a plugin even when it is zipped directly without a root-level folder', async () => {
+		const php = await NodePHP.load(RecommendedPHPVersion, {
 			requestHandler: {
 				documentRoot: '/wordpress',
 			},
 		});
-	});
-
-	it('should install a plugin', async () => {
-		// Create test plugin
-		const pluginName = 'test-plugin';
-
-		php.mkdir(`/${pluginName}`);
-		php.writeFile(
-			`/${pluginName}/index.php`,
-			`/**\n * Plugin Name: Test Plugin`
-		);
-
-		// Note the package name is different from plugin folder name
-		const zipFileName = `${pluginName}-0.0.1.zip`;
-
-		await php.run({
-			code: `<?php $zip = new ZipArchive(); 
-						 $zip->open("${zipFileName}", ZIPARCHIVE::CREATE); 
-						 $zip->addFile("/${pluginName}/index.php"); 
-						 $zip->close();`,
-		});
-
-		php.rmdir(`/${pluginName}`);
-
-		expect(php.fileExists(zipFileName)).toBe(true);
 
 		// Create plugins folder
-		const rootPath = await php.documentRoot;
+		const rootPath = php.documentRoot;
 		const pluginsPath = `${rootPath}/wp-content/plugins`;
-
 		php.mkdir(pluginsPath);
 
-		await runBlueprintSteps(
-			compileBlueprint({
-				steps: [
-					{
-						step: 'installPlugin',
-						pluginZipFile: {
-							resource: 'vfs',
-							path: zipFileName,
-						},
-						options: {
-							activate: false,
-						},
-					},
-				],
-			}),
-			php
-		);
+		// Create test plugin
+		const pluginName = 'test-plugin';
 
-		php.unlink(zipFileName);
+		await installPlugin(php, {
+			pluginZipFile: await zipFiles(
+				php,
+				// Note the ZIP filename is different from plugin folder name
+				`${pluginName}-0.0.1.zip`,
+				{
+					'index.php': `/**\n * Plugin Name: Test Plugin`,
+				}
+			),
+			ifAlreadyInstalled: 'overwrite',
+			options: {
+				activate: false,
+			},
+		});
 
-		expect(php.fileExists(`${pluginsPath}/${pluginName}`)).toBe(true);
+		expect(php.fileExists(`${pluginsPath}/${pluginName}-0.0.1`)).toBe(true);
 	});
+});
 
-	it('should install a plugin even when it is zipped directly without a root-level folder', async () => {
-		// Create test plugin
-		const pluginName = 'test-plugin';
-
-		php.writeFile('/index.php', `/**\n * Plugin Name: Test Plugin`);
+describe('Blueprint step installPlugin', () => {
+	let php: NodePHP;
+	// Create plugins folder
+	let rootPath = '';
+	let installedPluginPath = '';
+	const pluginName = 'test-plugin';
+	const zipFileName = `${pluginName}-0.0.1.zip`;
+	beforeEach(async () => {
+		php = await NodePHP.load(RecommendedPHPVersion, {
+			requestHandler: {
+				documentRoot: '/wordpress',
+			},
+		});
+		rootPath = php.documentRoot;
+		php.mkdir(`${rootPath}/wp-content/plugins`);
+		installedPluginPath = `${rootPath}/wp-content/plugins/${pluginName}`;
+	});
 
-		// Note the package name is different from plugin folder name
-		const zipFileName = `${pluginName}-0.0.1.zip`;
+	afterEach(() => {
+		php.exit();
+	});
 
-		await php.run({
-			code: `<?php $zip = new ZipArchive(); 
-						 $zip->open("${zipFileName}", ZIPARCHIVE::CREATE); 
-						 $zip->addFile("/index.php"); 
-						 $zip->close();`,
+	it('should install a plugin', async () => {
+		await installPlugin(php, {
+			pluginZipFile: await zipFiles(php, zipFileName, {
+				[`${pluginName}/index.php`]: `/**\n * Plugin Name: Test Plugin`,
+			}),
+			ifAlreadyInstalled: 'overwrite',
+			options: {
+				activate: false,
+			},
 		});
+		expect(php.fileExists(installedPluginPath)).toBe(true);
+	});
 
-		expect(php.fileExists(zipFileName)).toBe(true);
+	describe('ifAlreadyInstalled option', () => {
+		beforeEach(async () => {
+			await installPlugin(php, {
+				pluginZipFile: await zipFiles(php, zipFileName, {
+					[`${pluginName}/index.php`]: `/**\n * Plugin Name: Test Plugin`,
+				}),
+				ifAlreadyInstalled: 'overwrite',
+				options: {
+					activate: false,
+				},
+			});
+		});
 
-		// Create plugins folder
-		const rootPath = await php.documentRoot;
-		const pluginsPath = `${rootPath}/wp-content/plugins`;
+		it('ifAlreadyInstalled=overwrite should overwrite the plugin if it already exists', async () => {
+			// Install the plugin
+			await installPlugin(php, {
+				pluginZipFile: await zipFiles(php, zipFileName, {
+					[`${pluginName}/index.php`]: `/**\n * Plugin Name: A different Plugin`,
+				}),
+				ifAlreadyInstalled: 'overwrite',
+				options: {
+					activate: false,
+				},
+			});
+			expect(
+				php.readFileAsText(`${installedPluginPath}/index.php`)
+			).toContain('Plugin Name: A different Plugin');
+		});
 
-		php.mkdir(pluginsPath);
+		it('ifAlreadyInstalled=skip should skip the plugin if it already exists', async () => {
+			// Install the plugin
+			await installPlugin(php, {
+				pluginZipFile: await zipFiles(php, zipFileName, {
+					[`${pluginName}/index.php`]: `/**\n * Plugin Name: A different Plugin`,
+				}),
+				ifAlreadyInstalled: 'skip',
+				options: {
+					activate: false,
+				},
+			});
+			expect(
+				php.readFileAsText(`${installedPluginPath}/index.php`)
+			).toContain('Plugin Name: Test Plugin');
+		});
 
-		await runBlueprintSteps(
-			compileBlueprint({
-				steps: [
-					{
-						step: 'installPlugin',
-						pluginZipFile: {
-							resource: 'vfs',
-							path: zipFileName,
-						},
-						options: {
-							activate: false,
-						},
+		it('ifAlreadyInstalled=error should throw an error if the plugin already exists', async () => {
+			// Install the plugin
+			await expect(
+				installPlugin(php, {
+					pluginZipFile: await zipFiles(php, zipFileName, {
+						[`${pluginName}/index.php`]: `/**\n * Plugin Name: A different Plugin`,
+					}),
+					ifAlreadyInstalled: 'error',
+					options: {
+						activate: false,
 					},
-				],
-			}),
-			php
-		);
-
-		php.unlink(zipFileName);
-		expect(php.fileExists(`${pluginsPath}/${pluginName}-0.0.1`)).toBe(true);
+				})
+			).rejects.toThrowError();
+		});
 	});
 });
diff --git a/packages/playground/blueprints/src/lib/steps/install-plugin.ts b/packages/playground/blueprints/src/lib/steps/install-plugin.ts
index 70dbee13a5..74fac31f21 100644
--- a/packages/playground/blueprints/src/lib/steps/install-plugin.ts
+++ b/packages/playground/blueprints/src/lib/steps/install-plugin.ts
@@ -1,5 +1,5 @@
 import { StepHandler } from '.';
-import { installAsset } from './install-asset';
+import { InstallAssetOptions, installAsset } from './install-asset';
 import { activatePlugin } from './activate-plugin';
 import { zipNameToHumanName } from '../utils/zip-name-to-human-name';
 
@@ -23,7 +23,8 @@ import { zipNameToHumanName } from '../utils/zip-name-to-human-name';
  * }
  * </code>
  */
-export interface InstallPluginStep<ResourceType> {
+export interface InstallPluginStep<ResourceType>
+	extends Pick<InstallAssetOptions, 'ifAlreadyInstalled'> {
 	/**
 	 * The step identifier.
 	 */
@@ -54,7 +55,7 @@ export interface InstallPluginOptions {
  */
 export const installPlugin: StepHandler<InstallPluginStep<File>> = async (
 	playground,
-	{ pluginZipFile, options = {} },
+	{ pluginZipFile, ifAlreadyInstalled, options = {} },
 	progress?
 ) => {
 	const zipFileName = pluginZipFile.name.split('/').pop() || 'plugin.zip';
@@ -62,6 +63,7 @@ export const installPlugin: StepHandler<InstallPluginStep<File>> = async (
 
 	progress?.tracker.setCaption(`Installing the ${zipNiceName} plugin`);
 	const { assetFolderPath } = await installAsset(playground, {
+		ifAlreadyInstalled,
 		zipFile: pluginZipFile,
 		targetPath: `${await playground.documentRoot}/wp-content/plugins`,
 	});
diff --git a/packages/playground/blueprints/src/lib/steps/install-theme.spec.ts b/packages/playground/blueprints/src/lib/steps/install-theme.spec.ts
index 900e549688..0a976614f7 100644
--- a/packages/playground/blueprints/src/lib/steps/install-theme.spec.ts
+++ b/packages/playground/blueprints/src/lib/steps/install-theme.spec.ts
@@ -1,20 +1,25 @@
 import { NodePHP } from '@php-wasm/node';
-import { compileBlueprint, runBlueprintSteps } from '../compile';
 import { RecommendedPHPVersion } from '@wp-playground/wordpress';
+import { installTheme } from './install-theme';
 
 describe('Blueprint step installTheme', () => {
 	let php: NodePHP;
+	let zipFileName = '';
+	let zipFilePath = '';
+	let rootPath = '';
+	let themesPath = '';
 	beforeEach(async () => {
 		php = await NodePHP.load(RecommendedPHPVersion, {
 			requestHandler: {
 				documentRoot: '/wordpress',
 			},
 		});
-	});
 
-	it('should install a theme', async () => {
-		// Create test theme
+		rootPath = php.documentRoot;
+		themesPath = `${rootPath}/wp-content/themes`;
+		php.mkdir(themesPath);
 
+		// Create test theme
 		const themeName = 'test-theme';
 
 		php.mkdir(`/${themeName}`);
@@ -24,42 +29,91 @@ describe('Blueprint step installTheme', () => {
 		);
 
 		// Note the package name is different from theme folder name
-		const zipFileName = `${themeName}-0.0.1.zip`;
+		zipFileName = `${themeName}-0.0.1.zip`;
+		zipFilePath = `${themesPath}/${zipFileName}`;
 
 		await php.run({
-			code: `<?php $zip = new ZipArchive(); $zip->open("${zipFileName}", ZIPARCHIVE::CREATE); $zip->addFile("/${themeName}/index.php"); $zip->close();`,
+			code: `<?php $zip = new ZipArchive(); $zip->open("${zipFilePath}", ZIPARCHIVE::CREATE); $zip->addFile("/${themeName}/index.php"); $zip->close();`,
 		});
 
 		php.rmdir(`/${themeName}`);
 
-		expect(php.fileExists(zipFileName)).toBe(true);
+		expect(php.fileExists(zipFilePath)).toBe(true);
+	});
 
-		// Create themes folder
-		const rootPath = await php.documentRoot;
-		const themesPath = `${rootPath}/wp-content/themes`;
+	afterEach(() => {
+		php.exit();
+	});
 
-		php.mkdir(themesPath);
+	it('should install a theme', async () => {
+		await installTheme(php, {
+			themeZipFile: new File(
+				[php.readFileAsBuffer(zipFilePath)],
+				zipFileName
+			),
+			ifAlreadyInstalled: 'overwrite',
+			options: {
+				activate: false,
+			},
+		});
+		expect(php.fileExists(zipFilePath)).toBe(true);
+	});
 
-		await runBlueprintSteps(
-			compileBlueprint({
-				steps: [
-					{
-						step: 'installTheme',
-						themeZipFile: {
-							resource: 'vfs',
-							path: zipFileName,
-						},
-						options: {
-							activate: false,
-						},
-					},
-				],
-			}),
-			php
-		);
+	describe('ifAlreadyInstalled option', () => {
+		beforeEach(async () => {
+			await installTheme(php, {
+				themeZipFile: new File(
+					[php.readFileAsBuffer(zipFilePath)],
+					zipFileName
+				),
+				ifAlreadyInstalled: 'error',
+				options: {
+					activate: false,
+				},
+			});
+		});
 
-		php.unlink(zipFileName);
+		it('ifAlreadyInstalled=ovewrite should overwrite the theme if the theme already exists', async () => {
+			await installTheme(php, {
+				themeZipFile: new File(
+					[php.readFileAsBuffer(zipFilePath)],
+					zipFileName
+				),
+				ifAlreadyInstalled: 'overwrite',
+				options: {
+					activate: false,
+				},
+			});
+			expect(php.fileExists(zipFilePath)).toBe(true);
+		});
+
+		it('ifAlreadyInstalled=skip should skip the theme if the theme already exists', async () => {
+			await installTheme(php, {
+				themeZipFile: new File(
+					['invalid zip bytes, unpacking should not attempted'],
+					zipFileName
+				),
+				ifAlreadyInstalled: 'skip',
+				options: {
+					activate: false,
+				},
+			});
+			expect(php.fileExists(zipFilePath)).toBe(true);
+		});
 
-		expect(php.fileExists(`${themesPath}/${themeName}`)).toBe(true);
+		it('ifAlreadyInstalled=error should throw an error if the theme already exists', async () => {
+			await expect(
+				installTheme(php, {
+					themeZipFile: new File(
+						[php.readFileAsBuffer(zipFilePath)],
+						zipFileName
+					),
+					ifAlreadyInstalled: 'error',
+					options: {
+						activate: false,
+					},
+				})
+			).rejects.toThrow();
+		});
 	});
 });
diff --git a/packages/playground/blueprints/src/lib/steps/install-theme.ts b/packages/playground/blueprints/src/lib/steps/install-theme.ts
index 6e319affa0..b666f04b32 100644
--- a/packages/playground/blueprints/src/lib/steps/install-theme.ts
+++ b/packages/playground/blueprints/src/lib/steps/install-theme.ts
@@ -1,5 +1,5 @@
 import { StepHandler } from '.';
-import { installAsset } from './install-asset';
+import { InstallAssetOptions, installAsset } from './install-asset';
 import { activateTheme } from './activate-theme';
 import { zipNameToHumanName } from '../utils/zip-name-to-human-name';
 
@@ -22,7 +22,8 @@ import { zipNameToHumanName } from '../utils/zip-name-to-human-name';
  * }
  * </code>
  */
-export interface InstallThemeStep<ResourceType> {
+export interface InstallThemeStep<ResourceType>
+	extends Pick<InstallAssetOptions, 'ifAlreadyInstalled'> {
 	/**
 	 * The step identifier.
 	 */
@@ -58,13 +59,14 @@ export interface InstallThemeOptions {
  */
 export const installTheme: StepHandler<InstallThemeStep<File>> = async (
 	playground,
-	{ themeZipFile, options = {} },
+	{ themeZipFile, ifAlreadyInstalled, options = {} },
 	progress
 ) => {
 	const zipNiceName = zipNameToHumanName(themeZipFile.name);
 
 	progress?.tracker.setCaption(`Installing the ${zipNiceName} theme`);
 	const { assetFolderName } = await installAsset(playground, {
+		ifAlreadyInstalled,
 		zipFile: themeZipFile,
 		targetPath: `${await playground.documentRoot}/wp-content/themes`,
 	});