diff --git a/packages/fx-core/src/component/generator/officeAddin/generator.ts b/packages/fx-core/src/component/generator/officeAddin/generator.ts
index 12cde9e913..476d72db42 100644
--- a/packages/fx-core/src/component/generator/officeAddin/generator.ts
+++ b/packages/fx-core/src/component/generator/officeAddin/generator.ts
@@ -18,6 +18,7 @@ import {
   ok,
 } from "@microsoft/teamsfx-api";
 import * as childProcess from "child_process";
+import fse from "fs-extra";
 import { toLower } from "lodash";
 import { OfficeAddinManifest } from "office-addin-manifest";
 import { convertProject } from "office-addin-project";
@@ -256,6 +257,39 @@ export class OfficeAddinGeneratorNew extends DefaultTemplateGenerator {
   ): Promise<Result<GeneratorResult, FxError>> {
     const res = await OfficeAddinGenerator.doScaffolding(context, inputs, destinationPath);
     if (res.isErr()) return err(res.error);
+    await this.fixIconPath(destinationPath);
     return ok({});
   }
+
+  /**
+   * this is a work around for MOS API bug that will return invalid package if the icon path is not root folder of appPackage
+   * so this function will move the two icon files to root folder of appPackage and update the manifest.json
+   */
+  async fixIconPath(projectPath: string): Promise<void> {
+    const outlineOldPath = join(projectPath, "appPackage", "assets", "outline.png");
+    const colorOldPath = join(projectPath, "appPackage", "assets", "color.png");
+    const outlineNewPath = join(projectPath, "appPackage", "outline.png");
+    const colorNewPath = join(projectPath, "appPackage", "color.png");
+    const manifestPath = join(projectPath, "appPackage", "manifest.json");
+    if (!(await fse.pathExists(manifestPath))) return;
+    const manifest = await fse.readJson(manifestPath);
+    let change = false;
+    if (manifest.icons.outline === "assets/outline.png") {
+      if ((await fse.pathExists(outlineOldPath)) && !(await fse.pathExists(outlineNewPath))) {
+        await fse.move(outlineOldPath, outlineNewPath);
+        manifest.icons.outline = "outline.png";
+        change = true;
+      }
+    }
+    if (manifest.icons.color === "assets/color.png") {
+      if ((await fse.pathExists(colorOldPath)) && !(await fse.pathExists(colorNewPath))) {
+        await fse.move(colorOldPath, colorNewPath);
+        manifest.icons.color = "color.png";
+        change = true;
+      }
+    }
+    if (change) {
+      await fse.writeJson(manifestPath, manifest, { spaces: 4 });
+    }
+  }
 }
diff --git a/packages/fx-core/tests/component/generator/officeAddinGenerator.test.ts b/packages/fx-core/tests/component/generator/officeAddinGenerator.test.ts
index 123c70a016..0ebaa85580 100644
--- a/packages/fx-core/tests/component/generator/officeAddinGenerator.test.ts
+++ b/packages/fx-core/tests/component/generator/officeAddinGenerator.test.ts
@@ -1030,6 +1030,7 @@ describe("OfficeAddinGeneratorNew", () => {
         projectPath: "./",
       };
       sandbox.stub(OfficeAddinGenerator, "doScaffolding").resolves(ok(undefined));
+      sandbox.stub(generator, "fixIconPath").resolves();
       const res = await generator.post(context, inputs, "./");
       chai.assert.isTrue(res.isOk());
     });
@@ -1044,4 +1045,85 @@ describe("OfficeAddinGeneratorNew", () => {
       chai.assert.isTrue(res.isErr());
     });
   });
+  describe("fixIconPath()", () => {
+    const sandbox = sinon.createSandbox();
+    afterEach(() => {
+      sandbox.restore();
+    });
+    it("manifest not found", async () => {
+      sandbox.stub(fse, "pathExists").resolves(false);
+      const move = sandbox.stub(fse, "move").resolves();
+      await generator.fixIconPath("./");
+      chai.assert.isTrue(move.notCalled);
+    });
+    it("happy", async () => {
+      sandbox.stub(fse, "pathExists").callsFake(async (path) => {
+        if (path.endsWith("manifest.json")) {
+          return true;
+        } else if (path.endsWith("assets/outline.png") || path.endsWith("assets\\outline.png")) {
+          return true;
+        } else if (path.endsWith("assets/color.png") || path.endsWith("assets\\color.png")) {
+          return true;
+        } else if (path.endsWith("color.png")) {
+          return false;
+        } else if (path.endsWith("outline.png")) {
+          return false;
+        }
+      });
+      sandbox
+        .stub(fse, "readJson")
+        .resolves({ icons: { outline: "assets/outline.png", color: "assets/color.png" } });
+      const move = sandbox.stub(fse, "move").resolves();
+      const writeJson = sandbox.stub(fse, "writeJson").resolves();
+      await generator.fixIconPath("./");
+      chai.assert.isTrue(move.calledTwice);
+      chai.assert.isTrue(writeJson.calledOnce);
+    });
+    it("no need to move", async () => {
+      sandbox.stub(fse, "pathExists").callsFake(async (path) => {
+        if (path.endsWith("manifest.json")) {
+          return true;
+        } else if (path.endsWith("assets/outline.png") || path.endsWith("assets\\outline.png")) {
+          return true;
+        } else if (path.endsWith("assets/color.png") || path.endsWith("assets\\color.png")) {
+          return true;
+        } else if (path.endsWith("color.png")) {
+          return false;
+        } else if (path.endsWith("outline.png")) {
+          return false;
+        }
+      });
+      sandbox
+        .stub(fse, "readJson")
+        .resolves({ icons: { outline: "outline.png", color: "color.png" } });
+      const move = sandbox.stub(fse, "move").resolves();
+      const writeJson = sandbox.stub(fse, "writeJson").resolves();
+      await generator.fixIconPath("./");
+      chai.assert.isTrue(move.notCalled);
+      chai.assert.isTrue(writeJson.notCalled);
+    });
+    it("no need to move", async () => {
+      sandbox.stub(fse, "pathExists").callsFake(async (path) => {
+        if (path.endsWith("manifest.json")) {
+          return true;
+        } else if (path.endsWith("assets/outline.png") || path.endsWith("assets\\outline.png")) {
+          return false;
+        } else if (path.endsWith("assets/color.png") || path.endsWith("assets\\color.png")) {
+          return false;
+        } else if (path.endsWith("color.png")) {
+          return false;
+        } else if (path.endsWith("outline.png")) {
+          return false;
+        }
+      });
+      sandbox
+        .stub(fse, "readJson")
+        .resolves({ icons: { outline: "assets/outline.png", color: "assets/color.png" } });
+      const move = sandbox.stub(fse, "move").resolves();
+      const writeJson = sandbox.stub(fse, "writeJson").resolves();
+      await generator.fixIconPath("./");
+      chai.assert.isTrue(move.notCalled);
+      chai.assert.isTrue(writeJson.notCalled);
+    });
+  });
 });