diff --git a/lib/modelscan_api/bailo_modelscan_api/config.py b/lib/modelscan_api/bailo_modelscan_api/config.py
index c29d155cb..608da39d9 100644
--- a/lib/modelscan_api/bailo_modelscan_api/config.py
+++ b/lib/modelscan_api/bailo_modelscan_api/config.py
@@ -25,13 +25,10 @@ class Settings(BaseSettings):
 
     You can upload files and view modelscan's result."""
     app_version: str = "1.0.0"
-    download_dir: str = "."
+    # download_dir is used if it evaluates, otherwise a temporary directory is used.
+    download_dir: str | None = None
     modelscan_settings: dict[str, Any] = DEFAULT_SETTINGS
     block_size: int = 1024
 
     # Load in a dotenv file to set/overwrite any properties with potentially sensitive values
     model_config = SettingsConfigDict(env_file=".env")
-
-
-logger.info("Instantiating settings.")
-settings = Settings()
diff --git a/lib/modelscan_api/bailo_modelscan_api/main.py b/lib/modelscan_api/bailo_modelscan_api/main.py
index 68e76e908..929484a84 100644
--- a/lib/modelscan_api/bailo_modelscan_api/main.py
+++ b/lib/modelscan_api/bailo_modelscan_api/main.py
@@ -3,10 +3,12 @@
 
 from __future__ import annotations
 
+from contextlib import nullcontext
 import logging
 from functools import lru_cache
 from http import HTTPStatus
 from pathlib import Path
+from tempfile import TemporaryDirectory
 from typing import Any
 
 import uvicorn
@@ -73,33 +75,37 @@ def scan_file(in_file: UploadFile, background_tasks: BackgroundTasks) -> dict[st
     """
     logger.info("Called the API endpoint to scan an uploaded file")
     try:
-        if in_file.filename and str(in_file.filename).strip():
-            pathlib_path = Path.joinpath(parse_path(get_settings().download_dir), str(in_file.filename))
-        else:
-            raise HTTPException(
-                status_code=HTTPStatus.INTERNAL_SERVER_ERROR,
-                detail="An error occurred while extracting the uploaded file's name.",
-            )
-
-        # Write the streamed in_file to disk.
-        # This is a bit silly as modelscan will ultimately load this back into memory, but modelscan
-        # doesn't currently support streaming.
-        try:
-            with open(pathlib_path, "wb") as out_file:
-                while content := in_file.file.read(get_settings().block_size):
-                    out_file.write(content)
-        except OSError as exception:
-            logger.exception("Failed writing the file to the disk.")
-            raise HTTPException(
-                status_code=HTTPStatus.INTERNAL_SERVER_ERROR,
-                detail=f"An error occurred while trying to write the uploaded file to the disk: {exception}",
-            ) from exception
-
-        # Scan the uploaded file.
-        result = modelscan.scan(pathlib_path)
-
-        # Finally, return the result.
-        return result
+        # Use Setting's download_dir if defined else use a temporary directory.
+        with (
+            TemporaryDirectory() if not get_settings().download_dir else nullcontext(get_settings().download_dir)
+        ) as download_dir:
+            if in_file.filename and str(in_file.filename).strip():
+                pathlib_path = Path.joinpath(parse_path(download_dir), str(in_file.filename))
+            else:
+                raise HTTPException(
+                    status_code=HTTPStatus.INTERNAL_SERVER_ERROR,
+                    detail="An error occurred while extracting the uploaded file's name.",
+                )
+
+            # Write the streamed in_file to disk.
+            # This is a bit silly as modelscan will ultimately load this back into memory, but modelscan
+            # doesn't currently support streaming.
+            try:
+                with open(pathlib_path, "wb") as out_file:
+                    while content := in_file.file.read(get_settings().block_size):
+                        out_file.write(content)
+            except OSError as exception:
+                logger.exception("Failed writing the file to the disk.")
+                raise HTTPException(
+                    status_code=HTTPStatus.INTERNAL_SERVER_ERROR,
+                    detail=f"An error occurred while trying to write the uploaded file to the disk: {exception}",
+                ) from exception
+
+            # Scan the uploaded file.
+            result = modelscan.scan(pathlib_path)
+
+            # Finally, return the result.
+            return result
 
     except HTTPException:
         # Re-raise HTTPExceptions.
@@ -116,6 +122,7 @@ def scan_file(in_file: UploadFile, background_tasks: BackgroundTasks) -> dict[st
     finally:
         try:
             # Clean up the downloaded file as a background task to allow returning sooner.
+            # If using a temporary dir then this would happen anyway, but if Settings' download_dir evaluates then this is required.
             logger.info("Cleaning up downloaded file.")
             background_tasks.add_task(Path.unlink, pathlib_path, missing_ok=True)
         except UnboundLocalError:
diff --git a/lib/modelscan_api/bailo_modelscan_api/test_main.py b/lib/modelscan_api/bailo_modelscan_api/test_main.py
index 4843c444f..590e95c36 100644
--- a/lib/modelscan_api/bailo_modelscan_api/test_main.py
+++ b/lib/modelscan_api/bailo_modelscan_api/test_main.py
@@ -5,12 +5,20 @@
 from unittest.mock import Mock, patch
 from fastapi.testclient import TestClient
 
+from .config import Settings
 from .dependencies import parse_path
 from .main import app, get_settings
 
 client = TestClient(app)
 
 
+def get_settings_override():
+    return Settings(download_dir=".")
+
+
+app.dependency_overrides[get_settings] = get_settings_override
+
+
 def test_health():
     response = client.get("/health")