diff --git a/defaults/main.yml b/defaults/main.yml
index c7bc114c..bcf454b2 100644
--- a/defaults/main.yml
+++ b/defaults/main.yml
@@ -275,9 +275,12 @@ _horizon_available_themes:
     theme_label: "Material"
     theme_path: "themes/material"
 
-# Add custom themes. Deployers need to place the theme directories
-# and files on the horizon containers in:
-#   {{ horizon_lib_dir }}/openstack_dashboard/themes
+# Add custom themes. Deployers need to place the archive, with the theme inside,
+# into the directory, which is specified by theme_src_archive key.
+# It should be an absolute path to the archive on the deployment host.
+# Leading folders are not expected in the archive.
+# Following archive formats are supported:
+# .tar.gz, .tgz, .zip, .tar.bz, .tar.bz2, .tbz, .tbz2
 # See https://docs.openstack.org/horizon/latest/configuration/themes.html
 # for more details on custom themes
 # Example:
@@ -287,6 +290,7 @@ _horizon_available_themes:
 #     theme_name: "custom"
 #     theme_label: "Custom"
 #     theme_path: "themes/custom"
+#     theme_src_archive: "/etc/openstack_deploy/horizon/themes/custom.tar.gz"
 #
 horizon_custom_themes: {}
 
diff --git a/releasenotes/notes/drop-custom-themes-724c40e5cd69b8e2.yaml b/releasenotes/notes/drop-custom-themes-724c40e5cd69b8e2.yaml
new file mode 100644
index 00000000..1d0c8e7e
--- /dev/null
+++ b/releasenotes/notes/drop-custom-themes-724c40e5cd69b8e2.yaml
@@ -0,0 +1,10 @@
+---
+features:
+  - The ``os_horizon`` role now supports distribution of user custom themes.
+    Deployers can use the new key ``theme_src_archive`` of ``horizon_custom_themes``
+    dictionary to provide absolute path to the archived theme.
+    Only .tar.gz, .tgz, .zip, .tar.bz, .tar.bz2, .tbz, .tbz2 archives are supported.
+    Structure inside archive should be as a standard theme, without any leading folders.
+fixes:
+  - Fixes bug https://bugs.launchpad.net/openstack-ansible/+bug/1778098 where playbook failed, if
+    ``horizon_custom_themes`` is specified, and directory for theme is not provided
diff --git a/tasks/horizon_post_install.yml b/tasks/horizon_post_install.yml
index 84a0e4fb..768967b1 100644
--- a/tasks/horizon_post_install.yml
+++ b/tasks/horizon_post_install.yml
@@ -96,6 +96,25 @@
   notify: Restart apache2
   when: horizon_customization_module is defined
 
+- name: Creating horizon custom theme path
+  file:
+    path: "{{ horizon_lib_dir }}/openstack_dashboard/{{ item.value.theme_path }}/"
+    state: directory
+    owner: "{{ horizon_system_user_name }}"
+    group: "{{ horizon_system_group_name }}"
+    mode: "0755"
+  with_dict: "{{ horizon_custom_themes }}"
+
+- name: Drop horizon custom themes
+  unarchive:
+    src: "{{ item.value.theme_src_archive }}"
+    dest: "{{ horizon_lib_dir }}/openstack_dashboard/{{ item.value.theme_path }}/"
+    owner: "{{ horizon_system_user_name }}"
+    group: "{{ horizon_system_group_name }}"
+  with_dict: "{{ horizon_custom_themes }}"
+  when: item.value.theme_src_archive is defined
+  notify: Restart apache2
+
 - name: Compile messages for translation
   command: "{{ horizon_manage }} compilemessages"
   become: yes