diff --git a/packages/node_modules/@node-red/registry/lib/index.js b/packages/node_modules/@node-red/registry/lib/index.js
index 3632f40cf..426dfcb61 100644
--- a/packages/node_modules/@node-red/registry/lib/index.js
+++ b/packages/node_modules/@node-red/registry/lib/index.js
@@ -254,7 +254,8 @@ module.exports = {
      * Update to internal list of available modules based on what has been actually
      * loaded.
      *
-     * The `autoInstallModules` runtime option means the runtime may try to install
+     * The `externalModules.autoInstall` (previously `autoInstallModules`)
+     * runtime option means the runtime may try to install
      * missing modules after the initial load is complete. If that flag is not set
      * this function is used to remove the modules from the registry's saved list.
      * @function
diff --git a/packages/node_modules/@node-red/runtime/lib/index.js b/packages/node_modules/@node-red/runtime/lib/index.js
index dd1594467..2dd6db6c8 100644
--- a/packages/node_modules/@node-red/runtime/lib/index.js
+++ b/packages/node_modules/@node-red/runtime/lib/index.js
@@ -123,7 +123,15 @@ function start() {
             }
             log.info(os.type()+" "+os.release()+" "+os.arch()+" "+os.endianness());
             return redNodes.load().then(function() {
-
+                let autoInstallModules = false;
+                if (settings.hasOwnProperty('autoInstallModules')) {
+                    log.warn(log._("runtime.deprecatedOption",{old:"autoInstallModules", new:"externalModules.autoInstall"}));
+                    autoInstallModules = true;
+                }
+                if (settings.externalModules) {
+                    // autoInstallModules = autoInstall enabled && (no palette setting || palette install not disabled)
+                    autoInstallModules = settings.externalModules.autoInstall && (!settings.externalModules.palette || settings.externalModules.palette.allowInstall !== false) ;
+                }
                 var i;
                 var nodeErrors = redNodes.getNodeList(function(n) { return n.err!=null;});
                 var nodeMissing = redNodes.getNodeList(function(n) { return n.module && n.enabled && !n.loaded && !n.err;});
@@ -156,12 +164,12 @@ function start() {
                     for (i in missingModules) {
                         if (missingModules.hasOwnProperty(i)) {
                             log.warn(" - "+i+" ("+missingModules[i].version+"): "+missingModules[i].types.join(", "));
-                            if (settings.autoInstallModules && i != "node-red") {
+                            if (autoInstallModules && i != "node-red") {
                                 installingModules.push({id:i,version:missingModules[i].version});
                             }
                         }
                     }
-                    if (!settings.autoInstallModules) {
+                    if (!autoInstallModules) {
                         log.info(log._("server.removing-modules"));
                         redNodes.cleanModuleList();
                     } else if (installingModules.length > 0) {
@@ -186,11 +194,19 @@ function start() {
 var reinstallAttempts = 0;
 var reinstallTimeout;
 function reinstallModules(moduleList) {
-    var promises = [];
-    var reinstallList = [];
-
+    const promises = [];
+    const reinstallList = [];
+    const installRetry = 30000;
+    if (settings.hasOwnProperty('autoInstallModulesRetry')) {
+        log.warn(log._("runtime.deprecatedOption",{old:"autoInstallModulesRetry", new:"externalModules.autoInstallRetry"}));
+        installRetry = settings.autoInstallModulesRetry;
+    }
+    if (settings.externalModules && settings.externalModules.hasOwnProperty('autoInstallRetry')) {
+        installRetry = settings.externalModules.autoInstallRetry * 1000;
+    }
+    externalModules.autoInstallRetry
     for (var i=0;i<moduleList.length;i++) {
-        if (settings.autoInstallModules && moduleList[i].id != "node-red") {
+        if (moduleList[i].id != "node-red") {
             (function(mod) {
                 promises.push(redNodes.installModule(mod.id,mod.version).then(m => {
                     events.emit("runtime-event",{id:"node/added",retain:false,payload:m.nodes});
@@ -204,7 +220,7 @@ function reinstallModules(moduleList) {
         if (reinstallList.length > 0) {
             reinstallAttempts++;
             // First 5 at 1x timeout, next 5 at 2x, next 5 at 4x, then 8x
-            var timeout = (settings.autoInstallModulesRetry||30000) * Math.pow(2,Math.min(Math.floor(reinstallAttempts/5),3));
+            var timeout = installRetry * Math.pow(2,Math.min(Math.floor(reinstallAttempts/5),3));
             reinstallTimeout = setTimeout(function() {
                 reinstallModules(reinstallList);
             },timeout);
diff --git a/packages/node_modules/@node-red/runtime/locales/en-US/runtime.json b/packages/node_modules/@node-red/runtime/locales/en-US/runtime.json
index bc866e09e..eeb4299d7 100644
--- a/packages/node_modules/@node-red/runtime/locales/en-US/runtime.json
+++ b/packages/node_modules/@node-red/runtime/locales/en-US/runtime.json
@@ -42,6 +42,7 @@
             "uninstall-failed-long": "Uninstall of module __name__ failed:",
             "uninstalled": "Uninstalled module: __name__"
         },
+        "deprecatedOption": "use of __old__ is deprecated. Use __new__ instead",
         "unable-to-listen": "Unable to listen on __listenpath__",
         "port-in-use": "Error: port in use",
         "uncaught-exception": "Uncaught Exception:",