diff --git a/common/ayon_common/distribution/__init__.py b/common/ayon_common/distribution/__init__.py
index 66df634a2..0fd00380e 100644
--- a/common/ayon_common/distribution/__init__.py
+++ b/common/ayon_common/distribution/__init__.py
@@ -4,6 +4,8 @@
 )
 from .control import AYONDistribution
 from .utils import (
+    get_addons_dir,
+    get_dependencies_dir,
     show_missing_permissions,
     show_blocked_auto_update,
     show_missing_bundle_information,
@@ -18,6 +20,8 @@
 
     "AYONDistribution",
 
+    "get_addons_dir",
+    "get_dependencies_dir",
     "show_missing_permissions",
     "show_blocked_auto_update",
     "show_missing_bundle_information",
diff --git a/common/ayon_common/distribution/control.py b/common/ayon_common/distribution/control.py
index 1a764483b..149fe0caf 100644
--- a/common/ayon_common/distribution/control.py
+++ b/common/ayon_common/distribution/control.py
@@ -2542,38 +2542,38 @@ def get_sys_paths(self) -> list[str]:
                 output.append(runtime_dir)
         return output
 
-    def get_python_paths(self) -> list[str]:
+    def get_python_paths(self) -> tuple[list[str], Optional[str]]:
         """Get all paths to python packages that should be added to python.
 
         These paths lead to addon directories and python dependencies in
         dependency package.
 
         Returns:
-            List[str]: Paths that should be added to 'sys.path' and
-                'PYTHONPATH'.
+            tuple[list[str], Optional[str]]: Paths that should be added
+                to 'sys.path' and 'PYTHONPATH'.
 
         """
-        output = []
+        addon_paths = []
         for item in self.get_addon_dist_items():
             dist_item = item["dist_item"]
             if dist_item.state != UpdateState.UPDATED:
                 continue
             target_dirpath = dist_item.target_dirpath
             if target_dirpath and os.path.exists(target_dirpath):
-                output.append(target_dirpath)
+                addon_paths.append(target_dirpath)
 
-        output.extend(self._get_dev_sys_paths())
+        addon_paths.extend(self._get_dev_sys_paths())
 
+        dependencies_dir = None
         dependency_dist_item = self.get_dependency_dist_item()
         if dependency_dist_item is not None:
-            dependencies_dir = None
             target_dirpath = dependency_dist_item.target_dirpath
             if target_dirpath:
                 dependencies_dir = os.path.join(target_dirpath, "dependencies")
 
-            if dependencies_dir and os.path.exists(dependencies_dir):
-                output.append(dependencies_dir)
-        return output
+            if not dependencies_dir or not os.path.exists(dependencies_dir):
+                dependencies_dir = None
+        return addon_paths, dependencies_dir
 
     def _get_dev_sys_paths(self) -> list[str]:
         output = []
diff --git a/start.py b/start.py
index 9fabde3b8..d89ce8950 100644
--- a/start.py
+++ b/start.py
@@ -83,6 +83,7 @@
 import traceback
 import subprocess
 from contextlib import contextmanager
+from pathlib import Path
 from urllib.parse import urlencode, urlparse, parse_qs
 
 from version import __version__
@@ -377,6 +378,8 @@ def _print(message: str):
 from ayon_common.distribution import (  # noqa E402
     AYONDistribution,
     BundleNotFoundError,
+    get_addons_dir,
+    get_dependencies_dir,
     show_missing_bundle_information,
     show_blocked_auto_update,
     show_missing_permissions,
@@ -798,17 +801,44 @@ def _start_distribution():
     os.environ["AYON_BUNDLE_NAME"] = project_bundle_name
     os.environ["AYON_STUDIO_BUNDLE_NAME"] = studio_bundle_name
 
-    # TODO probably remove paths to other addons?
-    python_paths = [
-        path
-        for path in os.getenv("PYTHONPATH", "").split(os.pathsep)
-        if path
-    ]
+    addon_paths, dep_package_path = distribution.get_python_paths()
+    if dep_package_path:
+        sys.path.insert(0, dep_package_path)
+    # Remove any path leading to addons or dependecy packages directory
+    # - makes sure that any addon in PYTHONPATH is removed, addons from
+    #   current bundle are added below.
+    # - also make sure to keep order of dependency package if there is any
+    #   already in PYTHONPATH
+    addons_dir = Path(get_addons_dir())
+    dependencies_dir = Path(get_dependencies_dir())
+    python_paths = []
+    idx = 0
+    for path in os.getenv("PYTHONPATH", "").split(os.pathsep):
+        if not path:
+            continue
+
+        p_path = Path(path)
+        # Ignore addons directories
+        if p_path.is_relative_to(addons_dir):
+            continue
+
+        # Use current dependencies dir if is set otherwise skip it
+        if p_path.is_relative_to(dependencies_dir):
+            if not dep_package_path:
+                continue
+            # Unset 'dep_package_path' to not append it again when this loop
+            #   is over
+            path, dep_package_path = dep_package_path, None
+
+        python_paths.append(path)
+        idx += 1
+
+    if dep_package_path:
+        python_paths.append(dep_package_path)
 
-    for path in distribution.get_python_paths():
+    for path in addon_paths:
         sys.path.insert(0, path)
-        if path not in python_paths:
-            python_paths.append(path)
+        python_paths.insert(0, path)
 
     for path in distribution.get_sys_paths():
         sys.path.insert(0, path)