diff --git a/setup.sh b/setup.sh
index 8314ef6d75..11af361ae5 100755
--- a/setup.sh
+++ b/setup.sh
@@ -168,6 +168,7 @@ SINGLE_ENV_CONSTRAINTS="$REQ_ROOT/single-env/constraints.txt"
 SINGLE_ENV_DATA_DESIGNER="$REQ_ROOT/single-env/data-designer.txt"
 SINGLE_ENV_DATA_DESIGNER_DEPS="$REQ_ROOT/single-env/data-designer-deps.txt"
 SINGLE_ENV_PATCH="$REQ_ROOT/single-env/patch_metadata.py"
+LOCAL_DD_UNSTRUCTURED_PLUGIN="$SCRIPT_DIR/studio/backend/plugins/data-designer-unstructured-seed"
 
 install_python_stack() {
     run_quiet "pip upgrade" pip install --upgrade pip
@@ -191,6 +192,8 @@ install_python_stack() {
     run_quiet "pip install data-designer deps" pip install --no-cache-dir -c "$SINGLE_ENV_CONSTRAINTS" -r "$SINGLE_ENV_DATA_DESIGNER_DEPS"
     echo "   Installing data-designer..."
     run_quiet "pip install data-designer" pip install --no-cache-dir --no-deps -c "$SINGLE_ENV_CONSTRAINTS" -r "$SINGLE_ENV_DATA_DESIGNER"
+    echo "   Installing local data-designer unstructured plugin..."
+    run_quiet "pip install data-designer-unstructured-seed" pip install --no-cache-dir --no-deps -e "$LOCAL_DD_UNSTRUCTURED_PLUGIN"
     run_quiet "patch single-env metadata" python "$SINGLE_ENV_PATCH"
     run_quiet "pip check" pip check
     echo "✅ Python dependencies installed"
diff --git a/studio/backend/core/data_recipe/service.py b/studio/backend/core/data_recipe/service.py
index 54e3305e3f..6c2af4438e 100644
--- a/studio/backend/core/data_recipe/service.py
+++ b/studio/backend/core/data_recipe/service.py
@@ -7,8 +7,6 @@ from pathlib import Path
 from typing import Any
 
 from .jsonable import to_jsonable
-from .unstructured_seed_plugin import ensure_unstructured_seed_plugin_registered
-
 _IMAGE_CONTEXT_PATCHED = False
 
 
@@ -100,8 +98,6 @@ def _apply_data_designer_image_context_patch() -> None:
     if _IMAGE_CONTEXT_PATCHED:
         return
 
-    ensure_unstructured_seed_plugin_registered()
-
     try:
         from data_designer.config.models import ImageContext
     except ImportError:
diff --git a/studio/backend/core/data_recipe/unstructured_seed_plugin.py b/studio/backend/core/data_recipe/unstructured_seed_plugin.py
deleted file mode 100644
index a956ef4236..0000000000
--- a/studio/backend/core/data_recipe/unstructured_seed_plugin.py
+++ /dev/null
@@ -1,90 +0,0 @@
-from __future__ import annotations
-
-from pathlib import Path
-from typing import Literal
-
-from pydantic import Field, field_validator
-
-from .unstructured_seed import (
-    DEFAULT_CHUNK_OVERLAP,
-    DEFAULT_CHUNK_SIZE,
-    materialize_unstructured_seed_dataset,
-    resolve_chunking,
-)
-
-try:
-    import data_designer.lazy_heavy_imports as lazy
-    from data_designer.config.seed_source import SeedSource
-    from data_designer.engine.resources.seed_reader import SeedReader
-except ImportError:  # pragma: no cover
-    lazy = None
-
-    class SeedSource:  # type: ignore[no-redef]
-        pass
-
-    class SeedReader:  # type: ignore[no-redef]
-        @classmethod
-        def __class_getitem__(cls, _item):
-            return cls
-
-
-class UnstructuredSeedSource(SeedSource):
-    seed_type: Literal["unstructured"] = "unstructured"
-    path: str = Field(..., min_length=1)
-    chunk_size: int = DEFAULT_CHUNK_SIZE
-    chunk_overlap: int = DEFAULT_CHUNK_OVERLAP
-
-    @field_validator("path", mode="after")
-    @classmethod
-    def _validate_path(cls, value: str) -> str:
-        path = Path(value).expanduser()
-        if not path.is_file():
-            raise ValueError(f"Unstructured seed path is not a file: {path}")
-        return value
-
-    @field_validator("chunk_size", mode="after")
-    @classmethod
-    def _validate_chunk_size(cls, value: int) -> int:
-        size, _ = resolve_chunking(value, 0)
-        return size
-
-    @field_validator("chunk_overlap", mode="after")
-    @classmethod
-    def _validate_chunk_overlap(cls, value: int, info) -> int:
-        size = info.data.get("chunk_size", cls.model_fields["chunk_size"].default)
-        _, overlap = resolve_chunking(size, value)
-        return overlap
-
-
-class UnstructuredSeedReader(SeedReader[UnstructuredSeedSource]):
-    def create_duckdb_connection(self):
-        if lazy is None:
-            raise RuntimeError("data_designer is not available")
-        return lazy.duckdb.connect()
-
-    def get_dataset_uri(self) -> str:
-        path, _ = materialize_unstructured_seed_dataset(
-            source_path=Path(self.source.path),
-            chunk_size=self.source.chunk_size,
-            chunk_overlap=self.source.chunk_overlap,
-        )
-        return str(path)
-
-
-def ensure_unstructured_seed_plugin_registered() -> None:
-    try:
-        from data_designer.plugins.plugin import Plugin, PluginType
-        from data_designer.plugins.registry import PluginRegistry
-    except ImportError:
-        return
-
-    registry = PluginRegistry()
-    if registry.plugin_exists("unstructured"):
-        return
-
-    plugin = Plugin(
-        impl_qualified_name="core.data_recipe.unstructured_seed_plugin.UnstructuredSeedReader",
-        config_qualified_name="core.data_recipe.unstructured_seed_plugin.UnstructuredSeedSource",
-        plugin_type=PluginType.SEED_READER,
-    )
-    registry._plugins[plugin.name] = plugin  # type: ignore[attr-defined]
diff --git a/studio/backend/plugins/data-designer-unstructured-seed/pyproject.toml b/studio/backend/plugins/data-designer-unstructured-seed/pyproject.toml
new file mode 100644
index 0000000000..5b83e5468a
--- /dev/null
+++ b/studio/backend/plugins/data-designer-unstructured-seed/pyproject.toml
@@ -0,0 +1,22 @@
+[build-system]
+requires = ["setuptools>=68", "wheel"]
+build-backend = "setuptools.build_meta"
+
+[project]
+name = "data-designer-unstructured-seed"
+version = "0.1.0"
+description = "Local Data Designer unstructured seed reader plugin"
+requires-python = ">=3.11"
+dependencies = [
+  "data-designer-engine>=0.5.1,<0.6",
+  "pandas>=2,<3",
+]
+
+[project.entry-points."data_designer.plugins"]
+unstructured = "data_designer_unstructured_seed.plugin:unstructured_seed_plugin"
+
+[tool.setuptools]
+package-dir = {"" = "src"}
+
+[tool.setuptools.packages.find]
+where = ["src"]
diff --git a/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/__init__.py b/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/__init__.py
new file mode 100644
index 0000000000..0d9b5ce7eb
--- /dev/null
+++ b/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/__init__.py
@@ -0,0 +1,21 @@
+from .chunking import (
+    DEFAULT_CHUNK_OVERLAP,
+    DEFAULT_CHUNK_SIZE,
+    build_unstructured_preview_rows,
+    materialize_unstructured_seed_dataset,
+    resolve_chunking,
+)
+from .config import UnstructuredSeedSource
+from .impl import UnstructuredSeedReader
+from .plugin import unstructured_seed_plugin
+
+__all__ = [
+    "DEFAULT_CHUNK_OVERLAP",
+    "DEFAULT_CHUNK_SIZE",
+    "build_unstructured_preview_rows",
+    "materialize_unstructured_seed_dataset",
+    "resolve_chunking",
+    "UnstructuredSeedSource",
+    "UnstructuredSeedReader",
+    "unstructured_seed_plugin",
+]
diff --git a/studio/backend/core/data_recipe/unstructured_seed.py b/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/chunking.py
similarity index 100%
rename from studio/backend/core/data_recipe/unstructured_seed.py
rename to studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/chunking.py
index ee486fc496..4ce7d360bc 100644
--- a/studio/backend/core/data_recipe/unstructured_seed.py
+++ b/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/chunking.py
@@ -5,7 +5,6 @@ import re
 from pathlib import Path
 from typing import Any
 
-
 DEFAULT_CHUNK_SIZE = 1200
 DEFAULT_CHUNK_OVERLAP = 200
 MAX_CHUNK_SIZE = 20000
@@ -44,6 +43,7 @@ def build_unstructured_preview_rows(
         import pandas as pd
     except ImportError as exc:  # pragma: no cover
         raise RuntimeError(f"pandas is required for unstructured seed processing: {exc}") from exc
+
     dataframe = pd.read_parquet(parquet_path).head(count)
     return [
         {"chunk_text": str(value.get("chunk_text", "")).strip()}
diff --git a/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/config.py b/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/config.py
new file mode 100644
index 0000000000..487579fda1
--- /dev/null
+++ b/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/config.py
@@ -0,0 +1,38 @@
+from __future__ import annotations
+
+from pathlib import Path
+from typing import Literal
+
+from pydantic import Field, field_validator
+
+from data_designer.config.seed_source import SeedSource
+
+from .chunking import DEFAULT_CHUNK_OVERLAP, DEFAULT_CHUNK_SIZE, resolve_chunking
+
+
+class UnstructuredSeedSource(SeedSource):
+    seed_type: Literal["unstructured"] = "unstructured"
+    path: str = Field(..., min_length=1)
+    chunk_size: int = DEFAULT_CHUNK_SIZE
+    chunk_overlap: int = DEFAULT_CHUNK_OVERLAP
+
+    @field_validator("path", mode="after")
+    @classmethod
+    def _validate_path(cls, value: str) -> str:
+        path = Path(value).expanduser()
+        if not path.is_file():
+            raise ValueError(f"Unstructured seed path is not a file: {path}")
+        return value
+
+    @field_validator("chunk_size", mode="after")
+    @classmethod
+    def _validate_chunk_size(cls, value: int) -> int:
+        size, _ = resolve_chunking(value, 0)
+        return size
+
+    @field_validator("chunk_overlap", mode="after")
+    @classmethod
+    def _validate_chunk_overlap(cls, value: int, info) -> int:
+        size = info.data.get("chunk_size", cls.model_fields["chunk_size"].default)
+        _, overlap = resolve_chunking(size, value)
+        return overlap
diff --git a/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/impl.py b/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/impl.py
new file mode 100644
index 0000000000..0c81f636bf
--- /dev/null
+++ b/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/impl.py
@@ -0,0 +1,22 @@
+from __future__ import annotations
+
+from pathlib import Path
+
+import data_designer.lazy_heavy_imports as lazy
+from data_designer.engine.resources.seed_reader import SeedReader
+
+from .chunking import materialize_unstructured_seed_dataset
+from .config import UnstructuredSeedSource
+
+
+class UnstructuredSeedReader(SeedReader[UnstructuredSeedSource]):
+    def create_duckdb_connection(self):
+        return lazy.duckdb.connect()
+
+    def get_dataset_uri(self) -> str:
+        path, _ = materialize_unstructured_seed_dataset(
+            source_path=Path(self.source.path),
+            chunk_size=self.source.chunk_size,
+            chunk_overlap=self.source.chunk_overlap,
+        )
+        return str(path)
diff --git a/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/plugin.py b/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/plugin.py
new file mode 100644
index 0000000000..e96d1d2cd6
--- /dev/null
+++ b/studio/backend/plugins/data-designer-unstructured-seed/src/data_designer_unstructured_seed/plugin.py
@@ -0,0 +1,7 @@
+from data_designer.plugins.plugin import Plugin, PluginType
+
+unstructured_seed_plugin = Plugin(
+    impl_qualified_name="data_designer_unstructured_seed.impl.UnstructuredSeedReader",
+    config_qualified_name="data_designer_unstructured_seed.config.UnstructuredSeedSource",
+    plugin_type=PluginType.SEED_READER,
+)
diff --git a/studio/backend/routes/data_recipe/seed.py b/studio/backend/routes/data_recipe/seed.py
index 3a824827cb..ce6073d902 100644
--- a/studio/backend/routes/data_recipe/seed.py
+++ b/studio/backend/routes/data_recipe/seed.py
@@ -10,7 +10,7 @@ from typing import Any
 from uuid import uuid4
 
 from fastapi import APIRouter, HTTPException
-from core.data_recipe.unstructured_seed import (
+from data_designer_unstructured_seed.chunking import (
     build_unstructured_preview_rows,
     resolve_chunking,
 )