diff --git a/changelog/63929.fixed.md b/changelog/63929.fixed.md
new file mode 100644
index 00000000000..db802ce2c25
--- /dev/null
+++ b/changelog/63929.fixed.md
@@ -0,0 +1 @@
+Clarifying documentation for extension_modules configuration option.
diff --git a/conf/master b/conf/master
index d655e93d45f..8749838a7f4 100644
--- a/conf/master
+++ b/conf/master
@@ -60,15 +60,19 @@
 #
 #cachedir: /var/cache/salt/master
 
-# Directory for custom modules. This directory can contain subdirectories for
-# each of Salt's module types such as "runners", "output", "wheel", "modules",
-# "states", "returners", "engines", "utils", etc.
+# Directory where custom modules synced to This directory can contain
+# subdirectories for each of Salt's module types such as "runners",
+# "output", "wheel", "modules", "states", "returners", "engines",
+# "utils", etc.
+#
+# Note, any directories or files not found in the `module_dirs`
+# location will be removed from the extension_modules path.
+
 #extension_modules: /var/cache/salt/master/extmods
 
 # Directory for custom modules. This directory can contain subdirectories for
 # each of Salt's module types such as "runners", "output", "wheel", "modules",
 # "states", "returners", "engines", "utils", etc.
-# Like 'extension_modules' but can take an array of paths
 #module_dirs: []
 
 # Verify and set permissions on configuration directories at startup:
diff --git a/doc/ref/configuration/master.rst b/doc/ref/configuration/master.rst
index a41a6eed31d..17794a06efb 100644
--- a/doc/ref/configuration/master.rst
+++ b/doc/ref/configuration/master.rst
@@ -206,10 +206,13 @@ following the Filesystem Hierarchy Standard (FHS) might set it to
     moved into the master cachedir (on most platforms,
     ``/var/cache/salt/master/extmods``).
 
-Directory for custom modules. This directory can contain subdirectories for
-each of Salt's module types such as ``runners``, ``output``, ``wheel``,
-``modules``, ``states``, ``returners``, ``engines``, ``utils``, etc.
-This path is appended to :conf_master:`root_dir`.
+Directory wehre custom modules are synced to. This directory can contain
+subdirectories for each of Salt's module types such as ``runners``,
+``output``, ``wheel``, ``modules``, ``states``, ``returners``, ``engines``,
+``utils``, etc.  This path is appended to :conf_master:`root_dir`.
+
+Note, any directories or files not found in the `module_dirs` location
+will be removed from the extension_modules path.
 
 .. code-block:: yaml