diff --git a/CHANGELOG.md b/CHANGELOG.md
index 798096b..431870b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -10,6 +10,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 
 - More `HttpClient` attributes to `Config` ([#177](https://github.com/stac-utils/stac-asset/pull/177))
 - `derived_from` link ([#178](https://github.com/stac-utils/stac-asset/pull/178))
+- Option for templated paths when downloading item collections ([#181](https://github.com/stac-utils/stac-asset/pull/181))
 
 ### Removed
 
diff --git a/README.md b/README.md
index 15d3cf2..9611efb 100644
--- a/README.md
+++ b/README.md
@@ -88,6 +88,15 @@ stac-client search https://planetarycomputer.microsoft.com/api/stac/v1 \
     stac-asset download -i rendered_preview -q
 ```
 
+By default, all assets are stored in a folder named after the item ID. To change this, you can use the `-p` flag and specify a path template using PySTAC layout template [variables](https://pystac.readthedocs.io/en/latest/api/layout.html#pystac.layout.LayoutTemplate):
+
+```
+stac-client search https://planetarycomputer.microsoft.com/api/stac/v1 \
+        -c landsat-c2-l2 \
+        --max-items 1 | \
+    stac-asset download -i rendered_preview -p '${collection}'
+```
+
 See [the documentation](https://stac-asset.readthedocs.io/en/latest/index.html) for more examples and complete API and CLI documentation.
 
 ### Clients
diff --git a/src/stac_asset/_cli.py b/src/stac_asset/_cli.py
index 3c8e971..5e4df16 100644
--- a/src/stac_asset/_cli.py
+++ b/src/stac_asset/_cli.py
@@ -55,6 +55,11 @@ def cli() -> None:
 @cli.command()
 @click.argument("href", required=False)
 @click.argument("directory", required=False)
+@click.option(
+    "-p",
+    "--path-template",
+    help="String to be interpolated to specify where to store downloaded files",
+)
 @click.option(
     "-a",
     "--alternate-assets",
@@ -125,6 +130,7 @@ def cli() -> None:
 def download(
     href: Optional[str],
     directory: Optional[str],
+    path_template: Optional[str],
     alternate_assets: List[str],
     include: List[str],
     exclude: List[str],
@@ -160,6 +166,7 @@ def download(
         download_async(
             href,
             directory,
+            path_template,
             alternate_assets,
             include,
             exclude,
@@ -178,6 +185,7 @@ def download(
 async def download_async(
     href: Optional[str],
     directory: Optional[str],
+    path_template: Optional[str],
     alternate_assets: List[str],
     include: List[str],
     exclude: List[str],
@@ -241,6 +249,7 @@ async def download() -> Union[Item, ItemCollection]:
             return await _functions.download_item_collection(
                 item_collection,
                 directory_str,
+                path_template,
                 file_name=file_name,
                 config=config,
                 messages=messages,
diff --git a/src/stac_asset/_functions.py b/src/stac_asset/_functions.py
index 475c541..1901d67 100644
--- a/src/stac_asset/_functions.py
+++ b/src/stac_asset/_functions.py
@@ -19,6 +19,7 @@
 
 import pystac.utils
 from pystac import Asset, Collection, Item, ItemCollection, Link, STACError
+from pystac.layout import LayoutTemplate
 from yarl import URL
 
 from .client import Client, Clients
@@ -307,6 +308,7 @@ async def download_collection(
 async def download_item_collection(
     item_collection: ItemCollection,
     directory: PathLikeObject,
+    path_template: Optional[str] = None,
     file_name: Optional[str] = "item-collection.json",
     config: Optional[Config] = None,
     messages: Optional[MessageQueue] = None,
@@ -318,6 +320,8 @@ async def download_item_collection(
     Args:
         item_collection: The item collection to download
         directory: The destination directory
+        path_template: String to be interpolated to specify where to store
+            downloaded files.
         file_name: The name of the item collection file to save. If not
             provided, will not be saved.
         config: The download configuration
@@ -335,7 +339,9 @@ async def download_item_collection(
     async with Downloads(config=config or Config(), clients=clients) as downloads:
         for item in item_collection.items:
             item.set_self_href(None)
-            root = Path(directory) / item.id
+            root = Path(directory) / LayoutTemplate(
+                path_template if path_template is not None else "${id}"
+            ).substitute(item)
             await downloads.add(item, root, None, keep_non_downloaded)
         await downloads.download(messages)
     if file_name:
diff --git a/src/stac_asset/blocking.py b/src/stac_asset/blocking.py
index 603705d..80cb11c 100644
--- a/src/stac_asset/blocking.py
+++ b/src/stac_asset/blocking.py
@@ -108,6 +108,7 @@ def download_collection(
 def download_item_collection(
     item_collection: ItemCollection,
     directory: PathLikeObject,
+    path_template: Optional[str] = None,
     file_name: Optional[str] = "item-collection.json",
     config: Optional[Config] = None,
     messages: Optional[MessageQueue] = None,
@@ -119,6 +120,8 @@ def download_item_collection(
     Args:
         item_collection: The item collection to download
         directory: The destination directory
+        path_template: String to be interpolated to specify where to store
+            downloaded files.
         file_name: The name of the item collection file to save. If not
             provided, will not be saved.
         config: The download configuration
@@ -142,6 +145,7 @@ def download_item_collection(
             messages=messages,
             clients=clients,
             keep_non_downloaded=keep_non_downloaded,
+            path_template=path_template,
         )
     )
 
diff --git a/tests/data/item.json b/tests/data/item.json
index c7feb8d..a69ceab 100644
--- a/tests/data/item.json
+++ b/tests/data/item.json
@@ -10,11 +10,16 @@
         {
             "href": "./catalog.json",
             "rel": "parent"
+        },
+        {
+            "href": "./collection.json",
+            "rel": "collection"
         }
     ],
     "assets": {
         "data": {
             "href": "./20201211_223832_CS2.jpg"
         }
-    }
-}
\ No newline at end of file
+    },
+    "collection": "test-collection"
+}
diff --git a/tests/test_functions.py b/tests/test_functions.py
index b52c0c5..d3a82ac 100644
--- a/tests/test_functions.py
+++ b/tests/test_functions.py
@@ -134,6 +134,22 @@ async def test_download_item_collection_with_file_name_and_cd(
     )
 
 
+async def test_download_item_collection_with_path_template(
+    tmp_path: Path, item_collection: ItemCollection
+) -> None:
+    await stac_asset.download_item_collection(
+        item_collection,
+        tmp_path,
+        file_name="item-collection.json",
+        path_template="${collection}",
+    )
+    item_collection = ItemCollection.from_file(str(tmp_path / "item-collection.json"))
+    assert isinstance(item_collection.items[0].collection_id, str)
+    assert item_collection.items[0].assets["data"].href == str(
+        tmp_path / "test-collection/20201211_223832_CS2.jpg"
+    )
+
+
 async def test_download_collection(tmp_path: Path, collection: Collection) -> None:
     collection = await stac_asset.download_collection(
         collection, tmp_path, file_name="collection.json"