diff --git a/ansible/roles/placement/tasks/config.yml b/ansible/roles/placement/tasks/config.yml
index a17610767a..86ad2dc82a 100644
--- a/ansible/roles/placement/tasks/config.yml
+++ b/ansible/roles/placement/tasks/config.yml
@@ -104,7 +104,7 @@
   become: true
   template:
     src: "{{ placement_policy_file_path }}"
-    dest: "{{ placement_config_directory }}/{{ item.key }}/{{ placement_policy_file }}"
+    dest: "{{ node_config_directory }}/{{ item.key }}/{{ placement_policy_file }}"
     mode: "0660"
   when:
     - inventory_hostname in groups[item.value.group]
diff --git a/releasenotes/notes/bug-1948835-51b15ddbef04d307.yaml b/releasenotes/notes/bug-1948835-51b15ddbef04d307.yaml
new file mode 100644
index 0000000000..893eecb4fc
--- /dev/null
+++ b/releasenotes/notes/bug-1948835-51b15ddbef04d307.yaml
@@ -0,0 +1,6 @@
+---
+fixes:
+  - |
+    Fixes an error in placement role which prevents to deploy the placement
+    service when custom policy file is used.
+    `LP#1948835 <https://bugs.launchpad.net/kolla-ansible/+bug/1948835>`__