diff --git a/test/test_utils.py b/test/test_utils.py
index cb0eb336c175aa..07c532b81c96c4 100644
--- a/test/test_utils.py
+++ b/test/test_utils.py
@@ -628,6 +628,13 @@ def test_get_set_dir(self):
             self.assertEqual(sum_of_state_dict(hub_model.state_dict()), SUM_OF_HUB_EXAMPLE)
             assert os.path.exists(os.path.join(tmpdir, 'ailzhang_torchhub_example_master'))
 
+        # Test that set_dir properly calls expanduser()
+        # non-regression test for https://github.com/pytorch/pytorch/issues/69761
+        new_dir = os.path.join("~", "hub")
+        torch.hub.set_dir(new_dir)
+        self.assertEqual(torch.hub.get_dir(), os.path.expanduser(new_dir))
+
+
     @retry(Exception, tries=3)
     def test_list_entrypoints(self):
         entry_lists = hub.list('ailzhang/torchhub_example', force_reload=True)
diff --git a/torch/hub.py b/torch/hub.py
index 4b36117b74a4b5..4a951ff27b4fa9 100644
--- a/torch/hub.py
+++ b/torch/hub.py
@@ -283,7 +283,7 @@ def set_dir(d):
         d (string): path to a local folder to save downloaded models & weights.
     """
     global _hub_dir
-    _hub_dir = d
+    _hub_dir = os.path.expanduser(d)
 
 
 def list(github, force_reload=False, skip_validation=False):