Encountering the WordPress Installation Failed: Could Not Create Directory error when trying to install a new plugin or theme can be incredibly frustrating, especially when you're eager to get your new plugin up and running. We'll dive into the specifics of why this error occurs and how to fix it by adjusting file permissions, changing file and directory ownership, and configuring your FTP settings correctly. You’ll also learn how to make necessary server setting adjustments to prevent this error from recurring.