diff --git a/.chloggen/add-local-module-replace-ocb-converter-provider.yaml b/.chloggen/add-local-module-replace-ocb-converter-provider.yaml
new file mode 100644
index 00000000000..9b053592715
--- /dev/null
+++ b/.chloggen/add-local-module-replace-ocb-converter-provider.yaml
@@ -0,0 +1,32 @@
+# Use this changelog template to create an entry for release notes.
+
+# One of 'breaking', 'deprecation', 'new_component', 'enhancement', 'bug_fix'
+change_type: enhancement
+
+# The name of the component, or a single word describing the area of concern, (e.g. otlpreceiver)
+component: cmd/builder
+
+# A brief description of the change.  Surround your text with quotes ("") if it needs to start with a backtick (`).
+note: Allow for replacing of local Providers and Converters when building custom collector with ocb.
+
+# One or more tracking issues or pull requests related to the change
+issues: [11649]
+
+# (Optional) One or more lines of additional information to render under the primary note.
+# These lines will be padded with 2 spaces and then inserted directly into the document.
+# Use pipe (|) for multiline entries.
+subtext: |
+  Use the property `path` under `gomod` to replace an go module with a local folder in
+  builder-config.yaml. Ex:
+  ```
+  providers:
+    - gomod: module.url/my/custom/provider v1.2.3
+      path: /path/to/local/provider
+  ```
+
+# Optional: The change log or logs in which this entry should be included.
+# e.g. '[user]' or '[user, api]'
+# Include 'user' if the change is relevant to end users.
+# Include 'api' if there is a change to a library API.
+# Default: '[user]'
+change_logs: [user]
diff --git a/cmd/builder/internal/builder/templates/go.mod.tmpl b/cmd/builder/internal/builder/templates/go.mod.tmpl
index cec15fe06a4..ef68aa277c4 100644
--- a/cmd/builder/internal/builder/templates/go.mod.tmpl
+++ b/cmd/builder/internal/builder/templates/go.mod.tmpl
@@ -34,6 +34,12 @@ require (
 	github.com/knadh/koanf/providers/confmap v0.1.0 // indirect
 )
 
+{{- range .Converters}}
+{{if ne .Path ""}}replace {{.GoMod}} => {{.Path}}{{end}}
+{{- end}}
+{{- range .Providers}}
+{{if ne .Path ""}}replace {{.GoMod}} => {{.Path}}{{end}}
+{{- end}}
 {{- range .Connectors}}
 {{if ne .Path ""}}replace {{.GoMod}} => {{.Path}}{{end}}
 {{- end}}