diff --git a/src/Api/Api.php b/src/Api/Api.php
index c728b77a..5d33d71b 100644
--- a/src/Api/Api.php
+++ b/src/Api/Api.php
@@ -140,6 +140,11 @@ class Api
      */
     private $transactions;
 
+    /**
+     * @var string|null
+     */
+    private $modelNamespace;
+
     /**
      * Api constructor.
      *
@@ -156,6 +161,7 @@ class Api
      * @param array $providers
      * @param string|null $connection
      * @param bool $transactions
+     * @param string|null $modelNamespace
      */
     public function __construct(
         Factory $factory,
@@ -170,7 +176,8 @@ public function __construct(
         array $errors = [],
         array $providers = [],
         string $connection = null,
-        bool $transactions = true
+        bool $transactions = true,
+        string $modelNamespace = null
     ) {
         $this->factory = $factory;
         $this->resolver = $resolver;
@@ -185,6 +192,7 @@ public function __construct(
         $this->providers = $providers;
         $this->connection = $connection;
         $this->transactions = $transactions;
+        $this->modelNamespace = $modelNamespace;
     }
 
     /**
@@ -384,6 +392,16 @@ public function hasTransactions(): bool
         return $this->transactions;
     }
 
+    /**
+     * @return string|null
+     */
+    public function getModelNamespace(): ?string
+    {
+        return $this->modelNamespace;
+    }
+
+
+
     /**
      * Create an encoder for the API.
      *
diff --git a/src/Api/Repository.php b/src/Api/Repository.php
index 30f6e930..70738cac 100644
--- a/src/Api/Repository.php
+++ b/src/Api/Repository.php
@@ -90,7 +90,8 @@ public function createApi($apiName, $host = null)
             $config['errors'],
             $config['providers'] ?? [],
             $config['controllers']['connection'] ?? null,
-            $config['controllers']['transactions'] ?? true
+            $config['controllers']['transactions'] ?? true,
+            $config['model-namespace'] ?? null
         );
 
         /** Attach resource providers to the API. */
diff --git a/src/Console/Commands/AbstractGeneratorCommand.php b/src/Console/Commands/AbstractGeneratorCommand.php
index 9e54a1d9..5d600304 100644
--- a/src/Console/Commands/AbstractGeneratorCommand.php
+++ b/src/Console/Commands/AbstractGeneratorCommand.php
@@ -141,7 +141,8 @@ protected function buildClass($name)
             ->replaceClassName($stub, $name)
             ->replaceResourceType($stub)
             ->replaceApplicationNamespace($stub)
-            ->replaceRecord($stub);
+            ->replaceRecord($stub)
+            ->replaceModelNamespace($stub);
 
         return $stub;
     }
@@ -273,6 +274,20 @@ protected function replaceClassName(&$stub, $name)
         return $this;
     }
 
+    /**
+     * Replace the model namespace name.
+     *
+     * @param $stub
+     * @return $this
+     */
+    private function replaceModelNamespace(&$stub) {
+
+        $modelNamespace = $this->getApi()->getModelNamespace() ?? rtrim($this->laravel->getNamespace(), "\\");
+        $stub = str_replace('DummyModelNamespace', $modelNamespace, $stub);
+
+        return $this;
+    }
+
     /**
      * Get the stub for specific generator type
      *
diff --git a/stubs/api.php b/stubs/api.php
index 06632126..51ae6e0a 100644
--- a/stubs/api.php
+++ b/stubs/api.php
@@ -39,6 +39,19 @@
     'namespace' => null,
     'by-resource' => true,
 
+    /*
+    |--------------------------------------------------------------------------
+    | Model Namespace
+    |--------------------------------------------------------------------------
+    |
+    | Here you can decide where your api models live.
+    | By default (i.e. set to null), the package assumes they will live on
+    | your root namespace
+    |   - e.g. namespace: 'App', Models: 'App\Foo', 'App\Bar'
+    |
+    */
+    'model-namespace' => null,
+
     /*
     |--------------------------------------------------------------------------
     | Resources
diff --git a/stubs/eloquent/adapter.stub b/stubs/eloquent/adapter.stub
index 90f62843..fafd9fbe 100644
--- a/stubs/eloquent/adapter.stub
+++ b/stubs/eloquent/adapter.stub
@@ -31,7 +31,7 @@ class DummyClass extends AbstractAdapter
      */
     public function __construct(StandardStrategy $paging)
     {
-        parent::__construct(new \DummyApplicationNamespace\DummyRecord(), $paging);
+        parent::__construct(new \DummyModelNamespace\DummyRecord(), $paging);
     }
 
     /**
diff --git a/stubs/eloquent/schema.stub b/stubs/eloquent/schema.stub
index 3ecd8cff..0af95747 100644
--- a/stubs/eloquent/schema.stub
+++ b/stubs/eloquent/schema.stub
@@ -13,7 +13,7 @@ class DummyClass extends SchemaProvider
     protected $resourceType = 'dummyResourceType';
 
     /**
-     * @param $resource
+     * @param \DummyModelNamespace\DummyRecord $resource
      *      the domain record being serialized.
      * @return string
      */
@@ -23,7 +23,7 @@ class DummyClass extends SchemaProvider
     }
 
     /**
-     * @param $resource
+     * @param \DummyModelNamespace\DummyRecord $resource
      *      the domain record being serialized.
      * @return array
      */
diff --git a/tests/dummy/config/json-api-v1.php b/tests/dummy/config/json-api-v1.php
index 4c2ec46e..7848f4b1 100644
--- a/tests/dummy/config/json-api-v1.php
+++ b/tests/dummy/config/json-api-v1.php
@@ -39,6 +39,19 @@
     'namespace' => 'DummyApp\JsonApi',
     'by-resource' => true,
 
+    /*
+    |--------------------------------------------------------------------------
+    | Model Namespace
+    |--------------------------------------------------------------------------
+    |
+    | Here you can decide where your api models live.
+    |
+    | By default Models live on the root of the application like App\Post hence the model-namespace: 'App'
+    | but you can set it any other place like App\Models\Post hence the model-namespace: 'App\Models'
+    |
+    */
+    'model-namespace' => null,
+
     /*
     |--------------------------------------------------------------------------
     | Resources
diff --git a/tests/lib/Integration/GeneratorsTest.php b/tests/lib/Integration/GeneratorsTest.php
index 2cf5907f..1c4be2ed 100644
--- a/tests/lib/Integration/GeneratorsTest.php
+++ b/tests/lib/Integration/GeneratorsTest.php
@@ -475,6 +475,7 @@ private function assertEloquentSchema()
     {
         $content = $this->assertSchema();
         $this->assertContentContains('return (string) $resource->getRouteKey();', $content);
+        $this->assertContentContains(' @param \DummyApp\Company $resource', $content);
     }
 
     /**