The specified Tomcat installation directory does not exist

If you encountered this error on Eclipse:

The specified Tomcat installation directory does not exist.

Check for CATALINA_HOME value on commandline. Type set on commandline, you can then see the value of CATALINA_HOME, mine is /Library/Tomcat/Home

Go to Eclipse's Preferences. Go to Server > Runtime Environments. Then click Add, then select Apache Tomcat, click Next; on Tomcat installation directory, click Browse..., then paste /Library/Tomcat/Home to the Open dialog textbox; if you are using OS X press command+shift+G first, then paste /Library/Tomcat/Home in the Go to the folder's textbox, then click Go, then click Open

Then click Finish, then click OK

You can now create Dynamic Web Project