diff --git a/codegen/config.go b/codegen/config.go
index e1e5ceb3480..874f6e32a46 100644
--- a/codegen/config.go
+++ b/codegen/config.go
@@ -2,12 +2,55 @@ package codegen
 
 import (
 	"fmt"
+	"io/ioutil"
+	"os"
 	"path/filepath"
 
 	"github.com/pkg/errors"
 	"github.com/vektah/gqlgen/neelance/schema"
+	"gopkg.in/yaml.v2"
 )
 
+var defaults = Config{
+	SchemaFilename: "schema.graphql",
+	Model:          PackageConfig{Filename: "models_gen.go"},
+	Exec:           PackageConfig{Filename: "generated.go"},
+}
+
+var cfgFilenames = []string{".gqlgen.yml", "gqlgen.yml", "gqlgen.yaml"}
+
+// LoadDefaultConfig looks for a config file in the current directory, and all parent directories
+// walking up the tree. The closest config file will be returned.
+func LoadDefaultConfig() (*Config, error) {
+	cfgFile, err := findCfg()
+	if err != nil || cfgFile == "" {
+		cpy := defaults
+		return &cpy, err
+	}
+
+	err = os.Chdir(filepath.Dir(cfgFile))
+	if err != nil {
+		return nil, errors.Wrap(err, "unable to enter config dir")
+	}
+	return LoadConfig(cfgFile)
+}
+
+// LoadConfig reads the gqlgen.yml config file
+func LoadConfig(filename string) (*Config, error) {
+	config := defaults
+
+	b, err := ioutil.ReadFile(filename)
+	if err != nil {
+		return nil, errors.Wrap(err, "unable to read config")
+	}
+
+	if err := yaml.Unmarshal(b, &config); err != nil {
+		return nil, errors.Wrap(err, "unable to parse config")
+	}
+
+	return &config, nil
+}
+
 type Config struct {
 	SchemaFilename string        `yaml:"schema,omitempty"`
 	SchemaStr      string        `yaml:"-"`
@@ -75,3 +118,30 @@ func (tm TypeMap) Check() error {
 	}
 	return nil
 }
+
+// findCfg searches for the config file in this directory and all parents up the tree
+// looking for the closest match
+func findCfg() (string, error) {
+	dir, err := os.Getwd()
+	if err != nil {
+		return "", errors.Wrap(err, "unable to get working dir to findCfg")
+	}
+
+	cfg := findCfgInDir(dir)
+	for cfg == "" && dir != "/" {
+		dir = filepath.Dir(dir)
+		cfg = findCfgInDir(dir)
+	}
+
+	return cfg, nil
+}
+
+func findCfgInDir(dir string) string {
+	for _, cfgName := range cfgFilenames {
+		path := filepath.Join(dir, cfgName)
+		if _, err := os.Stat(path); err == nil {
+			return path
+		}
+	}
+	return ""
+}
diff --git a/codegen/config_test.go b/codegen/config_test.go
new file mode 100644
index 00000000000..3d9d383f101
--- /dev/null
+++ b/codegen/config_test.go
@@ -0,0 +1,54 @@
+package codegen
+
+import (
+	"os"
+	"path/filepath"
+	"testing"
+
+	"github.com/stretchr/testify/require"
+)
+
+func TestLoadConfig(t *testing.T) {
+	t.Run("config does not exist", func(t *testing.T) {
+		_, err := LoadConfig("doesnotexist.yml")
+		require.EqualError(t, err, "unable to read config: open doesnotexist.yml: no such file or directory")
+	})
+
+	t.Run("malformed config", func(t *testing.T) {
+		_, err := LoadConfig("testdata/cfg/malformedconfig.yml")
+		require.EqualError(t, err, "unable to parse config: yaml: unmarshal errors:\n  line 1: cannot unmarshal !!str `asdf` into codegen.Config")
+	})
+}
+
+func TestLoadDefaultConfig(t *testing.T) {
+	testDir, err := os.Getwd()
+	require.NoError(t, err)
+	var cfg *Config
+
+	t.Run("will find closest match", func(t *testing.T) {
+		err = os.Chdir(filepath.Join(testDir, "testdata", "cfg", "subdir"))
+		require.NoError(t, err)
+
+		cfg, err = LoadDefaultConfig()
+		require.NoError(t, err)
+		require.Equal(t, cfg.SchemaFilename, "inner")
+	})
+
+	t.Run("will find config in parent dirs", func(t *testing.T) {
+		err = os.Chdir(filepath.Join(testDir, "testdata", "cfg", "otherdir"))
+		require.NoError(t, err)
+
+		cfg, err = LoadDefaultConfig()
+		require.NoError(t, err)
+		require.Equal(t, cfg.SchemaFilename, "outer")
+	})
+
+	t.Run("will fallback to defaults", func(t *testing.T) {
+		err = os.Chdir(testDir)
+		require.NoError(t, err)
+
+		cfg, err = LoadDefaultConfig()
+		require.NoError(t, err)
+		require.Equal(t, cfg.SchemaFilename, "schema.graphql")
+	})
+}
diff --git a/codegen/testdata/cfg/gqlgen.yml b/codegen/testdata/cfg/gqlgen.yml
new file mode 100644
index 00000000000..1381aafd033
--- /dev/null
+++ b/codegen/testdata/cfg/gqlgen.yml
@@ -0,0 +1 @@
+schema: outer
diff --git a/codegen/testdata/cfg/malformedconfig.yml b/codegen/testdata/cfg/malformedconfig.yml
new file mode 100644
index 00000000000..8bd6648ed13
--- /dev/null
+++ b/codegen/testdata/cfg/malformedconfig.yml
@@ -0,0 +1 @@
+asdf
diff --git a/codegen/testdata/cfg/otherdir/.gitkeep b/codegen/testdata/cfg/otherdir/.gitkeep
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/codegen/testdata/cfg/subdir/gqlgen.yaml b/codegen/testdata/cfg/subdir/gqlgen.yaml
new file mode 100644
index 00000000000..303effe0ac3
--- /dev/null
+++ b/codegen/testdata/cfg/subdir/gqlgen.yaml
@@ -0,0 +1 @@
+schema: inner
diff --git a/docs/content/getting-started.md b/docs/content/getting-started.md
index ae2d29f4491..6defb3ed552 100644
--- a/docs/content/getting-started.md
+++ b/docs/content/getting-started.md
@@ -267,7 +267,7 @@ go get github.com/vektah/gorunpkg
 
 Now at the top of our graph.go:
 ```go
-//go:generate gorunpkg gqlgen
+//go:generate gorunpkg github.com/vektah/gqlgen
 
 package graph
 ```
diff --git a/main.go b/main.go
index e7040b60416..5884aaf3a6b 100644
--- a/main.go
+++ b/main.go
@@ -10,7 +10,7 @@ import (
 	"gopkg.in/yaml.v2"
 )
 
-var configFilename = flag.String("config", ".gqlgen.yml", "the file to configuration to")
+var configFilename = flag.String("config", "", "the file to configuration to")
 var output = flag.String("out", "", "the file to write to")
 var models = flag.String("models", "", "the file to write the models to")
 var schemaFilename = flag.String("schema", "", "the graphql schema to generate types from")
@@ -32,7 +32,17 @@ func main() {
 		os.Exit(1)
 	}
 
-	config := loadConfig()
+	var config *codegen.Config
+	var err error
+	if *configFilename != "" {
+		config, err = codegen.LoadConfig(*configFilename)
+	} else {
+		config, err = codegen.LoadDefaultConfig()
+	}
+	if err != nil {
+		fmt.Fprintln(os.Stderr, err.Error())
+		os.Exit(1)
+	}
 
 	// overwrite by commandline options
 	var emitYamlGuidance bool
@@ -76,7 +86,7 @@ func main() {
 			os.Exit(1)
 		}
 
-		fmt.Fprintf(os.Stderr, "DEPRECATION WARNING: we are moving away from the json typemap, instead create a .gqlgen.yml with the following content:\n\n%s\n", string(b))
+		fmt.Fprintf(os.Stderr, "DEPRECATION WARNING: we are moving away from the json typemap, instead create a gqlgen.yml with the following content:\n\n%s\n", string(b))
 	}
 
 	err = codegen.Generate(*config)
@@ -86,29 +96,6 @@ func main() {
 	}
 }
 
-func loadConfig() *codegen.Config {
-	config := &codegen.Config{
-		SchemaFilename: "schema.graphql",
-		Model:          codegen.PackageConfig{Filename: "models_gen.go"},
-		Exec:           codegen.PackageConfig{Filename: "generated.go"},
-	}
-
-	b, err := ioutil.ReadFile(*configFilename)
-	if os.IsNotExist(err) {
-		return config
-	} else if err != nil {
-		fmt.Fprintln(os.Stderr, "unable to open config: "+err.Error())
-		os.Exit(1)
-	}
-
-	if err := yaml.Unmarshal(b, config); err != nil {
-		fmt.Fprintln(os.Stderr, "unable to parse config: "+err.Error())
-		os.Exit(1)
-	}
-
-	return config
-}
-
 func loadModelMap() codegen.TypeMap {
 	var goTypes map[string]string
 	b, err := ioutil.ReadFile(*typemap)
diff --git a/test/.gqlgen.yml b/test/config.yaml
similarity index 100%
rename from test/.gqlgen.yml
rename to test/config.yaml
diff --git a/test/resolvers_test.go b/test/resolvers_test.go
index 3a468fb617b..94192722306 100644
--- a/test/resolvers_test.go
+++ b/test/resolvers_test.go
@@ -1,4 +1,4 @@
-//go:generate gorunpkg github.com/vektah/gqlgen
+//go:generate gorunpkg github.com/vektah/gqlgen -config config.yaml
 
 package test