diff --git a/src/cli.ts b/src/cli.ts
index 58b147c..1206628 100644
--- a/src/cli.ts
+++ b/src/cli.ts
@@ -3,8 +3,16 @@ import { red } from 'colorette';
 import { program } from 'commander';
 import type { Issue } from 'cspell';
 import { lint } from 'cspell';
-import { findConfig } from './config';
-import { reportErrors, reportSuccess, resetDisplay, showProgress, showStartupMessage, stopSpinner } from './display';
+import { findOrCreateConfig } from './config';
+import {
+	reportErrors,
+	reportSuccess,
+	resetDisplay,
+	showConfigurationFilePath,
+	showProgress,
+	showStartupMessage,
+	stopSpinner
+} from './display';
 import { handleIssues } from './handleIssue';
 
 interface CLIOptions {
@@ -52,7 +60,8 @@ const globs = program.processedArgs[0];
 showStartupMessage(globs);
 
 const start = async () => {
-	const configPath = await findConfig(options.config);
+	const configPath = await findOrCreateConfig(options.config);
+	showConfigurationFilePath(configPath);
 
 	const {
 		issues: issueCount,
diff --git a/src/config.ts b/src/config.ts
index 894b6a0..5a0fd5a 100644
--- a/src/config.ts
+++ b/src/config.ts
@@ -1,18 +1,24 @@
 import { extname } from 'node:path';
+import { existsSync } from 'node:fs';
 import { readFile, writeFile } from 'node:fs/promises';
 import type { CSpellSettings } from 'cspell';
 import { searchForConfig } from 'cspell-lib';
+import findDefaultConfigPath from 'application-config-path';
 // eslint-disable-next-line import/no-relative-packages
 import { previousState } from './shared';
 
 let configPath: string | undefined;
 
-export const findConfig = async (config?: string) => {
+export const writeToSettings = async (settings: CSpellSettings | { cspell: CSpellSettings }) => {
+	await writeFile(configPath!, JSON.stringify(settings, null, 4));
+};
+
+export const findOrCreateConfig = async (config?: string) => {
 	// Try to locate a config file in the current working directory, or with the `config` option if it was provided.
 	const configSource = config ?? (await searchForConfig(process.cwd()))?.__importRef?.filename;
 
 	// If no config file was found, use/create a config file in the user's configuration directory (platform dependent).
-	const path = configSource ?? (await import('application-config-path')).default('cspell.json');
+	const path = configSource ?? findDefaultConfigPath('cspell.json');
 
 	// Only JSON files are supported to prevent more dependencies for yml parsing. If the config file is not a JSON
 	// file, it can still be used, but it won't be updated with new ignored words.
@@ -20,6 +26,11 @@ export const findConfig = async (config?: string) => {
 		configPath = path;
 	}
 
+	// If configSource is undefined, check if default config path exists. If it doesn't, create it.
+	if (!configSource && !existsSync(path)) {
+		await writeToSettings({});
+	}
+
 	return path;
 };
 
@@ -37,10 +48,6 @@ export const getSettings = async (): Promise<CSpellSettings | { cspell: CSpellSe
 	}
 };
 
-export const writeToSettings = async (settings: CSpellSettings | { cspell: CSpellSettings }) => {
-	await writeFile(configPath!, JSON.stringify(settings, null, 4));
-};
-
 export const addIgnoreWordToSettings = async (word: string) => {
 	const settings = await getSettings();
 	if (!settings) {
diff --git a/src/display.ts b/src/display.ts
index b14b4af..a332a79 100644
--- a/src/display.ts
+++ b/src/display.ts
@@ -132,6 +132,10 @@ export const showStartupMessage = (globs: string[]) => {
 	console.log(`\nFinding files matching ${cyan(globs.join(', '))}`);
 };
 
+export const showConfigurationFilePath = (path: string) => {
+	console.log(`Using configuration from ${cyan(path)}\n`);
+};
+
 let spinner: Spinner | undefined;
 export const stopSpinner = () => {
 	spinner?.stop();
diff --git a/test/index.test.ts b/test/index.test.ts
index 5c1f35d..f556a8a 100644
--- a/test/index.test.ts
+++ b/test/index.test.ts
@@ -1,7 +1,10 @@
+import fs from 'node:fs';
+import { join } from 'node:path';
 import { writeFile } from 'node:fs/promises';
 import { vi, afterEach, describe, test, expect } from 'vitest';
 import { handleIssues } from '../src/handleIssue';
 import { determineAction, formatContext } from '../src/display';
+import { findOrCreateConfig } from '../src/config';
 import { Action } from '../src/shared';
 import { allTypoSets } from './fixtures/data';
 import { sampleReplacer } from './mocks/issue';
@@ -55,3 +58,19 @@ describe.each(allTypoSets)('%s', (name, data) => {
 		expect(contextDisplays, name).toMatchObject(data.displays);
 	});
 });
+
+describe('findConfig', () => {
+	test('should find a mock config file in working directory', async () => {
+		const configPath = join(process.cwd(), 'cspell.json');
+
+		const readFileSpy = vi.spyOn(fs, 'readFile');
+
+		readFileSpy.mockImplementation(((path: string, _encoding: any, callback: (err: null, data: string) => void) => {
+			callback(null, path === configPath ? '{}' : '');
+		}) as typeof fs.readFile);
+
+		const config = await findOrCreateConfig();
+
+		expect(config).toBe(configPath);
+	});
+});