diff --git a/cmd/sops/main.go b/cmd/sops/main.go
index 0563a2daa..9853505af 100644
--- a/cmd/sops/main.go
+++ b/cmd/sops/main.go
@@ -44,7 +44,13 @@ import (
 	"github.com/getsops/sops/v3/version"
 )
 
-var log *logrus.Logger
+var (
+	log *logrus.Logger
+
+	// Whether the config file warning was already shown to the user.
+	// Used and set by findConfigFile().
+	showedConfigFileWarning bool
+)
 
 func init() {
 	log = logging.NewLogger("CMD")
@@ -364,7 +370,7 @@ func main() {
 				if c.GlobalString("config") != "" {
 					configPath = c.GlobalString("config")
 				} else {
-					configPath, err = config.FindConfigFile(".")
+					configPath, err = findConfigFile()
 					if err != nil {
 						return common.NewExitError(err, codes.ErrorGeneric)
 					}
@@ -685,7 +691,7 @@ func main() {
 				if c.GlobalString("config") != "" {
 					configPath = c.GlobalString("config")
 				} else {
-					configPath, err = config.FindConfigFile(".")
+					configPath, err = findConfigFile()
 					if err != nil {
 						return common.NewExitError(err, codes.ErrorGeneric)
 					}
@@ -2183,11 +2189,21 @@ func keyservices(c *cli.Context) (svcs []keyservice.KeyServiceClient) {
 	return
 }
 
+// Wrapper of config.LookupConfigFile that takes care of handling the returned warning.
+func findConfigFile() (string, error) {
+	result, err := config.LookupConfigFile(".")
+	if len(result.Warning) > 0 && !showedConfigFileWarning {
+		showedConfigFileWarning = true
+		log.Warn(result.Warning)
+	}
+	return result.Path, err
+}
+
 func loadStoresConfig(context *cli.Context, path string) (*config.StoresConfig, error) {
 	configPath := context.GlobalString("config")
 	if configPath == "" {
-		// Ignore config not found errors returned from FindConfigFile since the config file is not mandatory
-		foundPath, err := config.FindConfigFile(".")
+		// Ignore config not found errors returned from findConfigFile since the config file is not mandatory
+		foundPath, err := findConfigFile()
 		if err != nil {
 			return config.NewStoresConfig(), nil
 		}
@@ -2322,14 +2338,14 @@ func keyGroups(c *cli.Context, file string) ([]sops.KeyGroup, error) {
 	return []sops.KeyGroup{group}, nil
 }
 
-// loadConfig will look for an existing config file, either provided through the command line, or using config.FindConfigFile.
+// loadConfig will look for an existing config file, either provided through the command line, or using findConfigFile
 // Since a config file is not required, this function does not error when one is not found, and instead returns a nil config pointer
 func loadConfig(c *cli.Context, file string, kmsEncryptionContext map[string]*string) (*config.Config, error) {
 	var err error
 	configPath := c.GlobalString("config")
 	if configPath == "" {
-		// Ignore config not found errors returned from FindConfigFile since the config file is not mandatory
-		configPath, err = config.FindConfigFile(".")
+		// Ignore config not found errors returned from findConfigFile since the config file is not mandatory
+		configPath, err = findConfigFile()
 		if err != nil {
 			// If we can't find a config file, but we were not explicitly requested to, assume it does not exist
 			return nil, nil
diff --git a/config/config.go b/config/config.go
index 8d3dc4dd1..06ad57370 100644
--- a/config/config.go
+++ b/config/config.go
@@ -37,22 +37,65 @@ func (fs osFS) Stat(name string) (os.FileInfo, error) {
 var fs fileSystem = osFS{stat: os.Stat}
 
 const (
-	maxDepth       = 100
-	configFileName = ".sops.yaml"
+	maxDepth            = 100
+	configFileName      = ".sops.yaml"
+	alternateConfigName = ".sops.yml"
 )
 
-// FindConfigFile looks for a sops config file in the current working directory and on parent directories, up to the limit defined by the maxDepth constant.
-func FindConfigFile(start string) (string, error) {
+// ConfigFileResult contains the path to a config file and any warnings
+type ConfigFileResult struct {
+	Path    string
+	Warning string
+}
+
+// LookupConfigFile looks for a sops config file in the current working directory
+// and on parent directories, up to the maxDepth limit.
+// It returns a result containing the file path and any warnings.
+func LookupConfigFile(start string) (ConfigFileResult, error) {
 	filepath := path.Dir(start)
+	var foundAlternatePath string
+
 	for i := 0; i < maxDepth; i++ {
-		_, err := fs.Stat(path.Join(filepath, configFileName))
-		if err != nil {
-			filepath = path.Join(filepath, "..")
-		} else {
-			return path.Join(filepath, configFileName), nil
+		configPath := path.Join(filepath, configFileName)
+		_, err := fs.Stat(configPath)
+		if err == nil {
+			result := ConfigFileResult{Path: configPath}
+
+			if foundAlternatePath != "" {
+				result.Warning = fmt.Sprintf(
+					"ignoring %q when searching for config file; the config file must be called %q; using %q instead",
+					foundAlternatePath, configFileName, configPath)
+			}
+			return result, nil
 		}
+
+		// Check for alternate filename if we haven't found one yet
+		if foundAlternatePath == "" {
+			alternatePath := path.Join(filepath, alternateConfigName)
+			_, altErr := fs.Stat(alternatePath)
+			if altErr == nil {
+				foundAlternatePath = alternatePath
+			}
+		}
+
+		filepath = path.Join(filepath, "..")
 	}
-	return "", fmt.Errorf("Config file not found")
+
+	// No config file found
+	result := ConfigFileResult{}
+	if foundAlternatePath != "" {
+		result.Warning = fmt.Sprintf(
+			"ignoring %q when searching for config file; the config file must be called %q",
+			foundAlternatePath, configFileName)
+	}
+
+	return result, fmt.Errorf("config file not found")
+}
+
+// FindConfigFile looks for a sops config file in the current working directory and on parent directories, up to the limit defined by the maxDepth constant.
+func FindConfigFile(start string) (string, error) {
+	result, err := LookupConfigFile(start)
+	return result.Path, err
 }
 
 type DotenvStoreConfig struct{}