diff --git a/ktlint/src/main/kotlin/com/github/shyiko/ktlint/Main.kt b/ktlint/src/main/kotlin/com/github/shyiko/ktlint/Main.kt
index ca2cf1a79e..1f0f7192ec 100644
--- a/ktlint/src/main/kotlin/com/github/shyiko/ktlint/Main.kt
+++ b/ktlint/src/main/kotlin/com/github/shyiko/ktlint/Main.kt
@@ -10,6 +10,7 @@ import com.github.shyiko.ktlint.core.RuleExecutionException
 import com.github.shyiko.ktlint.core.RuleSet
 import com.github.shyiko.ktlint.core.RuleSetProvider
 import com.github.shyiko.ktlint.internal.EditorConfig
+import com.github.shyiko.ktlint.internal.EditorConfigFinder
 import com.github.shyiko.ktlint.internal.IntellijIDEAIntegration
 import com.github.shyiko.ktlint.internal.MavenDependencyResolver
 import com.github.shyiko.ktlint.test.DumpAST
@@ -187,19 +188,12 @@ object Main {
     @Option(names = arrayOf("-y"), hidden = true)
     private var forceApply: Boolean = false
 
-    @Option(names = arrayOf("--editorconfig-path"), description = arrayOf("Specify folder path of .editorconfig"))
-    private var editorConfigDirParam: String? = null
-    private val editorConfigDir: String
-        get() {
-            val filePath = if (editorConfigDirParam == null) File(".") else File(editorConfigDirParam)
-            return filePath.canonicalPath
-        }
-
     @Parameters(hidden = true)
     private var patterns = ArrayList<String>()
 
     private val workDir = File(".").canonicalPath
     private fun File.location() = if (relative) this.toRelativeString(File(workDir)) else this.path
+    private val editConfigFinder = EditorConfigFinder(workDir, true)
 
     private fun usage() =
         ByteArrayOutputStream()
@@ -268,27 +262,17 @@ object Main {
             ruleSetProviders.forEach { System.err.println("[DEBUG] Discovered ruleset \"${it.first}\"") }
         }
         val reporter = loadReporter(dependencyResolver)
-        // load .editorconfig
-        val userData = (
-            EditorConfig.of(editorConfigDir)
-                ?.also { editorConfig ->
-                    if (debug) {
-                        System.err.println("[DEBUG] Discovered .editorconfig (${
-                            generateSequence(editorConfig) { it.parent }.map { it.path.parent.toFile().location() }.joinToString()
-                        })")
-                        System.err.println("[DEBUG] ${editorConfig.mapKeys { it.key }} loaded from .editorconfig")
-                    }
-                }
-                ?: emptyMap<String, String>()
-            ) + mapOf("android" to android.toString())
+        val userData = mapOf("android" to android.toString())
+
         val tripped = AtomicBoolean()
         data class LintErrorWithCorrectionInfo(val err: LintError, val corrected: Boolean)
         fun process(fileName: String, fileContent: String): List<LintErrorWithCorrectionInfo> {
             if (debug) {
                 System.err.println("[DEBUG] Checking ${if (fileName != "<text>") File(fileName).location() else fileName}")
             }
+            val editorConfig = editConfigFinder.getEditorConfig(fileName)
             val result = ArrayList<LintErrorWithCorrectionInfo>()
-            val localUserData = if (fileName != "<text>") userData + ("file_path" to fileName) else userData
+            val localUserData = editorConfig.safe() + if (fileName != "<text>") userData + ("file_path" to fileName) else userData
             if (format) {
                 val formattedFileContent = try {
                     format(fileName, fileContent, ruleSetProviders.map { it.second.get() }, localUserData) { err, corrected ->
@@ -686,4 +670,16 @@ object Main {
         executorService.shutdown()
         consumer.join()
     }
+
+    private fun EditorConfig?.safe(): Map<String, String> {
+        this ?: return emptyMap()
+
+        if (debug) {
+            System.err.println("[DEBUG] Discovered .editorconfig (${
+            generateSequence(this) { it.parent }.map { it.path.parent.toFile().location() }.joinToString()
+            })")
+            System.err.println("[DEBUG] ${this.mapKeys { it.key }} loaded from " + this.path)
+        }
+        return this
+    }
 }
diff --git a/ktlint/src/main/kotlin/com/github/shyiko/ktlint/internal/EditorConfigFinder.kt b/ktlint/src/main/kotlin/com/github/shyiko/ktlint/internal/EditorConfigFinder.kt
new file mode 100644
index 0000000000..5dd356c0ab
--- /dev/null
+++ b/ktlint/src/main/kotlin/com/github/shyiko/ktlint/internal/EditorConfigFinder.kt
@@ -0,0 +1,51 @@
+package com.github.shyiko.ktlint.internal
+
+import java.io.File
+
+class EditorConfigFinder(private val workDir: String, private val debug: Boolean) {
+
+    private val editorConfigs = mutableMapOf<String, EditorConfig?>()
+
+    init {
+        editorConfigs[workDir] = EditorConfig.of(workDir)
+    }
+
+    @Synchronized
+    fun getEditorConfig(file: File): EditorConfig? = editorConfigs.getOrPut(file.key(), {
+        findParentEditorConfig(file)
+    })
+
+    @Synchronized
+    fun getEditorConfig(filePath: String): EditorConfig? = getEditorConfig(File(filePath))
+
+    private fun findParentEditorConfig(file: File): EditorConfig? {
+        var currentFile: File = if (file.isDirectory) file else file.parentFile
+        val missingPathsWithEditorConfig = mutableListOf<String>()
+
+        while (currentFile.canonicalPath != workDir) {
+            val currentPath = currentFile.canonicalPath
+            val editorConfigFile = File("$currentPath/.editorconfig")
+            if (editorConfigFile.exists() && editorConfigFile.isFile) {
+                if (debug) {
+                    System.err.println("[DEBUG] Found .editorconfig for ${file.name} in ${editorConfigFile.canonicalPath}")
+                }
+
+                return EditorConfig.of(currentPath)?.also {
+                    missingPathsWithEditorConfig.forEach { path ->
+                        editorConfigs[path] = it
+                    }
+                }
+            }
+
+            currentFile = currentFile.parentFile
+        }
+
+        return editorConfigs[workDir]?.also {
+            missingPathsWithEditorConfig.forEach { path ->
+                editorConfigs[path] = it
+            }
+        }
+    }
+
+    private fun File.key() = this.parent
+}