diff --git a/.gitignore b/.gitignore
index 1b68f99..775bbbb 100644
--- a/.gitignore
+++ b/.gitignore
@@ -28,5 +28,6 @@ dist/
 builds/
 
 # Config files
+/lagoon
 *.lagoon-sync
 *.lagoon-sync-defaults
\ No newline at end of file
diff --git a/README.md b/README.md
index 4aedeba..cc1b700 100644
--- a/README.md
+++ b/README.md
@@ -148,7 +148,7 @@ The order of configuration precedence is as follows:
 1. `--config` argument (e.g. `lagoon-sync [command] --config ./.custom-lagoon-sync-config.yaml`).
 2.  `.lagoon.yaml` files (i.e. in project root, or `lagoon` directory). If an `.lagoon.yml` is available within the project, then this file will be used as the active configuration file by default.
 3. `LAGOON_SYNC_PATH` or `LAGOON_SYNC_DEFAULTS_PATH` environment variables.
-
+4. Finally, if no config file can be found the default configuration will be used a safely written to a new '.lagoon.yml`
 
 There are some configuration examples in the `examples` directory of this repo.
 
diff --git a/assets/lagoon.yml b/assets/lagoon.yml
new file mode 100644
index 0000000..ac58245
--- /dev/null
+++ b/assets/lagoon.yml
@@ -0,0 +1,44 @@
+lagoon-sync:
+  ssh:
+    host: "ssh.lagoon.amazeeio.cloud"
+    port: "32222"
+  mariadb:
+    config:
+      hostname: "${MARIADB_HOST:-mariadb}"
+      username: "${MARIADB_USERNAME:-drupal}"
+      password: "${MARIADB_PASSWORD:-drupal}"
+      port: "${MARIADB_PORT:-3306}"
+      database: "${MARIADB_DATABASE:-drupal}"
+  postgres:
+    config:
+      hostname: "${POSTGRES_HOST:-postgres}"
+      username: "${POSTGRES_USERNAME:-drupal}"
+      password: "${POSTGRES_PASSWORD:-drupal}"
+      port: "5432"
+      database: "${POSTGRES_DATABASE:-drupal}"
+    local:
+      config:
+        port: "3306"
+  mongodb:
+    config:
+      hostname: "$MONGODB_HOST"
+      port: "$MONGODB_SERVICE_PORT"
+      database: "MONGODB_DATABASE"
+    local:
+      config:
+        hostname: "$MONGODB_HOST"
+        port: "27017"
+        database: "local"
+  files:
+    config:
+      sync-directory: "/app/web/sites/default/files"
+    local:
+      config:
+        sync-directory: "/app/web/sites/default/files"
+  drupalconfig:
+    config:
+      syncpath: "./config/sync"
+    local:
+      overrides:
+        config:
+          syncpath: "./config/sync"
diff --git a/assets/main.go b/assets/main.go
index 73c3cdd..0572f71 100644
--- a/assets/main.go
+++ b/assets/main.go
@@ -8,6 +8,9 @@ import (
 //go:embed .version
 var Version []byte
 
+//go:embed lagoon.yml
+var DefaultConfigData []byte
+
 //go:embed rsync
 var RsyncLinuxBinBytes []byte
 
@@ -15,6 +18,10 @@ func GetVersion() string {
 	return strings.TrimSuffix(string(Version), "\n")
 }
 
+func GetDefaultConfig() ([]byte, error) {
+	return DefaultConfigData, nil
+}
+
 func RsyncBin() []byte {
 	return RsyncLinuxBinBytes
-}
\ No newline at end of file
+}
diff --git a/cmd/config.go b/cmd/config.go
index a2ae8b2..cafbf05 100644
--- a/cmd/config.go
+++ b/cmd/config.go
@@ -3,6 +3,7 @@ package cmd
 import (
 	"encoding/json"
 	"fmt"
+	"io/ioutil"
 	"log"
 	"os"
 
@@ -39,6 +40,14 @@ var configCmd = &cobra.Command{
 	},
 }
 
+func LoadLagoonConfig(lagoonYamlPath string) ([]byte, error) {
+	var data, err = ioutil.ReadFile(lagoonYamlPath)
+	if err != nil {
+		return []byte{}, err
+	}
+	return data, nil
+}
+
 func PrintConfigOut() []byte {
 	lagoonSyncDefaultsFile, exists := os.LookupEnv("LAGOON_SYNC_DEFAULTS_PATH")
 	if !exists {
@@ -53,7 +62,7 @@ func PrintConfigOut() []byte {
 	activeLagoonYmlFile := viper.ConfigFileUsed()
 
 	// Gather lagoon.yml configuration
-	lagoonConfigBytestream, err := LoadLagoonConfig(cfgFile)
+	lagoonConfigBytestream, err := LoadLagoonConfig(activeLagoonYmlFile)
 	if err != nil {
 		utils.LogFatalError("Couldn't load lagoon config file - ", err.Error())
 	}
diff --git a/cmd/main.go b/cmd/main.go
deleted file mode 100644
index 5ad86c8..0000000
--- a/cmd/main.go
+++ /dev/null
@@ -1,11 +0,0 @@
-package cmd
-
-import "io/ioutil"
-
-func LoadLagoonConfig(lagoonYamlPath string) ([]byte, error) {
-	var data, err = ioutil.ReadFile(lagoonYamlPath)
-	if err != nil {
-		return []byte{}, err
-	}
-	return data, nil
-}
diff --git a/cmd/root.go b/cmd/root.go
index 43ed380..aba0074 100644
--- a/cmd/root.go
+++ b/cmd/root.go
@@ -1,8 +1,10 @@
 package cmd
 
 import (
+	"bytes"
 	"fmt"
 	"os"
+	"path/filepath"
 
 	"github.com/uselagoon/lagoon-sync/assets"
 
@@ -48,7 +50,7 @@ func init() {
 	// Cobra supports persistent flags, which, if defined here,
 	// will be global for your application.
 
-	rootCmd.PersistentFlags().StringVar(&cfgFile, "config", "./.lagoon.yml", "config file (default is .lagoon.yaml)")
+	rootCmd.PersistentFlags().StringVar(&cfgFile, "config", "", "Path to the file used to set lagoon-sync configuration")
 	rootCmd.PersistentFlags().BoolVar(&ShowDebug, "show-debug", false, "Shows debug information")
 	viper.BindPFlag("show-debug", rootCmd.PersistentFlags().Lookup("show-debug"))
 
@@ -58,77 +60,103 @@ func init() {
 }
 
 func initConfig() {
-	// Find home directory.
-	home, err := homedir.Dir()
+	err := processConfig(cfgFile)
 	if err != nil {
-		fmt.Println(err)
+		utils.LogFatalError("Unable to read in config file", err)
 		os.Exit(1)
 	}
+}
 
-	paths := []string{home, "/lagoon", "/tmp"}
+func processConfig(cfgFile string) error {
+	// If cfgFile arg given, return early
+	if cfgFile != "" {
+		viper.SetConfigFile(cfgFile)
+		viper.AutomaticEnv()
 
-	cfgFile, err = processConfigEnv(paths, cfgFile)
-	if err != nil {
-		utils.LogFatalError("Unable to read in config file", err)
-		os.Exit(1)
+		if err := viper.ReadInConfig(); err == nil {
+			utils.LogDebugInfo("Using config file", viper.ConfigFileUsed())
+		} else {
+			return fmt.Errorf("failed to read config file: %v", err)
+		}
+
+		return nil
 	}
-}
 
-// initConfig reads in config file and ENV variables if set.
-func processConfigEnv(paths []string, DefaultConfigFileName string) (string, error) {
+	home, err := homedir.Dir()
+	if err != nil {
+		return fmt.Errorf("unable to find home directory: %v", err)
+	}
 
-	// Search config in home directory with name ".lagoon-sync" (without extension).
+	paths := []string{".", "./lagoon", "/tmp", home}
 	for _, path := range paths {
 		viper.AddConfigPath(path)
 	}
-	viper.SetConfigName(DefaultConfigFileName)
+	viper.SetConfigName(cfgFile)
 	viper.SetConfigType("yaml")
 
-	// Find default config file for env vars (e.g. 'lagoon-sync-defaults')
-	lagoonSyncDefaultsFile, exists := os.LookupEnv("LAGOON_SYNC_DEFAULTS_PATH")
-	if exists {
-		utils.LogDebugInfo("LAGOON_SYNC_DEFAULTS_PATH env var found", lagoonSyncDefaultsFile)
-	} else {
-		lagoonSyncDefaultsFile = "/lagoon/.lagoon-sync-defaults"
+	// Find config file from env vars (e.g., 'LAGOON_SYNC_DEFAULTS_PATH' and 'LAGOON_SYNC_PATH')
+	defaultFiles := map[string]string{
+		"LAGOON_SYNC_DEFAULTS_PATH": "/lagoon/.lagoon-sync-defaults",
+		"LAGOON_SYNC_PATH":          "/lagoon/.lagoon-sync",
 	}
 
-	// Find lagoon-sync config file (e.g. 'lagoon-sync')
-	lagoonSyncCfgFile, exists := os.LookupEnv("LAGOON_SYNC_PATH")
-	if exists {
-		utils.LogDebugInfo("LAGOON_SYNC_PATH env var found", lagoonSyncCfgFile)
-	} else {
-		lagoonSyncCfgFile = "/lagoon/.lagoon-sync"
+	for envVar, defaultFile := range defaultFiles {
+		filePath, exists := os.LookupEnv(envVar)
+		if exists {
+			utils.LogDebugInfo(envVar+" env var found", filePath)
+			if utils.FileExists(filePath) {
+				viper.SetConfigFile(filePath)
+				cfgFile = filePath
+				break
+			}
+		} else {
+			if utils.FileExists(defaultFile) {
+				viper.SetConfigFile(defaultFile)
+				cfgFile = defaultFile
+				break
+			}
+		}
 	}
 
-	if DefaultConfigFileName != "" {
-		// Use config file from the flag, default for this is '.lagoon.yml'
-		if utils.FileExists(DefaultConfigFileName) {
-			viper.SetConfigName(DefaultConfigFileName)
-			viper.SetConfigFile(DefaultConfigFileName)
+	// Next, check for 'lagoon.yml' files in the default locations and override.
+	for _, path := range paths {
+		filePath := filepath.Join(path, ".lagoon.yml")
+		if utils.FileExists(filePath) {
+			cfgFile = filePath
+			break
 		}
+	}
 
-		// Set '.lagoon-sync-defaults' as config file is it exists.
-		if utils.FileExists(lagoonSyncDefaultsFile) {
-			viper.SetConfigName(lagoonSyncDefaultsFile)
-			viper.SetConfigFile(lagoonSyncDefaultsFile)
-			DefaultConfigFileName = lagoonSyncDefaultsFile
-		}
+	// Set the config file if found
+	if cfgFile != "" {
+		viper.SetConfigFile(cfgFile)
+		viper.AutomaticEnv()
 
-		// Set '.lagoon-sync' as config file is it exists.
-		if utils.FileExists(lagoonSyncCfgFile) {
-			viper.SetConfigName(lagoonSyncCfgFile)
-			viper.SetConfigFile(lagoonSyncCfgFile)
-			DefaultConfigFileName = lagoonSyncCfgFile
+		// If a config file is found, read it in.
+		if err := viper.ReadInConfig(); err == nil {
+			utils.LogDebugInfo("Using config file", viper.ConfigFileUsed())
+		} else {
+			return fmt.Errorf("failed to read config file: %v", err)
+		}
+	} else {
+		// If no config file is found, load the default config
+		defaultConfigData, err := assets.GetDefaultConfig()
+		if err != nil {
+			return fmt.Errorf("failed to load default config: %v", err)
 		}
-	}
 
-	viper.AutomaticEnv() // read in environment variables that match
+		viper.SetConfigType("yaml")
+		viper.SetConfigName("default")
 
-	// If a config file is found, read it in.
-	if err := viper.ReadInConfig(); err == nil {
-		utils.LogDebugInfo("Using config file", viper.ConfigFileUsed())
-	} else {
-		return "", err
+		err = viper.ReadConfig(bytes.NewBuffer(defaultConfigData))
+		if err != nil {
+			return fmt.Errorf("failed to read default config: %v", err)
+		}
+
+		// Then safe-write config to '.lagoon.yml' when it doesn't exist
+		viper.SafeWriteConfigAs(".lagoon.yml")
+		viper.SetConfigFile(".lagoon.yml")
 	}
-	return DefaultConfigFileName, nil
+
+	return nil
 }
diff --git a/examples/.drupal-example.yml b/examples/.drupal-example.yml
new file mode 100644
index 0000000..9287127
--- /dev/null
+++ b/examples/.drupal-example.yml
@@ -0,0 +1,33 @@
+lagoon-sync:
+  mariadb:
+    config:
+      hostname: "$MARIADB_HOST"
+      username: "$MARIADB_USERNAME"
+      password: "$MARIADB_PASSWORD"
+      port: "$MARIADB_PORT"
+      database: "$MARIADB_DATABASE"
+      ignore-table:
+        - "table_to_ignore"
+      ignore-table-data:
+        - "cache_data"
+        - "cache_menu"
+    local:
+      config:
+        hostname: "mariadb"
+        username: "drupal"
+        password: "drupal"
+        port: "3306"
+        database: "drupal"
+  files:
+    config:
+      sync-directory: "/app/web/sites/default/files"
+    local:
+      config:
+        sync-directory: "/app/web/sites/default/files"
+  drupalconfig:
+    config:
+      syncpath: "./config/sync"
+    local:
+      overrides:
+        config:
+          syncpath: "./config/sync"
\ No newline at end of file
diff --git a/.example-lagoon-sync b/examples/.lagoon.yml
similarity index 88%
rename from .example-lagoon-sync
rename to examples/.lagoon.yml
index bff6322..6735aa3 100644
--- a/.example-lagoon-sync
+++ b/examples/.lagoon.yml
@@ -1,3 +1,8 @@
+# Example .lagoon.yml file with lagoon-sync config added which is used by the sync tool.
+docker-compose-yaml: docker-compose.yml
+
+project: "lagoon-sync"
+
 lagoon-sync:
   mariadb:
     config:
@@ -59,4 +64,4 @@ lagoon-sync:
     local:
       overrides:
         config:
-          syncpath: "./config/sync"
\ No newline at end of file
+          syncpath: "./config/sync"