diff --git a/include/inspircd.h b/include/inspircd.h
index 9a2fc34f4..08b1d80f8 100644
--- a/include/inspircd.h
+++ b/include/inspircd.h
@@ -237,7 +237,7 @@ public:
 	XLineManager* XLines = nullptr;
 
 	/** The current server configuration file from --config or configure. */
-	std::string ConfigFileName = INSPIRCD_CONFIG_PATH "/inspircd.conf";
+	std::string ConfigFileName;
 
 	/** Fills a buffer with random bytes. */
 	std::function<void(char*, size_t)> GenRandom = &DefaultGenRandom;
diff --git a/src/configreader.cpp b/src/configreader.cpp
index 804406ec4..d49878baa 100644
--- a/src/configreader.cpp
+++ b/src/configreader.cpp
@@ -71,14 +71,22 @@ std::string ServerConfig::ServerPaths::ExpandPath(const std::string& base, const
 	if (std::filesystem::path(fragment).is_absolute())
 		return fragment;
 
-	// The fragment is relative to a home directory, expand that.
 	if (!fragment.compare(0, 2, "~/", 2))
 	{
+		// The fragment is relative to a home directory, expand that.
 		const char* homedir = getenv("HOME");
 		if (homedir && *homedir)
 			return std::string(homedir) + '/' + fragment.substr(2);
 	}
 
+	if (std::filesystem::path(base).is_relative())
+	{
+		// The base is relative to the working directory, expand that.
+		const auto cwd = std::filesystem::current_path();
+		if (!cwd.empty())
+			return INSP_FORMAT("{}/{}/{}", cwd.string(), base, fragment);
+	}
+
 	return base + '/' + fragment;
 }
 
diff --git a/src/inspircd.cpp b/src/inspircd.cpp
index 5b1f332c9..b9018ea7d 100644
--- a/src/inspircd.cpp
+++ b/src/inspircd.cpp
@@ -255,7 +255,7 @@ namespace
 	// Parses the command line options.
 	void ParseOptions()
 	{
-		std::string config;
+		std::string config = ServerInstance->Config->Paths.PrependConfig("inspircd.conf");
 		bool do_debug = false;
 		bool do_help = false;
 		bool do_nofork = false;