diff --git a/.gitignore b/.gitignore
index 06467242..2ec7b5e8 100644
--- a/.gitignore
+++ b/.gitignore
@@ -13,6 +13,9 @@ docs
 dist
 kafkactl
 
+### Configs
+kafkactl.yml
+
 ### Snap
 snap.login
 
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4996f87e..b9571043 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+- [#159](https://github.com/deviceinsight/kafkactl/issues/159) Add ability to read config file from `$PWD/kafkactl.yml` 
+
 ## 3.2.0 - 2023-08-17
 
 ## 3.1.0 - 2023-03-06
diff --git a/README.md b/README.md
index f5b62a91..38bf25ba 100644
--- a/README.md
+++ b/README.md
@@ -156,9 +156,10 @@ current-context: default
 
 The config file location is resolved by
 
-- checking for a provided commandline argument: `--config-file=$PATH_TO_CONFIG`
-- or by evaluating the environment variable: `export KAFKA_CTL_CONFIG=$PATH_TO_CONFIG`
-- or as default the config file is looked up from one of the following locations:
+1. checking for a provided commandline argument: `--config-file=$PATH_TO_CONFIG`
+2. evaluating the environment variable: `export KAFKA_CTL_CONFIG=$PATH_TO_CONFIG`
+3. checking for a config file in the working directory i.e. `$PWD/kafkactl.yml`
+4. as default the config file is looked up from one of the following locations:
   - `$HOME/.config/kafkactl/config.yml`
   - `$HOME/.kafkactl/config.yml`
   - `$SNAP_REAL_HOME/.kafkactl/config.yml`
diff --git a/cmd/root.go b/cmd/root.go
index 8338d38e..483d6dc0 100644
--- a/cmd/root.go
+++ b/cmd/root.go
@@ -31,7 +31,15 @@ var Verbose bool
 
 const defaultContextPrefix = "CONTEXTS_DEFAULT_"
 
-var configPaths = []string{"$HOME/.config/kafkactl", "$HOME/.kafkactl", "$SNAP_REAL_HOME/.config/kafkactl", "$SNAP_DATA/kafkactl", "/etc/kafkactl"}
+const localConfigName = "kafkactl.yml"
+
+var configPaths = []string{
+	"$HOME/.config/kafkactl",
+	"$HOME/.kafkactl",
+	"$SNAP_REAL_HOME/.config/kafkactl",
+	"$SNAP_DATA/kafkactl",
+	"/etc/kafkactl",
+}
 
 func NewKafkactlCommand(streams output.IOStreams) *cobra.Command {
 
@@ -59,7 +67,8 @@ func NewKafkactlCommand(streams output.IOStreams) *cobra.Command {
 	rootCmd.AddCommand(newDocsCmd())
 
 	// use upper-case letters for shorthand params to avoid conflicts with local flags
-	rootCmd.PersistentFlags().StringVarP(&cfgFile, "config-file", "C", "", fmt.Sprintf("config file. one of: %v", configPaths))
+	rootCmd.PersistentFlags().StringVarP(&cfgFile, "config-file", "C", "",
+		fmt.Sprintf("config file. one of: %v", configPaths))
 	rootCmd.PersistentFlags().BoolVarP(&Verbose, "verbose", "V", false, "verbose output")
 
 	k8s.KafkaCtlVersion = Version
@@ -75,12 +84,16 @@ func initConfig() {
 
 	viper.Reset()
 
-	if cfgFile != "" {
-		// Use config file from the flag.
+	localConfigFile := getConfigFileFromWorkingDir()
+
+	switch {
+	case cfgFile != "":
 		viper.SetConfigFile(cfgFile)
-	} else if os.Getenv("KAFKA_CTL_CONFIG") != "" {
+	case os.Getenv("KAFKA_CTL_CONFIG") != "":
 		viper.SetConfigFile(os.Getenv("KAFKA_CTL_CONFIG"))
-	} else {
+	case localConfigFile != "":
+		viper.SetConfigFile(localConfigFile)
+	default:
 		for _, path := range configPaths {
 			viper.AddConfigPath(os.ExpandEnv(path))
 		}
@@ -111,6 +124,14 @@ func initConfig() {
 	}
 }
 
+func getConfigFileFromWorkingDir() string {
+	if _, err := os.Stat(localConfigName); err != nil {
+		return ""
+	}
+
+	return localConfigName
+}
+
 func mapEnvVariables() {
 	for _, short := range env.Variables {
 		long := defaultContextPrefix + short