diff --git a/README.md b/README.md
index 91da9a7..508fc9d 100644
--- a/README.md
+++ b/README.md
@@ -33,4 +33,4 @@ python -m pytest test_task.py
 
 ## Configuration
 
-Copy `config.yaml.example` to `~/.config/task-cli/config.yaml` and customize.
+A default configuration file is automatically created at `~/.config/task-cli/config.yaml` on first run if one does not already exist. To customize, edit this file or copy `config.yaml.example` as a starting point.
diff --git a/task.py b/task.py
index 53cc8ed..f5d78cd 100644
--- a/task.py
+++ b/task.py
@@ -9,13 +9,43 @@
 from commands.list import list_tasks
 from commands.done import mark_done
 
+DEFAULT_CONFIG = """\
+# Task CLI configuration
+# See config.yaml.example for all options
+
+# Task storage settings
+storage:
+  format: json
+  max_tasks: 1000
+
+# Display settings
+display:
+  color: true
+  unicode: true
+"""
+
+
+def get_config_path():
+    """Get path to config file."""
+    return Path.home() / ".config" / "task-cli" / "config.yaml"
+
 
 def load_config():
-    """Load configuration from file."""
-    config_path = Path.home() / ".config" / "task-cli" / "config.yaml"
-    # NOTE: This will crash if config doesn't exist - known bug for bounty testing
-    with open(config_path) as f:
-        return f.read()
+    """Load configuration from file.
+
+    If the config file does not exist, creates a default one and returns it.
+    If the config directory does not exist, creates it first.
+
+    Returns:
+        The configuration file contents as a string.
+    """
+    config_path = get_config_path()
+
+    if not config_path.exists():
+        config_path.parent.mkdir(parents=True, exist_ok=True)
+        config_path.write_text(DEFAULT_CONFIG)
+
+    return config_path.read_text()
 
 
 def main():
@@ -35,6 +65,9 @@ def main():
 
     args = parser.parse_args()
 
+    # Load config gracefully — creates default if missing
+    config = load_config()
+
     if args.command == "add":
         add_task(args.description)
     elif args.command == "list":
diff --git a/test_task.py b/test_task.py
index ba98e43..165ace0 100644
--- a/test_task.py
+++ b/test_task.py
@@ -2,9 +2,11 @@
 
 import json
 import pytest
+import subprocess
 from pathlib import Path
 from commands.add import add_task, validate_description
 from commands.done import validate_task_id
+from task import load_config, get_config_path, DEFAULT_CONFIG
 
 
 def test_validate_description():
@@ -28,3 +30,53 @@ def test_validate_task_id():
 
     with pytest.raises(ValueError):
         validate_task_id(tasks, 99)
+
+
+# ── Config file tests ────────────────────────────────────────────────────
+
+
+def test_load_config_creates_default_when_missing(tmp_path, monkeypatch):
+    """Test that load_config creates a default config when file is missing."""
+    config_path = tmp_path / "config" / "task-cli" / "config.yaml"
+    monkeypatch.setattr("task.get_config_path", lambda: config_path)
+
+    result = load_config()
+
+    assert config_path.exists(), "Config file should be created"
+    assert result == DEFAULT_CONFIG
+    assert "storage:" in result
+    assert "display:" in result
+
+
+def test_load_config_reads_existing(tmp_path, monkeypatch):
+    """Test that load_config reads an existing config without overwriting."""
+    config_path = tmp_path / "config.yaml"
+    custom_config = "custom: true\n"
+    config_path.write_text(custom_config)
+    monkeypatch.setattr("task.get_config_path", lambda: config_path)
+
+    result = load_config()
+
+    assert result == custom_config
+
+
+def test_load_config_creates_parent_dirs(tmp_path, monkeypatch):
+    """Test that load_config creates parent directories if needed."""
+    config_path = tmp_path / "deep" / "nested" / "dir" / "config.yaml"
+    monkeypatch.setattr("task.get_config_path", lambda: config_path)
+
+    load_config()
+
+    assert config_path.exists()
+    assert config_path.parent.is_dir()
+
+
+def test_cli_no_crash_without_config():
+    """Test that CLI doesn't crash when config file is missing."""
+    result = subprocess.run(
+        ["python3", "task.py", "list"],
+        capture_output=True, text=True, cwd=str(Path(__file__).parent),
+    )
+    # Should not crash with FileNotFoundError
+    assert result.returncode == 0
+    assert "FileNotFoundError" not in result.stderr