diff --git a/mage/main.go b/mage/main.go
index f57fdc69..a41e7435 100644
--- a/mage/main.go
+++ b/mage/main.go
@@ -118,6 +118,15 @@ type Invocation struct {
 	HashFast   bool          // don't rely on GOCACHE, just hash the magefiles
 }
 
+// MagefilesDirName is the name of the default folder to look for if no directory was specified,
+// if this folder exists it will be assumed mage package lives inside it.
+const MagefilesDirName = "magefiles"
+
+// UsesMagefiles returns true if we are getting our mage files from a magefiles directory.
+func (i Invocation) UsesMagefiles() bool {
+	return i.Dir == MagefilesDirName
+}
+
 // ParseAndRun parses the command line, and then compiles and runs the mage
 // files in the given directory with the given args (do not include the command
 // name in the args).
@@ -180,7 +189,7 @@ func Parse(stderr, stdout io.Writer, args []string) (inv Invocation, cmd Command
 	fs.BoolVar(&inv.Help, "h", false, "show this help")
 	fs.DurationVar(&inv.Timeout, "t", 0, "timeout in duration parsable format (e.g. 5m30s)")
 	fs.BoolVar(&inv.Keep, "keep", false, "keep intermediate mage files around after running")
-	fs.StringVar(&inv.Dir, "d", ".", "directory to read magefiles from")
+	fs.StringVar(&inv.Dir, "d", "", "directory to read magefiles from")
 	fs.StringVar(&inv.WorkDir, "w", "", "working directory where magefiles will run")
 	fs.StringVar(&inv.GoCmd, "gocmd", mg.GoCmd(), "use the given go binary to compile the output")
 	fs.StringVar(&inv.GOOS, "goos", "", "set GOOS for binary produced with -compile")
@@ -216,7 +225,7 @@ Commands:
 
 Options:
   -d <string> 
-            directory to read magefiles from (default ".")
+            directory to read magefiles from (default "." or "magefiles" if exists)
   -debug    turn on debug messages
   -f        force recreation of compiled magefile
   -goarch   sets the GOARCH for the binary created by -compile (default: current arch)
@@ -296,23 +305,50 @@ Options:
 	return inv, cmd, err
 }
 
+const dotDirectory = "."
+
 // Invoke runs Mage with the given arguments.
 func Invoke(inv Invocation) int {
 	errlog := log.New(inv.Stderr, "", 0)
 	if inv.GoCmd == "" {
 		inv.GoCmd = "go"
 	}
+	var noDir bool
 	if inv.Dir == "" {
-		inv.Dir = "."
+		noDir = true
+		inv.Dir = dotDirectory
+		// . will be default unless we find a mage folder.
+		mfSt, err := os.Stat(MagefilesDirName)
+		if err == nil {
+			if mfSt.IsDir() {
+				stderrBuf := &bytes.Buffer{}
+				inv.Dir = MagefilesDirName // preemptive assignment
+				// TODO: Remove this fallback and the above Magefiles invocation when the bw compatibility is removed.
+				files, err := Magefiles(dotDirectory, inv.GOOS, inv.GOARCH, inv.GoCmd, stderrBuf, false, inv.Debug)
+				if err == nil {
+					if len(files) != 0 {
+						errlog.Println("[WARNING] You have both a magefiles directory and mage files in the " +
+							"current directory, in future versions the files will be ignored in favor of the directory")
+						inv.Dir = dotDirectory
+					}
+				}
+			}
+		}
 	}
+
 	if inv.WorkDir == "" {
-		inv.WorkDir = inv.Dir
+		if noDir {
+			inv.WorkDir = dotDirectory
+		} else {
+			inv.WorkDir = inv.Dir
+		}
 	}
+
 	if inv.CacheDir == "" {
 		inv.CacheDir = mg.CacheDir()
 	}
 
-	files, err := Magefiles(inv.Dir, inv.GOOS, inv.GOARCH, inv.GoCmd, inv.Stderr, inv.Debug)
+	files, err := Magefiles(inv.Dir, inv.GOOS, inv.GOARCH, inv.GoCmd, inv.Stderr, inv.UsesMagefiles(), inv.Debug)
 	if err != nil {
 		errlog.Println("Error determining list of magefiles:", err)
 		return 1
@@ -432,69 +468,87 @@ type mainfileTemplateData struct {
 	BinaryName  string
 }
 
+func listGoFiles(magePath, goCmd, tags string, env []string) ([]string, error) {
+	args := []string{"list"}
+	if tags != "" {
+		args = append(args, fmt.Sprintf("-tags=%s", tags))
+	}
+	args = append(args, "-e", "-f", `{{join .GoFiles "||"}}`)
+	cmd := exec.Command(goCmd, args...)
+	cmd.Env = env
+	buf := &bytes.Buffer{}
+	cmd.Stderr = buf
+	cmd.Dir = magePath
+	b, err := cmd.Output()
+	if err != nil {
+		stderr := buf.String()
+		// if the error is "cannot find module", that can mean that there's no
+		// non-mage files, which is fine, so ignore it.
+		if !strings.Contains(stderr, "cannot find module for path") {
+			if tags == "" {
+				return nil, fmt.Errorf("failed to list un-tagged gofiles: %v: %s", err, stderr)
+			}
+			return nil, fmt.Errorf("failed to list gofiles tagged with %q: %v: %s", tags, err, stderr)
+		}
+	}
+	out := strings.TrimSpace(string(b))
+	list := strings.Split(out, "||")
+	for i := range list {
+		list[i] = filepath.Join(magePath, list[i])
+	}
+	return list, nil
+}
+
 // Magefiles returns the list of magefiles in dir.
-func Magefiles(magePath, goos, goarch, goCmd string, stderr io.Writer, isDebug bool) ([]string, error) {
+func Magefiles(magePath, goos, goarch, goCmd string, stderr io.Writer, isMagefilesDirectory, isDebug bool) ([]string, error) {
 	start := time.Now()
 	defer func() {
 		debug.Println("time to scan for Magefiles:", time.Since(start))
 	}()
-	fail := func(err error) ([]string, error) {
-		return nil, err
-	}
 
 	env, err := internal.EnvWithGOOS(goos, goarch)
 	if err != nil {
 		return nil, err
 	}
 
-	debug.Println("getting all non-mage files in", magePath)
+	debug.Println("getting all files including those with mage tag in", magePath)
+	mageFiles, err := listGoFiles(magePath, goCmd, "mage", env)
+	if err != nil {
+		return nil, fmt.Errorf("listing mage files: %v", err)
+	}
 
-	// // first, grab all the files with no build tags specified.. this is actually
-	// // our exclude list of things without the mage build tag.
-	cmd := exec.Command(goCmd, "list", "-e", "-f", `{{join .GoFiles "||"}}`)
-	cmd.Env = env
-	buf := &bytes.Buffer{}
-	cmd.Stderr = buf
-	cmd.Dir = magePath
-	b, err := cmd.Output()
+	if isMagefilesDirectory {
+		// For the magefiles directory, we always use all go files, both with
+		// and without the mage tag, as per normal go build tag rules.
+		debug.Println("using all go files in magefiles directory", magePath)
+		return mageFiles, nil
+	}
+
+	// For folders other than the magefiles directory, we only consider files
+	// that have the mage build tag and ignore those that don't.
+
+	debug.Println("getting all files without mage tag in", magePath)
+	nonMageFiles, err := listGoFiles(magePath, goCmd, "", env)
 	if err != nil {
-		stderr := buf.String()
-		// if the error is "cannot find module", that can mean that there's no
-		// non-mage files, which is fine, so ignore it.
-		if !strings.Contains(stderr, "cannot find module for path") {
-			return fail(fmt.Errorf("failed to list non-mage gofiles: %v: %s", err, stderr))
-		}
+		return nil, fmt.Errorf("listing non-mage files: %v", err)
 	}
-	list := strings.TrimSpace(string(b))
-	debug.Println("found non-mage files", list)
+
+	// convert non-Mage list to a map of files to exclude.
 	exclude := map[string]bool{}
-	for _, f := range strings.Split(list, "||") {
+	for _, f := range nonMageFiles {
 		if f != "" {
 			debug.Printf("marked file as non-mage: %q", f)
 			exclude[f] = true
 		}
 	}
-	debug.Println("getting all files plus mage files")
-	cmd = exec.Command(goCmd, "list", "-tags=mage", "-e", "-f", `{{join .GoFiles "||"}}`)
-	cmd.Env = env
-
-	buf.Reset()
-	cmd.Dir = magePath
-	b, err = cmd.Output()
-	if err != nil {
-		return fail(fmt.Errorf("failed to list mage gofiles: %v: %s", err, buf.Bytes()))
-	}
 
-	list = strings.TrimSpace(string(b))
-	files := []string{}
-	for _, f := range strings.Split(list, "||") {
+	// filter out the non-mage files from the mage files.
+	var files []string
+	for _, f := range mageFiles {
 		if f != "" && !exclude[f] {
 			files = append(files, f)
 		}
 	}
-	for i := range files {
-		files[i] = filepath.Join(magePath, files[i])
-	}
 	return files, nil
 }
 
diff --git a/mage/main_test.go b/mage/main_test.go
index d0b43d84..2074c64a 100644
--- a/mage/main_test.go
+++ b/mage/main_test.go
@@ -189,7 +189,7 @@ func TestTransitiveHashFast(t *testing.T) {
 
 func TestListMagefilesMain(t *testing.T) {
 	buf := &bytes.Buffer{}
-	files, err := Magefiles("testdata/mixed_main_files", "", "", "go", buf, false)
+	files, err := Magefiles("testdata/mixed_main_files", "", "", "go", buf, false, false)
 	if err != nil {
 		t.Errorf("error from magefile list: %v: %s", err, buf)
 	}
@@ -210,7 +210,7 @@ func TestListMagefilesIgnoresGOOS(t *testing.T) {
 		os.Setenv("GOOS", "windows")
 	}
 	defer os.Setenv("GOOS", runtime.GOOS)
-	files, err := Magefiles("testdata/goos_magefiles", "", "", "go", buf, false)
+	files, err := Magefiles("testdata/goos_magefiles", "", "", "go", buf, false, false)
 	if err != nil {
 		t.Errorf("error from magefile list: %v: %s", err, buf)
 	}
@@ -234,7 +234,7 @@ func TestListMagefilesIgnoresRespectsGOOSArg(t *testing.T) {
 		goos = "windows"
 	}
 	// Set GOARCH as amd64 because windows is not on all non-x86 architectures.
-	files, err := Magefiles("testdata/goos_magefiles", goos, "amd64", "go", buf, false)
+	files, err := Magefiles("testdata/goos_magefiles", goos, "amd64", "go", buf, false, false)
 	if err != nil {
 		t.Errorf("error from magefile list: %v: %s", err, buf)
 	}
@@ -308,7 +308,7 @@ func TestCompileDiffGoosGoarch(t *testing.T) {
 
 func TestListMagefilesLib(t *testing.T) {
 	buf := &bytes.Buffer{}
-	files, err := Magefiles("testdata/mixed_lib_files", "", "", "go", buf, false)
+	files, err := Magefiles("testdata/mixed_lib_files", "", "", "go", buf, false, false)
 	if err != nil {
 		t.Errorf("error from magefile list: %v: %s", err, buf)
 	}
@@ -342,6 +342,140 @@ func TestMixedMageImports(t *testing.T) {
 	}
 }
 
+func TestMagefilesFolder(t *testing.T) {
+	resetTerm()
+	wd, err := os.Getwd()
+	t.Log(wd)
+	if err != nil {
+		t.Fatalf("finding current working directory: %v", err)
+	}
+	if err := os.Chdir("testdata/with_magefiles_folder"); err != nil {
+		t.Fatalf("changing to magefolders tests data: %v", err)
+	}
+	// restore previous state
+	defer os.Chdir(wd)
+
+	stderr := &bytes.Buffer{}
+	stdout := &bytes.Buffer{}
+	inv := Invocation{
+		Dir:    "",
+		Stdout: stdout,
+		Stderr: stderr,
+		List:   true,
+	}
+	code := Invoke(inv)
+	if code != 0 {
+		t.Errorf("expected to exit with code 0, but got %v, stderr: %s", code, stderr)
+	}
+	expected := "Targets:\n  build    \n"
+	actual := stdout.String()
+	if actual != expected {
+		t.Fatalf("expected %q but got %q", expected, actual)
+	}
+}
+
+func TestMagefilesFolderMixedWithMagefiles(t *testing.T) {
+	resetTerm()
+	wd, err := os.Getwd()
+	t.Log(wd)
+	if err != nil {
+		t.Fatalf("finding current working directory: %v", err)
+	}
+	if err := os.Chdir("testdata/with_magefiles_folder_and_mage_files_in_dot"); err != nil {
+		t.Fatalf("changing to magefolders tests data: %v", err)
+	}
+	// restore previous state
+	defer os.Chdir(wd)
+
+	stderr := &bytes.Buffer{}
+	stdout := &bytes.Buffer{}
+	inv := Invocation{
+		Dir:    "",
+		Stdout: stdout,
+		Stderr: stderr,
+		List:   true,
+	}
+	code := Invoke(inv)
+	if code != 0 {
+		t.Errorf("expected to exit with code 0, but got %v, stderr: %s", code, stderr)
+	}
+	expected := "Targets:\n  build    \n"
+	actual := stdout.String()
+	if actual != expected {
+		t.Fatalf("expected %q but got %q", expected, actual)
+	}
+
+	expectedErr := "[WARNING] You have both a magefiles directory and mage files in the current directory, in future versions the files will be ignored in favor of the directory\n"
+	actualErr := stderr.String()
+	if actualErr != expectedErr {
+		t.Fatalf("expected Warning %q but got %q", expectedErr, actualErr)
+	}
+}
+
+func TestUntaggedMagefilesFolder(t *testing.T) {
+	resetTerm()
+	wd, err := os.Getwd()
+	t.Log(wd)
+	if err != nil {
+		t.Fatalf("finding current working directory: %v", err)
+	}
+	if err := os.Chdir("testdata/with_untagged_magefiles_folder"); err != nil {
+		t.Fatalf("changing to magefolders tests data: %v", err)
+	}
+	// restore previous state
+	defer os.Chdir(wd)
+
+	stderr := &bytes.Buffer{}
+	stdout := &bytes.Buffer{}
+	inv := Invocation{
+		Dir:    "",
+		Stdout: stdout,
+		Stderr: stderr,
+		List:   true,
+	}
+	code := Invoke(inv)
+	if code != 0 {
+		t.Errorf("expected to exit with code 0, but got %v, stderr: %s", code, stderr)
+	}
+	expected := "Targets:\n  build    \n"
+	actual := stdout.String()
+	if actual != expected {
+		t.Fatalf("expected %q but got %q", expected, actual)
+	}
+}
+
+func TestMixedTaggingMagefilesFolder(t *testing.T) {
+	resetTerm()
+	wd, err := os.Getwd()
+	t.Log(wd)
+	if err != nil {
+		t.Fatalf("finding current working directory: %v", err)
+	}
+	if err := os.Chdir("testdata/with_mixtagged_magefiles_folder"); err != nil {
+		t.Fatalf("changing to magefolders tests data: %v", err)
+	}
+	// restore previous state
+	defer os.Chdir(wd)
+
+	stderr := &bytes.Buffer{}
+	stdout := &bytes.Buffer{}
+	inv := Invocation{
+		Dir:    "",
+		Stdout: stdout,
+		Stderr: stderr,
+		List:   true,
+	}
+	code := Invoke(inv)
+	if code != 0 {
+		t.Errorf("expected to exit with code 0, but got %v, stderr: %s", code, stderr)
+	}
+	expected := "Targets:\n  build            \n  untaggedBuild    \n"
+	actual := stdout.String()
+	if actual != expected {
+		t.Fatalf("expected %q but got %q", expected, actual)
+	}
+}
+
 func TestGoRun(t *testing.T) {
 	c := exec.Command("go", "run", "main.go")
 	c.Dir = "./testdata"
@@ -1615,7 +1749,7 @@ func TestWrongDependency(t *testing.T) {
 	}
 }
 
-/// This code liberally borrowed from https://github.com/rsc/goversion/blob/master/version/exe.go
+// / This code liberally borrowed from https://github.com/rsc/goversion/blob/master/version/exe.go
 
 type (
 	exeType  int
diff --git a/mage/testdata/with_magefiles_folder/magefiles/mage_helpers.go b/mage/testdata/with_magefiles_folder/magefiles/mage_helpers.go
new file mode 100644
index 00000000..e4b8872f
--- /dev/null
+++ b/mage/testdata/with_magefiles_folder/magefiles/mage_helpers.go
@@ -0,0 +1,6 @@
+//go:build mage
+// +build mage
+
+package main
+
+func foo() {}
diff --git a/mage/testdata/with_magefiles_folder/magefiles/magefile.go b/mage/testdata/with_magefiles_folder/magefiles/magefile.go
new file mode 100644
index 00000000..63584509
--- /dev/null
+++ b/mage/testdata/with_magefiles_folder/magefiles/magefile.go
@@ -0,0 +1,6 @@
+//go:build mage
+// +build mage
+
+package main
+
+func Build() {}
diff --git a/mage/testdata/with_magefiles_folder_and_mage_files_in_dot/magefile.go b/mage/testdata/with_magefiles_folder_and_mage_files_in_dot/magefile.go
new file mode 100644
index 00000000..63584509
--- /dev/null
+++ b/mage/testdata/with_magefiles_folder_and_mage_files_in_dot/magefile.go
@@ -0,0 +1,6 @@
+//go:build mage
+// +build mage
+
+package main
+
+func Build() {}
diff --git a/mage/testdata/with_magefiles_folder_and_mage_files_in_dot/magefiles/mage_helpers.go b/mage/testdata/with_magefiles_folder_and_mage_files_in_dot/magefiles/mage_helpers.go
new file mode 100644
index 00000000..e4b8872f
--- /dev/null
+++ b/mage/testdata/with_magefiles_folder_and_mage_files_in_dot/magefiles/mage_helpers.go
@@ -0,0 +1,6 @@
+//go:build mage
+// +build mage
+
+package main
+
+func foo() {}
diff --git a/mage/testdata/with_magefiles_folder_and_mage_files_in_dot/magefiles/magefile.go b/mage/testdata/with_magefiles_folder_and_mage_files_in_dot/magefiles/magefile.go
new file mode 100644
index 00000000..a465aafd
--- /dev/null
+++ b/mage/testdata/with_magefiles_folder_and_mage_files_in_dot/magefiles/magefile.go
@@ -0,0 +1,6 @@
+//go:build mage
+// +build mage
+
+package main
+
+func FolderBuild() {}
diff --git a/mage/testdata/with_mixtagged_magefiles_folder/magefiles/mage_helpers.go b/mage/testdata/with_mixtagged_magefiles_folder/magefiles/mage_helpers.go
new file mode 100644
index 00000000..e4b8872f
--- /dev/null
+++ b/mage/testdata/with_mixtagged_magefiles_folder/magefiles/mage_helpers.go
@@ -0,0 +1,6 @@
+//go:build mage
+// +build mage
+
+package main
+
+func foo() {}
diff --git a/mage/testdata/with_mixtagged_magefiles_folder/magefiles/magefile.go b/mage/testdata/with_mixtagged_magefiles_folder/magefiles/magefile.go
new file mode 100644
index 00000000..63584509
--- /dev/null
+++ b/mage/testdata/with_mixtagged_magefiles_folder/magefiles/magefile.go
@@ -0,0 +1,6 @@
+//go:build mage
+// +build mage
+
+package main
+
+func Build() {}
diff --git a/mage/testdata/with_mixtagged_magefiles_folder/magefiles/main.go b/mage/testdata/with_mixtagged_magefiles_folder/magefiles/main.go
new file mode 100644
index 00000000..4c65d866
--- /dev/null
+++ b/mage/testdata/with_mixtagged_magefiles_folder/magefiles/main.go
@@ -0,0 +1,7 @@
+// some points here: this is the main pacakge just like the magefiles.  This one
+// has a main function, which could conflict with the generated main function we
+// make (but clearly shouldn't cause problems). Finally, there's a duplicate function name here.
+
+package main
+
+func UntaggedBuild() {}
diff --git a/mage/testdata/with_untagged_magefiles_folder/magefiles/mage_helpers.go b/mage/testdata/with_untagged_magefiles_folder/magefiles/mage_helpers.go
new file mode 100644
index 00000000..3de84a3d
--- /dev/null
+++ b/mage/testdata/with_untagged_magefiles_folder/magefiles/mage_helpers.go
@@ -0,0 +1,3 @@
+package main
+
+func foo() {}
diff --git a/mage/testdata/with_untagged_magefiles_folder/magefiles/magefile.go b/mage/testdata/with_untagged_magefiles_folder/magefiles/magefile.go
new file mode 100644
index 00000000..5660fe17
--- /dev/null
+++ b/mage/testdata/with_untagged_magefiles_folder/magefiles/magefile.go
@@ -0,0 +1,3 @@
+package main
+
+func Build() {}
diff --git a/parse/parse.go b/parse/parse.go
index 37df0317..14c5bcd9 100644
--- a/parse/parse.go
+++ b/parse/parse.go
@@ -225,8 +225,10 @@ func checkDupes(info *PkgInfo, imports []*Import) error {
 		for _, f := range funcs[d] {
 			ids = append(ids, f.ID())
 		}
+		sort.Strings(ids)
 		errs = append(errs, fmt.Sprintf("%q target has multiple definitions: %s\n", d, strings.Join(ids, ", ")))
 	}
+	sort.Strings(errs)
 	return errors.New(strings.Join(errs, "\n"))
 }
 
diff --git a/site/content/index.md b/site/content/index.md
index 25bfe14a..ac0f860a 100644
--- a/site/content/index.md
+++ b/site/content/index.md
@@ -89,6 +89,13 @@ func Build() error {
 
 Run the above `Build` target by simply running `mage build` in the same directory as the magefile.
 
+## Magefiles directory
+
+If you create your Magefile or files within a directory named `magefiles` And there is no Magefile in your current directory, 
+`mage` will default to the directory as the source for your targets while keeping the current directory as working one.
+
+The result is the equivalent of running `mage -d magefiles -w .`
+
 ## Demo
 
 {{< youtube Hoga60EF_1U >}}
diff --git a/site/content/magefiles/_index.en.md b/site/content/magefiles/_index.en.md
index 6f908172..dcfb4bda 100644
--- a/site/content/magefiles/_index.en.md
+++ b/site/content/magefiles/_index.en.md
@@ -89,3 +89,17 @@ mage target:
 The first sentence in the comment will be the short help text shown with mage -l.
 The rest of the comment is long help text that will be shown with mage -h <target>
 ```
+
+### Magefiles directory
+
+Some development IDEs might work erratically with magefiles sharing location with other go files which very well might
+have a different package name. 
+
+To simplify development, if you place your Magefiles inside a `magefiles` directory, and none remains in your
+main folder, the `mage` command will pick the directory as the source of your targets while keeping the current directory
+as the working one.
+
+The `magefiles` directory does not require for you to add build tags to the files in it, it is optional, however we 
+encourage you to keep it consistent, either all or none.
+
+Effectively this is the equivalent of running: `mage -d magefiles -w .`
\ No newline at end of file