diff --git a/.editorconfig b/.editorconfig
new file mode 100644
index 000000000..91c336188
--- /dev/null
+++ b/.editorconfig
@@ -0,0 +1,7 @@
+root = true
+
+[*.js]
+end_of_line = lf
+indent_style = space
+indent_size = 2
+insert_final_newline = true
diff --git a/lib/apply-extends.js b/lib/apply-extends.js
new file mode 100644
index 000000000..d91211b2a
--- /dev/null
+++ b/lib/apply-extends.js
@@ -0,0 +1,37 @@
+var fs = require('fs')
+var path = require('path')
+var assign = require('./assign')
+var YError = require('./yerror')
+
+var previouslyVisitedConfigs = []
+
+function checkForCircularExtends (path) {
+  if (previouslyVisitedConfigs.indexOf(path) > -1) {
+    throw new YError("Circular extended configurations: '" + path + "'.")
+  }
+}
+
+function applyExtends (config, cwd, subKey) {
+  var defaultConfig = {}
+
+  if (config.hasOwnProperty('extends')) {
+    var pathToDefault = path.join(cwd, config.extends)
+
+    checkForCircularExtends(pathToDefault)
+
+    previouslyVisitedConfigs.push(pathToDefault)
+    delete config.extends
+
+    defaultConfig = JSON.parse(fs.readFileSync(pathToDefault, 'utf8'))
+    if (subKey) {
+      defaultConfig = defaultConfig[subKey] || {}
+    }
+    defaultConfig = applyExtends(defaultConfig, path.dirname(pathToDefault), subKey)
+  }
+
+  previouslyVisitedConfigs = []
+
+  return assign(defaultConfig, config)
+}
+
+module.exports = applyExtends
diff --git a/test/fixtures/extends/circular_1.json b/test/fixtures/extends/circular_1.json
new file mode 100644
index 000000000..4cd662952
--- /dev/null
+++ b/test/fixtures/extends/circular_1.json
@@ -0,0 +1,4 @@
+{
+  "a": 44,
+  "extends": "./circular_2.json"
+}
\ No newline at end of file
diff --git a/test/fixtures/extends/circular_2.json b/test/fixtures/extends/circular_2.json
new file mode 100644
index 000000000..85b7de82e
--- /dev/null
+++ b/test/fixtures/extends/circular_2.json
@@ -0,0 +1,4 @@
+{
+  "b": "any",
+  "extends": "./circular_1.json"
+}
\ No newline at end of file
diff --git a/test/fixtures/extends/config_1.json b/test/fixtures/extends/config_1.json
new file mode 100644
index 000000000..043fb87b0
--- /dev/null
+++ b/test/fixtures/extends/config_1.json
@@ -0,0 +1,5 @@
+{
+  "a": 30,
+  "b": 22,
+  "extends": "./config_2.json"
+}
\ No newline at end of file
diff --git a/test/fixtures/extends/config_2.json b/test/fixtures/extends/config_2.json
new file mode 100644
index 000000000..886f419f4
--- /dev/null
+++ b/test/fixtures/extends/config_2.json
@@ -0,0 +1,3 @@
+{
+  "z": 15
+}
\ No newline at end of file
diff --git a/test/fixtures/extends/packageA/package.json b/test/fixtures/extends/packageA/package.json
new file mode 100644
index 000000000..236e60f2c
--- /dev/null
+++ b/test/fixtures/extends/packageA/package.json
@@ -0,0 +1,6 @@
+{
+  "foo": {
+    "a": 80,
+    "extends": "../packageB/package.json"
+  }
+}
\ No newline at end of file
diff --git a/test/fixtures/extends/packageB/package.json b/test/fixtures/extends/packageB/package.json
new file mode 100644
index 000000000..473fda728
--- /dev/null
+++ b/test/fixtures/extends/packageB/package.json
@@ -0,0 +1,6 @@
+{
+  "foo": {
+    "a": 90,
+    "b": "riffiwobbles"
+  }
+}
\ No newline at end of file
diff --git a/test/yargs.js b/test/yargs.js
index 5d5771df8..85a8b6921 100644
--- a/test/yargs.js
+++ b/test/yargs.js
@@ -5,6 +5,7 @@ var fs = require('fs')
 var path = require('path')
 var checkOutput = require('./helpers/utils').checkOutput
 var yargs = require('../')
+var YError = require('../lib/yerror')
 
 require('chai').should()
 
@@ -1155,6 +1156,27 @@ describe('yargs dsl tests', function () {
       argv.foo.should.equal(1)
       argv.bar.should.equal(2)
     })
+
+    describe('extends', function () {
+      it('applies default configurations when given config object', function () {
+        var argv = yargs
+          .config({
+            extends: './test/fixtures/extends/config_1.json',
+            a: 1
+          })
+          .argv
+
+        argv.a.should.equal(1)
+        argv.b.should.equal(22)
+        argv.z.should.equal(15)
+      })
+
+      it('protects against circular extended configurations', function () {
+        expect(function () {
+          yargs.config({extends: './test/fixtures/extends/circular_1.json'})
+        }).to.throw(YError)
+      })
+    })
   })
 
   describe('normalize', function () {
@@ -1411,6 +1433,13 @@ describe('yargs dsl tests', function () {
 
       argv.foo.should.equal('a')
     })
+
+    it('should apply default configurations from extended packages', function () {
+      var argv = yargs().pkgConf('foo', 'test/fixtures/extends/packageA').argv
+
+      argv.a.should.equal(80)
+      argv.b.should.equals('riffiwobbles')
+    })
   })
 
   describe('skipValidation', function () {
diff --git a/yargs.js b/yargs.js
index f39150db3..42add466d 100644
--- a/yargs.js
+++ b/yargs.js
@@ -9,6 +9,7 @@ const Validation = require('./lib/validation')
 const Y18n = require('y18n')
 const objFilter = require('./lib/obj-filter')
 const setBlocking = require('set-blocking')
+const applyExtends = require('./lib/apply-extends')
 const YError = require('./lib/yerror')
 
 var exports = module.exports = Yargs
@@ -304,6 +305,7 @@ function Yargs (processArgs, cwd, parentRequire) {
     argsert('[object|string] [string|function] [function]', [key, msg, parseFn], arguments.length)
     // allow a config object to be provided directly.
     if (typeof key === 'object') {
+      key = applyExtends(key, cwd)
       options.configObjects = (options.configObjects || []).concat(key)
       return self
     }
@@ -319,6 +321,7 @@ function Yargs (processArgs, cwd, parentRequire) {
     ;(Array.isArray(key) ? key : [key]).forEach(function (k) {
       options.config[k] = parseFn || true
     })
+
     return self
   }
 
@@ -473,7 +476,7 @@ function Yargs (processArgs, cwd, parentRequire) {
 
     // If an object exists in the key, add it to options.configObjects
     if (obj[key] && typeof obj[key] === 'object') {
-      conf = obj[key]
+      conf = applyExtends(obj[key], path, key)
       options.configObjects = (options.configObjects || []).concat(conf)
     }