diff --git a/resources/META-INF/babashka/deps.edn b/resources/META-INF/babashka/deps.edn
index 622c4cad..006b0ebd 100644
--- a/resources/META-INF/babashka/deps.edn
+++ b/resources/META-INF/babashka/deps.edn
@@ -50,8 +50,8 @@
         org.clojure/data.priority-map {:mvn/version "1.1.0"}
         insn/insn {:mvn/version "0.5.2"}
         org.clojure/core.rrb-vector {:mvn/version "0.1.2"}
-        org.babashka/cli {:mvn/version "0.6.50"}
-        org.babashka/http-client {:mvn/version "0.1.8"}
+        org.babashka/cli {:mvn/version "0.7.51"}
+        org.babashka/http-client {:mvn/version "0.2.9"}
         ;; native image bloat with ordered 1.5.10
         org.flatland/ordered {:mvn/version "1.5.9"}}
  :aliases {:babashka/dev
diff --git a/src/babashka/main.clj b/src/babashka/main.clj
index 31b04037..d91e5f44 100644
--- a/src/babashka/main.clj
+++ b/src/babashka/main.clj
@@ -154,7 +154,7 @@ Global opts:
   -cp, --classpath  Classpath to use. Overrides bb.edn classpath.
   --debug           Print debug information and internal stacktrace in case of exception.
   --init <file>     Load file after any preloads and prior to evaluation/subcommands.
-  --config <file>   Replacing bb.edn with file. Relative paths are resolved relative to file.
+  --config <file>   Replace bb.edn with file. Defaults to bb.edn adjacent to invoked file or bb.edn in current dir. Relative paths are resolved relative to file.
   --deps-root <dir> Treat dir as root of relative paths in config.
   --prn             Print result via clojure.core/prn
   -Sforce           Force recalculation of the classpath (don't use the cache)
@@ -1123,7 +1123,7 @@ Use bb run --help to show this help output.
 
 (defn main [& args]
   (let [[args global-opts] (parse-global-opts args)
-        {:keys [:jar] :as file-opt} (when (some-> args first io/file .isFile)
+        {:keys [:jar :file] :as file-opt} (when (some-> args first io/file .isFile)
                                       (parse-file-opt args global-opts))
         config (:config global-opts)
         merge-deps (:merge-deps global-opts)
@@ -1131,7 +1131,12 @@ Use bb run --help to show this help output.
         bb-edn-file (cond
                       config (when (fs/exists? config) (abs-path config))
                       jar (some-> [jar] cp/new-loader (cp/resource "META-INF/bb.edn") .toString)
-                      :else (when (fs/exists? "bb.edn") (abs-path "bb.edn")))
+                      :else (if (and file (fs/exists? file))
+                              (let [rel-bb-edn (fs/file (fs/parent file) "bb.edn")]
+                                (when (fs/exists? rel-bb-edn)
+                                  (abs-path rel-bb-edn)))
+                              (when (fs/exists? "bb.edn")
+                                (abs-path "bb.edn"))))
         bb-edn (when (or bb-edn-file merge-deps)
                  (when bb-edn-file (System/setProperty "babashka.config" bb-edn-file))
                  (let [raw-string (when bb-edn-file (slurp bb-edn-file))
diff --git a/test-resources/adjacent_bb/bb.edn b/test-resources/adjacent_bb/bb.edn
new file mode 100644
index 00000000..b489dfa7
--- /dev/null
+++ b/test-resources/adjacent_bb/bb.edn
@@ -0,0 +1 @@
+{:deps {medley/medley {:mvn/version "1.3.0"}}}
diff --git a/test-resources/adjacent_bb/medley.bb b/test-resources/adjacent_bb/medley.bb
new file mode 100755
index 00000000..745e8cf0
--- /dev/null
+++ b/test-resources/adjacent_bb/medley.bb
@@ -0,0 +1,6 @@
+#!/usr/bin/env bb
+
+(ns medley
+  (:require [medley.core :as medley]))
+
+(prn (medley/index-by :id [{:id 1}]))
diff --git a/test/babashka/bb_edn_test.clj b/test/babashka/bb_edn_test.clj
index 8a23ea1b..574066b0 100644
--- a/test/babashka/bb_edn_test.clj
+++ b/test/babashka/bb_edn_test.clj
@@ -518,3 +518,6 @@ even more stuff here\"
               out (bb "--config" config "cp")
               entries (cp/split-classpath out)]
           (is (= (fs/parent f) (fs/parent (first entries)))))))))
+
+(deftest adjacent-bb-edn-test
+  (is (= {1 {:id 1}} (bb "test-resources/adjacent_bb/medley.bb"))))