diff --git a/README.md b/README.md
index 6e3dbbc2..38e79e80 100644
--- a/README.md
+++ b/README.md
@@ -92,6 +92,25 @@ The above `nodemon.json` file might be my global config so that I have support f
 
 A further example of options can be seen in [sample-nodemon.md](https://github.com/remy/nodemon/blob/master/doc/sample-nodemon.md)
 
+### package.json
+
+If you want to keep all your package configurations in one place, nodemon supports using `package.json` for configuration.
+Simply specify the config in the same format as you would for a config file but under `nodemonConfig` in the `package.json` file, for example, take the following `package.json`:
+
+    {
+      "name": "nodemon",
+      "homepage": "http://nodemon.io",
+      ...
+      ... other standard package.json values
+      ...
+      "nodemonConfig": {
+        "ignore": ["test/*", "docs/*"],
+        "delay": "2500"
+      }
+    }
+
+Note that if you specify a `--config` file or provide a local `nodemon.json` any `package.json` config is ignored.
+
 *This section needs better documentation, but for now you can also see `nodemon --help config` ([also here](https://github.com/remy/nodemon/blob/master/doc/cli/config.txt))*.
 
 ## Using nodemon as a module
diff --git a/doc/cli/config.txt b/doc/cli/config.txt
index 3d1b3084..479f8f6a 100644
--- a/doc/cli/config.txt
+++ b/doc/cli/config.txt
@@ -6,6 +6,7 @@
 
   * $HOME/nodemon.json
   * $PWD/nodemon.json OR --config <file>
+  * nodemonConfig in package.json
 
   All config options in the .json file map 1-to-1 with the CLI options, so a
   config could read as:
diff --git a/lib/config/load.js b/lib/config/load.js
index 5422f67b..dec02769 100644
--- a/lib/config/load.js
+++ b/lib/config/load.js
@@ -171,6 +171,13 @@ function loadFile(options, config, dir, ready) {
   var filename = options.configFile || path.join(dir, 'nodemon.json');
   fs.readFile(filename, 'utf8', function (err, data) {
     if (err) {
+      if (err.code === 'ENOENT') {
+        if (!options.configFile && dir !== utils.home) {
+          // if no specified local config file and local nodemon.json
+          // doesn't exist, try the package.json
+          return loadPackageJSON(config, callback);
+        }
+      }
       return callback({});
     }
 
@@ -188,6 +195,19 @@ function loadFile(options, config, dir, ready) {
     // options values will overwrite settings
     callback(settings);
   });
+}
+
+function loadPackageJSON(config, ready) {
+  if (!ready) {
+    ready = function () {};
+  }
 
+  utils.log.detail('Looking in package.json for nodemonConfig');
 
+  var dir = process.cwd();
+  var filename = path.join(dir, 'package.json');
+  var packageLoadOptions = { configFile: filename };
+  return loadFile(packageLoadOptions, config, dir, function (settings) {
+    ready(settings.nodemonConfig || {});
+  });
 }
diff --git a/test/config/load.test.js b/test/config/load.test.js
index 1d119fe6..9e179acb 100644
--- a/test/config/load.test.js
+++ b/test/config/load.test.js
@@ -107,6 +107,19 @@ describe('config load', function () {
     });
   });
 
+  it('should read package.json config', function (done) {
+    var dir = path.resolve(pwd, 'test/fixtures/packages/package-json-settings');
+    process.chdir(dir);
+    
+    var config = {},
+        settings = { quiet: true },
+        options = {};
+    load(settings, options, config, function (config) {
+      assert.deepEqual(config.exec, 'foo', 'exec is "foo": ' + config.exec);
+      done();
+    });
+  });
+
   it('should give local files preference', function (done) {
     var config = {},
         settings = { quiet: true },
@@ -120,6 +133,36 @@ describe('config load', function () {
     });
   });
 
+  it('should give local files preference over package.json config', function (done) {
+    var dir = path.resolve(pwd, 'test/fixtures/packages/nodemon-settings-and-package-json-settings');
+    process.chdir(dir);
+    
+    var config = {},
+        settings = { quiet: true },
+        options = {};
+    load(settings, options, config, function (config) {
+      assert.deepEqual(config.exec, 'foo', 'exec is "foo": ' + config.exec);
+      done();
+    });
+  });
+
+  it('should give package.json config preference', function (done) {
+    var dir = path.resolve(pwd, 'test/fixtures/packages/package-json-settings');
+    process.chdir(dir);
+    
+    var config = {},
+        settings = { quiet: true },
+        options = {};
+    load(settings, options, config, function (config) {
+      removeRegExp(config);
+      assert.deepEqual(config.exec, 'foo', 'exec is "foo": ' + config.exec);
+      assert.ok(config.ignore.indexOf('one') !== -1, 'ignore contains "one": ' + config.ignore);
+      assert.ok(config.ignore.indexOf('three') !== -1, 'ignore contains "three": ' + config.ignore);
+      assert.deepEqual(config.watch, ['four'], 'watch is "four": ' + config.watch);
+      done();
+    });
+  });
+
   it('should give user specified settings preference', function (done) {
     var config = {},
         settings = { ignore: ['one'], watch: ['one'], quiet: true },
@@ -132,6 +175,19 @@ describe('config load', function () {
     });
   });
 
+  it('should give user specified settings preference over package.json config', function (done) {
+    var dir = path.resolve(pwd, 'test/fixtures/packages/package-json-settings');
+    process.chdir(dir);
+    
+    var config = {},
+        settings = { exec: 'foo-user', quiet: true },
+        options = {};
+    load(settings, options, config, function (config) {
+      assert.deepEqual(config.exec, 'foo-user', 'exec is "foo-user": ' + config.exec);
+      done();
+    });
+  });
+
   it('should give user specified exec preference over package.scripts.start', function (done) {
     var dir = path.resolve(pwd, 'test/fixtures/packages/start-and-settings');
     process.chdir(dir);
@@ -146,6 +202,20 @@ describe('config load', function () {
     });
   });
 
+  it('should give package.json specified exec config over package.scripts.start', function (done) {
+    var dir = path.resolve(pwd, 'test/fixtures/packages/start-and-package-json-settings');
+    process.chdir(dir);
+
+    var config = {},
+        settings = {},
+        options = {};
+
+    load(settings, options, config, function (config) {
+      assert.deepEqual(config.exec, 'foo', 'exec is "foo": ' + config.exec);
+      done();
+    });
+  });
+
   // it('should put the script at the end if found in package.scripts.start', function (done) {
   //   process.chdir(path.resolve(pwd, 'test/fixtures/packages/start')); // allows us to load text/fixtures/package.json
   //   var settings = cli.parse(asCLI('--harmony'));
diff --git a/test/fixtures/packages/nodemon-settings-and-package-json-settings/nodemon.json b/test/fixtures/packages/nodemon-settings-and-package-json-settings/nodemon.json
new file mode 100644
index 00000000..e81bdb30
--- /dev/null
+++ b/test/fixtures/packages/nodemon-settings-and-package-json-settings/nodemon.json
@@ -0,0 +1,3 @@
+{
+  "exec": "foo"
+}
diff --git a/test/fixtures/packages/nodemon-settings-and-package-json-settings/package.json b/test/fixtures/packages/nodemon-settings-and-package-json-settings/package.json
new file mode 100644
index 00000000..c508e455
--- /dev/null
+++ b/test/fixtures/packages/nodemon-settings-and-package-json-settings/package.json
@@ -0,0 +1,5 @@
+{
+  "nodemonConfig": {
+    "exec": "foo-ignored"
+  }
+}
diff --git a/test/fixtures/packages/package-json-settings/package.json b/test/fixtures/packages/package-json-settings/package.json
new file mode 100644
index 00000000..d2d53825
--- /dev/null
+++ b/test/fixtures/packages/package-json-settings/package.json
@@ -0,0 +1,7 @@
+{
+  "nodemonConfig": {
+    "exec": "foo",
+    "ignore": ["one", "three"],
+    "watch": ["four"]
+  }
+}
diff --git a/test/fixtures/packages/start-and-package-json-settings/package.json b/test/fixtures/packages/start-and-package-json-settings/package.json
new file mode 100644
index 00000000..285e9237
--- /dev/null
+++ b/test/fixtures/packages/start-and-package-json-settings/package.json
@@ -0,0 +1,8 @@
+{
+  "scripts": {
+    "start": "node app.js"
+  },
+  "nodemonConfig": {
+    "exec": "foo"
+  }
+}