diff --git a/mkdocs/docs/api.md b/mkdocs/docs/api.md
index 7aa4159016..aed1473e98 100644
--- a/mkdocs/docs/api.md
+++ b/mkdocs/docs/api.md
@@ -49,7 +49,7 @@ catalog:
 
 and loaded in python by calling `load_catalog(name="hive")` and `load_catalog(name="rest")`.
 
-This information must be placed inside a file called `.pyiceberg.yaml` located either in the `$HOME` or `%USERPROFILE%` directory (depending on whether the operating system is Unix-based or Windows-based, respectively) or in the `$PYICEBERG_HOME` directory (if the corresponding environment variable is set).
+This information must be placed inside a file called `.pyiceberg.yaml` located either in the `$HOME` or `%USERPROFILE%` directory (depending on whether the operating system is Unix-based or Windows-based, respectively), in the current working directory, or in the `$PYICEBERG_HOME` directory (if the corresponding environment variable is set).
 
 For more details on possible configurations refer to the [specific page](https://py.iceberg.apache.org/configuration/).
 
diff --git a/mkdocs/docs/cli.md b/mkdocs/docs/cli.md
index 28e44955d7..4e37ddb6e5 100644
--- a/mkdocs/docs/cli.md
+++ b/mkdocs/docs/cli.md
@@ -26,7 +26,7 @@ hide:
 
 Pyiceberg comes with a CLI that's available after installing the `pyiceberg` package.
 
-You can pass the path to the Catalog using the `--uri` and `--credential` argument, but it is recommended to setup a `~/.pyiceberg.yaml` config as described in the [Catalog](configuration.md) section.
+You can pass the path to the Catalog using the `--uri` and `--credential` argument, but it is recommended to setup a `~/.pyiceberg.yaml` or `./.pyiceberg.yaml` config as described in the [Catalog](configuration.md) section.
 
 ```sh
 ➜  pyiceberg --help
diff --git a/mkdocs/docs/configuration.md b/mkdocs/docs/configuration.md
index 621b313613..5ccd51c113 100644
--- a/mkdocs/docs/configuration.md
+++ b/mkdocs/docs/configuration.md
@@ -28,7 +28,7 @@ hide:
 
 There are three ways to pass in configuration:
 
-- Using the `~/.pyiceberg.yaml` configuration file
+- Using the `.pyiceberg.yaml` configuration file stored in either the directory specified by the `PYICEBERG_HOME` environment variable, the home directory, or current working directory.
 - Through environment variables
 - By passing in credentials through the CLI or the Python API
 
diff --git a/pyiceberg/utils/config.py b/pyiceberg/utils/config.py
index 51ab200e10..0c162777d6 100644
--- a/pyiceberg/utils/config.py
+++ b/pyiceberg/utils/config.py
@@ -84,12 +84,14 @@ def _load_yaml(directory: Optional[str]) -> Optional[RecursiveDict]:
                     return file_config_lowercase
             return None
 
-        # Give priority to the PYICEBERG_HOME directory
-        if pyiceberg_home_config := _load_yaml(os.environ.get(PYICEBERG_HOME)):
-            return pyiceberg_home_config
-        # Look into the home directory
-        if pyiceberg_home_config := _load_yaml(os.path.expanduser("~")):
-            return pyiceberg_home_config
+        # Directories to search for the configuration file
+        # The current search order is: PYICEBERG_HOME, home directory, then current directory
+        search_dirs = [os.environ.get(PYICEBERG_HOME), os.path.expanduser("~"), os.getcwd()]
+
+        for directory in search_dirs:
+            if config := _load_yaml(directory):
+                return config
+
         # Didn't find a config
         return None
 
diff --git a/tests/utils/test_config.py b/tests/utils/test_config.py
index 066e7d7cc0..010f9a7c9b 100644
--- a/tests/utils/test_config.py
+++ b/tests/utils/test_config.py
@@ -15,6 +15,7 @@
 # specific language governing permissions and limitations
 # under the License.
 import os
+from typing import Any, Dict, Optional
 from unittest import mock
 
 import pytest
@@ -93,3 +94,76 @@ def test_from_configuration_files_get_typed_value(tmp_path_factory: pytest.TempP
 
     assert Config().get_bool("legacy-current-snapshot-id")
     assert Config().get_int("max-workers") == 4
+
+
+@pytest.mark.parametrize(
+    "config_setup, expected_result",
+    [
+        # Validate lookup works with: config > home > cwd
+        (
+            {"config_location": "config", "config_content": {"catalog": {"default": {"uri": "https://service.io/api"}}}},
+            {"catalog": {"default": {"uri": "https://service.io/api"}}},
+        ),
+        (
+            {"config_location": "home", "config_content": {"catalog": {"default": {"uri": "https://service.io/api"}}}},
+            {"catalog": {"default": {"uri": "https://service.io/api"}}},
+        ),
+        (
+            {"config_location": "current", "config_content": {"catalog": {"default": {"uri": "https://service.io/api"}}}},
+            {"catalog": {"default": {"uri": "https://service.io/api"}}},
+        ),
+        (
+            {"config_location": "none", "config_content": None},
+            None,
+        ),
+        # Validate lookup order: home > cwd if present in both
+        (
+            {
+                "config_location": "both",
+                "home_content": {"catalog": {"default": {"uri": "https://service.io/home"}}},
+                "current_content": {"catalog": {"default": {"uri": "https://service.io/current"}}},
+            },
+            {"catalog": {"default": {"uri": "https://service.io/home"}}},
+        ),
+    ],
+)
+def test_from_multiple_configuration_files(
+    monkeypatch: pytest.MonkeyPatch,
+    tmp_path_factory: pytest.TempPathFactory,
+    config_setup: Dict[str, Any],
+    expected_result: Optional[Dict[str, Any]],
+) -> None:
+    def create_config_files(
+        paths: Dict[str, str],
+        contents: Dict[str, Optional[Dict[str, Any]]],
+    ) -> None:
+        """Helper to create configuration files in specified paths."""
+        for location, content in contents.items():
+            if content:
+                config_file_path = os.path.join(paths[location], ".pyiceberg.yaml")
+                with open(config_file_path, "w", encoding="UTF8") as file:
+                    yaml_str = as_document(content).as_yaml() if content else ""
+                    file.write(yaml_str)
+
+    paths = {
+        "config": str(tmp_path_factory.mktemp("config")),
+        "home": str(tmp_path_factory.mktemp("home")),
+        "current": str(tmp_path_factory.mktemp("current")),
+    }
+
+    contents = {
+        "config": config_setup.get("config_content") if config_setup.get("config_location") == "config" else None,
+        "home": config_setup.get("home_content") if config_setup.get("config_location") in ["home", "both"] else None,
+        "current": config_setup.get("current_content") if config_setup.get("config_location") in ["current", "both"] else None,
+    }
+
+    create_config_files(paths, contents)
+
+    monkeypatch.setenv("PYICEBERG_HOME", paths["config"])
+    monkeypatch.setattr(os.path, "expanduser", lambda _: paths["home"])
+    if config_setup.get("config_location") in ["current", "both"]:
+        monkeypatch.chdir(paths["current"])
+
+    assert Config()._from_configuration_files() == expected_result, (
+        f"Unexpected configuration result for content: {expected_result}"
+    )