diff --git a/CHANGELOG.md b/CHANGELOG.md
index 56d0910d22..a181a35098 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -103,6 +103,7 @@
     Bug #6579: OpenMW compilation error when using OSG doubles for BoundingSphere
     Feature #890: OpenMW-CS: Column filtering
     Feature #1465: "Reset" argument for AI functions
+    Feature #2491: Ability to make OpenMW "portable"
     Feature #2554: Modifying an object triggers the instances table to scroll to the corresponding record
     Feature #2780: A way to see current OpenMW version in the console
     Feature #3616: Allow Zoom levels on the World Map
diff --git a/apps/essimporter/main.cpp b/apps/essimporter/main.cpp
index e81368c607..bc5d34bc03 100644
--- a/apps/essimporter/main.cpp
+++ b/apps/essimporter/main.cpp
@@ -25,6 +25,7 @@ int main(int argc, char** argv)
             ("encoding", boost::program_options::value<std::string>()->default_value("win1252"), "encoding of the save file")
         ;
         p_desc.add("mwsave", 1).add("output", 1);
+        Files::ConfigurationManager::addCommonOptions(desc);
 
         bpo::variables_map variables;
 
diff --git a/apps/launcher/maindialog.cpp b/apps/launcher/maindialog.cpp
index d335d7cded..167f6b9c26 100644
--- a/apps/launcher/maindialog.cpp
+++ b/apps/launcher/maindialog.cpp
@@ -414,57 +414,23 @@ bool Launcher::MainDialog::setupGameData()
 
 bool Launcher::MainDialog::setupGraphicsSettings()
 {
-    // This method is almost a copy of OMW::Engine::loadSettings().  They should definitely
-    // remain consistent, and possibly be merged into a shared component.  At the very least
-    // the filenames should be in the CfgMgr component.
-
-    // Ensure to clear previous settings in case we had already loaded settings.
-    mEngineSettings.clear();
-
-    // Create the settings manager and load default settings file
-    const std::string localDefault = (mCfgMgr.getLocalPath() / "defaults.bin").string();
-    const std::string globalDefault = (mCfgMgr.getGlobalPath() / "defaults.bin").string();
-    std::string defaultPath;
-
-    // Prefer the defaults.bin in the current directory.
-    if (boost::filesystem::exists(localDefault))
-        defaultPath = localDefault;
-    else if (boost::filesystem::exists(globalDefault))
-        defaultPath = globalDefault;
-    // Something's very wrong if we can't find the file at all.
-    else {
-        cfgError(tr("Error reading OpenMW configuration file"),
-                 tr("<br><b>Could not find defaults.bin</b><br><br> \
-                     The problem may be due to an incomplete installation of OpenMW.<br> \
-                     Reinstalling OpenMW may resolve the problem."));
+    mEngineSettings.clear();  // Ensure to clear previous settings in case we had already loaded settings.
+    try
+    {
+        boost::program_options::variables_map variables;
+        boost::program_options::options_description desc;
+        mCfgMgr.addCommonOptions(desc);
+        mCfgMgr.readConfiguration(variables, desc, true);
+        mEngineSettings.load(mCfgMgr);
+        return true;
+    }
+    catch (std::exception& e)
+    {
+        cfgError(tr("Error reading OpenMW configuration files"),
+                 tr("<br>The problem may be due to an incomplete installation of OpenMW.<br> \
+                     Reinstalling OpenMW may resolve the problem.<br>") + e.what());
         return false;
     }
-
-    // Load the default settings, report any parsing errors.
-    try {
-        mEngineSettings.loadDefault(defaultPath);
-    }
-    catch (std::exception& e) {
-        std::string msg = std::string("<br><b>Error reading defaults.bin</b><br><br>") + e.what();
-        cfgError(tr("Error reading OpenMW configuration file"), tr(msg.c_str()));
-        return false;
-    }
-
-    // Load user settings if they exist
-    const std::string userPath = (mCfgMgr.getUserConfigPath() / "settings.cfg").string();
-    // User settings are not required to exist, so if they don't we're done.
-    if (!boost::filesystem::exists(userPath)) return true;
-
-    try {
-        mEngineSettings.loadUser(userPath);
-    }
-    catch (std::exception& e) {
-        std::string msg = std::string("<br><b>Error reading settings.cfg</b><br><br>") + e.what();
-        cfgError(tr("Error reading OpenMW configuration file"), tr(msg.c_str()));
-        return false;
-    }
-
-    return true;
 }
 
 void Launcher::MainDialog::loadSettings()
diff --git a/apps/navmeshtool/main.cpp b/apps/navmeshtool/main.cpp
index 8e46170e63..f89e80e542 100644
--- a/apps/navmeshtool/main.cpp
+++ b/apps/navmeshtool/main.cpp
@@ -84,27 +84,11 @@ namespace NavMeshTool
                 ("process-interior-cells", bpo::value<bool>()->implicit_value(true)
                     ->default_value(false), "build navmesh for interior cells")
             ;
+            Files::ConfigurationManager::addCommonOptions(result);
 
             return result;
         }
 
-        void loadSettings(const Files::ConfigurationManager& config, Settings::Manager& settings)
-        {
-            const std::string localDefault = (config.getLocalPath() / "defaults.bin").string();
-            const std::string globalDefault = (config.getGlobalPath() / "defaults.bin").string();
-
-            if (boost::filesystem::exists(localDefault))
-                settings.loadDefault(localDefault);
-            else if (boost::filesystem::exists(globalDefault))
-                settings.loadDefault(globalDefault);
-            else
-                throw std::runtime_error("No default settings file found! Make sure the file \"defaults.bin\" was properly installed.");
-
-            const std::string settingsPath = (config.getUserConfigPath() / "settings.cfg").string();
-            if (boost::filesystem::exists(settingsPath))
-                settings.loadUser(settingsPath);
-        }
-
         int runNavMeshTool(int argc, char *argv[])
         {
             bpo::options_description desc = makeOptionsDescription();
@@ -165,7 +149,7 @@ namespace NavMeshTool
             VFS::registerArchives(&vfs, fileCollections, archives, true);
 
             Settings::Manager settings;
-            loadSettings(config, settings);
+            settings.load(config);
 
             const osg::Vec3f agentHalfExtents = Settings::Manager::getVector3("default actor pathfind half extents", "Game");
 
diff --git a/apps/opencs/editor.cpp b/apps/opencs/editor.cpp
index 862d1c545f..1d5934fe5d 100644
--- a/apps/opencs/editor.cpp
+++ b/apps/opencs/editor.cpp
@@ -5,6 +5,7 @@
 #include <QLocalSocket>
 #include <QMessageBox>
 
+#include <components/debug/debugging.hpp>
 #include <components/debug/debuglog.hpp>
 #include <components/fallback/validate.hpp>
 #include <components/misc/rng.hpp>
@@ -20,7 +21,7 @@
 using namespace Fallback;
 
 CS::Editor::Editor (int argc, char **argv)
-: mSettingsState (mCfgMgr), mDocumentManager (mCfgMgr),
+: mConfigVariables(readConfiguration()), mSettingsState (mCfgMgr), mDocumentManager (mCfgMgr),
   mPid(""), mLock(), mMerge (mDocumentManager),
   mIpcServerName ("org.openmw.OpenCS"), mServer(nullptr), mClientSocket(nullptr)
 {
@@ -82,7 +83,7 @@ CS::Editor::~Editor ()
         remove(mPid.string().c_str())); // ignore any error
 }
 
-std::pair<Files::PathContainer, std::vector<std::string> > CS::Editor::readConfig(bool quiet)
+boost::program_options::variables_map CS::Editor::readConfiguration()
 {
     boost::program_options::variables_map variables;
     boost::program_options::options_description desc("Syntax: openmw-cs <options>\nAllowed options");
@@ -101,10 +102,19 @@ std::pair<Files::PathContainer, std::vector<std::string> > CS::Editor::readConfi
         ->multitoken(), "exclude specified script from the verifier (if the use of the blacklist is enabled)")
     ("script-blacklist-use", boost::program_options::value<bool>()->implicit_value(true)
         ->default_value(true), "enable script blacklisting");
+    Files::ConfigurationManager::addCommonOptions(desc);
 
     boost::program_options::notify(variables);
 
     mCfgMgr.readConfiguration(variables, desc, false);
+    setupLogging(mCfgMgr.getLogPath().string(), "OpenMW-CS");
+
+    return variables;
+}
+
+std::pair<Files::PathContainer, std::vector<std::string> > CS::Editor::readConfig(bool quiet)
+{
+    boost::program_options::variables_map& variables = mConfigVariables;
 
     Fallback::Map::init(variables["fallback"].as<FallbackMap>().mMap);
 
diff --git a/apps/opencs/editor.hpp b/apps/opencs/editor.hpp
index 1c93427613..7b258c8049 100644
--- a/apps/opencs/editor.hpp
+++ b/apps/opencs/editor.hpp
@@ -40,6 +40,7 @@ namespace CS
             Q_OBJECT
 
             Files::ConfigurationManager mCfgMgr;
+            boost::program_options::variables_map mConfigVariables;
             CSMPrefs::State mSettingsState;
             CSMDoc::DocumentManager mDocumentManager;
             CSVDoc::StartupDialogue mStartup;
@@ -58,6 +59,8 @@ namespace CS
             Files::PathContainer mDataDirs;
             std::string mEncodingName;
 
+            boost::program_options::variables_map readConfiguration();
+            ///< Calls mCfgMgr.readConfiguration; should be used before initialization of mSettingsState as it depends on the configuration.
             std::pair<Files::PathContainer, std::vector<std::string> > readConfig(bool quiet=false);
             ///< \return data paths
 
diff --git a/apps/opencs/main.cpp b/apps/opencs/main.cpp
index c7d57a256e..1e6e718983 100644
--- a/apps/opencs/main.cpp
+++ b/apps/opencs/main.cpp
@@ -79,5 +79,5 @@ int runApplication(int argc, char *argv[])
 
 int main(int argc, char *argv[])
 {
-    return wrapApplication(&runApplication, argc, argv, "OpenMW-CS");
+    return wrapApplication(&runApplication, argc, argv, "OpenMW-CS", false);
 }
diff --git a/apps/opencs/model/prefs/state.cpp b/apps/opencs/model/prefs/state.cpp
index 06dc1f4a2e..ee0cbbed5a 100644
--- a/apps/opencs/model/prefs/state.cpp
+++ b/apps/opencs/model/prefs/state.cpp
@@ -16,22 +16,7 @@ CSMPrefs::State *CSMPrefs::State::sThis = nullptr;
 
 void CSMPrefs::State::load()
 {
-    // default settings file
-    boost::filesystem::path local = mConfigurationManager.getLocalPath() / mDefaultConfigFile;
-    boost::filesystem::path global = mConfigurationManager.getGlobalPath() / mDefaultConfigFile;
-
-    if (boost::filesystem::exists (local))
-        mSettings.loadDefault (local.string());
-    else if (boost::filesystem::exists (global))
-        mSettings.loadDefault (global.string());
-    else
-        throw std::runtime_error ("No default settings file found! Make sure the file \"" + mDefaultConfigFile + "\" was properly installed.");
-
-    // user settings file
-    boost::filesystem::path user = mConfigurationManager.getUserConfigPath() / mConfigFile;
-
-    if (boost::filesystem::exists (user))
-        mSettings.loadUser (user.string());
+    mSettings.load(mConfigurationManager);
 }
 
 void CSMPrefs::State::declare()
diff --git a/apps/openmw/engine.cpp b/apps/openmw/engine.cpp
index 9e2e1aedad..cd32cb3b0d 100644
--- a/apps/openmw/engine.cpp
+++ b/apps/openmw/engine.cpp
@@ -518,28 +518,6 @@ void OMW::Engine::setSkipMenu (bool skipMenu, bool newGame)
     mNewGame = newGame;
 }
 
-std::string OMW::Engine::loadSettings (Settings::Manager & settings)
-{
-    // Create the settings manager and load default settings file
-    const std::string localdefault = (mCfgMgr.getLocalPath() / "defaults.bin").string();
-    const std::string globaldefault = (mCfgMgr.getGlobalPath() / "defaults.bin").string();
-
-    // prefer local
-    if (boost::filesystem::exists(localdefault))
-        settings.loadDefault(localdefault);
-    else if (boost::filesystem::exists(globaldefault))
-        settings.loadDefault(globaldefault);
-    else
-        throw std::runtime_error ("No default settings file found! Make sure the file \"defaults.bin\" was properly installed.");
-
-    // load user settings if they exist
-    std::string settingspath = (mCfgMgr.getUserConfigPath() / "settings.cfg").string();
-    if (boost::filesystem::exists(settingspath))
-        settings.loadUser(settingspath);
-
-    return settingspath;
-}
-
 void OMW::Engine::createWindow(Settings::Manager& settings)
 {
     int screen = settings.getInt("screen", "Video");
@@ -975,8 +953,7 @@ void OMW::Engine::go()
 
     // Load settings
     Settings::Manager settings;
-    std::string settingspath;
-    settingspath = loadSettings (settings);
+    std::string settingspath = settings.load(mCfgMgr);
 
     MWClass::registerClasses();
 
diff --git a/apps/openmw/main.cpp b/apps/openmw/main.cpp
index d5bed4ba25..456fe23b60 100644
--- a/apps/openmw/main.cpp
+++ b/apps/openmw/main.cpp
@@ -40,6 +40,7 @@ bool parseOptions (int argc, char** argv, OMW::Engine& engine, Files::Configurat
     typedef std::vector<std::string> StringsVector;
 
     bpo::options_description desc = OpenMW::makeOptionsDescription();
+    Files::ConfigurationManager::addCommonOptions(desc);
 
     bpo::variables_map variables;
 
@@ -61,9 +62,9 @@ bool parseOptions (int argc, char** argv, OMW::Engine& engine, Files::Configurat
         return false;
     }
 
-    bpo::variables_map composingVariables = Files::separateComposingVariables(variables, desc);
     cfgMgr.readConfiguration(variables, desc);
-    Files::mergeComposingVariables(variables, composingVariables, desc);
+
+    setupLogging(cfgMgr.getLogPath().string(), "OpenMW");
 
     Version::Version v = Version::getOpenmwVersion(variables["resources"].as<Files::MaybeQuotedPath>().string());
     Log(Debug::Info) << v.describe();
@@ -230,7 +231,7 @@ extern "C" int SDL_main(int argc, char**argv)
 int main(int argc, char**argv)
 #endif
 {
-    return wrapApplication(&runApplication, argc, argv, "OpenMW");
+    return wrapApplication(&runApplication, argc, argv, "OpenMW", false);
 }
 
 // Platform specific for Windows when there is no console built into the executable.
diff --git a/apps/openmw_test_suite/mwworld/test_store.cpp b/apps/openmw_test_suite/mwworld/test_store.cpp
index 10003cfdfd..bf1a40f7d9 100644
--- a/apps/openmw_test_suite/mwworld/test_store.cpp
+++ b/apps/openmw_test_suite/mwworld/test_store.cpp
@@ -58,6 +58,7 @@ struct ContentFileTest : public ::testing::Test
         ("content", boost::program_options::value<std::vector<std::string>>()->default_value(std::vector<std::string>(), "")
             ->multitoken()->composing(), "content file(s): esm/esp, or omwgame/omwaddon")
         ("data-local", boost::program_options::value<Files::MaybeQuotedPathContainer::value_type>()->default_value(Files::MaybeQuotedPathContainer::value_type(), ""));
+        Files::ConfigurationManager::addCommonOptions(desc);
 
         boost::program_options::notify(variables);
 
diff --git a/components/debug/debugging.cpp b/components/debug/debugging.cpp
index 0e372942f2..c84bb39d3d 100644
--- a/components/debug/debugging.cpp
+++ b/components/debug/debugging.cpp
@@ -137,61 +137,65 @@ namespace Debug
 }
 
 static std::unique_ptr<std::ostream> rawStdout = nullptr;
+static std::unique_ptr<std::ostream> rawStderr = nullptr;
+static boost::filesystem::ofstream logfile;
+
+#if defined(_WIN32) && defined(_DEBUG)
+static boost::iostreams::stream_buffer<Debug::DebugOutput> sb;
+#else
+static boost::iostreams::stream_buffer<Debug::Tee> coutsb;
+static boost::iostreams::stream_buffer<Debug::Tee> cerrsb;
+#endif
 
 std::ostream& getRawStdout()
 {
     return rawStdout ? *rawStdout : std::cout;
 }
 
-int wrapApplication(int (*innerApplication)(int argc, char *argv[]), int argc, char *argv[], const std::string& appName)
+// Redirect cout and cerr to the log file
+void setupLogging(const std::string& logDir, const std::string& appName, std::ios_base::openmode mode)
+{
+#if defined(_WIN32) && defined(_DEBUG)
+    // Redirect cout and cerr to VS debug output when running in debug mode
+    sb.open(Debug::DebugOutput());
+    std::cout.rdbuf(&sb);
+    std::cerr.rdbuf(&sb);
+#else
+    const std::string logName = Misc::StringUtils::lowerCase(appName) + ".log";
+    logfile.open(boost::filesystem::path(logDir) / logName, mode);
+
+    coutsb.open(Debug::Tee(logfile, *rawStdout));
+    cerrsb.open(Debug::Tee(logfile, *rawStderr));
+
+    std::cout.rdbuf(&coutsb);
+    std::cerr.rdbuf(&cerrsb);
+#endif
+}
+
+int wrapApplication(int (*innerApplication)(int argc, char *argv[]), int argc, char *argv[],
+                    const std::string& appName, bool autoSetupLogging)
 {
 #if defined _WIN32
     (void)Debug::attachParentConsole();
 #endif
     rawStdout = std::make_unique<std::ostream>(std::cout.rdbuf());
-
-    // Some objects used to redirect cout and cerr
-    // Scope must be here, so this still works inside the catch block for logging exceptions
-    std::streambuf* cout_rdbuf = std::cout.rdbuf ();
-    std::streambuf* cerr_rdbuf = std::cerr.rdbuf ();
-
-#if defined(_WIN32) && defined(_DEBUG)
-    boost::iostreams::stream_buffer<Debug::DebugOutput> sb;
-#else
-    boost::iostreams::stream_buffer<Debug::Tee> coutsb;
-    boost::iostreams::stream_buffer<Debug::Tee> cerrsb;
-    std::ostream oldcout(cout_rdbuf);
-    std::ostream oldcerr(cerr_rdbuf);
-#endif
-
-    const std::string logName = Misc::StringUtils::lowerCase(appName) + ".log";
-    boost::filesystem::ofstream logfile;
+    rawStderr = std::make_unique<std::ostream>(std::cerr.rdbuf());
 
     int ret = 0;
     try
     {
         Files::ConfigurationManager cfgMgr;
 
-#if defined(_WIN32) && defined(_DEBUG)
-        // Redirect cout and cerr to VS debug output when running in debug mode
-        sb.open(Debug::DebugOutput());
-        std::cout.rdbuf (&sb);
-        std::cerr.rdbuf (&sb);
-#else
-        // Redirect cout and cerr to the log file
-        // If we are collecting a stack trace, append to existing log file
-        std::ios_base::openmode mode = std::ios::out;
-        if(argc == 2 && strcmp(argv[1], crash_switch) == 0)
-            mode |= std::ios::app;
+        if (autoSetupLogging)
+        {
+            std::ios_base::openmode mode = std::ios::out;
 
-        logfile.open (boost::filesystem::path(cfgMgr.getLogPath() / logName), mode);
+            // If we are collecting a stack trace, append to existing log file
+            if (argc == 2 && strcmp(argv[1], crash_switch) == 0)
+                mode |= std::ios::app;
 
-        coutsb.open (Debug::Tee(logfile, oldcout));
-        cerrsb.open (Debug::Tee(logfile, oldcerr));
-
-        std::cout.rdbuf (&coutsb);
-        std::cerr.rdbuf (&cerrsb);
-#endif
+            setupLogging(cfgMgr.getLogPath().string(), appName, mode);
+        }
 
 #if defined(_WIN32)
         const std::string crashLogName = Misc::StringUtils::lowerCase(appName) + "-crash.dmp";
@@ -217,8 +221,8 @@ int wrapApplication(int (*innerApplication)(int argc, char *argv[]), int argc, c
     }
 
     // Restore cout and cerr
-    std::cout.rdbuf(cout_rdbuf);
-    std::cerr.rdbuf(cerr_rdbuf);
+    std::cout.rdbuf(rawStdout->rdbuf());
+    std::cerr.rdbuf(rawStderr->rdbuf());
     Debug::CurrentDebugLevel = Debug::NoLevel;
 
     return ret;
diff --git a/components/debug/debugging.hpp b/components/debug/debugging.hpp
index d8849cd896..a2c5ae9e6c 100644
--- a/components/debug/debugging.hpp
+++ b/components/debug/debugging.hpp
@@ -133,11 +133,16 @@ namespace Debug
         std::map<Level, int> mColors;
     };
 #endif
+
+
 }
 
 // Can be used to print messages without timestamps
 std::ostream& getRawStdout();
 
-int wrapApplication(int (*innerApplication)(int argc, char *argv[]), int argc, char *argv[], const std::string& appName);
+void setupLogging(const std::string& logDir, const std::string& appName, std::ios_base::openmode = std::ios::out);
+
+int wrapApplication(int (*innerApplication)(int argc, char *argv[]), int argc, char *argv[],
+                    const std::string& appName, bool autoSetupLogging = true);
 
 #endif
diff --git a/components/files/configurationmanager.cpp b/components/files/configurationmanager.cpp
index c2cd44960f..87f4cd4943 100644
--- a/components/files/configurationmanager.cpp
+++ b/components/files/configurationmanager.cpp
@@ -20,6 +20,7 @@ static const char* const applicationName = "openmw";
 #endif
 
 const char* const localToken = "?local?";
+const char* const userConfigToken = "?userconfig?";
 const char* const userDataToken = "?userdata?";
 const char* const globalToken = "?global?";
 
@@ -29,18 +30,10 @@ ConfigurationManager::ConfigurationManager(bool silent)
 {
     setupTokensMapping();
 
-    boost::filesystem::create_directories(mFixedPath.getUserConfigPath());
-    boost::filesystem::create_directories(mFixedPath.getUserDataPath());
-
+    // Initialize with fixed paths, will be overridden in `readConfiguration`.
     mLogPath = mFixedPath.getUserConfigPath();
-
+    mUserDataPath = mFixedPath.getUserDataPath();
     mScreenshotPath = mFixedPath.getUserDataPath() / "screenshots";
-
-    // probably not necessary but validate the creation of the screenshots directory and fallback to the original behavior if it fails
-    boost::system::error_code dirErr;
-    if (!boost::filesystem::create_directories(mScreenshotPath, dirErr) && !boost::filesystem::is_directory(mScreenshotPath)) {
-        mScreenshotPath = mFixedPath.getUserDataPath();
-    }
 }
 
 ConfigurationManager::~ConfigurationManager()
@@ -50,6 +43,7 @@ ConfigurationManager::~ConfigurationManager()
 void ConfigurationManager::setupTokensMapping()
 {
     mTokensMapping.insert(std::make_pair(localToken, &FixedPath<>::getLocalPath));
+    mTokensMapping.insert(std::make_pair(userConfigToken, &FixedPath<>::getUserConfigPath));
     mTokensMapping.insert(std::make_pair(userDataToken, &FixedPath<>::getUserDataPath));
     mTokensMapping.insert(std::make_pair(globalToken, &FixedPath<>::getGlobalDataPath));
 }
@@ -57,31 +51,129 @@ void ConfigurationManager::setupTokensMapping()
 void ConfigurationManager::readConfiguration(boost::program_options::variables_map& variables,
     boost::program_options::options_description& description, bool quiet)
 {
+    using ParsedConfigFile = bpo::basic_parsed_options<char>;
     bool silent = mSilent;
     mSilent = quiet;
-    
-    // User config has the highest priority.
-    auto composingVariables = separateComposingVariables(variables, description);
-    loadConfig(mFixedPath.getUserConfigPath(), variables, description);
-    mergeComposingVariables(variables, composingVariables, description);
-    boost::program_options::notify(variables);
 
-    // read either local or global config depending on type of installation
-    composingVariables = separateComposingVariables(variables, description);
-    bool loaded = loadConfig(mFixedPath.getLocalPath(), variables, description);
-    mergeComposingVariables(variables, composingVariables, description);
-    boost::program_options::notify(variables);
-    if (!loaded)
+    std::optional<ParsedConfigFile> config = loadConfig(mFixedPath.getLocalPath(), description);
+    if (config)
+        mActiveConfigPaths.push_back(mFixedPath.getLocalPath());
+    else
     {
-        composingVariables = separateComposingVariables(variables, description);
-        loadConfig(mFixedPath.getGlobalConfigPath(), variables, description);
+        mActiveConfigPaths.push_back(mFixedPath.getGlobalConfigPath());
+        config = loadConfig(mFixedPath.getGlobalConfigPath(), description);
+    }
+    if (!config)
+    {
+        if (!quiet)
+            Log(Debug::Error) << "Neither local config nor global config are available.";
+        mSilent = silent;
+        return;
+    }
+
+    std::stack<boost::filesystem::path> extraConfigDirs;
+    addExtraConfigDirs(extraConfigDirs, variables);
+    addExtraConfigDirs(extraConfigDirs, *config);
+
+    std::vector<ParsedConfigFile> parsedOptions{*std::move(config)};
+    std::set<boost::filesystem::path> alreadyParsedPaths;  // needed to prevent infinite loop in case of a circular link
+    alreadyParsedPaths.insert(boost::filesystem::path(mActiveConfigPaths.front()));
+
+    while (!extraConfigDirs.empty())
+    {
+        boost::filesystem::path path = extraConfigDirs.top();
+        extraConfigDirs.pop();
+        if (alreadyParsedPaths.count(path) > 0)
+        {
+            if (!quiet)
+                Log(Debug::Warning) << "Repeated config dir: " << path;
+            continue;
+        }
+        alreadyParsedPaths.insert(path);
+        mActiveConfigPaths.push_back(path);
+        config = loadConfig(path, description);
+        if (!config)
+            continue;
+        addExtraConfigDirs(extraConfigDirs, *config);
+        parsedOptions.push_back(*std::move(config));
+    }
+
+    for (auto it = parsedOptions.rbegin(); it != parsedOptions.rend(); ++it)
+    {
+        auto composingVariables = separateComposingVariables(variables, description);
+        boost::program_options::store(std::move(*it), variables);
         mergeComposingVariables(variables, composingVariables, description);
-        boost::program_options::notify(variables);
+    }
+
+    mLogPath = mActiveConfigPaths.back();
+    mUserDataPath = variables["user-data"].as<Files::MaybeQuotedPath>();
+    if (mUserDataPath.empty())
+    {
+        if (!quiet)
+            Log(Debug::Warning) << "Error: `user-data` is not specified";
+        mUserDataPath = mFixedPath.getUserDataPath();
+    }
+    processPath(mUserDataPath, true);
+    mScreenshotPath = mUserDataPath / "screenshots";
+
+    boost::filesystem::create_directories(getUserConfigPath());
+    boost::filesystem::create_directories(mScreenshotPath);
+
+    // probably not necessary but validate the creation of the screenshots directory and fallback to the original behavior if it fails
+    if (!boost::filesystem::is_directory(mScreenshotPath))
+        mScreenshotPath = mUserDataPath;
+
+    if (!quiet && !variables["replace"].empty())
+    {
+        for (const std::string& var : variables["replace"].as<std::vector<std::string>>())
+        {
+            if (var == "config")
+            {
+                Log(Debug::Warning) << "replace=config is not allowed and was ignored";
+                break;
+            }
+        }
+    }
+
+    if (!quiet)
+    {
+        Log(Debug::Info) << "Logs dir: " << getUserConfigPath().string();
+        Log(Debug::Info) << "User data dir: " << mUserDataPath.string();
+        Log(Debug::Info) << "Screenshots dir: " << mScreenshotPath.string();
     }
 
     mSilent = silent;
 }
 
+void ConfigurationManager::addExtraConfigDirs(std::stack<boost::filesystem::path>& dirs,
+                                              const bpo::basic_parsed_options<char>& options) const
+{
+    boost::program_options::variables_map variables;
+    boost::program_options::store(options, variables);
+    boost::program_options::notify(variables);
+    addExtraConfigDirs(dirs, variables);
+}
+
+void ConfigurationManager::addExtraConfigDirs(std::stack<boost::filesystem::path>& dirs,
+                                              const boost::program_options::variables_map& variables) const
+{
+    auto configIt = variables.find("config");
+    if (configIt == variables.end())
+        return;
+    Files::PathContainer newDirs = asPathContainer(configIt->second.as<Files::MaybeQuotedPathContainer>());
+    processPaths(newDirs);
+    for (auto it = newDirs.rbegin(); it != newDirs.rend(); ++it)
+        dirs.push(*it);
+}
+
+void ConfigurationManager::addCommonOptions(boost::program_options::options_description& description)
+{
+    description.add_options()
+        ("config", bpo::value<Files::MaybeQuotedPathContainer>()->multitoken()->composing(), "additional config directories")
+        ("user-data", bpo::value<Files::MaybeQuotedPath>(),
+            "set user data directory (used for saves, screenshots, etc)");
+}
+
 boost::program_options::variables_map separateComposingVariables(boost::program_options::variables_map & variables,
     boost::program_options::options_description& description)
 {
@@ -126,7 +218,7 @@ void mergeComposingVariables(boost::program_options::variables_map& first, boost
                 continue;
             }
 
-            if (replacedVariables.count(name))
+            if (replacedVariables.count(name) || firstPosition->second.defaulted() || firstPosition->second.empty())
             {
                 firstPosition->second = second[name];
                 continue;
@@ -142,7 +234,6 @@ void mergeComposingVariables(boost::program_options::variables_map& first, boost
             {
                 auto& firstPathContainer = boost::any_cast<Files::MaybeQuotedPathContainer&>(firstValue);
                 const auto& secondPathContainer = boost::any_cast<const Files::MaybeQuotedPathContainer&>(secondValue);
-
                 firstPathContainer.insert(firstPathContainer.end(), secondPathContainer.begin(), secondPathContainer.end());
             }
             else if (firstValue.type() == typeid(std::vector<std::string>))
@@ -165,57 +256,60 @@ void mergeComposingVariables(boost::program_options::variables_map& first, boost
                 Log(Debug::Error) << "Unexpected composing variable type. Curse boost and their blasted arcane templates.";
         }
     }
-
+    boost::program_options::notify(first);
 }
 
-void ConfigurationManager::processPaths(Files::PathContainer& dataDirs, bool create)
+void ConfigurationManager::processPath(boost::filesystem::path& path, bool create) const
+{
+    std::string str = path.string();
+
+    // Do nothing if the path doesn't start with a token
+    if (str.empty() || str[0] != '?')
+        return;
+
+    std::string::size_type pos = str.find('?', 1);
+    if (pos != std::string::npos && pos != 0)
+    {
+        auto tokenIt = mTokensMapping.find(str.substr(0, pos + 1));
+        if (tokenIt != mTokensMapping.end())
+        {
+            boost::filesystem::path tempPath(((mFixedPath).*(tokenIt->second))());
+            if (pos < str.length() - 1)
+            {
+                // There is something after the token, so we should
+                // append it to the path
+                tempPath /= str.substr(pos + 1, str.length() - pos);
+            }
+
+            path = tempPath;
+        }
+        else
+        {
+            if (!mSilent)
+                Log(Debug::Warning) << "Path starts with unknown token: " << path;
+            path.clear();
+        }
+    }
+
+    if (!boost::filesystem::is_directory(path) && create)
+    {
+        try
+        {
+            boost::filesystem::create_directories(path);
+        }
+        catch (...) {}
+    }
+}
+
+void ConfigurationManager::processPaths(Files::PathContainer& dataDirs, bool create) const
 {
-    std::string path;
     for (Files::PathContainer::iterator it = dataDirs.begin(); it != dataDirs.end(); ++it)
     {
-        path = it->string();
-
-        // Check if path contains a token
-        if (!path.empty() && *path.begin() == '?')
-        {
-            std::string::size_type pos = path.find('?', 1);
-            if (pos != std::string::npos && pos != 0)
-            {
-                TokensMappingContainer::iterator tokenIt = mTokensMapping.find(path.substr(0, pos + 1));
-                if (tokenIt != mTokensMapping.end())
-                {
-                    boost::filesystem::path tempPath(((mFixedPath).*(tokenIt->second))());
-                    if (pos < path.length() - 1)
-                    {
-                        // There is something after the token, so we should
-                        // append it to the path
-                        tempPath /= path.substr(pos + 1, path.length() - pos);
-                    }
-
-                    *it = tempPath;
-                }
-                else
-                {
-                    // Clean invalid / unknown token, it will be removed outside the loop
-                    (*it).clear();
-                }
-            }
-        }
-
+        processPath(*it, create);
         if (!boost::filesystem::is_directory(*it))
         {
-            if (create)
-            {
-                try
-                {
-                    boost::filesystem::create_directories (*it);
-                }
-                catch (...) {}
-
-                if (boost::filesystem::is_directory(*it))
-                    continue;
-            }
-
+            if (!mSilent)
+                Log(Debug::Warning) << "No such dir: " << *it;
             (*it).clear();
         }
     }
@@ -224,8 +318,8 @@ void ConfigurationManager::processPaths(Files::PathContainer& dataDirs, bool cre
         std::bind(&boost::filesystem::path::empty, std::placeholders::_1)), dataDirs.end());
 }
 
-bool ConfigurationManager::loadConfig(const boost::filesystem::path& path,
-    boost::program_options::variables_map& variables,
+std::optional<bpo::basic_parsed_options<char>> ConfigurationManager::loadConfig(
+    const boost::filesystem::path& path,
     boost::program_options::options_description& description)
 {
     boost::filesystem::path cfgFile(path);
@@ -238,20 +332,11 @@ bool ConfigurationManager::loadConfig(const boost::filesystem::path& path,
         boost::filesystem::ifstream configFileStream(cfgFile);
 
         if (configFileStream.is_open())
-        {
-            parseConfig(configFileStream, variables, description);
-
-            return true;
-        }
-        else
-        {
-            if (!mSilent)
-                Log(Debug::Error) << "Loading failed.";
-
-            return false;
-        }
+            return Files::parse_config_file(configFileStream, description, true);
+        else if (!mSilent)
+            Log(Debug::Error) << "Loading failed.";
     }
-    return false;
+    return std::nullopt;
 }
 
 const boost::filesystem::path& ConfigurationManager::getGlobalPath() const
@@ -261,12 +346,15 @@ const boost::filesystem::path& ConfigurationManager::getGlobalPath() const
 
 const boost::filesystem::path& ConfigurationManager::getUserConfigPath() const
 {
-    return mFixedPath.getUserConfigPath();
+    if (mActiveConfigPaths.empty())
+        return mFixedPath.getUserConfigPath();
+    else
+        return mActiveConfigPaths.back();
 }
 
 const boost::filesystem::path& ConfigurationManager::getUserDataPath() const
 {
-    return mFixedPath.getUserDataPath();
+    return mUserDataPath;
 }
 
 const boost::filesystem::path& ConfigurationManager::getLocalPath() const
@@ -344,4 +432,4 @@ PathContainer asPathContainer(const MaybeQuotedPathContainer& MaybeQuotedPathCon
     return PathContainer(MaybeQuotedPathContainer.begin(), MaybeQuotedPathContainer.end());
 }
 
-} /* namespace Cfg */
+} /* namespace Files */
diff --git a/components/files/configurationmanager.hpp b/components/files/configurationmanager.hpp
index 4b641c12fd..49844cca41 100644
--- a/components/files/configurationmanager.hpp
+++ b/components/files/configurationmanager.hpp
@@ -2,6 +2,8 @@
 #define COMPONENTS_FILES_CONFIGURATIONMANAGER_HPP
 
 #include <map>
+#include <optional>
+#include <stack>
 
 #include <boost/program_options.hpp>
 
@@ -25,39 +27,51 @@ struct ConfigurationManager
     void readConfiguration(boost::program_options::variables_map& variables,
         boost::program_options::options_description& description, bool quiet=false);
 
-    void processPaths(Files::PathContainer& dataDirs, bool create = false);
+    void processPath(boost::filesystem::path& path, bool create = false) const;
+    void processPaths(Files::PathContainer& dataDirs, bool create = false) const;
     ///< \param create Try creating the directory, if it does not exist.
 
     /**< Fixed paths */
     const boost::filesystem::path& getGlobalPath() const;
-    const boost::filesystem::path& getUserConfigPath() const;
     const boost::filesystem::path& getLocalPath() const;
 
     const boost::filesystem::path& getGlobalDataPath() const;
+    const boost::filesystem::path& getUserConfigPath() const;
     const boost::filesystem::path& getUserDataPath() const;
     const boost::filesystem::path& getLocalDataPath() const;
     const boost::filesystem::path& getInstallPath() const;
+    const std::vector<boost::filesystem::path>& getActiveConfigPaths() const { return mActiveConfigPaths; }
 
     const boost::filesystem::path& getCachePath() const;
 
     const boost::filesystem::path& getLogPath() const;
     const boost::filesystem::path& getScreenshotPath() const;
 
+    static void addCommonOptions(boost::program_options::options_description& description);
+
     private:
         typedef Files::FixedPath<> FixedPathType;
 
         typedef const boost::filesystem::path& (FixedPathType::*path_type_f)() const;
         typedef std::map<std::string, path_type_f> TokensMappingContainer;
 
-        bool loadConfig(const boost::filesystem::path& path,
-            boost::program_options::variables_map& variables,
+        std::optional<boost::program_options::basic_parsed_options<char>> loadConfig(
+            const boost::filesystem::path& path,
             boost::program_options::options_description& description);
 
+        void addExtraConfigDirs(std::stack<boost::filesystem::path>& dirs,
+            const boost::program_options::variables_map& variables) const;
+        void addExtraConfigDirs(std::stack<boost::filesystem::path>& dirs,
+            const boost::program_options::basic_parsed_options<char>& options) const;
+
         void setupTokensMapping();
 
+        std::vector<boost::filesystem::path> mActiveConfigPaths;
+
         FixedPathType mFixedPath;
 
         boost::filesystem::path mLogPath;
+        boost::filesystem::path mUserDataPath;
         boost::filesystem::path mScreenshotPath;
 
         TokensMappingContainer mTokensMapping;
diff --git a/components/settings/parser.cpp b/components/settings/parser.cpp
index f2419dfdd6..dd1b8c1a20 100644
--- a/components/settings/parser.cpp
+++ b/components/settings/parser.cpp
@@ -9,7 +9,8 @@
 
 #include <Base64.h>
 
-void Settings::SettingsFileParser::loadSettingsFile(const std::string& file, CategorySettingValueMap& settings, bool base64Encoded)
+void Settings::SettingsFileParser::loadSettingsFile(const std::string& file, CategorySettingValueMap& settings,
+                                                    bool base64Encoded, bool overrideExisting)
 {
     mFile = file;
     boost::filesystem::ifstream fstream;
@@ -73,7 +74,9 @@ void Settings::SettingsFileParser::loadSettingsFile(const std::string& file, Cat
         std::string value = line.substr(valueBegin);
         Misc::StringUtils::trim(value);
 
-        if (settings.insert(std::make_pair(std::make_pair(currentCategory, setting), value)).second == false)
+        if (overrideExisting)
+            settings[std::make_pair(currentCategory, setting)] = value;
+        else if (settings.insert(std::make_pair(std::make_pair(currentCategory, setting), value)).second == false)
             fail(std::string("duplicate setting: [" + currentCategory + "] " + setting));
     }
 }
diff --git a/components/settings/parser.hpp b/components/settings/parser.hpp
index 45b1a18f72..c934fbea07 100644
--- a/components/settings/parser.hpp
+++ b/components/settings/parser.hpp
@@ -10,7 +10,8 @@ namespace Settings
     class SettingsFileParser
     {
     public:
-        void loadSettingsFile(const std::string& file, CategorySettingValueMap& settings, bool base64encoded = false);
+        void loadSettingsFile(const std::string& file, CategorySettingValueMap& settings,
+                              bool base64encoded = false, bool overrideExisting = false);
 
         void saveSettingsFile(const std::string& file, const CategorySettingValueMap& settings);
 
diff --git a/components/settings/settings.cpp b/components/settings/settings.cpp
index 7fa625e4ab..b8ff700492 100644
--- a/components/settings/settings.cpp
+++ b/components/settings/settings.cpp
@@ -3,6 +3,7 @@
 
 #include <sstream>
 
+#include <components/files/configurationmanager.hpp>
 #include <components/misc/stringops.hpp>
 
 namespace Settings
@@ -19,16 +20,33 @@ void Manager::clear()
     mChangedSettings.clear();
 }
 
-void Manager::loadDefault(const std::string &file)
+std::string Manager::load(const Files::ConfigurationManager& cfgMgr)
 {
     SettingsFileParser parser;
-    parser.loadSettingsFile(file, mDefaultSettings, true);
-}
+    const std::vector<boost::filesystem::path>& paths = cfgMgr.getActiveConfigPaths();
+    if (paths.empty())
+        throw std::runtime_error("No config dirs! ConfigurationManager::readConfiguration must be called first.");
 
-void Manager::loadUser(const std::string &file)
-{
-    SettingsFileParser parser;
-    parser.loadSettingsFile(file, mUserSettings);
+    // Create the settings manager and load default settings file.
+    const std::string defaultsBin = (paths.front() / "defaults.bin").string();
+    if (!boost::filesystem::exists(defaultsBin))
+        throw std::runtime_error ("No default settings file found! Make sure the file \"defaults.bin\" was properly installed.");
+    parser.loadSettingsFile(defaultsBin, mDefaultSettings, true, false);
+
+    // Load "settings.cfg" from every config dir except the last one as additional default settings.
+    for (int i = 0; i < static_cast<int>(paths.size()) - 1; ++i)
+    {
+        const std::string additionalDefaults = (paths[i] / "settings.cfg").string();
+        if (boost::filesystem::exists(additionalDefaults))
+            parser.loadSettingsFile(additionalDefaults, mDefaultSettings, false, true);
+    }
+
+    // Load "settings.cfg" from the last config as user settings if they exist. This path will be used to save modified settings.
+    std::string settingspath = (paths.back() / "settings.cfg").string();
+    if (boost::filesystem::exists(settingspath))
+        parser.loadSettingsFile(settingspath, mUserSettings, false, false);
+
+    return settingspath;
 }
 
 void Manager::saveUser(const std::string &file)
diff --git a/components/settings/settings.hpp b/components/settings/settings.hpp
index a4b1cf3a54..04831ef171 100644
--- a/components/settings/settings.hpp
+++ b/components/settings/settings.hpp
@@ -9,6 +9,11 @@
 #include <osg/Vec2f>
 #include <osg/Vec3f>
 
+namespace Files
+{
+    struct ConfigurationManager;
+}
+
 namespace Settings
 {
     ///
@@ -26,11 +31,8 @@ namespace Settings
         void clear();
         ///< clears all settings and default settings
 
-        void loadDefault (const std::string& file);
-        ///< load file as the default settings (can be overridden by user settings)
-
-        void loadUser (const std::string& file);
-        ///< load file as user settings
+        std::string load(const Files::ConfigurationManager& cfgMgr);
+        ///< load settings from all active config dirs. Returns the path of the last loaded file.
 
         void saveUser (const std::string& file);
         ///< save user settings to file
diff --git a/files/openmw.cfg b/files/openmw.cfg
index f524911489..d1ecd6f8a3 100644
--- a/files/openmw.cfg
+++ b/files/openmw.cfg
@@ -4,6 +4,8 @@
 
 content=builtin.omwscripts
 data-local="?userdata?data"
+user-data="?userdata?"
+config="?userconfig?"
 resources=${OPENMW_RESOURCE_FILES}
 script-blacklist=Museum
 script-blacklist=MockChangeScript
diff --git a/files/openmw.cfg.local b/files/openmw.cfg.local
index bed9b9b10a..f928113002 100644
--- a/files/openmw.cfg.local
+++ b/files/openmw.cfg.local
@@ -4,6 +4,8 @@
 
 content=builtin.omwscripts
 data-local="?userdata?data"
+user-data="?userdata?"
+config="?userconfig?"
 resources=./resources
 script-blacklist=Museum
 script-blacklist=MockChangeScript