diff --git a/cli_memory/config.py b/cli_memory/config.py
new file mode 100644
index 0000000..306400a
--- /dev/null
+++ b/cli_memory/config.py
@@ -0,0 +1,161 @@
+import os
+from pathlib import Path
+from typing import Any, Dict, Optional
+
+import yaml
+from dotenv import load_dotenv
+
+
+class Config:
+    def __init__(self, config_path: Optional[str] = None):
+        self.config_path = config_path or self._find_config_file()
+        self._config: Dict[str, Any] = {}
+        self._load_config()
+
+    def _find_config_file(self) -> str:
+        env_path = os.environ.get("CLI_MEMORY_CONFIG")
+        if env_path and os.path.exists(env_path):
+            return env_path
+        home_config = os.path.expanduser("~/.cli_memory/config.yaml")
+        if os.path.exists(home_config):
+            return home_config
+        local_config = os.path.join(os.getcwd(), "config.yaml")
+        if os.path.exists(local_config):
+            return local_config
+        return home_config
+
+    def _load_config(self) -> None:
+        load_dotenv()
+        self._config = {
+            "database": self._load_database_config(),
+            "recording": self._load_recording_config(),
+            "project": self._load_project_config(),
+            "search": self._load_search_config(),
+            "suggestions": self._load_suggestions_config(),
+            "patterns": self._load_patterns_config(),
+            "script": self._load_script_config(),
+            "playback": self._load_playback_config(),
+            "shell": self._load_shell_config(),
+            "logging": self._load_logging_config(),
+        }
+        self._apply_env_overrides()
+
+    def _load_database_config(self) -> Dict[str, Any]:
+        return {
+            "path": os.environ.get("DATABASE_PATH", "~/.cli_memory/database.db"),
+            "wal_mode": True,
+            "timeout": 30.0,
+        }
+
+    def _load_recording_config(self) -> Dict[str, Any]:
+        return {
+            "max_commands_per_workflow": int(os.environ.get("MAX_WORKFLOW_COMMANDS", 100)),
+            "min_commands_for_workflow": 3,
+            "auto_save_interval": 10,
+            "capture_exit_code": True,
+            "capture_duration": True,
+        }
+
+    def _load_project_config(self) -> Dict[str, Any]:
+        return {
+            "auto_detect_git": True,
+            "cache_ttl": 3600,
+            "excluded_dirs": ["node_modules", "__pycache__", ".git", "venv", ".venv"],
+        }
+
+    def _load_search_config(self) -> Dict[str, Any]:
+        return {
+            "max_results": 50,
+            "default_limit": 20,
+            "enable_fuzzy": True,
+            "fuzzy_threshold": 0.6,
+        }
+
+    def _load_suggestions_config(self) -> Dict[str, Any]:
+        return {
+            "max_suggestions": int(os.environ.get("MAX_SUGGESTIONS", 10)),
+            "min_confidence": 0.3,
+            "decay_factor": 0.95,
+            "recency_weight": 0.3,
+            "frequency_weight": 0.4,
+            "context_weight": 0.3,
+        }
+
+    def _load_patterns_config(self) -> Dict[str, Any]:
+        return {
+            "min_sequence_length": 3,
+            "min_occurrences": 2,
+            "max_pattern_length": 10,
+            "similarity_threshold": 0.8,
+            "timeout": 30.0,
+        }
+
+    def _load_script_config(self) -> Dict[str, Any]:
+        return {
+            "output_dir": os.path.expanduser("~/.cli_memory/scripts"),
+            "include_error_handling": True,
+            "include_logging": True,
+            "dry_run_default": False,
+        }
+
+    def _load_playback_config(self) -> Dict[str, Any]:
+        return {
+            "default_speed": 1.0,
+            "confirm_each": False,
+            "show_progress": True,
+            "pause_on_error": True,
+        }
+
+    def _load_shell_config(self) -> Dict[str, Any]:
+        return {
+            "enable_autocomplete": os.environ.get("ENABLE_AUTOCOMPLETE", "true").lower() == "true",
+            "prompt_command": "cm-prompt",
+            "history_file": os.path.expanduser("~/.cli_memory/shell_history"),
+        }
+
+    def _load_logging_config(self) -> Dict[str, Any]:
+        return {
+            "level": os.environ.get("LOG_LEVEL", "info"),
+            "format": "%(asctime)s - %(name)s - %(levelname)s - %(message)s",
+            "file": os.path.expanduser("~/.cli_memory/logs/app.log"),
+        }
+
+    def _apply_env_overrides(self) -> None:
+        if os.environ.get("CLI_MEMORY_HOME"):
+            home = os.path.expanduser(os.environ["CLI_MEMORY_HOME"])
+            self._config["database"]["path"] = os.path.join(home, "database.db")
+            self._config["script"]["output_dir"] = os.path.join(home, "scripts")
+            self._config["shell"]["history_file"] = os.path.join(home, "shell_history")
+            self._config["logging"]["file"] = os.path.join(home, "logs", "app.log")
+
+    def get(self, key: str, default: Any = None) -> Any:
+        keys = key.split(".")
+        value = self._config
+        for k in keys:
+            if isinstance(value, dict) and k in value:
+                value = value[k]
+            else:
+                return default
+        return value
+
+    def set(self, key: str, value: Any) -> None:
+        keys = key.split(".")
+        config = self._config
+        for k in keys[:-1]:
+            if k not in config:
+                config[k] = {}
+            config = config[k]
+        config[keys[-1]] = value
+
+    def reload(self) -> None:
+        self._load_config()
+
+    def get_home_dir(self) -> str:
+        home = os.environ.get("CLI_MEMORY_HOME", "~/.cli_memory")
+        return os.path.expanduser(home)
+
+    def ensure_directories(self) -> None:
+        home = self.get_home_dir()
+        for subdir in ["scripts", "logs"]:
+            path = os.path.join(home, subdir)
+            os.makedirs(path, exist_ok=True)