diff --git a/.gitignore b/.gitignore
new file mode 100644
index 0000000..c18dd8d
--- /dev/null
+++ b/.gitignore
@@ -0,0 +1 @@
+__pycache__/
diff --git a/README.md b/README.md
index 91da9a7..6905456 100644
--- a/README.md
+++ b/README.md
@@ -34,3 +34,4 @@ python -m pytest test_task.py
 ## Configuration
 
 Copy `config.yaml.example` to `~/.config/task-cli/config.yaml` and customize.
+If the config file is missing, a sensible default is created automatically on first run.
diff --git a/task.py b/task.py
index 53cc8ed..b357841 100644
--- a/task.py
+++ b/task.py
@@ -11,9 +11,30 @@
 
 
 def load_config():
-    """Load configuration from file."""
-    config_path = Path.home() / ".config" / "task-cli" / "config.yaml"
-    # NOTE: This will crash if config doesn't exist - known bug for bounty testing
+    """Load configuration from file.
+
+    Returns the config contents as a string, or a sensible default config
+    if the file does not exist yet.  A default config file is also created
+    on disk so future runs pick it up automatically.
+    """
+    config_dir = Path.home() / ".config" / "task-cli"
+    config_path = config_dir / "config.yaml"
+
+    if not config_path.exists():
+        # Create a sensible default config
+        default_config = (
+            "# Task CLI configuration\n"
+            "storage:\n"
+            "  format: json\n"
+            "  max_tasks: 1000\n"
+            "display:\n"
+            "  color: true\n"
+            "  unicode: true\n"
+        )
+        config_dir.mkdir(parents=True, exist_ok=True)
+        config_path.write_text(default_config)
+        return default_config
+
     with open(config_path) as f:
         return f.read()
 
diff --git a/test_task.py b/test_task.py
index ba98e43..6f3e115 100644
--- a/test_task.py
+++ b/test_task.py
@@ -1,10 +1,13 @@
 """Basic tests for task CLI."""
 
 import json
+import os
+import shutil
 import pytest
 from pathlib import Path
 from commands.add import add_task, validate_description
 from commands.done import validate_task_id
+from task import load_config
 
 
 def test_validate_description():
@@ -28,3 +31,40 @@ def test_validate_task_id():
 
     with pytest.raises(ValueError):
         validate_task_id(tasks, 99)
+
+
+def test_load_config_creates_default_when_missing(tmp_path, monkeypatch):
+    """Test that load_config() creates a default config when the file is missing."""
+    fake_home = tmp_path / "home"
+    fake_home.mkdir()
+    monkeypatch.setattr(Path, "home", staticmethod(lambda: fake_home))
+
+    config_dir = fake_home / ".config" / "task-cli"
+    config_path = config_dir / "config.yaml"
+
+    # Ensure config does not exist
+    assert not config_path.exists()
+
+    # load_config should NOT crash and should return default content
+    result = load_config()
+    assert result is not None
+    assert "storage:" in result
+    assert "display:" in result
+
+    # It should have created the file on disk
+    assert config_path.exists()
+    assert config_path.read_text() == result
+
+
+def test_load_config_reads_existing_file(tmp_path, monkeypatch):
+    """Test that load_config() reads an existing config file."""
+    fake_home = tmp_path / "home"
+    config_dir = fake_home / ".config" / "task-cli"
+    config_dir.mkdir(parents=True)
+    config_path = config_dir / "config.yaml"
+    config_path.write_text("custom: value\n")
+
+    monkeypatch.setattr(Path, "home", staticmethod(lambda: fake_home))
+
+    result = load_config()
+    assert "custom: value" in result