diff --git a/task.py b/task.py
index 53cc8ed..45ac0d1 100644
--- a/task.py
+++ b/task.py
@@ -10,12 +10,30 @@
 from commands.done import mark_done
 
 
-def load_config():
+DEFAULT_CONFIG = """# Task CLI configuration
+
+storage:
+  format: json
+  max_tasks: 1000
+
+display:
+  color: true
+  unicode: true
+"""
+
+
+def load_config(config_path=None):
     """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
-    with open(config_path) as f:
-        return f.read()
+    if config_path is None:
+        config_path = Path.home() / ".config" / "task-cli" / "config.yaml"
+    else:
+        config_path = Path(config_path)
+
+    if not config_path.exists():
+        config_path.parent.mkdir(parents=True, exist_ok=True)
+        config_path.write_text(DEFAULT_CONFIG)
+
+    return config_path.read_text()
 
 
 def main():
@@ -35,6 +53,8 @@ def main():
 
     args = parser.parse_args()
 
+    load_config()
+
     if args.command == "add":
         add_task(args.description)
     elif args.command == "list":
diff --git a/test_task.py b/test_task.py
index ba98e43..22aa249 100644
--- a/test_task.py
+++ b/test_task.py
@@ -3,6 +3,7 @@
 import json
 import pytest
 from pathlib import Path
+from task import DEFAULT_CONFIG, load_config
 from commands.add import add_task, validate_description
 from commands.done import validate_task_id
 
@@ -28,3 +29,20 @@ def test_validate_task_id():
 
     with pytest.raises(ValueError):
         validate_task_id(tasks, 99)
+
+
+def test_load_config_creates_default_when_missing(tmp_path):
+    """Missing config file should be created with defaults."""
+    config_path = tmp_path / ".config" / "task-cli" / "config.yaml"
+
+    assert load_config(config_path) == DEFAULT_CONFIG
+    assert config_path.read_text() == DEFAULT_CONFIG
+
+
+def test_load_config_reads_existing_file(tmp_path):
+    """Existing config file should be returned unchanged."""
+    config_path = tmp_path / ".config" / "task-cli" / "config.yaml"
+    config_path.parent.mkdir(parents=True)
+    config_path.write_text("display:\n  color: false\n")
+
+    assert load_config(config_path) == "display:\n  color: false\n"