diff --git a/.github/copilot-instructions.md b/.github/copilot-instructions.md
index 9cf54b420..d900463f8 100644
--- a/.github/copilot-instructions.md
+++ b/.github/copilot-instructions.md
@@ -7,7 +7,7 @@ Dev Proxy is a cross-platform .NET API simulator and proxy for testing how appli
 ## Critical (Non-Obvious)
 
 - **Proxy engine:** Built on [ASP.NET Core Kestrel](https://learn.microsoft.com/aspnet/core/fundamentals/servers/kestrel) (a custom forward-proxy + MITM engine; see `DevProxy.Proxy.Kestrel`)
-- **Config tokens:** Paths in config files can use `~appFolder` for resolution
+- **Config tokens:** Paths in config files can use `~appFolder` and `~dataFolder` tokens, and a leading `~/` (or `~\` on Windows) expands to the home directory
 - **MCP Server:** Use [@devproxy/mcp](https://www.npmjs.com/package/@devproxy/mcp) to programmatically retrieve up-to-date docs and JSON schemas
 
 ## Best Practices
diff --git a/DevProxy.Abstractions.Tests/Utils/ProxyUtilsTests.cs b/DevProxy.Abstractions.Tests/Utils/ProxyUtilsTests.cs
index 45ff60605..8bba16495 100644
--- a/DevProxy.Abstractions.Tests/Utils/ProxyUtilsTests.cs
+++ b/DevProxy.Abstractions.Tests/Utils/ProxyUtilsTests.cs
@@ -35,4 +35,45 @@ public void NormalizeWebSocketScheme_DoesNotRewriteSchemeInPath() =>
     [Fact]
     public void NormalizeWebSocketScheme_NullThrows() =>
         Assert.Throws<System.ArgumentNullException>(() => ProxyUtils.NormalizeWebSocketScheme(null!));
+
+    [Fact]
+    public void ReplacePathTokens_ExpandsLeadingTildeSlashToHomeDirectory()
+    {
+        var home = System.Environment.GetFolderPath(System.Environment.SpecialFolder.UserProfile);
+        Assert.Equal(System.IO.Path.Join(home, "mocks/mocks.json"), ProxyUtils.ReplacePathTokens("~/mocks/mocks.json"));
+    }
+
+    [Fact]
+    public void ReplacePathTokens_ExpandsTildeSlashOnlyToHomeDirectory()
+    {
+        var home = System.Environment.GetFolderPath(System.Environment.SpecialFolder.UserProfile);
+        Assert.Equal(home, ProxyUtils.ReplacePathTokens("~/"));
+    }
+
+    [Fact]
+    public void ReplacePathTokens_ExpandsLeadingTildeBackslashOnWindowsOnly()
+    {
+        var home = System.Environment.GetFolderPath(System.Environment.SpecialFolder.UserProfile);
+        var expected = System.OperatingSystem.IsWindows()
+            ? System.IO.Path.Join(home, @"mocks\mocks.json")
+            : @"~\mocks\mocks.json";
+        Assert.Equal(expected, ProxyUtils.ReplacePathTokens(@"~\mocks\mocks.json"));
+    }
+
+    [Theory]
+    [InlineData("~mocks/mocks.json")]
+    [InlineData("mocks/~/mocks.json")]
+    [InlineData("~")]
+    public void ReplacePathTokens_DoesNotExpandNonLeadingOrBareTilde(string input) =>
+        Assert.Equal(input, ProxyUtils.ReplacePathTokens(input));
+
+    [Fact]
+    public void GetFullPath_ResolvesTildeSlashToHomeDirectoryInsteadOfConfigFolder()
+    {
+        var home = System.Environment.GetFolderPath(System.Environment.SpecialFolder.UserProfile);
+        var configFile = System.IO.Path.Combine(System.IO.Path.GetTempPath(), "devproxyrc.json");
+        Assert.Equal(
+            System.IO.Path.GetFullPath(System.IO.Path.Combine(home, "mocks", "mocks.json")),
+            ProxyUtils.GetFullPath("~/mocks/mocks.json", configFile));
+    }
 }
diff --git a/DevProxy.Abstractions/Utils/ProxyUtils.cs b/DevProxy.Abstractions/Utils/ProxyUtils.cs
index ccd33c8c4..a4b1ed1bd 100644
--- a/DevProxy.Abstractions/Utils/ProxyUtils.cs
+++ b/DevProxy.Abstractions/Utils/ProxyUtils.cs
@@ -205,10 +205,28 @@ public static string ReplacePathTokens(string? path)
             return path ?? string.Empty;
         }
 
+        path = ExpandHomeDirectory(path);
         path = path.Replace("~dataFolder", DataFolder, StringComparison.OrdinalIgnoreCase);
         return path.Replace("~appFolder", AppFolder, StringComparison.OrdinalIgnoreCase);
     }
 
+    private static string ExpandHomeDirectory(string path)
+    {
+        if (path.Length < 2 || path[0] != '~' ||
+            (path[1] != '/' && !(OperatingSystem.IsWindows() && path[1] == '\\')))
+        {
+            return path;
+        }
+
+        var homeFolder = Environment.GetFolderPath(Environment.SpecialFolder.UserProfile);
+        if (string.IsNullOrEmpty(homeFolder))
+        {
+            return path;
+        }
+
+        return Path.Join(homeFolder, path[2..]);
+    }
+
     public static string GetFullPath(string? path, string? basePath) =>
         Path.GetFullPath(ReplacePathTokens(path), Path.GetDirectoryName(basePath) ?? string.Empty);
 
diff --git a/DevProxy/Commands/DevProxyCommand.cs b/DevProxy/Commands/DevProxyCommand.cs
index 7d4827486..dfc9b7637 100644
--- a/DevProxy/Commands/DevProxyCommand.cs
+++ b/DevProxy/Commands/DevProxyCommand.cs
@@ -36,7 +36,7 @@ sealed class DevProxyCommand : RootCommand
     internal static readonly Option<string?> ConfigFileOption = new(ConfigFileOptionName, "-c")
     {
         HelpName = "config-file",
-        Description = "Path to config file. If not specified, Dev Proxy searches for devproxyrc.jsonc or devproxyrc.json in the current directory, then in a .devproxy/ directory, then under the ~appFolder location. Supports ~appFolder and ~dataFolder tokens."
+        Description = "Path to config file. If not specified, Dev Proxy searches for devproxyrc.jsonc or devproxyrc.json in the current directory, then in a .devproxy/ directory, then under the ~appFolder location. Supports ~appFolder and ~dataFolder tokens, and a leading ~/ for the home directory."
     };
     internal const string NoFirstRunOptionName = "--no-first-run";
     internal const string NoWatchOptionName = "--no-watch";
diff --git a/skills/dev-proxy/references/configuration.md b/skills/dev-proxy/references/configuration.md
index 02a2ef2b8..4eea14fd6 100644
--- a/skills/dev-proxy/references/configuration.md
+++ b/skills/dev-proxy/references/configuration.md
@@ -43,7 +43,7 @@ A configuration file follows a specific property order: `$schema`, then `plugins
 - Include `$schema` in both the root config and each plugin config section for validation.
 - The `pluginPath` is always `~appFolder/plugins/DevProxy.Plugins.dll` — `~appFolder` resolves to the Dev Proxy installation directory.
 - The `configSection` value can be any string. Use different, descriptive names for multiple instances of the same plugin.
-- File paths in Dev Proxy configuration files are always relative to the file where they are defined.
+- File paths in Dev Proxy configuration files are relative to the file where they are defined, unless they start with `~/` (or `~\` on Windows), which expands to the user's home directory.
 - Configuration hot-reloads on file save (v2.1.0+) — no restart needed. Works for both the main config and plugin-specific files.
 
 ## Plugin Architecture