diff --git a/README.markdown b/README.markdown
index ca7979d..2e16e34 100644
--- a/README.markdown
+++ b/README.markdown
@@ -36,6 +36,8 @@ Generate an empty Guardfile with:
 $ guard init
 ```
 
+You may optionally place this Guardfile in your home directory to use it across multiple projects.
+
 Add the guards you need to your Guardfile (see the existing guards below).
 
 ### On Mac OS X
@@ -101,6 +103,8 @@ or if you use Bundler, to run the Guard executable specific to your bundle:
 $ bundle exec guard
 ```
 
+Guard will look for a Guardfile in your current directory. If it does not find one, it will look in your home directory for one.
+
 Command line options
 --------------------
 
@@ -310,4 +314,4 @@ Author
 Contributors
 ------
 
-https://github.com/guard/guard/contributors
\ No newline at end of file
+https://github.com/guard/guard/contributors
diff --git a/lib/guard/dsl.rb b/lib/guard/dsl.rb
index 56f64b8..6742e33 100644
--- a/lib/guard/dsl.rb
+++ b/lib/guard/dsl.rb
@@ -54,7 +54,7 @@ module Guard
           if File.exist?(guardfile_default_path)
             read_guardfile(guardfile_default_path)
           else
-            UI.error "No Guardfile in current folder, please create one with `guard init`."
+            UI.error "No Guardfile found, please create one with `guard init`."
             exit 1
           end
         end
@@ -63,7 +63,7 @@ module Guard
           UI.error "The command file(#{@@options[:guardfile]}) seems to be empty."
           exit 1
         end
-        
+
         guardfile_contents
       end
 
@@ -76,7 +76,17 @@ module Guard
       end
 
       def guardfile_default_path
-        File.join(Dir.pwd, 'Guardfile')
+        File.exist?(local_guardfile_path) ? local_guardfile_path : home_guardfile_path
+      end
+
+    private
+
+      def local_guardfile_path
+        File.join(Dir.pwd, "Guardfile")
+      end
+
+      def home_guardfile_path
+        File.expand_path(File.join("~", "Guardfile"))
       end
 
     end
diff --git a/spec/guard/dsl_spec.rb b/spec/guard/dsl_spec.rb
index 89729a2..26ef5ef 100644
--- a/spec/guard/dsl_spec.rb
+++ b/spec/guard/dsl_spec.rb
@@ -3,7 +3,8 @@ require 'spec_helper'
 describe Guard::Dsl do
   subject { described_class }
   before(:each) do
-    @default_guardfile = File.join(Dir.pwd, 'Guardfile')
+    @local_guardfile_path = File.join(Dir.pwd, 'Guardfile')
+    @home_guardfile_path  = File.expand_path(File.join("~", "Guardfile"))
     ::Guard.stub!(:options).and_return(:debug => true)
   end
 
@@ -27,7 +28,7 @@ describe Guard::Dsl do
     end
 
     it "should use a default file if no other options are given" do
-      fake_guardfile(@default_guardfile, "guard :bar")
+      fake_guardfile(@local_guardfile_path, "guard :bar")
 
       Guard::UI.should_not_receive(:error)
       lambda { subject.evaluate_guardfile }.should_not raise_error
@@ -36,7 +37,7 @@ describe Guard::Dsl do
 
     it "should use a string over any other method" do
       fake_guardfile('/abc/Guardfile', "guard :foo")
-      fake_guardfile(@default_guardfile, "guard :bar")
+      fake_guardfile(@local_guardfile_path, "guard :bar")
 
       Guard::UI.should_not_receive(:error)
       lambda { subject.evaluate_guardfile(:guardfile_contents => valid_guardfile_string) }.should_not raise_error
@@ -45,7 +46,7 @@ describe Guard::Dsl do
 
     it "should use the given Guardfile over default Guardfile" do
       fake_guardfile('/abc/Guardfile', "guard :foo")
-      fake_guardfile(@default_guardfile, "guard :bar")
+      fake_guardfile(@local_guardfile_path, "guard :bar")
 
       Guard::UI.should_not_receive(:error)
       lambda { subject.evaluate_guardfile(:guardfile => '/abc/Guardfile') }.should_not raise_error
@@ -53,6 +54,12 @@ describe Guard::Dsl do
     end
   end
 
+  it "displays an error message when no Guardfile is found" do
+    subject.stub(:guardfile_default_path).and_return("no_guardfile_here")
+    Guard::UI.should_receive(:error).with("No Guardfile found, please create one with `guard init`.")
+    lambda { subject.evaluate_guardfile }.should raise_error
+  end
+
   describe "it should correctly read data from its valid data source" do
     before(:each) do
       ::Guard::Dsl.stub!(:instance_eval_guardfile)
@@ -99,9 +106,10 @@ describe Guard::Dsl do
     end
 
     it "should raise error when resorting to use default, finds no default" do
-      File.stub!(:exist?).with(@default_guardfile) { false }
+      File.stub!(:exist?).with(@local_guardfile_path) { false }
+      File.stub!(:exist?).with(@home_guardfile_path) { false }
 
-      Guard::UI.should_receive(:error).with(/No Guardfile in current folder/)
+      Guard::UI.should_receive(:error).with("No Guardfile found, please create one with `guard init`.")
       lambda { subject.evaluate_guardfile }.should raise_error
     end
 
@@ -119,6 +127,38 @@ describe Guard::Dsl do
     lambda { subject.evaluate_guardfile(:guardfile_contents => invalid_guardfile_string ) }.should raise_error
   end
 
+  describe ".guardfile_default_path" do
+    let(:local_path) { File.join(Dir.pwd, 'Guardfile') }
+    let(:user_path) { File.expand_path(File.join("~", 'Guardfile')) }
+
+    before do
+      File.stub(:exist? => false)
+    end
+
+    context "when there is a local Guardfile" do
+      it "returns the path to the local Guardfile" do
+        File.stub(:exist?).with(local_path).and_return(true)
+        subject.guardfile_default_path.should == local_path
+      end
+    end
+
+    context "when there is a Guardfile in the user's home directory" do
+      it "returns the path to the user Guardfile" do
+        File.stub(:exist?).with(user_path).and_return(true)
+        subject.guardfile_default_path.should == user_path
+      end
+    end
+
+    context "when there's both a local and user Guardfile" do
+      it "returns the path to the local Guardfile" do
+        File.stub(:exist?).with(local_path).and_return(true)
+        File.stub(:exist?).with(user_path).and_return(true)
+        subject.guardfile_default_path.should == local_path
+      end
+    end
+
+  end
+
   describe ".guardfile_include?" do
     it "detects a guard specified by a string with double quotes" do
       subject.stub(:guardfile_contents => 'guard "test" {watch("c")}')
@@ -230,6 +270,10 @@ private
     end"
   end
 
+  def mock_guardfile_content(content)
+    File.stub!(:read).with(subject.guardfile_default_path) { content }
+  end
+
   def invalid_guardfile_string
    "Bad Guardfile"
   end