diff --git a/packages/@vue/cli-service/__tests__/Service.spec.js b/packages/@vue/cli-service/__tests__/Service.spec.js
index eb37fe5f26..da6bf71b3a 100644
--- a/packages/@vue/cli-service/__tests__/Service.spec.js
+++ b/packages/@vue/cli-service/__tests__/Service.spec.js
@@ -1,5 +1,4 @@
 jest.mock('fs')
-jest.mock('mock-config', () => ({ lintOnSave: false }), { virtual: true })
 jest.mock('vue-cli-plugin-foo', () => () => {}, { virtual: true })
 
 const fs = require('fs')
@@ -53,16 +52,32 @@ test('load project options from package.json', () => {
 })
 
 test('load project options from vue.config.js', () => {
-  process.env.VUE_CLI_SERVICE_CONFIG_PATH = 'mock-config'
+  fs.writeFileSync('/vue.config.js', `module.exports=${JSON.stringify({ lintOnSave: false })}`)
+  const service = createMockService()
+  // vue.config.js has higher priority
+  expect(service.projectOptions.lintOnSave).toBe(false)
+  fs.unlinkSync('/vue.config.js')
+})
+
+test('load project options from .vuerc', () => {
+  fs.writeFileSync('/.vuerc', JSON.stringify({ lintOnSave: false }))
+  const service = createMockService()
+  // vue.config.js has higher priority
+  expect(service.projectOptions.lintOnSave).toBe(false)
+  fs.unlinkSync('/.vuerc')
+})
+
+test('package.json option should take priority', () => {
+  fs.writeFileSync('/vue.config.js', `module.exports=${JSON.stringify({ lintOnSave: false })}`)
   mockPkg({
     vue: {
       lintOnSave: true
     }
   })
   const service = createMockService()
-  // vue.config.js has higher priority
-  expect(service.projectOptions.lintOnSave).toBe(false)
-  delete process.env.VUE_CLI_SERVICE_CONFIG_PATH
+  // package.json has higher priority
+  expect(service.projectOptions.lintOnSave).toBe(true)
+  fs.unlinkSync('/vue.config.js')
 })
 
 test('api: setMode', () => {
diff --git a/packages/@vue/cli-service/lib/Service.js b/packages/@vue/cli-service/lib/Service.js
index 69c2c8c815..14677dfc19 100644
--- a/packages/@vue/cli-service/lib/Service.js
+++ b/packages/@vue/cli-service/lib/Service.js
@@ -1,14 +1,14 @@
 const fs = require('fs')
 const path = require('path')
 const debug = require('debug')
-const chalk = require('chalk')
 const readPkg = require('read-pkg')
 const merge = require('webpack-merge')
 const deepMerge = require('deepmerge')
 const Config = require('webpack-chain')
 const PluginAPI = require('./PluginAPI')
 const loadEnv = require('./util/loadEnv')
-const { warn, error } = require('@vue/cli-shared-utils')
+const cosmiconfig = require('cosmiconfig')
+const { error } = require('@vue/cli-shared-utils')
 
 const { defaults, validate } = require('./options')
 
@@ -150,45 +150,24 @@ module.exports = class Service {
   }
 
   loadProjectOptions (inlineOptions) {
-    // vue.config.js
-    let fileConfig, pkgConfig, resolved
-    const configPath = (
-      process.env.VUE_CLI_SERVICE_CONFIG_PATH ||
-      path.resolve(this.context, 'vue.config.js')
-    )
-    try {
-      fileConfig = require(configPath)
-      if (!fileConfig || typeof fileConfig !== 'object') {
+    let resolved
+    if (this.pkg.vue) {
+      resolved = this.pkg.vue
+    } else {
+      const explorer = cosmiconfig('vue', {
+        sync: true,
+        stopDir: this.context
+      })
+      try {
+        const res = explorer.load(this.context)
+        if (res) resolved = res.config
+      } catch (e) {
         error(
-          `Error loading ${chalk.bold('vue.config.js')}: should export an object.`
-        )
-        fileConfig = null
-      }
-    } catch (e) {}
-
-    // package.vue
-    pkgConfig = this.pkg.vue
-    if (pkgConfig && typeof pkgConfig !== 'object') {
-      error(
-        `Error loading vue-cli config in ${chalk.bold(`package.json`)}: ` +
-        `the "vue" field should be an object.`
-      )
-      pkgConfig = null
-    }
-
-    if (fileConfig) {
-      if (pkgConfig) {
-        warn(
-          `"vue" field in ${chalk.bold(`package.json`)} ignored ` +
-          `due to presence of ${chalk.bold('vue.config.js')}.`
+          `Error loading vue-cli config: ${e.message}`
         )
       }
-      resolved = fileConfig
-    } else if (pkgConfig) {
-      resolved = pkgConfig
-    } else {
-      resolved = inlineOptions || {}
     }
+    resolved = resolved || inlineOptions || {}
 
     // normlaize some options
     ensureSlash(resolved, 'base')
diff --git a/packages/@vue/cli-service/package.json b/packages/@vue/cli-service/package.json
index cbd25652ad..6e8aed7897 100644
--- a/packages/@vue/cli-service/package.json
+++ b/packages/@vue/cli-service/package.json
@@ -30,6 +30,7 @@
     "case-sensitive-paths-webpack-plugin": "^2.1.1",
     "chalk": "^2.3.0",
     "copy-webpack-plugin": "^4.3.1",
+    "cosmiconfig": "^4.0.0",
     "css-loader": "^0.28.9",
     "deepmerge": "^2.0.1",
     "escape-string-regexp": "^1.0.5",