diff --git a/NEW/src/Utils/JdeScoping.ConfigManager/Services/AutoDiscoveryService.cs b/NEW/src/Utils/JdeScoping.ConfigManager/Services/AutoDiscoveryService.cs
new file mode 100644
index 0000000..5e2f0c8
--- /dev/null
+++ b/NEW/src/Utils/JdeScoping.ConfigManager/Services/AutoDiscoveryService.cs
@@ -0,0 +1,86 @@
+using Microsoft.Extensions.Logging;
+
+namespace JdeScoping.ConfigManager.Services;
+
+/// <summary>
+/// Service for auto-discovering configuration file locations.
+/// Searches in prioritized order:
+/// 1. JDESCOPING_CONFIG_PATH environment variable
+/// 2. Same directory as executable
+/// 3. ../JdeScoping.Host/ relative to executable
+/// 4. User config directory (~/.jdescoping on Unix, %LOCALAPPDATA%\JdeScoping on Windows)
+/// </summary>
+public class AutoDiscoveryService : IAutoDiscoveryService
+{
+    private readonly IFileSystem _fileSystem;
+    private readonly ILogger<AutoDiscoveryService>? _logger;
+    private const string EnvVarName = "JDESCOPING_CONFIG_PATH";
+    private const string AppSettingsFileName = "appsettings.json";
+
+    public AutoDiscoveryService(IFileSystem fileSystem, ILogger<AutoDiscoveryService>? logger = null)
+    {
+        _fileSystem = fileSystem;
+        _logger = logger;
+    }
+
+    public Task<string?> FindConfigFolderAsync(CancellationToken ct = default)
+    {
+        // 1. Check environment variable
+        var envPath = Environment.GetEnvironmentVariable(EnvVarName);
+        if (!string.IsNullOrEmpty(envPath) && IsValidConfigFolder(envPath))
+        {
+            _logger?.LogInformation("Found config folder from environment variable: {Path}", envPath);
+            return Task.FromResult<string?>(envPath);
+        }
+
+        // 2. Check same directory as executable
+        var exeDir = AppContext.BaseDirectory;
+        if (IsValidConfigFolder(exeDir))
+        {
+            _logger?.LogInformation("Found config folder in executable directory: {Path}", exeDir);
+            return Task.FromResult<string?>(exeDir);
+        }
+
+        // 3. Check ../JdeScoping.Host/ relative to executable
+        var hostDir = _fileSystem.Combine(exeDir, "..", "JdeScoping.Host");
+        if (IsValidConfigFolder(hostDir))
+        {
+            _logger?.LogInformation("Found config folder in host directory: {Path}", hostDir);
+            return Task.FromResult<string?>(hostDir);
+        }
+
+        // 4. Check user config directory
+        var userConfigDir = GetUserConfigDirectory();
+        if (userConfigDir != null && IsValidConfigFolder(userConfigDir))
+        {
+            _logger?.LogInformation("Found config folder in user directory: {Path}", userConfigDir);
+            return Task.FromResult<string?>(userConfigDir);
+        }
+
+        _logger?.LogWarning("Could not find config folder in any standard location");
+        return Task.FromResult<string?>(null);
+    }
+
+    private bool IsValidConfigFolder(string path)
+    {
+        if (!_fileSystem.DirectoryExists(path))
+            return false;
+
+        var appSettingsPath = _fileSystem.Combine(path, AppSettingsFileName);
+        return _fileSystem.FileExists(appSettingsPath);
+    }
+
+    private string? GetUserConfigDirectory()
+    {
+        if (OperatingSystem.IsWindows())
+        {
+            var localAppData = Environment.GetFolderPath(Environment.SpecialFolder.LocalApplicationData);
+            return _fileSystem.Combine(localAppData, "JdeScoping");
+        }
+        else
+        {
+            var home = Environment.GetFolderPath(Environment.SpecialFolder.UserProfile);
+            return _fileSystem.Combine(home, ".jdescoping");
+        }
+    }
+}
diff --git a/NEW/src/Utils/JdeScoping.ConfigManager/Services/IAutoDiscoveryService.cs b/NEW/src/Utils/JdeScoping.ConfigManager/Services/IAutoDiscoveryService.cs
new file mode 100644
index 0000000..4372214
--- /dev/null
+++ b/NEW/src/Utils/JdeScoping.ConfigManager/Services/IAutoDiscoveryService.cs
@@ -0,0 +1,19 @@
+namespace JdeScoping.ConfigManager.Services;
+
+/// <summary>
+/// Service for auto-discovering configuration file locations.
+/// </summary>
+public interface IAutoDiscoveryService
+{
+    /// <summary>
+    /// Searches for a configuration folder containing appsettings.json.
+    /// Search order:
+    /// 1. JDESCOPING_CONFIG_PATH environment variable
+    /// 2. Same directory as executable
+    /// 3. ../JdeScoping.Host/ relative to executable
+    /// 4. User config directory (~/.jdescoping on Unix, %LOCALAPPDATA%\JdeScoping on Windows)
+    /// </summary>
+    /// <param name="ct">Cancellation token.</param>
+    /// <returns>The path to the config folder, or null if not found.</returns>
+    Task<string?> FindConfigFolderAsync(CancellationToken ct = default);
+}
diff --git a/NEW/tests/JdeScoping.ConfigManager.Tests/Services/AutoDiscoveryServiceTests.cs b/NEW/tests/JdeScoping.ConfigManager.Tests/Services/AutoDiscoveryServiceTests.cs
new file mode 100644
index 0000000..6d8c8b3
--- /dev/null
+++ b/NEW/tests/JdeScoping.ConfigManager.Tests/Services/AutoDiscoveryServiceTests.cs
@@ -0,0 +1,210 @@
+using JdeScoping.ConfigManager.Services;
+
+namespace JdeScoping.ConfigManager.Tests.Services;
+
+public class AutoDiscoveryServiceTests : IDisposable
+{
+    private readonly IFileSystem _fileSystem;
+    private readonly AutoDiscoveryService _sut;
+    private readonly string? _originalEnvVar;
+
+    public AutoDiscoveryServiceTests()
+    {
+        _fileSystem = Substitute.For<IFileSystem>();
+        _sut = new AutoDiscoveryService(_fileSystem);
+        // Save original env var to restore later
+        _originalEnvVar = Environment.GetEnvironmentVariable("JDESCOPING_CONFIG_PATH");
+
+        // Set up default Combine behavior to work like Path.Combine
+        _fileSystem.Combine(Arg.Any<string[]>()).Returns(callInfo =>
+        {
+            var paths = callInfo.Arg<string[]>();
+            return Path.Combine(paths);
+        });
+    }
+
+    public void Dispose()
+    {
+        // Restore original env var
+        Environment.SetEnvironmentVariable("JDESCOPING_CONFIG_PATH", _originalEnvVar);
+    }
+
+    [Fact]
+    public async Task FindConfigFolderAsync_WhenEnvVarSet_ReturnsEnvPath()
+    {
+        // Arrange
+        Environment.SetEnvironmentVariable("JDESCOPING_CONFIG_PATH", "/custom/config");
+        _fileSystem.DirectoryExists("/custom/config").Returns(true);
+        _fileSystem.FileExists(Arg.Is<string>(s => s.Contains("appsettings.json") && s.Contains("/custom/config"))).Returns(true);
+
+        // Act
+        var result = await _sut.FindConfigFolderAsync();
+
+        // Assert
+        result.ShouldBe("/custom/config");
+    }
+
+    [Fact]
+    public async Task FindConfigFolderAsync_WhenEnvVarSetButDirectoryInvalid_SearchesOtherLocations()
+    {
+        // Arrange
+        Environment.SetEnvironmentVariable("JDESCOPING_CONFIG_PATH", "/invalid/config");
+        _fileSystem.DirectoryExists(Arg.Any<string>()).Returns(false);
+        _fileSystem.FileExists(Arg.Any<string>()).Returns(false);
+
+        // Act
+        var result = await _sut.FindConfigFolderAsync();
+
+        // Assert
+        result.ShouldBeNull();
+    }
+
+    [Fact]
+    public async Task FindConfigFolderAsync_WhenEnvVarSetButNoAppSettings_SearchesOtherLocations()
+    {
+        // Arrange
+        Environment.SetEnvironmentVariable("JDESCOPING_CONFIG_PATH", "/custom/config");
+        // Directory exists but no appsettings.json
+        _fileSystem.DirectoryExists("/custom/config").Returns(true);
+        _fileSystem.FileExists(Arg.Any<string>()).Returns(false);
+        // All other locations also don't have config
+        _fileSystem.DirectoryExists(Arg.Is<string>(s => s != "/custom/config")).Returns(false);
+
+        // Act
+        var result = await _sut.FindConfigFolderAsync();
+
+        // Assert
+        result.ShouldBeNull();
+    }
+
+    [Fact]
+    public async Task FindConfigFolderAsync_WhenNotFound_ReturnsNull()
+    {
+        // Arrange
+        Environment.SetEnvironmentVariable("JDESCOPING_CONFIG_PATH", null);
+        _fileSystem.DirectoryExists(Arg.Any<string>()).Returns(false);
+        _fileSystem.FileExists(Arg.Any<string>()).Returns(false);
+
+        // Act
+        var result = await _sut.FindConfigFolderAsync();
+
+        // Assert
+        result.ShouldBeNull();
+    }
+
+    [Fact]
+    public async Task FindConfigFolderAsync_WhenExeDirectoryHasConfig_ReturnsExeDirectory()
+    {
+        // Arrange
+        Environment.SetEnvironmentVariable("JDESCOPING_CONFIG_PATH", null);
+        var exeDir = AppContext.BaseDirectory;
+
+        _fileSystem.DirectoryExists(exeDir).Returns(true);
+        _fileSystem.FileExists(Arg.Is<string>(s => s.Contains(exeDir) && s.Contains("appsettings.json"))).Returns(true);
+
+        // Act
+        var result = await _sut.FindConfigFolderAsync();
+
+        // Assert
+        result.ShouldBe(exeDir);
+    }
+
+    [Fact]
+    public async Task FindConfigFolderAsync_WhenHostDirectoryHasConfig_ReturnsHostDirectory()
+    {
+        // Arrange
+        Environment.SetEnvironmentVariable("JDESCOPING_CONFIG_PATH", null);
+        var exeDir = AppContext.BaseDirectory;
+        var hostDir = Path.Combine(exeDir, "..", "JdeScoping.Host");
+
+        // Exe directory doesn't have config
+        _fileSystem.DirectoryExists(exeDir).Returns(false);
+
+        // Host directory has config
+        _fileSystem.DirectoryExists(hostDir).Returns(true);
+        _fileSystem.FileExists(Arg.Is<string>(s => s.Contains("JdeScoping.Host") && s.Contains("appsettings.json"))).Returns(true);
+
+        // Other directories don't have config
+        _fileSystem.DirectoryExists(Arg.Is<string>(s => s != exeDir && s != hostDir)).Returns(false);
+
+        // Act
+        var result = await _sut.FindConfigFolderAsync();
+
+        // Assert
+        result.ShouldBe(hostDir);
+    }
+
+    [Fact]
+    public async Task FindConfigFolderAsync_WhenUserConfigDirectoryHasConfig_ReturnsUserConfigDirectory()
+    {
+        // Arrange
+        Environment.SetEnvironmentVariable("JDESCOPING_CONFIG_PATH", null);
+        var exeDir = AppContext.BaseDirectory;
+        var hostDir = Path.Combine(exeDir, "..", "JdeScoping.Host");
+
+        // Determine user config path based on OS
+        string userConfigDir;
+        if (OperatingSystem.IsWindows())
+        {
+            var localAppData = Environment.GetFolderPath(Environment.SpecialFolder.LocalApplicationData);
+            userConfigDir = Path.Combine(localAppData, "JdeScoping");
+        }
+        else
+        {
+            var home = Environment.GetFolderPath(Environment.SpecialFolder.UserProfile);
+            userConfigDir = Path.Combine(home, ".jdescoping");
+        }
+
+        // Exe directory doesn't have config
+        _fileSystem.DirectoryExists(exeDir).Returns(false);
+
+        // Host directory doesn't have config
+        _fileSystem.DirectoryExists(hostDir).Returns(false);
+
+        // User config directory has config
+        _fileSystem.DirectoryExists(userConfigDir).Returns(true);
+        _fileSystem.FileExists(Arg.Is<string>(s => s.Contains(userConfigDir) && s.Contains("appsettings.json"))).Returns(true);
+
+        // Act
+        var result = await _sut.FindConfigFolderAsync();
+
+        // Assert
+        result.ShouldBe(userConfigDir);
+    }
+
+    [Fact]
+    public async Task FindConfigFolderAsync_SearchesPrioritizedOrder()
+    {
+        // Arrange - all locations have config, but env var should be returned first
+        Environment.SetEnvironmentVariable("JDESCOPING_CONFIG_PATH", "/env/config");
+        var exeDir = AppContext.BaseDirectory;
+
+        // Both env var path and exe dir have valid config
+        _fileSystem.DirectoryExists("/env/config").Returns(true);
+        _fileSystem.DirectoryExists(exeDir).Returns(true);
+        _fileSystem.FileExists(Arg.Any<string>()).Returns(true);
+
+        // Act
+        var result = await _sut.FindConfigFolderAsync();
+
+        // Assert - should return env var path, not exe dir
+        result.ShouldBe("/env/config");
+    }
+
+    [Fact]
+    public async Task FindConfigFolderAsync_WithCancellationToken_DoesNotThrow()
+    {
+        // Arrange
+        Environment.SetEnvironmentVariable("JDESCOPING_CONFIG_PATH", "/custom/config");
+        _fileSystem.DirectoryExists("/custom/config").Returns(true);
+        _fileSystem.FileExists(Arg.Any<string>()).Returns(true);
+
+        using var cts = new CancellationTokenSource();
+
+        // Act
+        var result = await _sut.FindConfigFolderAsync(cts.Token);
+
+        // Assert
+        result.ShouldBe("/custom/config");
+    }
+}