diff --git a/AUTHORS b/AUTHORS
index 1e8f67870..3899ced2a 100644
--- a/AUTHORS
+++ b/AUTHORS
@@ -28,6 +28,10 @@ Chen, Mike <mike.chen82@googlemail.com>
 Coalson, Josh <j_coalson@yahoo.com>
     * support for libFLAC 1.1.3
 
+Domínguez, Cosme <cosme.ddiaz@gmail.com>
+    * Fixed mmg's configuration location to conform to the XDG Base
+      Directory Specification
+
 Duret, Xavier <xaviour.maillists@gmail.com>
     * Bugfix for timecode and default duration calculation for MPEG-1/2 tracks
     * 'Interlaced' header flag for interlaced MPEG-1/2 tracks
diff --git a/ChangeLog b/ChangeLog
index d2fe66843..b3240f2f2 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,10 @@
+2011-09-05  Cosme Domínguez  <cosme.ddiaz@gmail.com>
+
+	* mmg: mmg respects the XDG Base Directory Specification regarding
+	its configuration files (environment variable
+	$XDG_CONFIG_HOME/mkvtoolnix if set, otherwise
+	~/.config/mkvtoolnix).
+
 2011-08-24  Moritz Bunkus  <moritz@bunkus.org>
 
 	* all: Added an Lithuanian translation by Mindaugas Baranauskas
diff --git a/src/common/fs_sys_helpers.cpp b/src/common/fs_sys_helpers.cpp
index 88bf01244..2557233f7 100644
--- a/src/common/fs_sys_helpers.cpp
+++ b/src/common/fs_sys_helpers.cpp
@@ -206,7 +206,19 @@ get_application_data_folder() {
   if (NULL == home)
     return "";
 
-  return std::string(home) + "/.mkvtoolnix";
+  // If $HOME/.mkvtoolnix exists already then keep using it to avoid
+  // losing existing user configuration.
+  std::string old_default_folder = std::string(home) + "/.mkvtoolnix";
+  if (fs_entry_exists(old_default_folder.c_str()))
+    return old_default_folder;
+
+  // If XDG_CONFIG_HOME is set then use that folder.
+  const char *xdg_config_home = getenv("XDG_CONFIG_HOME");
+  if (NULL != xdg_config_home)
+    return std::string(xdg_config_home) + "/mkvtoolnix";
+
+  // If all fails then use the XDG fallback folder for config files.
+  return std::string(home) + "/.config/mkvtoolnix";
 }
 
 std::string