diff --git a/packages/babel-cli/src/babel/index.js b/packages/babel-cli/src/babel/index.js
index 48682c11fa..696c42fe18 100755
--- a/packages/babel-cli/src/babel/index.js
+++ b/packages/babel-cli/src/babel/index.js
@@ -238,10 +238,6 @@ if (errors.length) {
 //
 
 const opts = commander.opts();
-//the configFile CLI option maps to the extends option in the node API
-if (opts.configFile) {
-  opts.extends = opts.configFile;
-}
 
 // Delete options that are specific to @babel/cli and shouldn't be passed to @babel/core.
 delete opts.version;
@@ -253,7 +249,6 @@ delete opts.outDir;
 delete opts.copyFiles;
 delete opts.includeDotfiles;
 delete opts.verbose;
-delete opts.configFile;
 delete opts.deleteDirOnStart;
 delete opts.keepFileExtension;
 delete opts.relative;
diff --git a/packages/babel-core/README.md b/packages/babel-core/README.md
index 6499ad881c..aeb600c947 100644
--- a/packages/babel-core/README.md
+++ b/packages/babel-core/README.md
@@ -216,7 +216,10 @@ Following is a table of the options you can use:
 | `ast`                    | `false`              | Include the AST in the returned object |
 | `auxiliaryCommentAfter`  | `null`               | Attach a comment after all non-user injected code |
 | `auxiliaryCommentBefore` | `null`               | Attach a comment before all non-user injected code |
+| `root`                   | `"."`                | Specify the "root" folder that defines the location to search for "babel.config.js", and the default folder to allow `.babelrc` files inside of.|
+| `configFile`             | `undefined`          | The config file to load Babel's config from. Defaults to searching for "babel.config.js" inside the "root" folder. `false` will disable searching for config files.|
 | `babelrc`                | `true`               | Specify whether or not to use .babelrc and .babelignore files. Not available when using the CLI, [use `--no-babelrc` instead](https://babeljs.io/docs/usage/cli/#babel-ignoring-babelrc) |
+| `babelrcRoots`           | `(root)`             | Specify which packages should be search for .babelrc files when they are being compiled. `true` to _always_ search, or a path string or an array of paths to packages to search inside of. Defaults to only searching the "root" package. |
 | `envName`                | env vars             | Defaults to environment variable `BABEL_ENV` if set, or else `NODE_ENV` if set, or else it defaults to `"development"` |
 | `code`                   | `true`               | Enable code generation |
 | `comments`               | `true`               | Output comments in generated output |
diff --git a/packages/babel-core/src/config/config-chain.js b/packages/babel-core/src/config/config-chain.js
index cf0e3eaf01..1038652bc2 100644
--- a/packages/babel-core/src/config/config-chain.js
+++ b/packages/babel-core/src/config/config-chain.js
@@ -8,15 +8,19 @@ import {
   type ValidatedOptions,
   type IgnoreList,
   type ConfigApplicableTest,
+  type BabelrcSearch,
 } from "./validation/options";
 
 const debug = buildDebug("babel:config:config-chain");
 
 import {
+  findPackageData,
   findRelativeConfig,
+  findRootConfig,
   loadConfig,
   type ConfigFile,
   type IgnoreFile,
+  type FilePackageData,
 } from "./files";
 
 import { makeWeakCache, makeStrongCache } from "./caching";
@@ -106,6 +110,7 @@ const loadPresetOverridesEnvDescriptors = makeWeakCache(
 
 export type RootConfigChain = ConfigChain & {
   babelrc: ConfigFile | void,
+  config: ConfigFile | void,
   ignore: IgnoreFile | void,
 };
 
@@ -125,24 +130,57 @@ export function buildRootChain(
   );
   if (!programmaticChain) return null;
 
-  let ignore, babelrc;
+  const {
+    root: rootDir = ".",
+    babelrc = true,
+    babelrcRoots,
+    configFile: configFileName = true,
+  } = opts;
 
+  const absoluteRoot = path.resolve(context.cwd, rootDir);
+
+  let configFile;
+  if (typeof configFileName === "string") {
+    configFile = loadConfig(configFileName, context.cwd, context.envName);
+  } else if (configFileName === true) {
+    configFile = findRootConfig(absoluteRoot, context.envName);
+  }
+
+  const configFileChain = emptyChain();
+  if (configFile) {
+    const result = loadFileChain(configFile, context);
+    if (!result) return null;
+
+    mergeChain(configFileChain, result);
+  }
+
+  const pkgData =
+    typeof context.filename === "string"
+      ? findPackageData(context.filename)
+      : null;
+
+  let ignoreFile, babelrcFile;
   const fileChain = emptyChain();
   // resolve all .babelrc files
-  if (opts.babelrc !== false && context.filename !== null) {
-    const filename = context.filename;
-
-    ({ ignore, config: babelrc } = findRelativeConfig(
-      filename,
+  if (
+    babelrc &&
+    pkgData &&
+    babelrcLoadEnabled(context, pkgData, babelrcRoots, absoluteRoot)
+  ) {
+    ({ ignore: ignoreFile, config: babelrcFile } = findRelativeConfig(
+      pkgData,
       context.envName,
     ));
 
-    if (ignore && shouldIgnore(context, ignore.ignore, null, ignore.dirname)) {
+    if (
+      ignoreFile &&
+      shouldIgnore(context, ignoreFile.ignore, null, ignoreFile.dirname)
+    ) {
       return null;
     }
 
-    if (babelrc) {
-      const result = loadFileChain(babelrc, context);
+    if (babelrcFile) {
+      const result = loadFileChain(babelrcFile, context);
       if (!result) return null;
 
       mergeChain(fileChain, result);
@@ -152,7 +190,7 @@ export function buildRootChain(
   // Insert file chain in front so programmatic options have priority
   // over configuration file chain items.
   const chain = mergeChain(
-    mergeChain(emptyChain(), fileChain),
+    mergeChain(mergeChain(emptyChain(), configFileChain), fileChain),
     programmaticChain,
   );
 
@@ -160,11 +198,39 @@ export function buildRootChain(
     plugins: dedupDescriptors(chain.plugins),
     presets: dedupDescriptors(chain.presets),
     options: chain.options.map(o => normalizeOptions(o)),
-    ignore: ignore || undefined,
-    babelrc: babelrc || undefined,
+    ignore: ignoreFile || undefined,
+    babelrc: babelrcFile || undefined,
+    config: configFile || undefined,
   };
 }
 
+function babelrcLoadEnabled(
+  context: ConfigContext,
+  pkgData: FilePackageData,
+  babelrcRoots: BabelrcSearch | void,
+  absoluteRoot: string,
+): boolean {
+  if (typeof babelrcRoots === "boolean") return babelrcRoots;
+
+  // Fast path to avoid having to load micromatch if the babelrc is just
+  // loading in the standard root directory.
+  if (babelrcRoots === undefined) {
+    return pkgData.directories.indexOf(absoluteRoot) !== -1;
+  }
+
+  let babelrcPatterns = babelrcRoots;
+  if (!Array.isArray(babelrcPatterns)) babelrcPatterns = [babelrcPatterns];
+  babelrcPatterns = babelrcPatterns.map(pat => path.resolve(context.cwd, pat));
+
+  // Fast path to avoid having to load micromatch if the babelrc is just
+  // loading in the standard root directory.
+  if (babelrcPatterns.length === 1 && babelrcPatterns[0] === absoluteRoot) {
+    return pkgData.directories.indexOf(absoluteRoot) !== -1;
+  }
+
+  return micromatch(pkgData.directories, babelrcPatterns).length > 0;
+}
+
 /**
  * Build a config chain for just the programmatic options passed into Babel.
  */
diff --git a/packages/babel-core/src/config/files/configuration.js b/packages/babel-core/src/config/files/configuration.js
index c1a55cc598..e7022ce2bc 100644
--- a/packages/babel-core/src/config/files/configuration.js
+++ b/packages/babel-core/src/config/files/configuration.js
@@ -5,45 +5,35 @@ import path from "path";
 import fs from "fs";
 import json5 from "json5";
 import resolve from "resolve";
-import { makeStrongCache, type CacheConfigurator } from "../caching";
+import {
+  makeStrongCache,
+  makeWeakCache,
+  type CacheConfigurator,
+} from "../caching";
 import makeAPI from "../helpers/config-api";
+import { makeStaticFileCache } from "./utils";
+import type { FilePackageData, RelativeConfig, ConfigFile } from "./types";
 
 const debug = buildDebug("babel:config:loading:files:configuration");
 
-export type ConfigFile = {
-  filepath: string,
-  dirname: string,
-  options: {},
-};
-
-export type IgnoreFile = {
-  filepath: string,
-  dirname: string,
-  ignore: Array<string>,
-};
-
-export type RelativeConfig = {
-  config: ConfigFile | null,
-  ignore: IgnoreFile | null,
-};
+const BABEL_CONFIG_JS_FILENAME = "babel.config.js";
 
 const BABELRC_FILENAME = ".babelrc";
 const BABELRC_JS_FILENAME = ".babelrc.js";
-const PACKAGE_FILENAME = "package.json";
 const BABELIGNORE_FILENAME = ".babelignore";
 
 export function findRelativeConfig(
-  filepath: string,
+  packageData: FilePackageData,
   envName: string,
 ): RelativeConfig {
   let config = null;
   let ignore = null;
 
-  const dirname = path.dirname(filepath);
-  let loc = dirname;
-  while (true) {
+  const dirname = path.dirname(packageData.filepath);
+
+  for (const loc of packageData.directories) {
     if (!config) {
-      config = [BABELRC_FILENAME, BABELRC_JS_FILENAME, PACKAGE_FILENAME].reduce(
+      config = [BABELRC_FILENAME, BABELRC_JS_FILENAME].reduce(
         (previousConfig: ConfigFile | null, name) => {
           const filepath = path.join(loc, name);
           const config = readConfig(filepath, envName);
@@ -62,6 +52,23 @@ export function findRelativeConfig(
         null,
       );
 
+      const pkgConfig =
+        packageData.pkg && packageData.pkg.dirname === loc
+          ? packageToBabelConfig(packageData.pkg)
+          : null;
+
+      if (pkgConfig) {
+        if (config) {
+          throw new Error(
+            `Multiple configuration files found. Please remove one:\n` +
+              ` - ${path.basename(pkgConfig.filepath)}#babel\n` +
+              ` - ${path.basename(config.filepath)}\n` +
+              `from ${loc}`,
+          );
+        }
+        config = pkgConfig;
+      }
+
       if (config) {
         debug("Found configuration %o from %o.", config.filepath, dirname);
       }
@@ -75,15 +82,24 @@ export function findRelativeConfig(
         debug("Found ignore %o from %o.", ignore.filepath, dirname);
       }
     }
-
-    const nextLoc = path.dirname(loc);
-    if (loc === nextLoc) break;
-    loc = nextLoc;
   }
 
   return { config, ignore };
 }
 
+export function findRootConfig(
+  dirname: string,
+  envName: string,
+): ConfigFile | null {
+  const filepath = path.resolve(dirname, BABEL_CONFIG_JS_FILENAME);
+
+  const conf = readConfig(filepath, envName);
+  if (conf) {
+    debug("Found root config %o in $o.", BABEL_CONFIG_JS_FILENAME, dirname);
+  }
+  return conf;
+}
+
 export function loadConfig(
   name: string,
   dirname: string,
@@ -107,7 +123,7 @@ export function loadConfig(
 function readConfig(filepath, envName): ConfigFile | null {
   return path.extname(filepath) === ".js"
     ? readConfigJS(filepath, { envName })
-    : readConfigFile(filepath);
+    : readConfigJSON5(filepath);
 }
 
 const LOADING_CONFIGS = new Set();
@@ -180,27 +196,34 @@ const readConfigJS = makeStrongCache(
   },
 );
 
-const readConfigFile = makeStaticFileCache((filepath, content) => {
-  let options;
-  if (path.basename(filepath) === PACKAGE_FILENAME) {
-    try {
-      options = JSON.parse(content).babel;
-    } catch (err) {
-      err.message = `${filepath}: Error while parsing JSON - ${err.message}`;
-      throw err;
-    }
-    if (!options) return null;
-  } else {
-    try {
-      options = json5.parse(content);
-    } catch (err) {
-      err.message = `${filepath}: Error while parsing config - ${err.message}`;
-      throw err;
+const packageToBabelConfig = makeWeakCache(
+  (file: ConfigFile): ConfigFile | null => {
+    if (typeof file.options.babel === "undefined") return null;
+    const babel = file.options.babel;
+
+    if (typeof babel !== "object" || Array.isArray(babel) || babel === null) {
+      throw new Error(`${file.filepath}: .babel property must be an object`);
     }
 
-    if (!options) throw new Error(`${filepath}: No config detected`);
+    return {
+      filepath: file.filepath,
+      dirname: file.dirname,
+      options: babel,
+    };
+  },
+);
+
+const readConfigJSON5 = makeStaticFileCache((filepath, content) => {
+  let options;
+  try {
+    options = json5.parse(content);
+  } catch (err) {
+    err.message = `${filepath}: Error while parsing config - ${err.message}`;
+    throw err;
   }
 
+  if (!options) throw new Error(`${filepath}: No config detected`);
+
   if (typeof options !== "object") {
     throw new Error(`${filepath}: Config returned typeof ${typeof options}`);
   }
@@ -228,27 +251,6 @@ const readIgnoreConfig = makeStaticFileCache((filepath, content) => {
   };
 });
 
-function makeStaticFileCache<T>(fn: (string, string) => T): string => T | null {
-  return makeStrongCache((filepath, cache) => {
-    if (cache.invalidate(() => fileMtime(filepath)) === null) {
-      cache.forever();
-      return null;
-    }
-
-    return fn(filepath, fs.readFileSync(filepath, "utf8"));
-  });
-}
-
-function fileMtime(filepath: string): number | null {
-  try {
-    return +fs.statSync(filepath).mtime;
-  } catch (e) {
-    if (e.code !== "ENOENT") throw e;
-  }
-
-  return null;
-}
-
 function throwConfigError() {
   throw new Error(`\
 Caching was left unconfigured. Babel's plugins, presets, and .babelrc.js files can be configured
diff --git a/packages/babel-core/src/config/files/index-browser.js b/packages/babel-core/src/config/files/index-browser.js
index 4e5cb5fe62..baa0fd43d8 100644
--- a/packages/babel-core/src/config/files/index-browser.js
+++ b/packages/babel-core/src/config/files/index-browser.js
@@ -1,17 +1,42 @@
 // @flow
 
-import type { ConfigFile, IgnoreFile, RelativeConfig } from "./configuration";
+import type {
+  ConfigFile,
+  IgnoreFile,
+  RelativeConfig,
+  FilePackageData,
+} from "./types";
 
-export type { ConfigFile, IgnoreFile, RelativeConfig };
+export type { ConfigFile, IgnoreFile, RelativeConfig, FilePackageData };
 
-export function findRelativeConfig(
-  filepath: string,
-  envName: string, // eslint-disable-line no-unused-vars
-): RelativeConfig {
-  return { config: null, ignore: null };
+export function findPackageData(filepath: string): FilePackageData {
+  return {
+    filepath,
+    directories: [],
+    pkg: null,
+    isPackage: false,
+  };
 }
 
-export function loadConfig(name: string, dirname: string): ConfigFile {
+export function findRelativeConfig(
+  pkgData: FilePackageData,
+  envName: string, // eslint-disable-line no-unused-vars
+): RelativeConfig {
+  return { pkg: null, config: null, ignore: null };
+}
+
+export function findRootConfig(
+  dirname: string,
+  envName: string, // eslint-disable-line no-unused-vars
+): ConfigFile | null {
+  return null;
+}
+
+export function loadConfig(
+  name: string,
+  dirname: string,
+  envName: string, // eslint-disable-line no-unused-vars
+): ConfigFile {
   throw new Error(`Cannot load ${name} relative to ${dirname} in a browser`);
 }
 
diff --git a/packages/babel-core/src/config/files/index.js b/packages/babel-core/src/config/files/index.js
index c7e61ad469..9f8d9797bb 100644
--- a/packages/babel-core/src/config/files/index.js
+++ b/packages/babel-core/src/config/files/index.js
@@ -7,5 +7,22 @@ import typeof * as indexType from "./index";
 // exports of index-browser, since this file may be replaced at bundle time with index-browser.
 ((({}: any): $Exact<indexBrowserType>): $Exact<indexType>);
 
-export * from "./configuration";
-export * from "./plugins";
+export { findPackageData } from "./package";
+
+export {
+  findRelativeConfig,
+  findRootConfig,
+  loadConfig,
+} from "./configuration";
+export type {
+  ConfigFile,
+  IgnoreFile,
+  RelativeConfig,
+  FilePackageData,
+} from "./types";
+export {
+  resolvePlugin,
+  resolvePreset,
+  loadPlugin,
+  loadPreset,
+} from "./plugins";
diff --git a/packages/babel-core/src/config/files/package.js b/packages/babel-core/src/config/files/package.js
new file mode 100644
index 0000000000..8e370a472d
--- /dev/null
+++ b/packages/babel-core/src/config/files/package.js
@@ -0,0 +1,60 @@
+// @flow
+
+import path from "path";
+import { makeStaticFileCache } from "./utils";
+
+import type { ConfigFile, FilePackageData } from "./types";
+
+const PACKAGE_FILENAME = "package.json";
+
+/**
+ * Find metadata about the package that this file is inside of. Resolution
+ * of Babel's config requires general package information to decide when to
+ * search for .babelrc files
+ */
+export function findPackageData(filepath: string): FilePackageData {
+  let pkg = null;
+  const directories = [];
+  let isPackage = true;
+
+  let dirname = path.dirname(filepath);
+  while (!pkg && path.basename(dirname) !== "node_modules") {
+    directories.push(dirname);
+
+    pkg = readConfigPackage(path.join(dirname, PACKAGE_FILENAME));
+
+    const nextLoc = path.dirname(dirname);
+    if (dirname === nextLoc) {
+      isPackage = false;
+      break;
+    }
+    dirname = nextLoc;
+  }
+
+  return { filepath, directories, pkg, isPackage };
+}
+
+const readConfigPackage = makeStaticFileCache(
+  (filepath, content): ConfigFile => {
+    let options;
+    try {
+      options = JSON.parse(content);
+    } catch (err) {
+      err.message = `${filepath}: Error while parsing JSON - ${err.message}`;
+      throw err;
+    }
+
+    if (typeof options !== "object") {
+      throw new Error(`${filepath}: Config returned typeof ${typeof options}`);
+    }
+    if (Array.isArray(options)) {
+      throw new Error(`${filepath}: Expected config object but found array`);
+    }
+
+    return {
+      filepath,
+      dirname: path.dirname(filepath),
+      options,
+    };
+  },
+);
diff --git a/packages/babel-core/src/config/files/types.js b/packages/babel-core/src/config/files/types.js
new file mode 100644
index 0000000000..fa9d96fe5d
--- /dev/null
+++ b/packages/babel-core/src/config/files/types.js
@@ -0,0 +1,38 @@
+// @flow
+
+export type ConfigFile = {
+  filepath: string,
+  dirname: string,
+  options: {},
+};
+
+export type IgnoreFile = {
+  filepath: string,
+  dirname: string,
+  ignore: Array<string>,
+};
+
+export type RelativeConfig = {
+  // The actual config, either from package.json#babel, .babelrc, or
+  // .babelrc.js, if there was one.
+  config: ConfigFile | null,
+
+  // The .babelignore, if there was one.
+  ignore: IgnoreFile | null,
+};
+
+export type FilePackageData = {
+  // The file in the package.
+  filepath: string,
+
+  // Any ancestor directories of the file that are within the package.
+  directories: Array<string>,
+
+  // The contents of the package.json. May not be found if the package just
+  // terminated at a node_modules folder without finding one.
+  pkg: ConfigFile | null,
+
+  // True if a package.json or node_modules folder was found while traversing
+  // the directory structure.
+  isPackage: boolean,
+};
diff --git a/packages/babel-core/src/config/files/utils.js b/packages/babel-core/src/config/files/utils.js
new file mode 100644
index 0000000000..db202259d5
--- /dev/null
+++ b/packages/babel-core/src/config/files/utils.js
@@ -0,0 +1,27 @@
+// @flow
+
+import fs from "fs";
+import { makeStrongCache } from "../caching";
+
+export function makeStaticFileCache<T>(
+  fn: (string, string) => T,
+): string => T | null {
+  return makeStrongCache((filepath, cache) => {
+    if (cache.invalidate(() => fileMtime(filepath)) === null) {
+      cache.forever();
+      return null;
+    }
+
+    return fn(filepath, fs.readFileSync(filepath, "utf8"));
+  });
+}
+
+function fileMtime(filepath: string): number | null {
+  try {
+    return +fs.statSync(filepath).mtime;
+  } catch (e) {
+    if (e.code !== "ENOENT" && e.code !== "ENOTDIR") throw e;
+  }
+
+  return null;
+}
diff --git a/packages/babel-core/src/config/partial.js b/packages/babel-core/src/config/partial.js
index 83d0d08086..2a491f5e69 100644
--- a/packages/babel-core/src/config/partial.js
+++ b/packages/babel-core/src/config/partial.js
@@ -17,6 +17,7 @@ export default function loadPrivatePartialConfig(
   context: ConfigContext,
   ignore: IgnoreFile | void,
   babelrc: ConfigFile | void,
+  config: ConfigFile | void,
 } | null {
   if (
     inputOpts != null &&
@@ -64,6 +65,7 @@ export default function loadPrivatePartialConfig(
     context,
     ignore: configChain.ignore,
     babelrc: configChain.babelrc,
+    config: configChain.config,
   };
 }
 
@@ -71,7 +73,7 @@ export function loadPartialConfig(inputOpts: mixed): PartialConfig | null {
   const result = loadPrivatePartialConfig(inputOpts);
   if (!result) return null;
 
-  const { options, babelrc, ignore } = result;
+  const { options, babelrc, ignore, config } = result;
 
   (options.plugins || []).forEach(item => {
     if (item.value instanceof Plugin) {
@@ -86,6 +88,7 @@ export function loadPartialConfig(inputOpts: mixed): PartialConfig | null {
     options,
     babelrc ? babelrc.filepath : undefined,
     ignore ? ignore.filepath : undefined,
+    config ? config.filepath : undefined,
   );
 }
 
@@ -99,15 +102,18 @@ class PartialConfig {
   options: ValidatedOptions;
   babelrc: string | void;
   babelignore: string | void;
+  config: string | void;
 
   constructor(
     options: ValidatedOptions,
     babelrc: string | void,
     ignore: string | void,
+    config: string | void,
   ) {
     this.options = options;
     this.babelignore = ignore;
     this.babelrc = babelrc;
+    this.config = config;
 
     // Freeze since this is a public API and it should be extremely obvious that
     // reassigning properties on here does nothing.
@@ -122,7 +128,7 @@ class PartialConfig {
    * this.babelrc directly.
    */
   hasFilesystemConfig(): boolean {
-    return this.babelrc !== undefined;
+    return this.babelrc !== undefined || this.config !== undefined;
   }
 }
 Object.freeze(PartialConfig.prototype);
diff --git a/packages/babel-core/src/config/validation/option-assertions.js b/packages/babel-core/src/config/validation/option-assertions.js
index 97b860f016..a637651700 100644
--- a/packages/babel-core/src/config/validation/option-assertions.js
+++ b/packages/babel-core/src/config/validation/option-assertions.js
@@ -1,6 +1,8 @@
 // @flow
 
 import type {
+  ConfigFileSearch,
+  BabelrcSearch,
   IgnoreList,
   IgnoreItem,
   PluginList,
@@ -164,6 +166,45 @@ function checkValidTest(value: mixed): boolean {
   );
 }
 
+export function assertConfigFileSearch(
+  key: string,
+  value: mixed,
+): ConfigFileSearch | void {
+  if (
+    value !== undefined &&
+    typeof value !== "boolean" &&
+    typeof value !== "string"
+  ) {
+    throw new Error(
+      `.${key} must be a undefined, a boolean, a string, ` +
+        `got ${JSON.stringify(value)}`,
+    );
+  }
+
+  return value;
+}
+
+export function assertBabelrcSearch(
+  key: string,
+  value: mixed,
+): BabelrcSearch | void {
+  if (value === undefined || typeof value === "boolean") return value;
+
+  if (Array.isArray(value)) {
+    value.forEach((item, i) => {
+      if (typeof item !== "string") {
+        throw new Error(`.${key}[${i}] must be a string.`);
+      }
+    });
+  } else if (typeof value !== "string") {
+    throw new Error(
+      `.${key} must be a undefined, a boolean, a string, ` +
+        `or an array of strings, got ${JSON.stringify(value)}`,
+    );
+  }
+  return (value: any);
+}
+
 export function assertPluginList(key: string, value: mixed): PluginList | void {
   const arr = assertArray(key, value);
   if (arr) {
diff --git a/packages/babel-core/src/config/validation/options.js b/packages/babel-core/src/config/validation/options.js
index 290d326d5b..4b6024cf03 100644
--- a/packages/babel-core/src/config/validation/options.js
+++ b/packages/babel-core/src/config/validation/options.js
@@ -13,6 +13,8 @@ import {
   assertIgnoreList,
   assertPluginList,
   assertConfigApplicableTest,
+  assertConfigFileSearch,
+  assertBabelrcSearch,
   assertFunction,
   assertSourceMaps,
   assertCompact,
@@ -23,6 +25,11 @@ import {
 
 const ROOT_VALIDATORS: ValidatorSet = {
   cwd: (assertString: Validator<$PropertyType<ValidatedOptions, "cwd">>),
+  root: (assertString: Validator<$PropertyType<ValidatedOptions, "root">>),
+  configFile: (assertConfigFileSearch: Validator<
+    $PropertyType<ValidatedOptions, "configFile">,
+  >),
+
   filename: (assertString: Validator<
     $PropertyType<ValidatedOptions, "filename">,
   >),
@@ -32,6 +39,9 @@ const ROOT_VALIDATORS: ValidatorSet = {
   babelrc: (assertBoolean: Validator<
     $PropertyType<ValidatedOptions, "babelrc">,
   >),
+  babelrcRoots: (assertBabelrcSearch: Validator<
+    $PropertyType<ValidatedOptions, "babelrcRoots">,
+  >),
   code: (assertBoolean: Validator<$PropertyType<ValidatedOptions, "code">>),
   ast: (assertBoolean: Validator<$PropertyType<ValidatedOptions, "ast">>),
 
@@ -151,6 +161,9 @@ export type ValidatedOptions = {
   filename?: string,
   filenameRelative?: string,
   babelrc?: boolean,
+  babelrcRoots?: BabelrcSearch,
+  configFile?: ConfigFileSearch,
+  root?: string,
   code?: boolean,
   ast?: boolean,
   inputSourceMap?: RootInputSourceMapOption,
@@ -223,6 +236,8 @@ export type PluginList = $ReadOnlyArray<PluginItem>;
 export type OverridesList = Array<ValidatedOptions>;
 export type ConfigApplicableTest = IgnoreItem | Array<IgnoreItem>;
 
+export type ConfigFileSearch = string | boolean;
+export type BabelrcSearch = boolean | string | Array<string>;
 export type SourceMapsOption = boolean | "inline" | "both";
 export type SourceTypeOption = "module" | "script" | "unambiguous";
 export type CompactOption = boolean | "auto";
diff --git a/packages/babel-core/test/api.js b/packages/babel-core/test/api.js
index 101a184089..0977bad100 100644
--- a/packages/babel-core/test/api.js
+++ b/packages/babel-core/test/api.js
@@ -294,6 +294,7 @@ describe("api", function() {
     process.env.BABEL_ENV = "development";
 
     const result = babel.transform("", {
+      cwd: path.join(__dirname, "fixtures", "config", "complex-plugin-config"),
       filename: path.join(
         __dirname,
         "fixtures",
diff --git a/packages/babel-core/test/config-chain.js b/packages/babel-core/test/config-chain.js
index fc3b344968..8aa83a7481 100644
--- a/packages/babel-core/test/config-chain.js
+++ b/packages/babel-core/test/config-chain.js
@@ -11,6 +11,7 @@ describe("buildConfigChain", function() {
     describe("single", () => {
       it("should process matching string values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           test: fixture("nonexistant-fake"),
@@ -22,6 +23,7 @@ describe("buildConfigChain", function() {
 
       it("should process matching RegExp values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           test: new RegExp(fixture("nonexistant-fake")),
@@ -33,6 +35,7 @@ describe("buildConfigChain", function() {
 
       it("should process matching function values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           test: p => p.indexOf(fixture("nonexistant-fake")) === 0,
@@ -44,6 +47,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching string values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           test: fixture("nonexistant-fake-unknown"),
@@ -55,6 +59,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching RegExp values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           test: new RegExp(fixture("nonexistant-unknown")),
@@ -66,6 +71,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching function values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           test: p => p.indexOf(fixture("nonexistant-unknown")) === 0,
@@ -79,6 +85,7 @@ describe("buildConfigChain", function() {
     describe("array", () => {
       it("should process matching string values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           test: [fixture("nonexistant-fake")],
@@ -90,6 +97,7 @@ describe("buildConfigChain", function() {
 
       it("should process matching RegExp values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           test: [new RegExp(fixture("nonexistant-fake"))],
@@ -101,6 +109,7 @@ describe("buildConfigChain", function() {
 
       it("should process matching function values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           test: [p => p.indexOf(fixture("nonexistant-fake")) === 0],
@@ -112,6 +121,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching string values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           test: [fixture("nonexistant-fake-unknown")],
@@ -123,6 +133,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching RegExp values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           test: [new RegExp(fixture("nonexistant-unknown"))],
@@ -134,6 +145,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching function values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           test: [p => p.indexOf(fixture("nonexistant-unknown")) === 0],
@@ -149,6 +161,7 @@ describe("buildConfigChain", function() {
     describe("single", () => {
       it("should process matching string values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           include: fixture("nonexistant-fake"),
@@ -160,6 +173,7 @@ describe("buildConfigChain", function() {
 
       it("should process matching RegExp values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           include: new RegExp(fixture("nonexistant-fake")),
@@ -171,6 +185,7 @@ describe("buildConfigChain", function() {
 
       it("should process matching function values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           include: p => p.indexOf(fixture("nonexistant-fake")) === 0,
@@ -182,6 +197,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching string values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           include: fixture("nonexistant-fake-unknown"),
@@ -193,6 +209,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching RegExp values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           include: new RegExp(fixture("nonexistant-unknown")),
@@ -204,6 +221,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching function values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           include: p => p.indexOf(fixture("nonexistant-unknown")) === 0,
@@ -217,6 +235,7 @@ describe("buildConfigChain", function() {
     describe("array", () => {
       it("should process matching string values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           include: [fixture("nonexistant-fake")],
@@ -228,6 +247,7 @@ describe("buildConfigChain", function() {
 
       it("should process matching RegExp values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           include: [new RegExp(fixture("nonexistant-fake"))],
@@ -239,6 +259,7 @@ describe("buildConfigChain", function() {
 
       it("should process matching function values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           include: [p => p.indexOf(fixture("nonexistant-fake")) === 0],
@@ -250,6 +271,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching string values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           include: [fixture("nonexistant-fake-unknown")],
@@ -261,6 +283,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching RegExp values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           include: [new RegExp(fixture("nonexistant-unknown"))],
@@ -272,6 +295,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching function values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           include: [p => p.indexOf(fixture("nonexistant-unknown")) === 0],
@@ -287,6 +311,7 @@ describe("buildConfigChain", function() {
     describe("single", () => {
       it("should process matching string values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           exclude: fixture("nonexistant-fake"),
@@ -298,6 +323,7 @@ describe("buildConfigChain", function() {
 
       it("should process matching RegExp values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           exclude: new RegExp(fixture("nonexistant-fake")),
@@ -309,6 +335,7 @@ describe("buildConfigChain", function() {
 
       it("should process matching function values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           exclude: p => p.indexOf(fixture("nonexistant-fake")) === 0,
@@ -320,6 +347,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching string values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           exclude: fixture("nonexistant-fake-unknown"),
@@ -331,6 +359,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching RegExp values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           exclude: new RegExp(fixture("nonexistant-unknown")),
@@ -342,6 +371,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching function values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           exclude: p => p.indexOf(fixture("nonexistant-unknown")) === 0,
@@ -355,6 +385,7 @@ describe("buildConfigChain", function() {
     describe("array", () => {
       it("should process matching string values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           exclude: [fixture("nonexistant-fake")],
@@ -366,6 +397,7 @@ describe("buildConfigChain", function() {
 
       it("should process matching RegExp values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           exclude: [new RegExp(fixture("nonexistant-fake"))],
@@ -377,6 +409,7 @@ describe("buildConfigChain", function() {
 
       it("should process matching function values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           exclude: [p => p.indexOf(fixture("nonexistant-fake")) === 0],
@@ -388,6 +421,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching string values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           exclude: [fixture("nonexistant-fake-unknown")],
@@ -399,6 +433,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching RegExp values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           exclude: [new RegExp(fixture("nonexistant-unknown"))],
@@ -410,6 +445,7 @@ describe("buildConfigChain", function() {
 
       it("should process non-matching function values", () => {
         const opts = loadOptions({
+          cwd: fixture("nonexistant-fake"),
           filename: fixture("nonexistant-fake", "src.js"),
           babelrc: false,
           exclude: [p => p.indexOf(fixture("nonexistant-unknown")) === 0],
@@ -424,6 +460,7 @@ describe("buildConfigChain", function() {
   describe("ignore", () => {
     it("should ignore files that match", () => {
       const opts = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
         ignore: [
@@ -441,6 +478,7 @@ describe("buildConfigChain", function() {
 
     it("should not ignore files that don't match", () => {
       const opts = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
         ignore: [
@@ -456,6 +494,7 @@ describe("buildConfigChain", function() {
   describe("only", () => {
     it("should ignore files that don't match", () => {
       const opts = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
         only: [
@@ -469,6 +508,7 @@ describe("buildConfigChain", function() {
 
     it("should not ignore files that match", () => {
       const opts = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
         only: [
@@ -484,6 +524,7 @@ describe("buildConfigChain", function() {
   describe("ignore/only", () => {
     it("should ignore files that match ignore and don't match only", () => {
       const opts = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
         ignore: [fixture("nonexistant-fake", "src.js")],
@@ -495,6 +536,7 @@ describe("buildConfigChain", function() {
 
     it("should ignore files that match ignore and also only", () => {
       const opts = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
         ignore: [fixture("nonexistant-fake", "src.js")],
@@ -506,6 +548,7 @@ describe("buildConfigChain", function() {
 
     it("should not ignore files that match only and not ignore", () => {
       const opts = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
         only: [fixture("nonexistant-fake", "src.js")],
@@ -516,6 +559,7 @@ describe("buildConfigChain", function() {
 
     it("should not ignore files when no ignore/only are specified", () => {
       const opts = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
       });
@@ -525,6 +569,7 @@ describe("buildConfigChain", function() {
 
     it("should allow negation of only", () => {
       const opts1 = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
         only: [
@@ -535,6 +580,7 @@ describe("buildConfigChain", function() {
       expect(opts1).toBeNull();
 
       const opts2 = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
         only: [
@@ -545,6 +591,7 @@ describe("buildConfigChain", function() {
       expect(opts2).not.toBeNull();
 
       const opts3 = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "folder", "src.js"),
         babelrc: false,
         only: [
@@ -557,6 +604,7 @@ describe("buildConfigChain", function() {
 
     it("should allow negation of ignore", () => {
       const opts1 = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
         ignore: [
@@ -568,6 +616,7 @@ describe("buildConfigChain", function() {
 
       // Tests disabled pending https://github.com/babel/babel/issues/6907
       // const opts2 = loadOptions({
+      //   cwd: fixture("nonexistant-fake"),
       //   filename: fixture("nonexistant-fake", "src.js"),
       //   babelrc: false,
       //   ignore: [
@@ -578,6 +627,7 @@ describe("buildConfigChain", function() {
       // expect(opts2).not.toBeNull();
       //
       // const opts3 = loadOptions({
+      //   cwd: fixture("nonexistant-fake"),
       //   filename: fixture("nonexistant-fake", "folder", "src.js"),
       //   babelrc: false,
       //   ignore: [
@@ -718,13 +768,13 @@ describe("buildConfigChain", function() {
           "package.json",
         );
 
-        const opts1 = loadOptions({ filename });
-        const opts2 = loadOptions({ filename });
+        const opts1 = loadOptions({ filename, cwd: path.dirname(filename) });
+        const opts2 = loadOptions({ filename, cwd: path.dirname(filename) });
 
         touch(pkgJSON);
 
-        const opts3 = loadOptions({ filename });
-        const opts4 = loadOptions({ filename });
+        const opts3 = loadOptions({ filename, cwd: path.dirname(filename) });
+        const opts4 = loadOptions({ filename, cwd: path.dirname(filename) });
 
         expect(opts1.plugins).toHaveLength(1);
         expect(opts2.plugins).toHaveLength(1);
@@ -752,13 +802,13 @@ describe("buildConfigChain", function() {
           ".babelrc",
         );
 
-        const opts1 = loadOptions({ filename });
-        const opts2 = loadOptions({ filename });
+        const opts1 = loadOptions({ filename, cwd: path.dirname(filename) });
+        const opts2 = loadOptions({ filename, cwd: path.dirname(filename) });
 
         touch(babelrcFile);
 
-        const opts3 = loadOptions({ filename });
-        const opts4 = loadOptions({ filename });
+        const opts3 = loadOptions({ filename, cwd: path.dirname(filename) });
+        const opts4 = loadOptions({ filename, cwd: path.dirname(filename) });
 
         expect(opts1.plugins).toHaveLength(1);
         expect(opts2.plugins).toHaveLength(1);
@@ -780,11 +830,19 @@ describe("buildConfigChain", function() {
           "src.js",
         );
 
-        const opts1 = loadOptions({ filename });
-        const opts2 = loadOptions({ filename });
+        const opts1 = loadOptions({ filename, cwd: path.dirname(filename) });
+        const opts2 = loadOptions({ filename, cwd: path.dirname(filename) });
 
-        const opts3 = loadOptions({ filename, envName: "new-env" });
-        const opts4 = loadOptions({ filename, envName: "new-env" });
+        const opts3 = loadOptions({
+          filename,
+          envName: "new-env",
+          cwd: path.dirname(filename),
+        });
+        const opts4 = loadOptions({
+          filename,
+          envName: "new-env",
+          cwd: path.dirname(filename),
+        });
 
         expect(opts1.plugins).toHaveLength(1);
         expect(opts2.plugins).toHaveLength(1);
@@ -803,6 +861,7 @@ describe("buildConfigChain", function() {
   describe("overrides merging", () => {
     it("should apply matching overrides over base configs", () => {
       const opts = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
         comments: true,
@@ -819,6 +878,7 @@ describe("buildConfigChain", function() {
 
     it("should not apply non-matching overrides over base configs", () => {
       const opts = loadOptions({
+        cwd: fixture("nonexistant-fake"),
         filename: fixture("nonexistant-fake", "src.js"),
         babelrc: false,
         comments: true,
@@ -860,9 +920,15 @@ describe("buildConfigChain", function() {
     it("should load .babelrc", () => {
       const filename = fixture("config-files", "babelrc", "src.js");
 
-      expect(loadOptions({ filename })).toEqual({
+      expect(
+        loadOptions({
+          filename,
+          cwd: path.dirname(filename),
+        }),
+      ).toEqual({
         ...getDefaults(),
         filename,
+        cwd: path.dirname(filename),
         comments: true,
       });
     });
@@ -870,9 +936,10 @@ describe("buildConfigChain", function() {
     it("should load .babelrc.js", () => {
       const filename = fixture("config-files", "babelrc-js", "src.js");
 
-      expect(loadOptions({ filename })).toEqual({
+      expect(loadOptions({ filename, cwd: path.dirname(filename) })).toEqual({
         ...getDefaults(),
         filename,
+        cwd: path.dirname(filename),
         comments: true,
       });
     });
@@ -880,9 +947,10 @@ describe("buildConfigChain", function() {
     it("should load package.json#babel", () => {
       const filename = fixture("config-files", "pkg", "src.js");
 
-      expect(loadOptions({ filename })).toEqual({
+      expect(loadOptions({ filename, cwd: path.dirname(filename) })).toEqual({
         ...getDefaults(),
         filename,
+        cwd: path.dirname(filename),
         comments: true,
       });
     });
@@ -890,39 +958,40 @@ describe("buildConfigChain", function() {
     it("should load .babelignore", () => {
       const filename = fixture("config-files", "babelignore", "src.js");
 
-      expect(loadOptions({ filename })).toBeNull();
+      expect(loadOptions({ filename, cwd: path.dirname(filename) })).toBeNull();
     });
 
     it("should throw if there are both .babelrc and .babelrc.js", () => {
       const filename = fixture("config-files", "both-babelrc", "src.js");
 
-      expect(() => loadOptions({ filename })).toThrow(
-        /Multiple configuration files found/,
-      );
+      expect(() =>
+        loadOptions({ filename, cwd: path.dirname(filename) }),
+      ).toThrow(/Multiple configuration files found/);
     });
 
     it("should throw if there are both .babelrc and package.json", () => {
       const filename = fixture("config-files", "pkg-babelrc", "src.js");
 
-      expect(() => loadOptions({ filename })).toThrow(
-        /Multiple configuration files found/,
-      );
+      expect(() =>
+        loadOptions({ filename, cwd: path.dirname(filename) }),
+      ).toThrow(/Multiple configuration files found/);
     });
 
     it("should throw if there are both .babelrc.js and package.json", () => {
       const filename = fixture("config-files", "pkg-babelrc-js", "src.js");
 
-      expect(() => loadOptions({ filename })).toThrow(
-        /Multiple configuration files found/,
-      );
+      expect(() =>
+        loadOptions({ filename, cwd: path.dirname(filename) }),
+      ).toThrow(/Multiple configuration files found/);
     });
 
     it("should ignore package.json without a 'babel' property", () => {
       const filename = fixture("config-files", "pkg-ignored", "src.js");
 
-      expect(loadOptions({ filename })).toEqual({
+      expect(loadOptions({ filename, cwd: path.dirname(filename) })).toEqual({
         ...getDefaults(),
         filename,
+        cwd: path.dirname(filename),
         comments: true,
       });
     });
@@ -930,23 +999,25 @@ describe("buildConfigChain", function() {
     it("should show helpful errors for .babelrc", () => {
       const filename = fixture("config-files", "babelrc-error", "src.js");
 
-      expect(() => loadOptions({ filename })).toThrow(
-        /Error while parsing config - /,
-      );
+      expect(() =>
+        loadOptions({ filename, cwd: path.dirname(filename) }),
+      ).toThrow(/Error while parsing config - /);
     });
 
     it("should show helpful errors for .babelrc.js", () => {
       const filename = fixture("config-files", "babelrc-js-error", "src.js");
 
-      expect(() => loadOptions({ filename })).toThrow(/Babelrc threw an error/);
+      expect(() =>
+        loadOptions({ filename, cwd: path.dirname(filename) }),
+      ).toThrow(/Babelrc threw an error/);
     });
 
     it("should show helpful errors for package.json", () => {
       const filename = fixture("config-files", "pkg-error", "src.js");
 
-      expect(() => loadOptions({ filename })).toThrow(
-        /Error while parsing JSON - /,
-      );
+      expect(() =>
+        loadOptions({ filename, cwd: path.dirname(filename) }),
+      ).toThrow(/Error while parsing JSON - /);
     });
   });
 });
diff --git a/packages/babel-core/test/config-loading.js b/packages/babel-core/test/config-loading.js
index c2787f39c2..65eb0c6034 100644
--- a/packages/babel-core/test/config-loading.js
+++ b/packages/babel-core/test/config-loading.js
@@ -25,6 +25,7 @@ describe("@babel/core config loading", () => {
 
   function makeOpts(skipProgrammatic = false) {
     return {
+      cwd: path.dirname(FILEPATH),
       filename: FILEPATH,
       presets: skipProgrammatic
         ? null
diff --git a/packages/babel-preset-env/test/debug-fixtures.js b/packages/babel-preset-env/test/debug-fixtures.js
index d716ae55ba..6c746ed306 100644
--- a/packages/babel-preset-env/test/debug-fixtures.js
+++ b/packages/babel-preset-env/test/debug-fixtures.js
@@ -52,7 +52,9 @@ const buildTest = opts => {
     let args = [binLoc];
     args = args.concat(opts.args);
 
-    const spawn = child.spawn(process.execPath, args);
+    const spawn = child.spawn(process.execPath, args, {
+      cwd: tmpLoc,
+    });
 
     let stdout = "";
     let stderr = "";
diff --git a/packages/babel-register/test/index.js b/packages/babel-register/test/index.js
index 67eef99204..5643bdcf6f 100644
--- a/packages/babel-register/test/index.js
+++ b/packages/babel-register/test/index.js
@@ -1,4 +1,5 @@
 import fs from "fs";
+import path from "path";
 
 let currentHook;
 let currentOptions;
@@ -39,6 +40,11 @@ describe("@babel/register", function() {
   let babelRegister;
 
   function setupRegister(config = { babelrc: false }) {
+    config = {
+      cwd: path.dirname(testFile),
+      ...config,
+    };
+
     babelRegister = require(registerFile);
     babelRegister.default(config);
   }