diff --git a/config/config.go b/config/config.go
index 52a8052c..fa064003 100644
--- a/config/config.go
+++ b/config/config.go
@@ -76,7 +76,7 @@ func NewIn(workdir, gitdir string) *Configuration {
 
 	c.Git = &delayedEnvironment{
 		callback: func() Environment {
-			sources, err := gitConf.Sources(filepath.Join(c.LocalWorkingDir(), ".lfsconfig"))
+			sources, err := gitConf.Sources(c.LocalWorkingDir(), ".lfsconfig")
 			if err != nil {
 				fmt.Fprintf(os.Stderr, "Error reading git config: %s\n", err)
 			}
diff --git a/docs/man/git-lfs-config.5.ronn b/docs/man/git-lfs-config.5.ronn
index 889382e6..742df999 100644
--- a/docs/man/git-lfs-config.5.ronn
+++ b/docs/man/git-lfs-config.5.ronn
@@ -12,6 +12,11 @@ details. This configuration file is useful for setting options such as the LFS
 URL or access type for all users of a repository, especially when these differ
 from the default. The `.lfsconfig` file uses the same format as `.gitconfig`.
 
+If the `.lfsconfig` file is missing, the index is checked for a version of the
+file, and that is used instead.  If both are missing, `HEAD` is checked for the
+file.  If the repository is bare, only `HEAD` is checked.  This order may change
+for checkouts in the future to better match Git's behavior.
+
 Settings from Git configuration files override the `.lfsconfig` file. This
 allows you to override settings like `lfs.url` in your local environment without
 having to modify the `.lfsconfig` file.
diff --git a/git/config.go b/git/config.go
index 262e11ad..43d33a5f 100644
--- a/git/config.go
+++ b/git/config.go
@@ -2,6 +2,7 @@ package git
 
 import (
 	"errors"
+	"fmt"
 	"os"
 	"path/filepath"
 	"strings"
@@ -134,17 +135,33 @@ func (c *Configuration) UnsetLocalKey(key string) (string, error) {
 	return c.gitConfigWrite("--unset", key)
 }
 
-func (c *Configuration) Sources(optionalFilename string) ([]*ConfigurationSource, error) {
+func (c *Configuration) Sources(dir string, optionalFilename string) ([]*ConfigurationSource, error) {
 	gitconfig, err := c.Source()
 	if err != nil {
 		return nil, err
 	}
 
-	fileconfig, err := c.FileSource(optionalFilename)
-	if err != nil && !os.IsNotExist(err) {
+	bare, err := IsBare()
+	if err != nil {
 		return nil, err
 	}
 
+	// First try to read from the working directory and then the index if
+	// the file is missing from the working directory.
+	var fileconfig *ConfigurationSource
+	if !bare {
+		fileconfig, err = c.FileSource(filepath.Join(dir, optionalFilename))
+		if err != nil {
+			if !os.IsNotExist(err) {
+				return nil, err
+			}
+			fileconfig, _ = c.RevisionSource(fmt.Sprintf(":%s", optionalFilename))
+		}
+	}
+	if fileconfig == nil {
+		fileconfig, _ = c.RevisionSource(fmt.Sprintf("HEAD:%s", optionalFilename))
+	}
+
 	configs := make([]*ConfigurationSource, 0, 2)
 	if fileconfig != nil {
 		configs = append(configs, fileconfig)
@@ -165,6 +182,14 @@ func (c *Configuration) FileSource(filename string) (*ConfigurationSource, error
 	return ParseConfigLines(out, true), nil
 }
 
+func (c *Configuration) RevisionSource(revision string) (*ConfigurationSource, error) {
+	out, err := c.gitConfig("-l", "--blob", revision)
+	if err != nil {
+		return nil, err
+	}
+	return ParseConfigLines(out, true), nil
+}
+
 func (c *Configuration) Source() (*ConfigurationSource, error) {
 	out, err := c.gitConfig("-l")
 	if err != nil {
diff --git a/t/t-config.sh b/t/t-config.sh
index e78b02f0..ec92fa7a 100755
--- a/t/t-config.sh
+++ b/t/t-config.sh
@@ -42,6 +42,80 @@ begin_test "default config"
 )
 end_test
 
+begin_test "config reads from repository"
+(
+  set -e
+  reponame="repository-config"
+  setup_remote_repo "$reponame"
+  mkdir $reponame
+  cd $reponame
+  git init
+  git remote add origin "$GITSERVER/$reponame"
+  git lfs env | tee env.log
+  grep "Endpoint=$GITSERVER/$reponame.git/info/lfs (auth=none)" env.log
+
+  git config --file=.lfsconfig lfs.url http://lfsconfig-file
+  git config --file=.lfsconfig lfs.http://lfsconfig-file.access lfsconfig
+  git add .lfsconfig
+  git commit -m 'Add file'
+  git push origin HEAD
+
+  git checkout -b side
+  git config --file=.lfsconfig lfs.url http://lfsconfig-file-side
+  git config --file=.lfsconfig lfs.http://lfsconfig-file-side.access lfsconfig
+  git add .lfsconfig
+  git commit -m 'Add file for side'
+  git push origin HEAD
+
+  mkdir "../$reponame-2"
+  cd "../$reponame-2"
+  git init
+  git remote add origin "$GITSERVER/$reponame"
+
+  git lfs env | tee env.log
+  grep "Endpoint=$GITSERVER/$reponame.git/info/lfs (auth=none)" env.log
+
+  git fetch origin
+  git symbolic-ref HEAD refs/remotes/origin/side
+  git show "HEAD:.lfsconfig"
+  git lfs env | tee env.log
+  grep "Endpoint=http://lfsconfig-file-side (auth=lfsconfig)" env.log
+
+  git read-tree refs/remotes/origin/main
+  git lfs env | tee env.log
+  grep "Endpoint=http://lfsconfig-file (auth=lfsconfig)" env.log
+)
+end_test
+
+begin_test "can read LFS file with name before .lfsconfig"
+(
+  set -e
+  reponame="early-file-config"
+  setup_remote_repo "$reponame"
+  mkdir $reponame
+  cd $reponame
+  git init
+  git remote add origin "$GITSERVER/$reponame"
+
+  git lfs track "*.bin"
+  git config --file=.lfsconfig lfs.url "$GITSERVER/$reponame.git/info/lfs"
+
+  echo "abc" > .bin
+  echo "def" > a.bin
+
+  git add .
+  git commit -m "Add files"
+  git push origin HEAD
+  rm -fr .git/lfs/objects
+
+  cd ..
+  git clone "$reponame" "$reponame-2"
+  cd "$reponame-2"
+  grep abc .bin
+  grep def a.bin
+)
+end_test
+
 begin_test "extension config"
 (
   set -e