diff --git a/doc/06-config.md b/doc/06-config.md
index 276e40911..6afbce1aa 100644
--- a/doc/06-config.md
+++ b/doc/06-config.md
@@ -63,6 +63,19 @@ optionally be a hash of patterns for more granular install preferences.
 > configuration in global and package configurations the string notation
 > is translated to a `*` package pattern.
 
+## use-parent-dir
+
+When running Composer in a directory where there is no composer.json, if there
+is one present in a directory above Composer will by default ask you whether
+you want to use that directory's composer.json instead.
+
+If you always want to answer yes to this prompt, you can set this config value
+to `true`. To never be prompted set it to `false`. The default is `"prompt"`.
+
+> **Note:** This config must be set in your global user-wide config for it
+> to work. Use for example `php composer.phar config --global use-parent-dir true`
+> to set it.
+
 ## store-auths
 
 What to do after prompting for authentication, one of: `true` (always store),
diff --git a/res/composer-schema.json b/res/composer-schema.json
index e2e32cafa..02d529777 100644
--- a/res/composer-schema.json
+++ b/res/composer-schema.json
@@ -296,6 +296,10 @@
                     "type": "boolean",
                     "description": "If true, the Composer autoloader will also look for classes in the PHP include path."
                 },
+                "use-parent-dir": {
+                    "type": ["string", "boolean"],
+                    "description": "When running Composer in a directory where there is no composer.json, if there is one present in a directory above Composer will by default ask you whether you want to use that directory's composer.json instead. One of: true (always use parent if needed), false (never ask or use it) or \"prompt\" (ask every time), defaults to prompt."
+                },
                 "preferred-install": {
                     "type": ["string", "object"],
                     "description": "The install method Composer will prefer to use, defaults to auto and can be any of source, dist, auto, or a hash of {\"pattern\": \"preference\"}."
diff --git a/src/Composer/Command/ConfigCommand.php b/src/Composer/Command/ConfigCommand.php
index ecaa76324..49479a6ba 100644
--- a/src/Composer/Command/ConfigCommand.php
+++ b/src/Composer/Command/ConfigCommand.php
@@ -454,6 +454,18 @@ EOT
                         return 'php-only';
                     }
 
+                    return $val !== 'false' && (bool)$val;
+                },
+            ),
+            'use-parent-dir' => array(
+                function ($val) {
+                    return in_array($val, array('true', 'false', 'prompt'), true);
+                },
+                function ($val) {
+                    if ('prompt' === $val) {
+                        return 'prompt';
+                    }
+
                     return $val !== 'false' && (bool) $val;
                 },
             ),
@@ -595,7 +607,7 @@ EOT
         );
 
         if ($input->getOption('global') && (isset($uniqueProps[$settingKey]) || isset($multiProps[$settingKey]) || strpos($settingKey, 'extra.') === 0)) {
-            throw new \InvalidArgumentException('The '.$settingKey.' property can not be set in the global config.json file. Use `composer global config` to apply changes to the global composer.json');
+            throw new \InvalidArgumentException('The ' . $settingKey . ' property can not be set in the global config.json file. Use `composer global config` to apply changes to the global composer.json');
         }
         if ($input->getOption('unset') && (isset($uniqueProps[$settingKey]) || isset($multiProps[$settingKey]))) {
             $this->configSource->removeProperty($settingKey);
diff --git a/src/Composer/Config.php b/src/Composer/Config.php
index 00707bbad..ddf46a499 100644
--- a/src/Composer/Config.php
+++ b/src/Composer/Config.php
@@ -33,6 +33,7 @@ class Config
     public static $defaultConfig = array(
         'process-timeout' => 300,
         'use-include-path' => false,
+        'use-parent-dir' => 'prompt',
         'preferred-install' => 'dist',
         'notify-on-install' => true,
         'github-protocols' => array('https', 'ssh', 'git'),
diff --git a/src/Composer/Console/Application.php b/src/Composer/Console/Application.php
index e68321e29..2701e118f 100644
--- a/src/Composer/Console/Application.php
+++ b/src/Composer/Console/Application.php
@@ -172,14 +172,19 @@ class Application extends BaseApplication
         }
 
         // prompt user for dir change if no composer.json is present in current dir
-        if ($io->isInteractive() && !$newWorkDir && !in_array($commandName, array('', 'list', 'init', 'about', 'help', 'diagnose', 'self-update', 'global', 'create-project', 'outdated'), true) && !file_exists(Factory::getComposerFile())) {
+        if ($io->isInteractive() && !$newWorkDir && !in_array($commandName, array('', 'list', 'init', 'about', 'help', 'diagnose', 'self-update', 'global', 'create-project', 'outdated'), true) && !file_exists(Factory::getComposerFile()) && ($useParentDirIfNoJsonAvailable = $this->getUseParentDirConfigValue()) !== false) {
             $dir = dirname(getcwd());
             $home = realpath(Platform::getEnv('HOME') ?: Platform::getEnv('USERPROFILE') ?: '/');
 
             // abort when we reach the home dir or top of the filesystem
             while (dirname($dir) !== $dir && $dir !== $home) {
                 if (file_exists($dir.'/'.Factory::getComposerFile())) {
-                    if ($io->askConfirmation('<info>No composer.json in current directory, do you want to use the one at '.$dir.'?</info> [<comment>Y,n</comment>]? ')) {
+                    if ($useParentDirIfNoJsonAvailable === true || $io->askConfirmation('<info>No composer.json in current directory, do you want to use the one at '.$dir.'?</info> [<comment>Y,n</comment>]? ')) {
+                        if ($useParentDirIfNoJsonAvailable === true) {
+                            $io->writeError('<info>No composer.json in current directory, changing working directory to '.$dir.'</info>');
+                        } else {
+                            $io->writeError('<info>Always want to use the parent dir? Use "composer config --global use-parent-dir true" to change the default.</info>');
+                        }
                         $oldWorkingDir = getcwd();
                         chdir($dir);
                     }
@@ -593,4 +598,14 @@ class Application extends BaseApplication
     {
         return $this->initialWorkingDirectory;
     }
+
+    /**
+     * @return 'prompt'|bool
+     */
+    private function getUseParentDirConfigValue()
+    {
+        $config = Factory::createConfig($this->io);
+
+        return $config->get('use-parent-dir');
+    }
 }