diff --git a/internal/exec/vendor_utils.go b/internal/exec/vendor_utils.go
index 0f95f12bb..e7d291619 100644
--- a/internal/exec/vendor_utils.go
+++ b/internal/exec/vendor_utils.go
@@ -131,9 +131,10 @@ func ReadAndProcessVendorConfigFile(cliConfig schema.CliConfiguration, vendorCon
 	}
 
 	foundVendorConfigFile := vendorConfigFile
-
 	// Look for the vendoring manifest in the current directory
-	if !u.FileExists(vendorConfigFile) {
+	foundVendorConfigFile, fileExists := u.SearchConfigFile(foundVendorConfigFile)
+
+	if !fileExists {
 		// Look for the vendoring manifest in the directory pointed to by the `base_path` setting in the `atmos.yaml`
 		pathToVendorConfig := path.Join(cliConfig.BasePath, vendorConfigFile)
 
diff --git a/pkg/config/config.go b/pkg/config/config.go
index 0a719d79b..63014bf4d 100644
--- a/pkg/config/config.go
+++ b/pkg/config/config.go
@@ -338,11 +338,12 @@ func processConfigFile(
 	path string,
 	v *viper.Viper,
 ) (bool, error) {
-	if !u.FileExists(path) {
+	// Check if the config file exists
+	configPath, fileExists := u.SearchConfigFile(path)
+	if !fileExists {
 		return false, nil
 	}
-
-	reader, err := os.Open(path)
+	reader, err := os.Open(configPath)
 	if err != nil {
 		return false, err
 	}
@@ -350,7 +351,7 @@ func processConfigFile(
 	defer func(reader *os.File) {
 		err := reader.Close()
 		if err != nil {
-			u.LogWarning(cliConfig, fmt.Sprintf("error closing file '"+path+"'. "+err.Error()))
+			u.LogWarning(cliConfig, fmt.Sprintf("error closing file '"+configPath+"'. "+err.Error()))
 		}
 	}(reader)