diff --git a/src/tool_parsecfg.c b/src/tool_parsecfg.c
index bc22b9d5b7..555414e007 100644
--- a/src/tool_parsecfg.c
+++ b/src/tool_parsecfg.c
@@ -206,7 +206,32 @@ int parseconfig(const char *filename)
 #ifdef DEBUG_CONFIG
       fprintf(tool_stderr, "PARAM: \"%s\"\n",(param ? param : "(null)"));
 #endif
+
+      /* expand tilde-characters to the users home directory */
+      if(param && param[0] == '~') {
+        const char *home = curl_getenv("HOME");
+        if(home) {
+          char *tparam = strdup(param + 1);
+          if(!tparam) {
+            rc = 1; /* out of memory */
+            break;
+          }
+          curlx_dyn_reset(&pbuf);
+          if(curlx_dyn_add(&pbuf, home)) {
+            rc = 1; /* out of memory */
+            break;
+          }
+          if(curlx_dyn_add(&pbuf, tparam)) {
+            rc = 1; /* out of memory */
+            break;
+          }
+          free(tparam);
+          param = curlx_dyn_ptr(&pbuf);
+        }
+      }
+
       res = getparameter(option, param, &usedarg, config);
+
       config = global->last;
 
       if(!res && param && *param && !usedarg)