diff --git a/cmd/common-main.go b/cmd/common-main.go
index 10371e70b..4668fb58f 100644
--- a/cmd/common-main.go
+++ b/cmd/common-main.go
@@ -1,5 +1,5 @@
 /*
- * Minio Cloud Storage, (C) 2017 Minio, Inc.
+ * Minio Cloud Storage, (C) 2017, 2018 Minio, Inc.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -51,23 +51,36 @@ func initConfig() {
 }
 
 func handleCommonCmdArgs(ctx *cli.Context) {
-	// Set configuration directory.
-	{
-		// Get configuration directory from command line argument.
-		configDir := ctx.String("config-dir")
-		if !ctx.IsSet("config-dir") && ctx.GlobalIsSet("config-dir") {
-			configDir = ctx.GlobalString("config-dir")
+
+	var configDir string
+
+	if ctx.IsSet("config-dir") {
+		configDir = ctx.String("config-dir")
+	} else if ctx.GlobalIsSet("config-dir") {
+		configDir = ctx.GlobalString("config-dir")
+		// cli package does not expose parent's "config-dir" option.  Below code is workaround.
+		if configDir == "" || configDir == getConfigDir() {
+			if ctx.Parent().GlobalIsSet("config-dir") {
+				configDir = ctx.Parent().GlobalString("config-dir")
+			}
 		}
+	} else {
+		// Neither local nor global config-dir option is provided.  In this case, try to use
+		// default config directory.
+		configDir = getConfigDir()
 		if configDir == "" {
-			fatalIf(errors.New("empty directory"), "Configuration directory cannot be empty.")
+			fatalIf(errors.New("missing option"), "config-dir option must be provided.")
 		}
+	}
 
-		// Disallow relative paths, figure out absolute paths.
-		configDirAbs, err := filepath.Abs(configDir)
-		fatalIf(err, "Unable to fetch absolute path for config directory %s", configDir)
-
-		setConfigDir(configDirAbs)
+	if configDir == "" {
+		fatalIf(errors.New("empty directory"), "Configuration directory cannot be empty.")
 	}
+
+	// Disallow relative paths, figure out absolute paths.
+	configDirAbs, err := filepath.Abs(configDir)
+	fatalIf(err, "Unable to fetch absolute path for config directory %s", configDir)
+	setConfigDir(configDirAbs)
 }
 
 func handleCommonEnvVars() {
diff --git a/cmd/config-dir.go b/cmd/config-dir.go
index dc95f73ae..6a6265932 100644
--- a/cmd/config-dir.go
+++ b/cmd/config-dir.go
@@ -1,5 +1,5 @@
 /*
- * Minio Cloud Storage, (C) 2015, 2016, 2017 Minio, Inc.
+ * Minio Cloud Storage, (C) 2015, 2016, 2017, 2018 Minio, Inc.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -95,14 +95,16 @@ func (config *ConfigDir) GetPrivateKeyFile() string {
 	return filepath.Join(config.getCertsDir(), privateKeyFile)
 }
 
-func mustGetDefaultConfigDir() string {
+func getDefaultConfigDir() string {
 	homeDir, err := homedir.Dir()
-	fatalIf(err, "Unable to get home directory.")
+	if err != nil {
+		return ""
+	}
 
 	return filepath.Join(homeDir, defaultMinioConfigDir)
 }
 
-var configDir = &ConfigDir{dir: mustGetDefaultConfigDir()}
+var configDir = &ConfigDir{dir: getDefaultConfigDir()}
 
 func setConfigDir(dir string) {
 	configDir.Set(dir)
diff --git a/cmd/gateway-main.go b/cmd/gateway-main.go
index af400c886..cd6d69222 100644
--- a/cmd/gateway-main.go
+++ b/cmd/gateway-main.go
@@ -1,5 +1,5 @@
 /*
- * Minio Cloud Storage, (C) 2017 Minio, Inc.
+ * Minio Cloud Storage, (C) 2017, 2018 Minio, Inc.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -114,13 +114,13 @@ func StartGateway(ctx *cli.Context, gw Gateway) {
 
 	// Get "json" flag from command line argument and
 	// enable json and quite modes if jason flag is turned on.
-	jsonFlag := ctx.Bool("json") || ctx.GlobalBool("json")
+	jsonFlag := ctx.IsSet("json") || ctx.GlobalIsSet("json")
 	if jsonFlag {
 		log.EnableJSON()
 	}
 
 	// Get quiet flag from command line argument.
-	quietFlag := ctx.Bool("quiet") || ctx.GlobalBool("quiet")
+	quietFlag := ctx.IsSet("quiet") || ctx.GlobalIsSet("quiet")
 	if quietFlag {
 		log.EnableQuiet()
 	}
diff --git a/cmd/main.go b/cmd/main.go
index 5863f4f41..e2a5a9e07 100644
--- a/cmd/main.go
+++ b/cmd/main.go
@@ -1,5 +1,5 @@
 /*
- * Minio Cloud Storage, (C) 2015, 2016, 2017 Minio, Inc.
+ * Minio Cloud Storage, (C) 2015, 2016, 2017, 2018 Minio, Inc.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -32,7 +32,13 @@ var globalFlags = []cli.Flag{
 	cli.StringFlag{
 		Name:  "config-dir, C",
 		Value: getConfigDir(),
-		Usage: "Path to configuration directory.",
+		Usage: func() string {
+			usage := "Path to configuration directory."
+			if getConfigDir() == "" {
+				usage = usage + "  This option must be set."
+			}
+			return usage
+		}(),
 	},
 	cli.BoolFlag{
 		Name:  "quiet",
diff --git a/cmd/server-main.go b/cmd/server-main.go
index 091f153c1..cb0f4a509 100644
--- a/cmd/server-main.go
+++ b/cmd/server-main.go
@@ -156,13 +156,13 @@ func serverMain(ctx *cli.Context) {
 
 	// Get "json" flag from command line argument and
 	// enable json and quite modes if jason flag is turned on.
-	jsonFlag := ctx.Bool("json") || ctx.GlobalBool("json")
+	jsonFlag := ctx.IsSet("json") || ctx.GlobalIsSet("json")
 	if jsonFlag {
 		log.EnableJSON()
 	}
 
 	// Get quiet flag from command line argument.
-	quietFlag := ctx.Bool("quiet") || ctx.GlobalBool("quiet")
+	quietFlag := ctx.IsSet("quiet") || ctx.GlobalIsSet("quiet")
 	if quietFlag {
 		log.EnableQuiet()
 	}