diff --git a/src/main/java/pt/com/hugodias/gradle/gitversioner/VersionerPlugin.java b/src/main/java/pt/com/hugodias/gradle/gitversioner/VersionerPlugin.java
index 43f7bb6..12ed773 100644
--- a/src/main/java/pt/com/hugodias/gradle/gitversioner/VersionerPlugin.java
+++ b/src/main/java/pt/com/hugodias/gradle/gitversioner/VersionerPlugin.java
@@ -17,7 +17,7 @@ public class VersionerPlugin implements Plugin<Project> {
 
   @Override
   public void apply(Project project) {
-    File gitFolder = new File(project.getRootDir() + "/.git");
+    File gitFolder = findGitFolder(project.getRootDir());
     Versioner versioner = Versioner.builder().gitFolder(gitFolder).build();
     VersionerExtension extension =
         project.getExtensions().create("versioner", VersionerExtension.class, project, versioner);
@@ -50,4 +50,12 @@ public void apply(Project project) {
           tagVersionTask.get().getVersion().set(innerProject.getVersion().toString());
         });
   }
+
+  File findGitFolder(File folder) {
+      if(folder == null) {
+          throw new IllegalStateException("No .git directory found in path tree");
+      }
+      File gitFolder = new File(folder, ".git");
+      return gitFolder.exists() ? gitFolder : findGitFolder(folder.getParentFile());
+  }
 }
diff --git a/src/test/java/pt/com/hugodias/gradle/gitversioner/VersionerPluginTest.java b/src/test/java/pt/com/hugodias/gradle/gitversioner/VersionerPluginTest.java
index 7f9712e..a715eb0 100644
--- a/src/test/java/pt/com/hugodias/gradle/gitversioner/VersionerPluginTest.java
+++ b/src/test/java/pt/com/hugodias/gradle/gitversioner/VersionerPluginTest.java
@@ -1,13 +1,14 @@
 /* (C) 2022 Hugo Dias */
 package pt.com.hugodias.gradle.gitversioner;
 
-import static org.junit.jupiter.api.Assertions.assertNotNull;
-import static org.junit.jupiter.api.Assertions.assertTrue;
-
 import org.gradle.api.Project;
 import org.gradle.testfixtures.ProjectBuilder;
 import org.junit.jupiter.api.Test;
 
+import java.io.File;
+
+import static org.junit.jupiter.api.Assertions.*;
+
 class VersionerPluginTest {
 
   @Test
@@ -20,4 +21,24 @@ void greetingTest() {
     assertNotNull(project.getTasks().getByName("printVersion"));
     assertNotNull(project.getTasks().getByName("tagVersion"));
   }
+
+  @Test
+  void testFindGitFolderInCurrentDir() {
+    Project project = ProjectBuilder.builder().build();
+    File gitDir = new File(project.getRootDir() + "/.git");
+    assertTrue(gitDir.mkdirs());
+
+    assertEquals(gitDir, new VersionerPlugin().findGitFolder(project.getRootDir()));
+  }
+
+  @Test
+  void testFindGitFolderInParentDir() {
+    Project project = ProjectBuilder.builder().build();
+    File gitDir = new File(project.getRootDir() + "/.git");
+    File testRootDir = new File(project.getRootDir() + "/sub1/sub2");
+    assertTrue(gitDir.mkdirs());
+    assertTrue(testRootDir.mkdirs());
+
+    assertEquals(gitDir, new VersionerPlugin().findGitFolder(testRootDir));
+  }
 }