diff --git a/Sources/BinaryDependencyManager/Utils/BinaryDependenciesConfigurationReader.swift b/Sources/BinaryDependencyManager/Utils/BinaryDependenciesConfigurationReader.swift
new file mode 100644
index 0000000..1546362
--- /dev/null
+++ b/Sources/BinaryDependencyManager/Utils/BinaryDependenciesConfigurationReader.swift
@@ -0,0 +1,128 @@
+import Foundation
+import Yams
+import ArgumentParser
+
+
+/// A utility for resolving and loading binary dependencies configuration files.
+struct BinaryDependenciesConfigurationReader {
+    private static let defaultConfigurationFilenames: [String] = [
+        ".binary-dependencies.yaml",
+        ".binary-dependencies.yml",
+        "Dependencies.json" // CMM, Setapp
+    ]
+
+    private static let defaultOutputDirectoryPaths: [String] = [
+        "Dependencies/Binary",
+        "Dependencies", // CMM, Setapp
+    ]
+
+    private static let defaultCacheDirectoryPaths: [String] = [
+        ".cache/binary-dependencies",
+        ".cache/dependencies", // Setapp
+        ".dependencies-cache", // CMM
+    ]
+
+    private let fileManager: FileManagerProtocol
+
+    init(fileManager: FileManagerProtocol = FileManager.default) {
+        self.fileManager = fileManager
+    }
+
+    /// Resolves the file path based on the provided path, or searches through the specified variations.
+    /// - Parameters:
+    ///   - filePath: The path to resolve, or nil to search through variations.
+    ///   - variations: A list of possible filenames or directory names to check if filePath is nil.
+    /// - Returns: The resolved file URL. Crashes if no path is found.
+    private func resolveFilePath(_ filePath: String?, variations: [String]) -> URL {
+        let existingFileURL: URL? = filePath.map(\.asFileURL)
+        guard existingFileURL == .none else { return existingFileURL! }
+
+        let fileURL = (variations.first(where: fileManager.fileExists(atPath:)) ?? variations.first).map(\.asFileURL)
+
+        guard let fileURL else {
+            preconditionFailure("Path must be always resolved")
+        }
+
+        return fileURL
+    }
+
+    /// Resolves the configuration file URL, ensuring the file exists on disk.
+    /// - Parameter configurationFilePath: Optional configuration file path to use, or nil to search defaults.
+    /// - Throws: ValidationError if the file does not exist.
+    /// - Returns: The resolved configuration file URL.
+    func resolveConfigurationFileURL(_ configurationFilePath: String?) throws -> URL {
+        let configurationFileURL = resolveFilePath(configurationFilePath, variations: Self.defaultConfigurationFilenames)
+        guard fileManager.fileExists(atPath: configurationFileURL.path) else {
+            throw ValidationError("No configuration file found")
+        }
+        return configurationFileURL
+    }
+
+    /// Resolves the output directory URL using the provided path, or falls back to the default output directories.
+    /// - Parameter outputDirectory: Optional output directory path.
+    /// - Returns: The resolved output directory URL.
+    func resolveOutputDirectoryURL(_ outputDirectory: String?) -> URL {
+        resolveFilePath(outputDirectory, variations: Self.defaultOutputDirectoryPaths)
+    }
+
+    /// Resolves the cache directory URL using the provided path, or falls back to the default cache directories.
+    /// - Parameter cacheDirectory: Optional cache directory path.
+    /// - Returns: The resolved cache directory URL.
+    func resolveCacheDirectoryURL(_ cacheDirectory: String?) -> URL {
+        resolveFilePath(cacheDirectory, variations: Self.defaultCacheDirectoryPaths)
+    }
+
+    /// Parses and returns a `BinaryDependenciesConfiguration` from the specified configuration file path.
+    /// - Parameter configurationPath: Optional path to the configuration file.
+    /// - Throws: An error if the file cannot be found, decoded, or the version check fails.
+    /// - Returns: The parsed `BinaryDependenciesConfiguration` object.
+    func readConfiguration(at configurationPath: String?) throws -> BinaryDependenciesConfiguration {
+
+        let configurationURL: URL = try resolveConfigurationFileURL(configurationPath)
+
+        // Get the contents of the file
+        guard let dependenciesData: Data = fileManager.contents(atPath: configurationURL.path) else {
+            throw ValidationError("Can't get contents of configuration file at \(configurationURL.path)")
+        }
+
+        // Decoder selection: Check if this is yaml, and fallback to JSONDecoder.
+        let decoder: TopLevelDataDecoder
+        if ["yaml", "yml"].contains(configurationURL.pathExtension) {
+            decoder = YAMLDecoder()
+        } else {
+            decoder = JSONDecoder()
+        }
+
+        // Parse configuration
+        let configuration = try decoder.decode(BinaryDependenciesConfiguration.self, from: dependenciesData)
+
+        // Check minimum required version
+        let minimumRequiredVersion = configuration.minimumVersion ?? BinaryDependenciesManager.version
+        guard BinaryDependenciesManager.version >= minimumRequiredVersion else {
+            throw ValidationError(
+                "\(configurationPath ?? configurationURL.lastPathComponent) requires version '\(minimumRequiredVersion)', but current version '\(BinaryDependenciesManager.version)' is lower."
+            )
+        }
+
+        let dependencies = configuration.dependencies
+        let dependenciesInfo = dependencies
+            .map { "   \($0.repo)(\($0.tag))" }
+            .joined(separator: "\n")
+        Logger.log(
+            "[Read] Found \(dependencies.count) dependencies:\n\(dependenciesInfo)"
+        )
+
+        return configuration
+    }
+}
+
+
+/// A type that defines methods for decoding Data.
+/// Similar to the TopLevelDecoder with a restricted input to the Data type.
+protocol TopLevelDataDecoder {
+    func decode<T>(_ type: T.Type, from data: Data) throws -> T where T : Decodable
+}
+
+extension JSONDecoder: TopLevelDataDecoder {}
+extension YAMLDecoder: TopLevelDataDecoder {}
+
diff --git a/Sources/BinaryDependencyManager/Utils/FileManagerProtocol.swift b/Sources/BinaryDependencyManager/Utils/FileManagerProtocol.swift
new file mode 100644
index 0000000..b0c8bc7
--- /dev/null
+++ b/Sources/BinaryDependencyManager/Utils/FileManagerProtocol.swift
@@ -0,0 +1,18 @@
+import Foundation
+
+protocol FileManagerProtocol {
+    /// Returns a Boolean value that indicates whether a file or directory exists at a specified path.
+    ///
+    /// - Parameter path: The path of the file or directory. If path begins with a tilde (~), it must first be expanded with expandingTildeInPath; otherwise, this method returns false.
+    ///
+    /// - Returns: true if a file at the specified path exists, or false if the file does not exist or its existence could not be determined.
+    func fileExists(atPath path: String) -> Bool
+
+    /// Returns the contents of the file at the specified path.
+    /// - Parameters:
+    ///   - path: The path of the file whose contents you want.
+    /// - Returns: An `Data` object with the contents of the file. If path specifies a directory, or if some other error occurs, this method returns nil.
+    func contents(atPath path: String) -> Data?
+}
+
+extension FileManager: FileManagerProtocol {}
diff --git a/Sources/BinaryDependencyManager/Utils/String+fileURL.swift b/Sources/BinaryDependencyManager/Utils/String+fileURL.swift
new file mode 100644
index 0000000..22b05de
--- /dev/null
+++ b/Sources/BinaryDependencyManager/Utils/String+fileURL.swift
@@ -0,0 +1,13 @@
+import Foundation
+
+extension String {
+    /// Absolute file URL with standardized path.
+    var asFileURL: URL {
+        let url = if #available(macOS 13.0, *) {
+            URL(filePath: self)
+        } else {
+            URL(fileURLWithPath: self)
+        }
+        return url.standardizedFileURL.absoluteURL
+    }
+}
diff --git a/Tests/BinaryDependencyManagerTests/BinaryDependenciesConfigurationReaderTests.swift b/Tests/BinaryDependencyManagerTests/BinaryDependenciesConfigurationReaderTests.swift
new file mode 100644
index 0000000..1082d9c
--- /dev/null
+++ b/Tests/BinaryDependencyManagerTests/BinaryDependenciesConfigurationReaderTests.swift
@@ -0,0 +1,82 @@
+@testable import binary_dependencies_manager
+import XCTest
+import Testing
+import Yams
+import Foundation
+
+final class BinaryDependenciesConfigurationReaderTests: XCTestCase {
+    private func makeReader(withFiles files: [String]) -> BinaryDependenciesConfigurationReader {
+        let mockFileManager = FileManagerProtocolMock()
+        mockFileManager.files = Set(files)
+        return BinaryDependenciesConfigurationReader(fileManager: mockFileManager)
+    }
+
+    func test_resolveConfigurationFileURL_withExplicitPath() throws {
+        let sut = makeReader(withFiles: ["/the/path/.binary-dependencies.yaml"])
+        let url = try sut.resolveConfigurationFileURL("/the/path/.binary-dependencies.yaml")
+        XCTAssertEqual(url.path, "/the/path/.binary-dependencies.yaml")
+    }
+
+    func test_resolveConfigurationFileURL_fallbackToDefault() throws {
+        let sut = makeReader(withFiles: [".binary-dependencies.yaml".asFileURL.path])
+        let url = try sut.resolveConfigurationFileURL(nil)
+        XCTAssertEqual(url.lastPathComponent, ".binary-dependencies.yaml")
+    }
+
+    func test_resolveConfigurationFileURL_fileDoesNotExist_throws() {
+        let sut = makeReader(withFiles: [])
+        XCTAssertThrowsError(try sut.resolveConfigurationFileURL(nil))
+    }
+
+    func test_resolveOutputDirectoryURL_explicit() {
+        let sut = makeReader(withFiles: [])
+        let url = sut.resolveOutputDirectoryURL("Explicit/Output")
+        XCTAssertEqual(url, "Explicit/Output".asFileURL)
+    }
+
+    func test_resolveCacheDirectoryURL_explicit() {
+        let sut = makeReader(withFiles: [])
+        let url = sut.resolveCacheDirectoryURL("Explicit/Cache")
+        XCTAssertEqual(url, "Explicit/Cache".asFileURL)
+    }
+
+    func test_readConfiguration_parsesYAML() throws {
+        // GIVEN
+        let yamlString = """
+        minimumVersion: 0.0.1
+        outputDirectory: output/directory
+        cacheDirectory: cache/directory
+        dependencies:
+          - repo: test/repo
+            tag: "0.0.1"
+            pattern: pattern1
+            checksum: "check1"
+        """
+        let filePath = ".binary-dependencies.yaml".asFileURL.path
+        let data = Data(yamlString.utf8)
+        let mockFileManager = FileManagerProtocolMock()
+        mockFileManager.files = [filePath]
+        mockFileManager.contents = [filePath: data]
+
+        let sut = BinaryDependenciesConfigurationReader(fileManager: mockFileManager)
+
+        // WHEN
+        let config = try sut.readConfiguration(at: .none)
+
+        // THEN
+        let expected = BinaryDependenciesConfiguration(
+            minimumVersion: Version(string: "0.0.1"),
+            outputDirectory: "output/directory",
+            cacheDirectory: "cache/directory",
+            dependencies: [
+                Dependency(
+                    repo: "test/repo",
+                    tag: "0.0.1",
+                    assets: [Dependency.Asset(checksum: "check1", pattern: "pattern1")]
+                )
+            ]
+        )
+        XCTAssertEqual(config, expected)
+    }
+}
+
diff --git a/Tests/BinaryDependencyManagerTests/Mocks/FileManagerProtocolMock.swift b/Tests/BinaryDependencyManagerTests/Mocks/FileManagerProtocolMock.swift
new file mode 100644
index 0000000..cb8ac55
--- /dev/null
+++ b/Tests/BinaryDependencyManagerTests/Mocks/FileManagerProtocolMock.swift
@@ -0,0 +1,14 @@
+@testable import binary_dependencies_manager
+import Foundation
+
+class FileManagerProtocolMock: FileManagerProtocol {
+    var files: Set<String> = []
+    func fileExists(atPath path: String) -> Bool {
+        files.contains(path)
+    }
+
+    var contents: [String: Data] = [:]
+    func contents(atPath path: String) -> Data? {
+        contents[path]
+    }
+}