diff --git a/packages/cli/src/commands/init/__fixtures__/editTemplate/node_modules/PlaceholderName b/packages/cli/src/commands/init/__fixtures__/editTemplate/node_modules/PlaceholderName
new file mode 100644
index 000000000..e69de29bb
diff --git a/packages/cli/src/tools/config/__tests__/index-test.js b/packages/cli/src/tools/config/__tests__/index-test.js
index d4a11b453..a3d75b472 100644
--- a/packages/cli/src/tools/config/__tests__/index-test.js
+++ b/packages/cli/src/tools/config/__tests__/index-test.js
@@ -23,16 +23,15 @@ const removeString = (config, str) =>
 beforeEach(() => {
   cleanup(DIR);
   jest.resetModules();
+  jest.clearAllMocks();
 });
 
 afterEach(() => cleanup(DIR));
 
 test('should have a valid structure by default', () => {
   writeFiles(DIR, {
-    'package.json': `{
-      "react-native": {
-        "reactNativePath": "."
-      }
+    'react-native.config.js': `module.exports = {
+      reactNativePath: "."
     }`,
   });
   const config = loadConfig(DIR);
@@ -59,14 +58,13 @@ test('should return dependencies from package.json', () => {
 test('should read a config of a dependency and use it to load other settings', () => {
   writeFiles(DIR, {
     'node_modules/react-native/package.json': '{}',
+    'node_modules/react-native-test/package.json': '{}',
     'node_modules/react-native-test/ReactNativeTest.podspec': '',
-    'node_modules/react-native-test/package.json': `{
-      "react-native": {
-        "dependency": {
-          "platforms": {
-            "ios": {
-              "project": "./customLocation/customProject.xcodeproj"
-            }
+    'node_modules/react-native-test/react-native.config.js': `module.exports = {
+      dependency: {
+        platforms: {
+          ios: {
+            project: "./customLocation/customProject.xcodeproj"
           }
         }
       }
@@ -87,11 +85,10 @@ test('should read a config of a dependency and use it to load other settings', (
 test('should merge project configuration with default values', () => {
   writeFiles(DIR, {
     'node_modules/react-native/package.json': '{}',
-    'node_modules/react-native-test/package.json': `{
-      "react-native": {
-        "dependency": {
-          "assets": ["foo", "baz"]
-        }
+    'node_modules/react-native-test/package.json': '{}',
+    'node_modules/react-native-test/react-native.config.js': `module.exports = {
+      dependency: {
+        assets: ["foo", "baz"]
       }
     }`,
     'node_modules/react-native-test/ios/HelloWorld.xcodeproj/project.pbxproj':
@@ -100,18 +97,18 @@ test('should merge project configuration with default values', () => {
       "dependencies": {
         "react-native": "0.0.1",
         "react-native-test": "0.0.1"
-      },
-      "react-native": {
-        "reactNativePath": ".",
-        "dependencies": {
-          "react-native-test": {
-            "platforms": {
-              "ios": {
-                "sourceDir": "./abc"
-              }
-            },
-            "assets": ["foo"]
-          }
+      }
+    }`,
+    'react-native.config.js': `module.exports = {
+      reactNativePath: ".",
+      dependencies: {
+        "react-native-test": {
+          platforms: {
+            ios: {
+              sourceDir: "./abc"
+            }
+          },
+          assets: ["foo"]
         }
       }
     }`,
@@ -266,3 +263,22 @@ test('should skip packages that have invalid configuration', () => {
   expect(dependencies).toMatchSnapshot('dependencies config');
   expect(spy.mock.calls[0][0]).toMatchSnapshot('logged warning');
 });
+
+test('does not use restricted "react-native" key to resolve config from package.json', () => {
+  jest.resetModules();
+
+  writeFiles(DIR, {
+    'node_modules/react-native-netinfo/package.json': `{
+      "react-native": "src/index.js"
+    }`,
+    'package.json': `{
+      "dependencies": {
+        "react-native-netinfo": "0.0.1"
+      }
+    }`,
+  });
+  const spy = jest.spyOn(logger, 'warn');
+  const {dependencies} = loadConfig(DIR);
+  expect(dependencies).toHaveProperty('react-native-netinfo');
+  expect(spy).not.toHaveBeenCalled();
+});
diff --git a/packages/cli/src/tools/config/readConfigFromDisk.js b/packages/cli/src/tools/config/readConfigFromDisk.js
index ebf7cade2..130b37a04 100644
--- a/packages/cli/src/tools/config/readConfigFromDisk.js
+++ b/packages/cli/src/tools/config/readConfigFromDisk.js
@@ -23,7 +23,7 @@ import {logger} from '@react-native-community/cli-tools';
 /**
  * Places to look for the new configuration
  */
-const searchPlaces = ['react-native.config.js', 'package.json'];
+const searchPlaces = ['react-native.config.js'];
 
 /**
  * Reads a project configuration as defined by the user in the current