diff --git a/lib/kunit/.kunitconfig b/lib/kunit/.kunitconfig
new file mode 100644
index 000000000000..9235b7d42d38
--- /dev/null
+++ b/lib/kunit/.kunitconfig
@@ -0,0 +1,3 @@
+CONFIG_KUNIT=y
+CONFIG_KUNIT_TEST=y
+CONFIG_KUNIT_EXAMPLE_TEST=y
diff --git a/tools/testing/kunit/kunit.py b/tools/testing/kunit/kunit.py
index d5144fcb03ac..5da8fb3762f9 100755
--- a/tools/testing/kunit/kunit.py
+++ b/tools/testing/kunit/kunit.py
@@ -184,7 +184,9 @@ def add_common_opts(parser) -> None:
 			    help='Run all KUnit tests through allyesconfig',
 			    action='store_true')
 	parser.add_argument('--kunitconfig',
-			     help='Path to Kconfig fragment that enables KUnit tests',
+			     help='Path to Kconfig fragment that enables KUnit tests.'
+			     ' If given a directory, (e.g. lib/kunit), "/.kunitconfig" '
+			     'will get  automatically appended.',
 			     metavar='kunitconfig')
 
 def add_build_opts(parser) -> None:
diff --git a/tools/testing/kunit/kunit_kernel.py b/tools/testing/kunit/kunit_kernel.py
index f309a33256cd..89a7d4024e87 100644
--- a/tools/testing/kunit/kunit_kernel.py
+++ b/tools/testing/kunit/kunit_kernel.py
@@ -132,6 +132,8 @@ class LinuxSourceTree(object):
 			return
 
 		if kunitconfig_path:
+			if os.path.isdir(kunitconfig_path):
+				kunitconfig_path = os.path.join(kunitconfig_path, KUNITCONFIG_PATH)
 			if not os.path.exists(kunitconfig_path):
 				raise ConfigError(f'Specified kunitconfig ({kunitconfig_path}) does not exist')
 		else:
diff --git a/tools/testing/kunit/kunit_tool_test.py b/tools/testing/kunit/kunit_tool_test.py
index 1ad3049e9069..2e809dd956a7 100755
--- a/tools/testing/kunit/kunit_tool_test.py
+++ b/tools/testing/kunit/kunit_tool_test.py
@@ -251,6 +251,12 @@ class LinuxSourceTreeTest(unittest.TestCase):
 		with tempfile.NamedTemporaryFile('wt') as kunitconfig:
 			tree = kunit_kernel.LinuxSourceTree('', kunitconfig_path=kunitconfig.name)
 
+	def test_dir_kunitconfig(self):
+		with tempfile.TemporaryDirectory('') as dir:
+			with open(os.path.join(dir, '.kunitconfig'), 'w') as f:
+				pass
+			tree = kunit_kernel.LinuxSourceTree('', kunitconfig_path=dir)
+
 	# TODO: add more test cases.