diff --git a/mempalace/miner.py b/mempalace/miner.py
index 73fe0c4..e07b257 100644
--- a/mempalace/miner.py
+++ b/mempalace/miner.py
@@ -264,16 +264,28 @@ def load_config(project_dir: str) -> dict:
     """Load mempalace.yaml from project directory (falls back to mempal.yaml)."""
     import yaml
 
-    config_path = Path(project_dir).expanduser().resolve() / "mempalace.yaml"
+    resolved_project_dir = Path(project_dir).expanduser().resolve()
+    config_path = resolved_project_dir / "mempalace.yaml"
     if not config_path.exists():
         # Fallback to legacy name
-        legacy_path = Path(project_dir).expanduser().resolve() / "mempal.yaml"
+        legacy_path = resolved_project_dir / "mempal.yaml"
         if legacy_path.exists():
             config_path = legacy_path
         else:
-            print(f"ERROR: No mempalace.yaml found in {project_dir}")
-            print(f"Run: mempalace init {project_dir}")
-            sys.exit(1)
+            print(
+                f"  No mempalace.yaml found in {resolved_project_dir} "
+                "— using auto-detected defaults"
+            )
+            return {
+                "wing": resolved_project_dir.name,
+                "rooms": [
+                    {
+                        "name": "general",
+                        "description": "All project files",
+                        "keywords": ["general"],
+                    }
+                ],
+            }
     with open(config_path) as f:
         return yaml.safe_load(f)
 
diff --git a/tests/test_miner.py b/tests/test_miner.py
index d16c97c..e2a3a85 100644
--- a/tests/test_miner.py
+++ b/tests/test_miner.py
@@ -6,7 +6,7 @@ from pathlib import Path
 import chromadb
 import yaml
 
-from mempalace.miner import mine, scan_project, status
+from mempalace.miner import load_config, mine, scan_project, status
 from mempalace.palace import NORMALIZE_VERSION, file_already_mined
 
 
@@ -52,6 +52,20 @@ def test_project_mining():
         shutil.rmtree(tmpdir, ignore_errors=True)
 
 
+def test_load_config_uses_defaults_when_yaml_missing():
+    tmpdir = tempfile.mkdtemp()
+    try:
+        project_root = Path(tmpdir).resolve()
+        config = load_config(str(project_root))
+
+        assert isinstance(config, dict)
+        assert "wing" in config
+        assert "rooms" in config
+        assert config["wing"] == project_root.name
+    finally:
+        shutil.rmtree(tmpdir)
+
+
 def test_scan_project_respects_gitignore():
     tmpdir = tempfile.mkdtemp()
     try: