diff --git a/NEWS b/NEWS
index afc3f3016..3e84b5bef 100644
--- a/NEWS
+++ b/NEWS
@@ -28,6 +28,7 @@
   the other way around).
 * Fix some crashes when deleting files that don't exist.
 * Fix adding individual tracks in BPD.
+* Fix crash when ~/.beetsconfig does not exist.
 
 1.0b7
 -----
diff --git a/beets/ui/__init__.py b/beets/ui/__init__.py
index 4fa5c897e..cabbad91f 100644
--- a/beets/ui/__init__.py
+++ b/beets/ui/__init__.py
@@ -28,6 +28,7 @@ import logging
 
 from beets import library
 from beets import plugins
+from beets import util
 
 # Constants.
 CONFIG_PATH_VAR = 'BEETSCONFIG'
@@ -406,12 +407,19 @@ def main(args=None, configfh=None):
     # Read defaults from config file.
     config = ConfigParser.SafeConfigParser()
     if configfh:
-        pass
+        configpath = None
     elif CONFIG_PATH_VAR in os.environ:
-        configfh = open(os.path.expanduser(os.environ[CONFIG_PATH_VAR]))
+        configpath = os.path.expanduser(os.environ[CONFIG_PATH_VAR])
     else:
-        configfh = open(DEFAULT_CONFIG_FILE)
-    config.readfp(configfh)
+        configpath = DEFAULT_CONFIG_FILE
+    if configpath:
+        configpath = util.syspath(configpath)
+        if os.path.exists(util.syspath(configpath)):
+            configfh = open(configpath)
+        else:
+            configfh = None
+    if configfh:
+        config.readfp(configfh)
 
     # Add plugin paths.
     plugpaths = config_val(config, 'beets', 'pluginpath', '')
diff --git a/test/test_ui.py b/test/test_ui.py
index 7dc51bcf5..be6d4c944 100644
--- a/test/test_ui.py
+++ b/test/test_ui.py
@@ -180,9 +180,12 @@ class InputTest(unittest.TestCase):
 
 class ConfigTest(unittest.TestCase):
     def setUp(self):
+        self.io = _common.DummyIO()
+        self.io.install()
         self.test_cmd = ui.Subcommand('test', help='test')
         commands.default_commands.append(self.test_cmd)
     def tearDown(self):
+        self.io.restore()
         commands.default_commands.pop()
     def _run_main(self, args, config, func):
         self.test_cmd.func = func
@@ -219,6 +222,10 @@ class ConfigTest(unittest.TestCase):
             [paths]
             x=y"""), func)
 
+    def test_nonexistant_config_file(self):
+        os.environ['BEETSCONFIG'] = '/xxxxx'
+        ui.main(['version'])
+
 def suite():
     return unittest.TestLoader().loadTestsFromName(__name__)