diff --git a/rosenpass/src/config.rs b/rosenpass/src/config.rs
index fc51c18c..338b9de9 100644
--- a/rosenpass/src/config.rs
+++ b/rosenpass/src/config.rs
@@ -112,10 +112,32 @@ impl Rosenpass {
     ///
     /// NOTE: no validation is conducted, e.g. the paths specified in the configuration are not
     /// checked whether they even exist.
+    ///
+    /// ## TODO
+    /// - consider using a different algorithm to determine home directory – the below one may
+    ///   behave unexpectedly on Windows
     pub fn load<P: AsRef<Path>>(p: P) -> anyhow::Result<Self> {
+        // read file and deserialize
         let mut config: Self = toml::from_str(&fs::read_to_string(&p)?)?;
 
+        // resolve `~` (see https://github.com/rosenpass/rosenpass/issues/237)
+        use util::resolve_path_with_tilde;
+        resolve_path_with_tilde(&mut config.public_key);
+        resolve_path_with_tilde(&mut config.secret_key);
+        for peer in config.peers.iter_mut() {
+            resolve_path_with_tilde(&mut peer.public_key);
+            if let Some(ref mut psk) = &mut peer.pre_shared_key {
+                resolve_path_with_tilde(psk);
+            }
+            if let Some(ref mut ko) = &mut peer.key_out {
+                resolve_path_with_tilde(ko);
+            }
+        }
+
+        // add path to "self"
         config.config_file_path = p.as_ref().to_owned();
+
+        // return
         Ok(config)
     }
 
@@ -499,3 +521,67 @@ mod test {
         )
     }
 }
+
+pub mod util {
+    use std::path::PathBuf;
+    /// takes a path that can potentially start with a `~` and resolves that `~` to the user's home directory
+    ///
+    /// ## Example
+    /// ```
+    /// use rosenpass::config::util::resolve_path_with_tilde;
+    /// std::env::set_var("HOME","/home/dummy");
+    /// let mut path = std::path::PathBuf::from("~/foo.toml");
+    /// resolve_path_with_tilde(&mut path);
+    /// assert!(path == std::path::PathBuf::from("/home/dummy/foo.toml"));
+    /// ```
+    pub fn resolve_path_with_tilde(path: &mut PathBuf) {
+        if let Some(first_segment) = path.iter().next() {
+            if !path.has_root() && first_segment == "~" {
+                let home_dir = std::env::home_dir().unwrap_or_else(|| {
+                    log::error!("config file contains \"~\" but can not determine home diretory");
+                    std::process::exit(1);
+                });
+                let orig_path = path.clone();
+                path.clear();
+                path.push(home_dir);
+                for segment in orig_path.iter().skip(1) {
+                    path.push(segment);
+                }
+            }
+        }
+    }
+
+    #[cfg(test)]
+    mod test {
+        use super::*;
+        #[test]
+        fn test_resolve_path_with_tilde() {
+            let test = |path_str: &str, resolved: &str| {
+                let mut path = PathBuf::from(path_str);
+                resolve_path_with_tilde(&mut path);
+                assert!(
+                    path == PathBuf::from(resolved),
+                    "Path {:?} has been resolved to {:?} but should have been resolved to {:?}.",
+                    path_str,
+                    path,
+                    resolved
+                );
+            };
+            // set environment because otherwise the test result would depend on the system running this
+            std::env::set_var("USER", "dummy");
+            std::env::set_var("HOME", "/home/dummy");
+
+            // should resolve
+            test("~/foo.toml", "/home/dummy/foo.toml");
+            test("~//foo", "/home/dummy/foo");
+            test("~/../other_user/foo", "/home/dummy/../other_user/foo");
+
+            // should _not_ resolve
+            test("~foo/bar", "~foo/bar");
+            test(".~/foo", ".~/foo");
+            test("/~/foo.toml", "/~/foo.toml");
+            test(r"~\foo", r"~\foo");
+            test(r"C:\~\foo.toml", r"C:\~\foo.toml");
+        }
+    }
+}