diff --git a/.automation/test/mega-linter-config-test/base.local.mega-linter.yml b/.automation/test/mega-linter-config-test/base.local.mega-linter.yml
new file mode 100644
index 00000000000..2f642cb9d4f
--- /dev/null
+++ b/.automation/test/mega-linter-config-test/base.local.mega-linter.yml
@@ -0,0 +1,2 @@
+FILTER_REGEX_INCLUDE: "(base-local)"
+SHOW_ELAPSED_TIME: true
diff --git a/.automation/test/mega-linter-config-test/local-error.mega-linter.yml b/.automation/test/mega-linter-config-test/local-error.mega-linter.yml
new file mode 100644
index 00000000000..d2e5b5547ba
--- /dev/null
+++ b/.automation/test/mega-linter-config-test/local-error.mega-linter.yml
@@ -0,0 +1 @@
+EXTENDS: base-error.local.mega-linter.yml
diff --git a/.automation/test/mega-linter-config-test/local.mega-linter.yml b/.automation/test/mega-linter-config-test/local.mega-linter.yml
new file mode 100644
index 00000000000..5c3c891f463
--- /dev/null
+++ b/.automation/test/mega-linter-config-test/local.mega-linter.yml
@@ -0,0 +1,3 @@
+EXTENDS: base.local.mega-linter.yml
+FILTER_REGEX_INCLUDE: "(local)"
+SHOW_ELAPSED_TIME: false
diff --git a/megalinter/config.py b/megalinter/config.py
index bca010cab3a..139f94a08d7 100644
--- a/megalinter/config.py
+++ b/megalinter/config.py
@@ -83,7 +83,7 @@ def init_config(workspace=None):
                 ), f"Unable to retrieve EXTENDS config file {config_file_name}"
                 extends_config_data = yaml.safe_load(r.content)
             else:
-                with open(extends_item, "r", encoding="utf-8") as f:
+                with open(workspace + os.path.sep + extends_item, "r", encoding="utf-8") as f:
                     extends_config_data = yaml.safe_load(f)
             combined_config.update(extends_config_data)
             CONFIG_SOURCE += f"\n[config] - extends from: {extends_item}"
diff --git a/megalinter/tests/test_megalinter/config_test.py b/megalinter/tests/test_megalinter/config_test.py
index e54693f2ab6..c841e4d7185 100644
--- a/megalinter/tests/test_megalinter/config_test.py
+++ b/megalinter/tests/test_megalinter/config_test.py
@@ -8,6 +8,7 @@
 
 from megalinter import config
 from megalinter.constants import ML_REPO
+from megalinter.utils import REPO_HOME_DEFAULT
 
 
 class config_test(unittest.TestCase):
@@ -45,6 +46,21 @@ def test_remote_config_error(self):
         except Exception as e:
             self.assertIn("http", str(e))
 
+    def test_local_config_extends_success(self):
+        local_config = "local.mega-linter.yml"
+        os.environ["MEGALINTER_CONFIG"] = local_config
+        config.init_config(REPO_HOME_DEFAULT + os.path.sep + ".automation" + os.path.sep + "test" + os.path.sep + "mega-linter-config-test")
+        self.assertEqual("(local)", config.get("FILTER_REGEX_INCLUDE"))
+        self.assertEqual("false", config.get("SHOW_ELAPSED_TIME"))
+
+    def test_local_config_extends_error(self):
+        local_config = "local-error.mega-linter.yml"
+        os.environ["MEGALINTER_CONFIG"] = local_config
+        try:
+            config.init_config(REPO_HOME_DEFAULT + os.path.sep + ".automation" + os.path.sep + "test" + os.path.sep + "mega-linter-config-test")
+        except Exception as e:
+            self.assertIn("No such file or directory", str(e))
+
     def test_remote_config_extends_success(self):
         remote_config = self.test_folder + "base.mega-linter.yml"
         os.environ["MEGALINTER_CONFIG"] = remote_config