diff --git a/config.go b/config.go
index 26a1c19a7..5df96e453 100644
--- a/config.go
+++ b/config.go
@@ -23,6 +23,19 @@ type config struct {
 	Provisioners   map[string]string
 }
 
+// ConfigFile returns the default path to the configuration file. On
+// Unix-like systems this is the ".packerconfig" file in the home directory.
+// On Windows, this is the "packer.config" file in the application data
+// directory.
+func ConfigFile() (string, error) {
+	return configFile()
+}
+
+// ConfigDir returns the configuration directory for Packer.
+func ConfigDir() (string, error) {
+	return configDir()
+}
+
 // Decodes configuration in JSON format from the given io.Reader into
 // the config object pointed to.
 func decodeConfig(r io.Reader, c *config) error {
@@ -35,11 +48,6 @@ func decodeConfig(r io.Reader, c *config) error {
 // This looks in the directory of the executable and the CWD, in that
 // order for priority.
 func (c *config) Discover() error {
-	// Look in the cwd.
-	if err := c.discover("."); err != nil {
-		return err
-	}
-
 	// Next, look in the same directory as the executable. Any conflicts
 	// will overwrite those found in our current directory.
 	exePath, err := osext.Executable()
@@ -51,6 +59,21 @@ func (c *config) Discover() error {
 		}
 	}
 
+	// Look in the plugins directory
+	dir, err := ConfigDir()
+	if err != nil {
+		log.Printf("[ERR] Error loading config directory: %s", err)
+	} else {
+		if err := c.discover(filepath.Join(dir, "plugins")); err != nil {
+			return err
+		}
+	}
+
+	// Look in the cwd.
+	if err := c.discover("."); err != nil {
+		return err
+	}
+
 	return nil
 }
 
diff --git a/configfile_unix.go b/config_unix.go
similarity index 82%
rename from configfile_unix.go
rename to config_unix.go
index b0b28109f..2c8a7a304 100644
--- a/configfile_unix.go
+++ b/config_unix.go
@@ -13,7 +13,7 @@ import (
 )
 
 func configFile() (string, error) {
-	dir, err := configDir()
+	dir, err := homeDir()
 	if err != nil {
 		return "", err
 	}
@@ -22,6 +22,15 @@ func configFile() (string, error) {
 }
 
 func configDir() (string, error) {
+	dir, err := homeDir()
+	if err != nil {
+		return "", err
+	}
+
+	return filepath.Join(dir, ".packer.d"), nil
+}
+
+func homeDir() (string, error) {
 	// First prefer the HOME environmental variable
 	if home := os.Getenv("HOME"); home != "" {
 		log.Printf("Detected home directory from env var: %s", home)
diff --git a/configfile_windows.go b/config_windows.go
similarity index 80%
rename from configfile_windows.go
rename to config_windows.go
index c59359dd9..fa3ab94b7 100644
--- a/configfile_windows.go
+++ b/config_windows.go
@@ -16,7 +16,7 @@ var (
 const CSIDL_APPDATA = 26
 
 func configFile() (string, error) {
-	dir, err := configDir()
+	dir, err := homeDir()
 	if err != nil {
 		return "", err
 	}
@@ -25,6 +25,15 @@ func configFile() (string, error) {
 }
 
 func configDir() (string, error) {
+	dir, err := homeDir()
+	if err != nil {
+		return "", err
+	}
+
+	return filepath.Join(dir, "packer.d"), nil
+}
+
+func homeDir() (string, error) {
 	b := make([]uint16, syscall.MAX_PATH)
 
 	// See: http://msdn.microsoft.com/en-us/library/windows/desktop/bb762181(v=vs.85).aspx
diff --git a/configfile.go b/configfile.go
deleted file mode 100644
index 8b0e8eff1..000000000
--- a/configfile.go
+++ /dev/null
@@ -1,9 +0,0 @@
-package main
-
-// ConfigFile returns the default path to the configuration file. On
-// Unix-like systems this is the ".packerconfig" file in the home directory.
-// On Windows, this is the "packer.config" file in the application data
-// directory.
-func ConfigFile() (string, error) {
-	return configFile()
-}
diff --git a/website/source/docs/extend/plugins.html.markdown b/website/source/docs/extend/plugins.html.markdown
index fe1dd82e1..5be80be7d 100644
--- a/website/source/docs/extend/plugins.html.markdown
+++ b/website/source/docs/extend/plugins.html.markdown
@@ -36,43 +36,31 @@ applications running.
 
 ## Installing Plugins
 
-Plugins are installed by modifying the [core Packer configuration](/docs/other/core-configuration.html). Within
-the core configuration, each component has a key/value mapping of the
-plugin name to the actual plugin binary.
-
-For example, if we're adding a new builder for CustomCloud, the core
-Packer configuration may look like this:
-
-<pre class="prettyprint">
-{
-  "builders": {
-    "custom-cloud": "packer-builder-custom-cloud"
-  }
-}
-</pre>
-
-In this case, the "custom-cloud" type is the type that is actually used for the value
-of the "type" configuration key for the builder definition.
-
-The value, "packer-builder-custom-cloud", is the path to the plugin binary.
-It can be an absolute or relative path. If it is not an absolute path, then
-the binary is searched for on the PATH. In the example above, Packer will
-search for `packer-builder-custom-cloud` on the PATH.
-
-After adding the plugin to the core Packer configuration, it is immediately
-available on the next run of Packer. To uninstall a plugin, just remove it
-from the core Packer configuration.
-
-In addition to builders, other types of plugins can be installed. The full
-list is below:
-
-* `builders` - A key/value pair of builder type to the builder plugin
-  application.
-
-* `commands` - A key/value pair of the command name to the command plugin
-  application. The command name is what is executed on the command line, like
-  `packer COMMAND`.
-
-* `provisioners` - A key/value pair of the provisioner type to the
-  provisioner plugin application. The provisioner type is the value of the
-  "type" configuration used within templates.
+The easiest way to install a plugin is to name it correctly, then place
+it in the proper directory. To name a plugin correctly, make sure the
+binary is named `packer-TYPE-NAME`. For example, `packer-builder-amazon-ebs`
+for a "builder" type plugin named "amazon-ebs". Valid types for plugins
+are down this page more.
+
+Once the plugin is named properly, Packer automatically discovers plugins
+in the following directories in the given order. If a conflicting plugin is
+found later, it will take precedence over one found earlier.
+
+  1. The directory where `packer` is, or the executable directory.
+
+  2. `~/.packer.d/plugins` on Unix systems or `%APPDATA%/packer.d` on
+     Windows.
+
+  3. The current working directory.
+
+The valid types for plugins are:
+
+* `builder` - Plugins responsible for building images for a specific platform.
+
+* `command` - A CLI sub-command for `packer`.
+
+* `post-processor` - A post-processor responsible for taking an artifact
+    from a builder and turning it into something else.
+
+* `provisioner` - A provisioner to install software on images created by
+    a builder.