diff --git a/src/torch-config.mjs b/src/torch-config.mjs
index a759051..2e40b76 100644
--- a/src/torch-config.mjs
+++ b/src/torch-config.mjs
@@ -69,9 +69,27 @@ export function getTorchConfigPath() {
   if (explicitPath) return path.resolve(process.cwd(), explicitPath);
 
   const localPath = path.resolve(process.cwd(), DEFAULT_CONFIG_PATH);
-  if (fs.existsSync(localPath)) return localPath;
-
   const parentPath = path.resolve(process.cwd(), '..', DEFAULT_CONFIG_PATH);
+  const cwdBaseName = path.basename(process.cwd());
+  const parentPkgPath = path.resolve(process.cwd(), '..', 'package.json');
+  let parentLooksLikeHostRepo = false;
+
+  try {
+    if (fs.existsSync(parentPkgPath)) {
+      const parentPkgRaw = fs.readFileSync(parentPkgPath, 'utf8');
+      const parentPkg = JSON.parse(parentPkgRaw);
+      parentLooksLikeHostRepo = parentPkg && typeof parentPkg.name === 'string' && parentPkg.name !== 'torch-lock';
+    }
+  } catch {
+    parentLooksLikeHostRepo = false;
+  }
+
+  // Host-repo mode: when running from "<repo>/torch", prefer parent config.
+  if (cwdBaseName === 'torch' && parentLooksLikeHostRepo && fs.existsSync(parentPath)) {
+    return parentPath;
+  }
+
+  if (fs.existsSync(localPath)) return localPath;
   if (fs.existsSync(parentPath)) return parentPath;
 
   return localPath;
diff --git a/test/torch-config.test.mjs b/test/torch-config.test.mjs
index 2ea4728..e0c6144 100644
--- a/test/torch-config.test.mjs
+++ b/test/torch-config.test.mjs
@@ -19,10 +19,12 @@ import { DEFAULT_RELAYS } from '../src/constants.mjs';
 describe('torch-config', () => {
   describe('getTorchConfigPath', () => {
     const originalEnv = process.env.TORCH_CONFIG_PATH;
+    const originalCwd = process.cwd();
 
     after(() => {
       if (originalEnv === undefined) delete process.env.TORCH_CONFIG_PATH;
       else process.env.TORCH_CONFIG_PATH = originalEnv;
+      process.chdir(originalCwd);
     });
 
     it('returns default path when env var is not set', () => {
@@ -34,6 +36,24 @@ describe('torch-config', () => {
       process.env.TORCH_CONFIG_PATH = 'custom-config.json';
       assert.strictEqual(getTorchConfigPath(), path.resolve(process.cwd(), 'custom-config.json'));
     });
+
+    it('prefers parent torch-config.json in host-repo mode when cwd is <repo>/torch', () => {
+      delete process.env.TORCH_CONFIG_PATH;
+
+      const fixtureRoot = fs.mkdtempSync(path.join(process.cwd(), 'test-torch-config-host-'));
+      const hostPkgPath = path.join(fixtureRoot, 'package.json');
+      const parentConfigPath = path.join(fixtureRoot, 'torch-config.json');
+      const torchDir = path.join(fixtureRoot, 'torch');
+      const localConfigPath = path.join(torchDir, 'torch-config.json');
+
+      fs.mkdirSync(torchDir, { recursive: true });
+      fs.writeFileSync(hostPkgPath, JSON.stringify({ name: 'seedpass', version: '1.0.0' }), 'utf8');
+      fs.writeFileSync(parentConfigPath, JSON.stringify({ nostrLock: { namespace: 'parent' } }), 'utf8');
+      fs.writeFileSync(localConfigPath, JSON.stringify({ nostrLock: { namespace: 'local' } }), 'utf8');
+
+      process.chdir(torchDir);
+      assert.strictEqual(getTorchConfigPath(), path.resolve(parentConfigPath));
+    });
   });
 
   describe('parseTorchConfig', () => {