diff --git a/BasiliskII/src/Unix/prefs_unix.cpp b/BasiliskII/src/Unix/prefs_unix.cpp
index 4f2aa7ee..75ac72d2 100644
--- a/BasiliskII/src/Unix/prefs_unix.cpp
+++ b/BasiliskII/src/Unix/prefs_unix.cpp
@@ -19,16 +19,12 @@
  */
 
 #include "sysdeps.h"
-
-#include <stdio.h>
-#include <stdlib.h>
-
+#include <sys/stat.h>
 #include <string>
 using std::string;
 
 #include "prefs.h"
 
-
 // Platform-specific preferences items
 prefs_desc platform_prefs_items[] = {
 	{"fbdevicefile", TYPE_STRING, false,   "path of frame buffer device specification file"},
@@ -41,72 +37,200 @@ prefs_desc platform_prefs_items[] = {
 	{NULL, TYPE_END, false, NULL} // End of list
 };
 
+// Standard file names and paths
+static const char PREFS_FILE_NAME[] = "/.basilisk_ii_prefs";
+static const char XDG_PREFS_FILE_NAME[] = "/prefs";
+static const char XPRAM_FILE_NAME[] = "/.basilisk_ii_xpram";
+static const char XDG_XPRAM_FILE_NAME[] = "/xpram";
+static const char XDG_CONFIG_SUBDIR[] = "/BasiliskII";
 
 // Prefs file name and path
-const char PREFS_FILE_NAME[] = ".basilisk_ii_prefs";
 string UserPrefsPath;
-static string prefs_path;
+static string home_dir;
+static string xdg_config_dir;
+static string prefs_name;
+extern string xpram_name;
 
-
-/*
- *  Load preferences from settings file
- */
-
-void LoadPrefs(const char *vmdir)
+static string get_xdg_config_dir(void)
 {
-	if (vmdir) {
-		prefs_path = string(vmdir) + '/' + string("prefs");
-		FILE *prefs = fopen(prefs_path.c_str(), "r");
-		if (!prefs) {
-			printf("No file at %s found.\n", prefs_path.c_str());
-			exit(1);
-		}
-		LoadPrefsFromStream(prefs);
-		fclose(prefs);
+	char *env;
+	if (env = getenv("XDG_CONFIG_HOME"))
+		return string(env) + XDG_CONFIG_SUBDIR;
+	if (env = getenv("HOME"))
+		return string(env) + "/.config" + XDG_CONFIG_SUBDIR;
+	return "";
+}
+
+static string get_home_dir(void)
+{
+	char *env;
+	if(env = getenv("HOME"))
+		return string(env);
+	return "."; // last resort, use the current directory
+}
+
+static string get_dir(string *path)
+{
+	int pos = path->find_last_of('/');
+	if (pos == 0)
+		return ""; // file is in root folder
+	if (pos == std::string::npos)
+		return "."; // file is in current folder
+	return path->substr(0, pos);
+}
+
+static void exit_if_dir(const string& path)
+{
+	struct stat info;
+	if (stat(path.c_str(), &info) != 0){
 		return;
 	}
-
-	// Construct prefs path
-	if (UserPrefsPath.empty()) {
-		char *home = getenv("HOME");
-		if (home)
-			prefs_path = string(home) + '/';
-		prefs_path += PREFS_FILE_NAME;
-	} else
-		prefs_path = UserPrefsPath;
-
-	// Read preferences from settings file
-	FILE *f = fopen(prefs_path.c_str(), "r");
-	if (f != NULL) {
-
-		// Prefs file found, load settings
-		LoadPrefsFromStream(f);
-		fclose(f);
-
-	} else {
-#ifdef __linux__
-		PrefsAddString("cdrom", "/dev/cdrom");
-#endif
-		// No prefs file, save defaults
-		SavePrefs();
+	if ((info.st_mode & S_IFDIR) != 0)
+	{
+	    fprintf(stderr, "ERROR: Cannot open %s (Is a directory)\n", prefs_name.c_str());
+	    exit(1);
 	}
 }
 
+static bool load_prefs_file(const string& path, bool exit_on_failure)
+{
+	exit_if_dir(path);
+	FILE *prefs = fopen(path.c_str(), "r");
+	if (prefs != NULL)
+	{
+		LoadPrefsFromStream(prefs);
+		fclose(prefs);
+		printf("Using prefs file at %s\n", prefs_name.c_str());
+		return true;
+	}
+	else if (exit_on_failure)
+	{
+		fprintf(stderr, "ERROR: Could not load prefs file from %s (%s)\n",
+		        path.c_str(), strerror(errno));
+		exit(1);
+	}
+	return false;
+}
+
+/*
+ *  Look for prefs file in the following locations (in order of priority):
+ *  1. From vmdir/.basilisk_ii_prefs if a vmdir has been specified
+ *  2. From path specified with --config command line
+ *  3. From $HOME/.basilisk_ii_prefs if it exists
+ *  4. From $XDG_CONFIG_HOME/BasiliskII/prefs if it exists
+ *  5. Create a new prefs file at $XDG_CONFIG_HOME/BasiliskII/prefs
+ *  If $XDG_CONFIG_HOME doesn't exist, $HOME/.config is used instead,
+ *  in accordance with XDG Base Directory Specification:
+ *  https://specifications.freedesktop.org/basedir-spec/basedir-spec-latest.html
+ */
+
+void LoadPrefs(const char* vmdir)
+{
+	home_dir = get_home_dir();
+	xdg_config_dir = get_xdg_config_dir();
+
+	// vmdir was specified on the command line
+	if (vmdir)
+	{
+		prefs_name = string(vmdir) + XDG_PREFS_FILE_NAME;
+		xpram_name = string(vmdir) + XDG_XPRAM_FILE_NAME;
+		if (load_prefs_file(prefs_name, true))
+		    return;
+	}
+
+	// --config was specified
+	if (!UserPrefsPath.empty())
+	{
+		prefs_name = UserPrefsPath;
+		xpram_name = get_dir(&prefs_name) + XPRAM_FILE_NAME;
+		if (load_prefs_file(prefs_name, true))
+		    return;
+	}
+
+	// Load .basilisk_ii_prefs from $HOME if it exists
+	if (!home_dir.empty())
+	{
+		prefs_name = home_dir + PREFS_FILE_NAME;
+		xpram_name = home_dir + XPRAM_FILE_NAME;
+		if (load_prefs_file(prefs_name, false))
+		    return;
+	}
+
+	// If no other prefs file exists, try the $XDG_CONFIG_HOME directory
+	if (!xdg_config_dir.empty())
+	{
+		prefs_name = xdg_config_dir + XDG_PREFS_FILE_NAME;
+		xpram_name = xdg_config_dir + XDG_XPRAM_FILE_NAME;
+		if (load_prefs_file(prefs_name, false))
+		    return;
+	}
+
+	// No prefs file, save defaults in $XDG_CONFIG_HOME directory
+#ifdef __linux__
+	PrefsAddString("cdrom", "/dev/cdrom");
+#endif
+	printf("No prefs file found, creating new one at %s\n", prefs_name.c_str());
+	SavePrefs();
+}
+
+static bool is_dir(const string& path)
+{
+	struct stat info;
+	if (stat(path.c_str(), &info) != 0){
+		return false;
+	}
+	return (info.st_mode & S_IFDIR) != 0;
+}
+
+static bool create_directories(const string& path, mode_t mode)
+{
+	if (mkdir(path.c_str(), mode) == 0)
+		return true;
+
+	switch (errno)
+	{
+		case ENOENT:
+			{
+				int pos = path.find_last_of('/');
+				if (pos == std::string::npos)
+					return false;
+				if (!create_directories(path.substr(0,pos),mode))
+					return false;
+			}
+			return 0 == mkdir(path.c_str(),mode);
+
+		case EEXIST:
+			return is_dir(path);
+		default:
+			return false;
+	}
+}
 
 /*
  *  Save preferences to settings file
  */
 
+
 void SavePrefs(void)
 {
 	FILE *f;
-	if ((f = fopen(prefs_path.c_str(), "w")) != NULL) {
+	string prefs_dir = get_dir(&prefs_name);
+	if (!prefs_dir.empty() && !is_dir(prefs_dir))
+	{
+		create_directories(prefs_dir, 0700);
+	}
+	if ((f = fopen(prefs_name.c_str(), "w")) != NULL)
+	{
 		SavePrefsToStream(f);
 		fclose(f);
 	}
+	else
+	{
+		fprintf(stderr, "WARNING: Unable to save %s (%s)\n",
+		        prefs_name.c_str(), strerror(errno));
+	}
 }
 
-
 /*
  *  Add defaults of platform-specific prefs items
  *  You may also override the defaults set in PrefsInit()
@@ -119,14 +243,20 @@ void AddPlatformPrefsDefaults(void)
 	PrefsReplaceInt32("mousewheelmode", 1);
 	PrefsReplaceInt32("mousewheellines", 3);
 #ifdef __linux__
-	if (access("/dev/sound/dsp", F_OK) == 0) {
+	if (access("/dev/sound/dsp", F_OK) == 0)
+	{
 		PrefsReplaceString("dsp", "/dev/sound/dsp");
-	} else {
+	}
+	else
+	{
 		PrefsReplaceString("dsp", "/dev/dsp");
 	}
-	if (access("/dev/sound/mixer", F_OK) == 0) {
+	if (access("/dev/sound/mixer", F_OK) == 0)
+	{
 		PrefsReplaceString("mixer", "/dev/sound/mixer");
-	} else {
+	}
+	else
+	{
 		PrefsReplaceString("mixer", "/dev/mixer");
 	}
 #else
diff --git a/BasiliskII/src/Unix/xpram_unix.cpp b/BasiliskII/src/Unix/xpram_unix.cpp
index 3037b02d..dcf9c0bf 100644
--- a/BasiliskII/src/Unix/xpram_unix.cpp
+++ b/BasiliskII/src/Unix/xpram_unix.cpp
@@ -20,81 +20,61 @@
 
 #include "sysdeps.h"
 
-#include <stdlib.h>
+#include <string>
+using std::string;
 
 #include "xpram.h"
 
-
-// XPRAM file name and path
-#if POWERPC_ROM
-const char XPRAM_FILE_NAME[] = ".sheepshaver_nvram";
-#else
-const char XPRAM_FILE_NAME[] = ".basilisk_ii_xpram";
-#endif
-static char xpram_path[1024];
-
+// XPRAM file name, set by LoadPrefs() in prefs_unix.cpp
+string xpram_name;
 
 /*
  *  Load XPRAM from settings file
  */
 
-void LoadXPRAM(const char *vmdir)
+void LoadXPRAM(const char* vmdir)
 {
-	if (vmdir) {
-#if POWERPC_ROM
-		snprintf(xpram_path, sizeof(xpram_path), "%s/nvram", vmdir);
-#else
-		snprintf(xpram_path, sizeof(xpram_path), "%s/xpram", vmdir);
-#endif
-	} else {
-		// Construct XPRAM path
-		xpram_path[0] = 0;
-		char *home = getenv("HOME");
-		if (home != NULL && strlen(home) < 1000) {
-			strncpy(xpram_path, home, 1000);
-			strcat(xpram_path, "/");
-		}
-		strcat(xpram_path, XPRAM_FILE_NAME);
-	}
-
-	// Load XPRAM from settings file
+	assert(!xpram_name.empty());
 	int fd;
-	if ((fd = open(xpram_path, O_RDONLY)) >= 0) {
+	if ((fd = open(xpram_name.c_str(), O_RDONLY)) >= 0)
+	{
 		read(fd, XPRAM, XPRAM_SIZE);
 		close(fd);
 	}
+	else
+	{
+		fprintf(stderr, "WARNING: Unable to load %s (%s)\n",
+		        xpram_name.c_str(), strerror(errno));
+	}
 }
 
-
 /*
  *  Save XPRAM to settings file
  */
 
 void SaveXPRAM(void)
 {
+	assert(!xpram_name.empty());
 	int fd;
-	if ((fd = open(xpram_path, O_WRONLY | O_CREAT, 0666)) >= 0) {
+	if ((fd = open(xpram_name.c_str(), O_WRONLY | O_CREAT, 0666)) >= 0)
+	{
 		write(fd, XPRAM, XPRAM_SIZE);
 		close(fd);
 	}
+	else
+	{
+		fprintf(stderr, "WARNING: Unable to save %s (%s)\n",
+		        xpram_name.c_str(), strerror(errno));
+	}
 }
 
-
 /*
  *  Delete PRAM file
  */
 
 void ZapPRAM(void)
 {
-	// Construct PRAM path
-	xpram_path[0] = 0;
-	char *home = getenv("HOME");
-	if (home != NULL && strlen(home) < 1000) {
-		strncpy(xpram_path, home, 1000);
-		strcat(xpram_path, "/");
-	}
-	strcat(xpram_path, XPRAM_FILE_NAME);
-
 	// Delete file
-	unlink(xpram_path);
+	assert(!xpram_name.empty());
+	unlink(xpram_name.c_str());
 }
diff --git a/SheepShaver/src/Unix/prefs_unix.cpp b/SheepShaver/src/Unix/prefs_unix.cpp
index 7ac92cbd..f8784b09 100644
--- a/SheepShaver/src/Unix/prefs_unix.cpp
+++ b/SheepShaver/src/Unix/prefs_unix.cpp
@@ -1,5 +1,5 @@
 /*
- *  prefs_unix.cpp - Preferences handling, Unix specific things
+ *  prefs_unix.cpp - Preferences handling, Unix specific stuff
  *
  *  SheepShaver (C) 1997-2008 Christian Bauer and Marc Hellwig
  *
@@ -19,15 +19,12 @@
  */
 
 #include "sysdeps.h"
-
-#include <string.h>
-#include <stdlib.h>
-#include <stdio.h>
+#include <sys/stat.h>
 #include <string>
+using std::string;
 
 #include "prefs.h"
 
-
 // Platform-specific preferences items
 prefs_desc platform_prefs_items[] = {
 	{"ether", TYPE_STRING, false,          "device name of Mac ethernet adapter"},
@@ -45,60 +42,174 @@ prefs_desc platform_prefs_items[] = {
 	{NULL, TYPE_END, false, NULL} // End of list
 };
 
+// Standard file names and paths
+static const char PREFS_FILE_NAME[] = "/.sheepshaver_prefs";
+static const char XDG_PREFS_FILE_NAME[] = "/prefs";
+static const char XPRAM_FILE_NAME[] = "/.sheepshaver_nvram";
+static const char XDG_XPRAM_FILE_NAME[] = "/nvram";
+static const char XDG_CONFIG_SUBDIR[] = "/SheepShaver";
 
 // Prefs file name and path
-const char PREFS_FILE_NAME[] = ".sheepshaver_prefs";
-static char prefs_path[1024];
+string UserPrefsPath;
+static string home_dir;
+static string xdg_config_dir;
+static string prefs_name;
+extern string xpram_name;
 
-std::string UserPrefsPath;
-
-/*
- *  Load preferences from settings file
- */
-
-void LoadPrefs(const char *vmdir)
+static string get_xdg_config_dir(void)
 {
-	if (vmdir) {
-		snprintf(prefs_path, sizeof(prefs_path), "%s/prefs", vmdir);
-		FILE *prefs = fopen(prefs_path, "r");
-		if (!prefs) {
-			printf("No file at %s found.\n", prefs_path);
-			exit(1);
-		}
-		LoadPrefsFromStream(prefs);
-		fclose(prefs);
+	char *env;
+	if (env = getenv("XDG_CONFIG_HOME"))
+		return string(env) + XDG_CONFIG_SUBDIR;
+	if (env = getenv("HOME"))
+		return string(env) + "/.config" + XDG_CONFIG_SUBDIR;
+	return "";
+}
+
+static string get_home_dir(void)
+{
+	char *env;
+	if(env = getenv("HOME"))
+		return string(env);
+	return "."; // last resort, use the current directory
+}
+
+static string get_dir(string *path)
+{
+	int pos = path->find_last_of('/');
+	if (pos == 0)
+		return ""; // file is in root folder
+	if (pos == std::string::npos)
+		return "."; // file is in current folder
+	return path->substr(0, pos);
+}
+
+static void exit_if_dir(const string& path)
+{
+	struct stat info;
+	if (stat(path.c_str(), &info) != 0){
 		return;
 	}
-
-	if (!UserPrefsPath.empty()) strncpy(prefs_path, UserPrefsPath.c_str(), 1000);
-	else {
-		// Construct prefs path
-		prefs_path[0] = 0;
-		char *home = getenv("HOME");
-		if (home != NULL && strlen(home) < 1000) {
-			strncpy(prefs_path, home, 1000);
-			strcat(prefs_path, "/");
-		}
-		strcat(prefs_path, PREFS_FILE_NAME);
-	}
-
-	// Read preferences from settings file
-	FILE *f = fopen(prefs_path, "r");
-	if (f != NULL) {
-
-		// Prefs file found, load settings
-		LoadPrefsFromStream(f);
-		fclose(f);
-
-	} else {
-#ifdef __linux__
-		PrefsAddString("cdrom", "/dev/cdrom");
-#endif
-		// No prefs file, save defaults
-		SavePrefs();
+	if ((info.st_mode & S_IFDIR) != 0)
+	{
+	    fprintf(stderr, "ERROR: Cannot open %s (Is a directory)\n", prefs_name.c_str());
+	    exit(1);
 	}
 }
 
+static bool load_prefs_file(const string& path, bool exit_on_failure)
+{
+	exit_if_dir(path);
+	FILE *prefs = fopen(path.c_str(), "r");
+	if (prefs != NULL)
+	{
+		LoadPrefsFromStream(prefs);
+		fclose(prefs);
+		printf("Using prefs file at %s\n", prefs_name.c_str());
+		return true;
+	}
+	else if (exit_on_failure)
+	{
+		fprintf(stderr, "ERROR: Could not load prefs file from %s (%s)\n",
+		        path.c_str(), strerror(errno));
+		exit(1);
+	}
+	return false;
+}
+
+/*
+ *  Look for prefs file in the following locations (in order of priority):
+ *  1. From vmdir/.sheepshaver_prefs if a vmdir has been specified
+ *  2. From path specified with --config command line
+ *  3. From $HOME/.sheepshaver_prefs if it exists
+ *  4. From $XDG_CONFIG_HOME/SheepShaver/prefs if it exists
+ *  5. Create a new prefs file at $XDG_CONFIG_HOME/SheepShaver/prefs
+ *  If $XDG_CONFIG_HOME doesn't exist, $HOME/.config is used instead,
+ *  in accordance with XDG Base Directory Specification:
+ *  https://specifications.freedesktop.org/basedir-spec/basedir-spec-latest.html
+ */
+
+void LoadPrefs(const char* vmdir)
+{
+	home_dir = get_home_dir();
+	xdg_config_dir = get_xdg_config_dir();
+
+	// vmdir was specified on the command line
+	if (vmdir)
+	{
+		prefs_name = string(vmdir) + XDG_PREFS_FILE_NAME;
+		xpram_name = string(vmdir) + XDG_XPRAM_FILE_NAME;
+		if (load_prefs_file(prefs_name, true))
+		    return;
+	}
+
+	// --config was specified
+	if (!UserPrefsPath.empty())
+	{
+		prefs_name = UserPrefsPath;
+		xpram_name = get_dir(&prefs_name) + XPRAM_FILE_NAME;
+		if (load_prefs_file(prefs_name, true))
+		    return;
+	}
+
+	// Load .basilisk_ii_prefs from $HOME if it exists
+	if (!home_dir.empty())
+	{
+		prefs_name = home_dir + PREFS_FILE_NAME;
+		xpram_name = home_dir + XPRAM_FILE_NAME;
+		if (load_prefs_file(prefs_name, false))
+		    return;
+	}
+
+	// If no other prefs file exists, try the $XDG_CONFIG_HOME directory
+	if (!xdg_config_dir.empty())
+	{
+		prefs_name = xdg_config_dir + XDG_PREFS_FILE_NAME;
+		xpram_name = xdg_config_dir + XDG_XPRAM_FILE_NAME;
+		if (load_prefs_file(prefs_name, false))
+		    return;
+	}
+
+	// No prefs file, save defaults in $XDG_CONFIG_HOME directory
+#ifdef __linux__
+	PrefsAddString("cdrom", "/dev/cdrom");
+#endif
+	printf("No prefs file found, creating new one at %s\n", prefs_name.c_str());
+	SavePrefs();
+}
+
+static bool is_dir(const string& path)
+{
+	struct stat info;
+	if (stat(path.c_str(), &info) != 0){
+		return false;
+	}
+	return (info.st_mode & S_IFDIR) != 0;
+}
+
+static bool create_directories(const string& path, mode_t mode)
+{
+	if (mkdir(path.c_str(), mode) == 0)
+		return true;
+
+	switch (errno)
+	{
+		case ENOENT:
+			{
+				int pos = path.find_last_of('/');
+				if (pos == std::string::npos)
+					return false;
+				if (!create_directories(path.substr(0,pos),mode))
+					return false;
+			}
+			return 0 == mkdir(path.c_str(),mode);
+
+		case EEXIST:
+			return is_dir(path);
+		default:
+			return false;
+	}
+}
 
 /*
  *  Save preferences to settings file
@@ -107,13 +218,23 @@ void LoadPrefs(const char *vmdir)
 void SavePrefs(void)
 {
 	FILE *f;
-	if ((f = fopen(prefs_path, "w")) != NULL) {
+	string prefs_dir = get_dir(&prefs_name);
+	if (!prefs_dir.empty() && !is_dir(prefs_dir))
+	{
+		create_directories(prefs_dir, 0700);
+	}
+	if ((f = fopen(prefs_name.c_str(), "w")) != NULL)
+	{
 		SavePrefsToStream(f);
 		fclose(f);
 	}
+	else
+	{
+		fprintf(stderr, "WARNING: Unable to save %s (%s)\n",
+		        prefs_name.c_str(), strerror(errno));
+	}
 }
 
-
 /*
  *  Add defaults of platform-specific prefs items
  *  You may also override the defaults set in PrefsInit()
@@ -126,14 +247,20 @@ void AddPlatformPrefsDefaults(void)
 	PrefsReplaceInt32("mousewheelmode", 1);
 	PrefsReplaceInt32("mousewheellines", 3);
 #ifdef __linux__
-	if (access("/dev/sound/dsp", F_OK) == 0) {
+	if (access("/dev/sound/dsp", F_OK) == 0)
+	{
 		PrefsReplaceString("dsp", "/dev/sound/dsp");
-	} else {
+	}
+	else
+	{
 		PrefsReplaceString("dsp", "/dev/dsp");
 	}
-	if (access("/dev/sound/mixer", F_OK) == 0) {
+	if (access("/dev/sound/mixer", F_OK) == 0)
+	{
 		PrefsReplaceString("mixer", "/dev/sound/mixer");
-	} else {
+	}
+	else
+	{
 		PrefsReplaceString("mixer", "/dev/mixer");
 	}
 #else