diff --git a/pkg/config/config_test.go b/pkg/config/config_test.go
index 84860d8..590ff37 100644
--- a/pkg/config/config_test.go
+++ b/pkg/config/config_test.go
@@ -28,6 +28,7 @@ import (
 	"testing"
 	"time"
 
+	"github.com/microcks/microcks-cli/pkg/errors"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 )
@@ -459,3 +460,24 @@ func TestWatchConfig(t *testing.T) {
 		}
 	}
 }
+
+func TestReadMalformedConfig(t *testing.T) {
+	tmpDir := t.TempDir()
+	configPath := filepath.Join(tmpDir, "config")
+	watchPath := filepath.Join(tmpDir, "watch")
+
+	// A tab used for indentation is invalid YAML.
+	malformed := []byte("contexts:\n\t- name: ctx1\n")
+	require.NoError(t, os.WriteFile(configPath, malformed, 0o600))
+	require.NoError(t, os.WriteFile(watchPath, malformed, 0o600))
+
+	cfg, err := ReadLocalConfig(configPath)
+	assert.Error(t, err, "Should fail on malformed YAML")
+	assert.Nil(t, cfg)
+	assert.Equal(t, errors.KindUsage, errors.KindOf(err), "a malformed local config is the user's input, not an environment or connection failure")
+
+	wCfg, err := ReadLocalWatchConfig(watchPath)
+	assert.Error(t, err, "Should fail on malformed YAML")
+	assert.Nil(t, wCfg)
+	assert.Equal(t, errors.KindUsage, errors.KindOf(err), "a malformed local watch config is the user's input, not an environment or connection failure")
+}
diff --git a/pkg/config/localconfig.go b/pkg/config/localconfig.go
index 2aaa1b1..9358cf1 100644
--- a/pkg/config/localconfig.go
+++ b/pkg/config/localconfig.go
@@ -22,6 +22,7 @@ import (
 	"path/filepath"
 	"slices"
 
+	"github.com/microcks/microcks-cli/pkg/errors"
 	configUtil "github.com/microcks/microcks-cli/pkg/util"
 )
 
@@ -104,6 +105,9 @@ func ReadLocalConfig(path string) (*LocalConfig, error) {
 	if os.IsNotExist(err) {
 		return nil, nil
 	}
+	if err != nil {
+		return nil, errors.Wrapf(errors.KindUsage, "reading config %s: %w", path, err)
+	}
 
 	err = ValidateLocalConfig(config)
 	if err != nil {
@@ -417,6 +421,9 @@ func ReadLocalWatchConfig(path string) (*WatchConfig, error) {
 	if os.IsNotExist(err) {
 		return nil, nil
 	}
+	if err != nil {
+		return nil, errors.Wrapf(errors.KindUsage, "reading config %s: %w", path, err)
+	}
 
 	return &config, nil
 }