diff --git a/pkg/setting/setting.go b/pkg/setting/setting.go
index 061068e9df1..a23b714a783 100644
--- a/pkg/setting/setting.go
+++ b/pkg/setting/setting.go
@@ -360,9 +360,18 @@ func loadConfiguration(args *CommandLineArgs) {
 	defaultConfigFile := path.Join(HomePath, "conf/defaults.ini")
 	configFiles = append(configFiles, defaultConfigFile)
 
+	// check if config file exists
+	if _, err := os.Stat(defaultConfigFile); os.IsNotExist(err) {
+		fmt.Println("Grafana-server Init Failed: Could not find config defaults, make sure homepath command line parameter is set or working directory is homepath")
+		os.Exit(1)
+	}
+
+	// load defaults
 	Cfg, err = ini.Load(defaultConfigFile)
 	if err != nil {
-		log.Fatal(3, "Failed to parse defaults.ini, %v", err)
+		fmt.Println(fmt.Sprintf("Failed to parse defaults.ini, %v", err))
+		os.Exit(1)
+		return
 	}
 
 	Cfg.BlockMode = false