diff --git a/lbrynet/core/utils.py b/lbrynet/core/utils.py
index e4580f2db..d71e01e3a 100644
--- a/lbrynet/core/utils.py
+++ b/lbrynet/core/utils.py
@@ -1,11 +1,12 @@
 import base64
 import distutils.version
 import random
+import os
+import json
+import yaml
 
 from lbrynet.core.cryptoutils import get_lbry_hash_obj
 
-
-
 blobhash_length = get_lbry_hash_obj().digest_size * 2  # digest_size is in bytes, and blob hashes are hex encoded
 
 
@@ -46,3 +47,33 @@ def deobfuscate(obfustacated):
 
 def obfuscate(plain):
     return base64.b64encode(plain).encode('rot13')
+
+
+settings_decoders = {
+    '.json': json.loads,
+    '.yml': yaml.load
+}
+
+settings_encoders = {
+    '.json': json.dumps,
+    '.yml': yaml.safe_dump
+}
+
+
+def load_settings(path):
+    ext = os.path.splitext(path)[1]
+    f = open(path, 'r')
+    data = f.read()
+    f.close()
+    decoder = settings_decoders.get(ext, False)
+    assert decoder is not False, "Unknown settings format .%s" % ext
+    return decoder(data)
+
+
+def save_settings(path, settings):
+    ext = os.path.splitext(path)[1]
+    encoder = settings_encoders.get(ext, False)
+    assert encoder is not False, "Unknown settings format .%s" % ext
+    f = open(path, 'w')
+    f.write(encoder(settings))
+    f.close()
\ No newline at end of file
diff --git a/lbrynet/lbrynet_daemon/LBRYDaemon.py b/lbrynet/lbrynet_daemon/LBRYDaemon.py
index 5280da520..e23a9aa85 100644
--- a/lbrynet/lbrynet_daemon/LBRYDaemon.py
+++ b/lbrynet/lbrynet_daemon/LBRYDaemon.py
@@ -198,7 +198,18 @@ class LBRYDaemon(jsonrpc.JSONRPC):
                 log.info("Couldn't make download directory, using home")
                 default_download_directory = os.path.expanduser("~")
 
-        self.daemon_conf = os.path.join(self.db_dir, 'daemon_settings.json')
+        old_conf_path = os.path.join(self.db_dir, 'daemon_settings.json')
+        self.daemon_conf = os.path.join(self.db_dir, 'daemon_settings.yml')
+
+        if os.path.isfile(old_conf_path):
+            log.info("Migrating .json config file to .yml")
+            tmp_settings = utils.load_settings(old_conf_path)
+            utils.save_settings(self.daemon_conf, tmp_settings)
+            try:
+                os.remove(old_conf_path)
+                log.info("Cleaned up old config file")
+            except:
+                log.warning("Failed to remove old config file")
 
         self.default_settings = {
             'run_on_startup': False,
@@ -226,9 +237,7 @@ class LBRYDaemon(jsonrpc.JSONRPC):
         }
 
         if os.path.isfile(self.daemon_conf):
-            f = open(self.daemon_conf, "r")
-            loaded_settings = json.loads(f.read())
-            f.close()
+            loaded_settings = utils.load_settings(self.daemon_conf)
             missing_settings = {}
             removed_settings = {}
             for k in self.default_settings.keys():
@@ -268,9 +277,7 @@ class LBRYDaemon(jsonrpc.JSONRPC):
                 log.info("Lowering name cache time")
                 self.session_settings['cache_time'] = DEFAULT_CACHE_TIME
 
-        f = open(self.daemon_conf, "w")
-        f.write(json.dumps(self.session_settings))
-        f.close()
+        utils.save_settings(self.daemon_conf, self.session_settings)
 
         self.run_on_startup = self.session_settings['run_on_startup']
         self.data_rate = self.session_settings['data_rate']
@@ -940,9 +947,7 @@ class LBRYDaemon(jsonrpc.JSONRPC):
         self.search_timeout = self.session_settings['search_timeout']
         self.cache_time = self.session_settings['cache_time']
 
-        f = open(self.daemon_conf, "w")
-        f.write(json.dumps(self.session_settings))
-        f.close()
+        utils.save_settings(self.daemon_conf, self.session_settings)
 
         return defer.succeed(True)
 
@@ -1406,9 +1411,7 @@ class LBRYDaemon(jsonrpc.JSONRPC):
             startup_scripts = self.startup_scripts
             self.startup_scripts = self.session_settings['startup_scripts'] = remaining_scripts
 
-            f = open(self.daemon_conf, "w")
-            f.write(json.dumps(self.session_settings))
-            f.close()
+            utils.save_settings(self.daemon_conf, self.session_settings)
 
         for script in startup_scripts:
             if script['script_name'] == 'migrateto025':
diff --git a/setup.py b/setup.py
index 9224af09c..d93a5dbeb 100644
--- a/setup.py
+++ b/setup.py
@@ -44,7 +44,8 @@ requires = [
     'six==1.9.0',
     'base58',
     'googlefinance',
-    'requests_futures'
+    'requests_futures',
+    'PyYAML'
 ]
 
 console_scripts = [
@@ -273,7 +274,8 @@ elif platform == WINDOWS:
                      'wsgiref',
                      'zope.interface',
                      'os',
-                     'pkg_resources'
+                     'pkg_resources',
+                     'PyYAML'
                      ],
         'excludes': ['distutils', 'collections.sys', 'collections._weakref', 'collections.abc',
                      'Tkinter', 'tk', 'tcl', 'PyQt4', 'nose', 'mock'