diff --git a/modules/programs/aliae.nix b/modules/programs/aliae.nix
index ba351b243..42450bf3d 100644
--- a/modules/programs/aliae.nix
+++ b/modules/programs/aliae.nix
@@ -6,6 +6,7 @@
 }:
 let
   inherit (lib)
+    types
     mkIf
     mkEnableOption
     mkPackageOption
@@ -31,6 +32,19 @@ in
     enableZshIntegration = mkZshIntegrationOption { inherit config; };
     enableFishIntegration = mkFishIntegrationOption { inherit config; };
     enableNushellIntegration = mkNushellIntegrationOption { inherit config; };
+    configLocation = mkOption {
+      type = types.str;
+      default = "${config.home.homeDirectory}/.aliae.yaml";
+      defaultText = lib.literalExpression "\${config.home.homeDirectory}/.aliae.yaml";
+      example = "/Users/aliae/configs/aliae.yaml";
+      description = ''
+        Path where aliae should look for its config file. This doesn't override
+        where Home-Manager places the generated config file. Changing this option
+        could prevent aliae from using the settings defined in your Home-Manager
+        configuration.
+      '';
+    };
+
     settings = mkOption {
       inherit (yamlFormat) type;
       default = { };
@@ -62,10 +76,23 @@ in
   };
 
   config = mkIf cfg.enable {
+    assertions = [
+      {
+        assertion =
+          (cfg.settings != { } && cfg.configLocation != null)
+          -> lib.hasPrefix config.home.homeDirectory cfg.configLocation;
+        message = "The option `programs.aliae.configLocation` must point to a file inside user's home directory when `programs.aliae.settings` is set.";
+      }
+    ];
+
     home.packages = mkIf (cfg.package != null) [ cfg.package ];
-    home.file.".aliae.yaml" = mkIf (cfg.settings != { }) {
-      source = yamlFormat.generate "aliae.yaml" cfg.settings;
-    };
+    home.sessionVariables = mkIf (cfg.configLocation != null) { ALIAE_CONFIG = cfg.configLocation; };
+    home.file."${lib.removePrefix config.home.homeDirectory cfg.configLocation}" =
+      mkIf (cfg.settings != { } && lib.hasPrefix config.home.homeDirectory cfg.configLocation)
+        {
+          source = yamlFormat.generate "aliae.yaml" cfg.settings;
+        };
+
     programs.bash.initExtra = mkIf cfg.enableBashIntegration ''eval "$(aliae init bash)"'';
     programs.zsh.initContent = mkIf cfg.enableZshIntegration ''eval "$(aliae init zsh)"'';
     programs.fish.interactiveShellInit = mkIf cfg.enableFishIntegration "aliae init fish | source";
diff --git a/tests/modules/programs/aliae/asserts.nix b/tests/modules/programs/aliae/asserts.nix
new file mode 100644
index 000000000..56ff484c3
--- /dev/null
+++ b/tests/modules/programs/aliae/asserts.nix
@@ -0,0 +1,30 @@
+{
+  programs.aliae = {
+    enable = true;
+    configLocation = "/another/path/aliae.yaml";
+    settings = {
+      alias = [
+        {
+          name = "a";
+          value = "aliae";
+        }
+        {
+          name = "hello-world";
+          value = ''echo "hello world"'';
+          type = "function";
+        }
+      ];
+
+      env = [
+        {
+          name = "EDITOR";
+          value = "code-insiders --wait";
+        }
+      ];
+    };
+  };
+
+  test.asserts.assertions.expected = [
+    "The option `programs.aliae.configLocation` must point to a file inside user's home directory when `programs.aliae.settings` is set."
+  ];
+}
diff --git a/tests/modules/programs/aliae/config-location-no-settings.nix b/tests/modules/programs/aliae/config-location-no-settings.nix
new file mode 100644
index 000000000..83af6a66b
--- /dev/null
+++ b/tests/modules/programs/aliae/config-location-no-settings.nix
@@ -0,0 +1,6 @@
+{
+  programs.aliae = {
+    enable = true;
+    configLocation = "/another/path/aliae.yaml";
+  };
+}
diff --git a/tests/modules/programs/aliae/default.nix b/tests/modules/programs/aliae/default.nix
index c937f12ef..564986fb3 100644
--- a/tests/modules/programs/aliae/default.nix
+++ b/tests/modules/programs/aliae/default.nix
@@ -1 +1,5 @@
-{ aliae-settings = ./settings.nix; }
+{
+  aliae-settings = ./settings.nix;
+  aliae-asserts = ./asserts.nix;
+  aliae-config-location-no-settings = ./config-location-no-settings.nix;
+}