diff --git a/CONFIGURATION.md b/CONFIGURATION.md
index 704f1c94..54002562 100644
--- a/CONFIGURATION.md
+++ b/CONFIGURATION.md
@@ -38,7 +38,7 @@ The following environment variables can be set:
 
 # Settings
 
-Running `nostream` for the first time creates the settings file in `<project_root>/.nostr/settings.json`. If the file is not created and an error is thrown ensure that the `<project_root>/.nostr` folder exists. The configuration directory can be changed by setting the `NOSTR_CONFIG_DIR` environment variable.
+Running `nostream` for the first time creates the settings file in `<project_root>/.nostr/settings.yaml`. If the file is not created and an error is thrown ensure that the `<project_root>/.nostr` folder exists. The configuration directory can be changed by setting the `NOSTR_CONFIG_DIR` environment variable.
 
 | Name                                        | Description                                                                   |
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