diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5b803fdb5..6191648f0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -26,6 +26,7 @@
   - `package` won't delete previously existing file. [GH-408]
   - Vagrantfile can be lowercase now. [GH-399]
   - Only one copy of Vagrant may be running at any given time. [GH-364]
+  - Default home directory for Vagrant moved to `~/.vagrant.d` [GH-333]
 
 ## 0.7.6 (July 2, 2011)
 
diff --git a/lib/vagrant/environment.rb b/lib/vagrant/environment.rb
index b3126a269..0687db185 100644
--- a/lib/vagrant/environment.rb
+++ b/lib/vagrant/environment.rb
@@ -8,7 +8,7 @@ module Vagrant
   class Environment
     HOME_SUBDIRS = ["tmp", "boxes", "logs"]
     DEFAULT_VM = :default
-    DEFAULT_HOME = "~/.vagrant"
+    DEFAULT_HOME = "~/.vagrant.d"
 
     # Parent environment (in the case of multi-VMs)
     attr_reader :parent
@@ -97,7 +97,29 @@ module Vagrant
     #
     # @return [Pathname]
     def home_path
+      return @_home_path if defined?(@_home_path)
+
       @_home_path ||= Pathname.new(File.expand_path(ENV["VAGRANT_HOME"] || DEFAULT_HOME))
+
+      # This is the old default that Vagrant used to be put things into
+      # up until Vagrant 0.8.0. We keep around an automatic migration
+      # script here in case any old users upgrade.
+      old_home = File.expand_path("~/.vagrant")
+      if File.exists?(old_home) && File.directory?(old_home)
+        # We can't migrate if the home directory already exists
+        if File.exists?(@_home_path)
+          ui.warn I18n.t("vagrant.general.home_dir_migration_failed",
+                         :old => old_home,
+                         :new => @_home_path.to_s)
+        else
+          # If the new home path doesn't exist, simply transition to it
+          ui.info I18n.t("vagrant.general.moving_home_dir", :directory => @_home_path)
+          FileUtils.mv(old_home, @_home_path)
+        end
+      end
+
+      # Return the home path
+      @_home_path
     end
 
     # The path to the Vagrant tmp directory
diff --git a/lib/vagrant/errors.rb b/lib/vagrant/errors.rb
index decc6d1af..59b0afef5 100644
--- a/lib/vagrant/errors.rb
+++ b/lib/vagrant/errors.rb
@@ -158,6 +158,11 @@ module Vagrant
       error_key(:environment_locked)
     end
 
+    class HomeDirectoryMigrationFailed < VagrantError
+      status_code(53)
+      error_key(:home_dir_migration_failed)
+    end
+
     class ForwardPortAutolistEmpty < VagrantError
       status_code(27)
       error_key(:auto_empty, "vagrant.actions.vm.forward_ports")
diff --git a/templates/locales/en.yml b/templates/locales/en.yml
index 5efb6bc73..cf4f29f9d 100644
--- a/templates/locales/en.yml
+++ b/templates/locales/en.yml
@@ -2,6 +2,14 @@ en:
   vagrant:
     general:
       creating_home_dir: "Creating home directory since it doesn't exist: %{directory}"
+      moving_home_dir: "Moving old Vagrant home directory to new location: %{directory}"
+      home_dir_migration_failed: |-
+        Both an old and new Vagrant home directory exist. Only the new one will
+        be used. Please merge the old directory into the new directory if you'd
+        like to use the old data as well.
+
+        Old: %{old}
+        New: %{new}
 
 #-------------------------------------------------------------------------------
 # Translations for exception classes
diff --git a/test/test_helper.rb b/test/test_helper.rb
index c50dee490..93bb8fc62 100644
--- a/test/test_helper.rb
+++ b/test/test_helper.rb
@@ -13,6 +13,9 @@ begin
 rescue LoadError
 end
 
+# Set the home directory to some temporary directory
+ENV["HOME"] = Vagrant.source_root.join("test", "tmp", "home").to_s
+
 # Add the I18n locale for tests
 I18n.load_path << File.expand_path("../locales/en.yml", __FILE__)
 
diff --git a/test/vagrant/environment_test.rb b/test/vagrant/environment_test.rb
index 1cef71619..5113f9c53 100644
--- a/test/vagrant/environment_test.rb
+++ b/test/vagrant/environment_test.rb
@@ -58,6 +58,12 @@ class EnvironmentTest < Test::Unit::TestCase
     context "home path" do
       setup do
         @env = @klass.new
+
+        # Make a fake home directory for helping with tests
+        @home_path = tmp_path.join("home")
+        ENV["HOME"] = @home_path.to_s
+        FileUtils.rm_rf(@home_path)
+        FileUtils.mkdir_p(@home_path)
       end
 
       should "return the home path if it loaded" do
@@ -73,6 +79,36 @@ class EnvironmentTest < Test::Unit::TestCase
         expected = Pathname.new(File.expand_path(ENV["VAGRANT_HOME"]))
         assert_equal expected, @env.home_path
       end
+
+      should "move the old home directory to the new location" do
+        new_path = @home_path.join(".vagrant.d")
+        old_path = @home_path.join(".vagrant")
+        old_path.mkdir
+
+        # Get the home path
+        ENV["VAGRANT_HOME"] = new_path.to_s
+
+        assert !new_path.exist?
+        assert_equal new_path, @env.home_path
+        assert !old_path.exist?
+        assert new_path.exist?
+      end
+
+      should "not move the old home directory if the new one already exists" do
+        new_path = @home_path.join(".vagrant.d")
+        new_path.mkdir
+
+        old_path = @home_path.join(".vagrant")
+        old_path.mkdir
+
+        # Get the home path
+        ENV["VAGRANT_HOME"] = new_path.to_s
+
+        assert new_path.exist?
+        assert_equal new_path, @env.home_path
+        assert old_path.exist?
+        assert new_path.exist?
+      end
     end
 
     context "temp path" do