diff --git a/distribution/server-x/src/main/content/bin/kc.sh b/distribution/server-x/src/main/content/bin/kc.sh
index bf1aa15da7..696ad7222d 100644
--- a/distribution/server-x/src/main/content/bin/kc.sh
+++ b/distribution/server-x/src/main/content/bin/kc.sh
@@ -38,6 +38,10 @@ do
               shift
           fi
           ;;
+      --config)
+          SERVER_OPTS="$SERVER_OPTS -Dkeycloak.config.file=$2"
+          shift
+          ;;
       --)
           shift
           break;;
diff --git a/distribution/server-x/src/main/content/conf/keycloak.properties b/distribution/server-x/src/main/content/conf/keycloak.properties
new file mode 100644
index 0000000000..25b2649fed
--- /dev/null
+++ b/distribution/server-x/src/main/content/conf/keycloak.properties
@@ -0,0 +1,7 @@
+# Datasource
+datasource.dialect=org.hibernate.dialect.H2Dialect
+datasource.driver=org.h2.jdbcx.JdbcDataSource
+datasource.url = jdbc:h2:file:${keycloak.home.dir}/data/keycloakdb;;AUTO_SERVER=TRUE
+datasource.username = sa
+datasource.password = keycloak
+datasource.jdbc.transactions=xa
\ No newline at end of file
diff --git a/quarkus/runtime/src/main/java/org/keycloak/provider/quarkus/KeycloakConfigSourceProvider.java b/quarkus/runtime/src/main/java/org/keycloak/provider/quarkus/KeycloakConfigSourceProvider.java
index b0dfbc539c..eed436c6ba 100644
--- a/quarkus/runtime/src/main/java/org/keycloak/provider/quarkus/KeycloakConfigSourceProvider.java
+++ b/quarkus/runtime/src/main/java/org/keycloak/provider/quarkus/KeycloakConfigSourceProvider.java
@@ -17,33 +17,55 @@
 
 package org.keycloak.provider.quarkus;
 
+import java.io.File;
+import java.nio.file.Paths;
 import java.util.ArrayList;
+import java.util.List;
 
 import io.quarkus.runtime.configuration.DeploymentProfileConfigSource;
 import io.quarkus.runtime.configuration.ExpandingConfigSource;
 
 import org.eclipse.microprofile.config.spi.ConfigSource;
 import org.eclipse.microprofile.config.spi.ConfigSourceProvider;
+import org.jboss.logging.Logger;
 
 public class KeycloakConfigSourceProvider implements ConfigSourceProvider {
 
+    private static final Logger log = Logger.getLogger(KeycloakConfigSourceProvider.class);
     private static final String KEYCLOAK_CONFIG_FILE_PROP = "keycloak.config.file";
     private static final String KEYCLOAK_CONFIG_FILE_ENV = "KEYCLOAK_CONFIG_FILE";
 
     @Override
     public Iterable<ConfigSource> getConfigSources(ClassLoader forClassLoader) {
 
-        ArrayList<ConfigSource> sources = new ArrayList<>();
+        List<ConfigSource> sources = new ArrayList<>();
 
-        sources.add(wrap(new KeycloakPropertiesConfigSource.InJar()));
+        String filePath = System.getProperty(KEYCLOAK_CONFIG_FILE_PROP);
 
-        String fileName = System.getProperty(KEYCLOAK_CONFIG_FILE_PROP);
+        if (filePath == null)
+            filePath = System.getenv(KEYCLOAK_CONFIG_FILE_ENV);
 
-        if (fileName == null)
-            fileName = System.getenv(KEYCLOAK_CONFIG_FILE_ENV);
+        if (filePath == null) {
+            String homeDir = System.getProperty("keycloak.home.dir");
 
-        if (fileName != null)
-            sources.add(wrap(new KeycloakPropertiesConfigSource.InFileSystem(fileName)));
+            if (homeDir != null) {
+                File file = Paths.get(homeDir, "conf", KeycloakPropertiesConfigSource.KEYCLOAK_PROPERTIES).toFile();
+
+                if (file.exists()) {
+                    filePath = file.getAbsolutePath();
+                }
+            }
+        }
+
+        if (filePath != null) {
+            sources.add(wrap(new KeycloakPropertiesConfigSource.InFileSystem(filePath)));
+        }
+
+        // fall back to the default configuration within the server classpath
+        if (sources.isEmpty()) {
+            log.debug("Loading the default server configuration");
+            sources.add(wrap(new KeycloakPropertiesConfigSource.InJar()));
+        }
 
         return sources;
 
diff --git a/quarkus/runtime/src/main/java/org/keycloak/provider/quarkus/KeycloakPropertiesConfigSource.java b/quarkus/runtime/src/main/java/org/keycloak/provider/quarkus/KeycloakPropertiesConfigSource.java
index 4b08a10e70..ce2cf01978 100644
--- a/quarkus/runtime/src/main/java/org/keycloak/provider/quarkus/KeycloakPropertiesConfigSource.java
+++ b/quarkus/runtime/src/main/java/org/keycloak/provider/quarkus/KeycloakPropertiesConfigSource.java
@@ -35,8 +35,11 @@ import java.util.HashMap;
 import java.util.Map;
 import java.util.Properties;
 
+import org.jboss.logging.Logger;
+
 import io.smallrye.config.PropertiesConfigSource;
 
+import static org.keycloak.common.util.StringPropertyReplacer.replaceProperties;
 import static org.keycloak.provider.quarkus.MicroProfileConfigProvider.NS_KEYCLOAK;
 import static org.keycloak.provider.quarkus.MicroProfileConfigProvider.NS_QUARKUS;
 
@@ -45,6 +48,7 @@ import static org.keycloak.provider.quarkus.MicroProfileConfigProvider.NS_QUARKU
  */
 public abstract class KeycloakPropertiesConfigSource extends PropertiesConfigSource {
 
+    private static final Logger log = Logger.getLogger(KeycloakPropertiesConfigSource.class);
     static final String KEYCLOAK_PROPERTIES = "keycloak.properties";
 
     KeycloakPropertiesConfigSource(InputStream is, int ordinal) {
@@ -85,6 +89,9 @@ public abstract class KeycloakPropertiesConfigSource extends PropertiesConfigSou
             } else {
                 is = cl.getResourceAsStream(fileName);
             }
+            if (is != null) {
+                log.debug("Loading the server configuration from the classpath");
+            }
             return is;
         }
     }
@@ -99,6 +106,7 @@ public abstract class KeycloakPropertiesConfigSource extends PropertiesConfigSou
             final Path path = Paths.get(fileName);
             if (Files.exists(path)) {
                 try {
+                    log.debugf("Loading the server configuration from %s", fileName);
                     return Files.newInputStream(path);
                 } catch (NoSuchFileException | FileNotFoundException e) {
                     return null;
@@ -113,15 +121,23 @@ public abstract class KeycloakPropertiesConfigSource extends PropertiesConfigSou
 
     private static Map<String, String> transform(Map<String, String> properties) {
         Map<String, String> result = new HashMap<>(properties.size());
-        properties.keySet().forEach(k -> result.put(transformKey(k), properties.get(k)));
+        properties.keySet().forEach(k -> result.put(transformKey(k), replaceProperties(properties.get(k))));
         return result;
     }
 
     private static String transformKey(String key) {
+        String namespace;
+        String[] keyParts = key.split("\\.");
+        String extension = keyParts[0];
+        String profile = "";
 
-        String namespace, prefix = (key.split("\\."))[0];
+        if (extension.startsWith("%")) {
+            profile = String.format("%s.", keyParts[0]);
+            extension = keyParts[1];
+            key = key.substring(key.indexOf('.') + 1);
+        }
 
-        switch (prefix) {
+        switch (extension) {
             case "datasource":
             case "http":
             case "log":
@@ -131,8 +147,7 @@ public abstract class KeycloakPropertiesConfigSource extends PropertiesConfigSou
                 namespace = NS_KEYCLOAK;
         }
 
-        return namespace + "." + key;
+        return profile + namespace + "." + key;
 
     }
-
 }