diff --git a/README.md b/README.md
index e7f32eb..1c5b771 100644
--- a/README.md
+++ b/README.md
@@ -93,11 +93,15 @@ Loads `.env` file if enabled. It is disabled by default.
 
 ### `defaults`
 
-Specify default configuration. It has the **lowest** priority.
+Specify default configuration. It has the **lowest** priority and is applied **after extending** config.
+
+### `defaultConfig`
+
+Specify default configuration. It is applied **before** extending config.
 
 ### `overides`
 
-Specify override configuration. It has the **highest** priority.
+Specify override configuration. It has the **highest** priority and is applied **before extending** config.
 
 ### `jiti`
 
diff --git a/src/loader.ts b/src/loader.ts
index c8b6df2..dafafe2 100644
--- a/src/loader.ts
+++ b/src/loader.ts
@@ -37,6 +37,7 @@ export interface LoadConfigOptions<T extends InputConfig=InputConfig> {
   dotenv?: boolean | DotenvOptions
 
   defaults?: T
+  defaultConfig?: T
   overrides?: T
 
   resolve?: (id: string, opts: LoadConfigOptions) => null | ResolvedConfig | Promise<ResolvedConfig | null>
@@ -109,7 +110,8 @@ export async function loadConfig<T extends InputConfig=InputConfig> (opts: LoadC
   r.config = defu(
     opts.overrides,
     config,
-    configRC
+    configRC,
+    opts.defaultConfig
   ) as T
 
   // Allow extending
diff --git a/test/index.test.ts b/test/index.test.ts
index bcf6617..335a6ac 100644
--- a/test/index.test.ts
+++ b/test/index.test.ts
@@ -21,11 +21,13 @@ describe('c12', () => {
         }
       },
       overrides: {
-        overriden: true,
-        extends: ['virtual']
+        overriden: true
       },
       defaults: {
         defaultConfig: true
+      },
+      defaultConfig: {
+        extends: ['virtual']
       }
     })
 
@@ -56,9 +58,6 @@ describe('c12', () => {
       [
         {
           "config": {
-            "extends": [
-              "virtual",
-            ],
             "overriden": true,
           },
         },
@@ -112,11 +111,6 @@ describe('c12', () => {
           "configFile": "<path>/fixture/base/config.ts",
           "cwd": "<path>/fixture/base",
         },
-        {
-          "config": {
-            "virtual": true,
-          },
-        },
         {
           "config": {
             "devConfig": true,
@@ -131,6 +125,11 @@ describe('c12', () => {
           "configFile": "<path>/fixture/node_modules/c12-npm-test/config.ts",
           "cwd": "<path>/fixture/node_modules/c12-npm-test",
         },
+        {
+          "config": {
+            "virtual": true,
+          },
+        },
       ]
     `)
   })