diff --git a/mcp_server/src/config/schema.py b/mcp_server/src/config/schema.py
index 0c979f83..e3579041 100644
--- a/mcp_server/src/config/schema.py
+++ b/mcp_server/src/config/schema.py
@@ -150,7 +150,7 @@ class LLMConfig(BaseModel):
     """LLM configuration."""
 
     provider: str = Field(default='openai', description='LLM provider')
-    model: str = Field(default='gpt-4o', description='Model name')
+    model: str = Field(default='gpt-4.1', description='Model name')
     temperature: float = Field(default=0.0, description='Temperature')
     max_tokens: int = Field(default=4096, description='Max tokens')
     providers: LLMProvidersConfig = Field(default_factory=LLMProvidersConfig)
diff --git a/mcp_server/src/graphiti_mcp_server.py b/mcp_server/src/graphiti_mcp_server.py
index bcd0ef33..5575c8e3 100644
--- a/mcp_server/src/graphiti_mcp_server.py
+++ b/mcp_server/src/graphiti_mcp_server.py
@@ -678,11 +678,13 @@ async def initialize_server() -> ServerConfig:
     )
 
     # Configuration file argument
+    # Default to config/config.yaml relative to the mcp_server directory
+    default_config = Path(__file__).parent.parent / 'config' / 'config.yaml'
     parser.add_argument(
         '--config',
         type=Path,
-        default=Path('config.yaml'),
-        help='Path to YAML configuration file (default: config.yaml)',
+        default=default_config,
+        help='Path to YAML configuration file (default: config/config.yaml)',
     )
 
     # Transport arguments