diff --git a/crates/gritmodule/fixtures/pattern_files/.grit/grit.yaml b/crates/gritmodule/fixtures/pattern_files/.grit/grit.yaml
index 818de7336..d58831a5d 100644
--- a/crates/gritmodule/fixtures/pattern_files/.grit/grit.yaml
+++ b/crates/gritmodule/fixtures/pattern_files/.grit/grit.yaml
@@ -1,5 +1,7 @@
 version: 0.0.1
 patterns:
+  - file: ../docs/guides/version_5_upgrade.md
+  - file: ../docs/guides/something.md
   - name: remove_console_error
     level: error
     body: |
@@ -7,6 +9,3 @@ patterns:
       language js
 
       `console.error($_)` => .
-pattern_files:
-  - docs/guides/version_5_upgrade.md
-  - docs/guides/something.md
diff --git a/crates/gritmodule/src/config.rs b/crates/gritmodule/src/config.rs
index 62dcb6564..03735b8c7 100644
--- a/crates/gritmodule/src/config.rs
+++ b/crates/gritmodule/src/config.rs
@@ -32,17 +32,31 @@ pub struct GritGitHubConfig {
     pub reviewers: Vec<String>,
 }
 
+/// Represents a reference to an external pattern file
 #[derive(Debug, Deserialize)]
+pub struct GritPatternFile {
+    pub file: PathBuf,
+}
+
+/// Pure in-memory representation of the grit config
+#[derive(Debug)]
 pub struct GritConfig {
     pub patterns: Vec<GritDefinitionConfig>,
-    pub pattern_files: Option<Vec<String>>,
+    pub pattern_files: Option<Vec<GritPatternFile>>,
     pub github: Option<GritGitHubConfig>,
 }
 
+#[derive(Debug, Deserialize)]
+#[serde(untagged)]
+pub enum GritPatternConfig {
+    File(GritPatternFile),
+    Pattern(GritSerializedDefinitionConfig),
+}
+
+/// Compacted / serialized version of the GritConfig
 #[derive(Debug, Deserialize)]
 pub struct SerializedGritConfig {
-    pub patterns: Vec<GritSerializedDefinitionConfig>,
-    pub pattern_files: Option<Vec<String>>,
+    pub patterns: Vec<GritPatternConfig>,
     pub github: Option<GritGitHubConfig>,
 }
 
diff --git a/crates/gritmodule/src/snapshots/marzano_gritmodule__resolver__tests__finds_patterns_from_custom_pattern_files.snap b/crates/gritmodule/src/snapshots/marzano_gritmodule__resolver__tests__finds_patterns_from_custom_pattern_files.snap
index d656f9e97..1ac553545 100644
--- a/crates/gritmodule/src/snapshots/marzano_gritmodule__resolver__tests__finds_patterns_from_custom_pattern_files.snap
+++ b/crates/gritmodule/src/snapshots/marzano_gritmodule__resolver__tests__finds_patterns_from_custom_pattern_files.snap
@@ -12,7 +12,7 @@ expression: resolved_patterns
     samples: ~
     path: ".grit/grit.yaml"
     position:
-      line: 3
+      line: 5
       column: 11
     raw: ~
   module:
@@ -136,7 +136,7 @@ expression: resolved_patterns
           startByte: 1220
           endByte: 1262
         output_range: ~
-    path: fixtures/pattern_files/docs/guides/something.md
+    path: ".grit/../docs/guides/something.md"
     position:
       line: 10
       column: 1
@@ -264,7 +264,7 @@ expression: resolved_patterns
           startByte: 1220
           endByte: 1262
         output_range: ~
-    path: fixtures/pattern_files/docs/guides/version_5_upgrade.md
+    path: ".grit/../docs/guides/version_5_upgrade.md"
     position:
       line: 10
       column: 1
diff --git a/crates/gritmodule/src/yaml.rs b/crates/gritmodule/src/yaml.rs
index b93260af1..eddf0dcdf 100644
--- a/crates/gritmodule/src/yaml.rs
+++ b/crates/gritmodule/src/yaml.rs
@@ -28,14 +28,31 @@ pub fn get_grit_config(source: &str, source_path: &str) -> Result<GritConfig> {
         }
     };
 
+    let mut patterns = Vec::new();
+    let mut pattern_files = Vec::new();
+
+    for pattern in serialized.patterns.into_iter() {
+        match pattern {
+            crate::config::GritPatternConfig::File(file) => {
+                pattern_files.push(file);
+            }
+            crate::config::GritPatternConfig::Pattern(p) => {
+                patterns.push(GritDefinitionConfig::from_serialized(
+                    p,
+                    source_path.to_string(),
+                ));
+            }
+        }
+    }
+
     let new_config = GritConfig {
         github: serialized.github,
-        pattern_files: serialized.pattern_files,
-        patterns: serialized
-            .patterns
-            .into_iter()
-            .map(|p| GritDefinitionConfig::from_serialized(p, source_path.to_string()))
-            .collect(),
+        pattern_files: if pattern_files.is_empty() {
+            None
+        } else {
+            Some(pattern_files)
+        },
+        patterns,
     };
 
     Ok(new_config)
@@ -47,7 +64,8 @@ pub async fn get_patterns_from_yaml(
     root: &Option<String>,
     repo_dir: &str,
 ) -> Result<Vec<ModuleGritPattern>> {
-    let mut config = get_grit_config(&file.content, &extract_relative_file_path(file, root))?;
+    let grit_path = extract_relative_file_path(file, root);
+    let mut config = get_grit_config(&file.content, &grit_path)?;
 
     for pattern in config.patterns.iter_mut() {
         pattern.kind = Some(DefinitionKind::Pattern);
@@ -69,7 +87,9 @@ pub async fn get_patterns_from_yaml(
     let mut file_readers = Vec::new();
 
     for pattern_file in config.pattern_files.unwrap() {
-        let pattern_file = PathBuf::from(repo_dir).join(&pattern_file);
+        let pattern_file = PathBuf::from(repo_dir)
+            .join(REPO_CONFIG_DIR_NAME)
+            .join(&pattern_file.file);
         let extension = PatternFileExt::from_path(&pattern_file);
         if extension.is_none() {
             continue;