diff --git a/packages/zip-it-and-ship-it/src/runtimes/node/in_source_config/index.ts b/packages/zip-it-and-ship-it/src/runtimes/node/in_source_config/index.ts
index f72129ef60..0bd0dc2150 100644
--- a/packages/zip-it-and-ship-it/src/runtimes/node/in_source_config/index.ts
+++ b/packages/zip-it-and-ship-it/src/runtimes/node/in_source_config/index.ts
@@ -22,7 +22,7 @@ import { ExtendedRoute, Route, getRoutes } from '../../../utils/routes.js'
 import { RUNTIME } from '../../runtime.js'
 import type { BindingMethod } from '../parser/bindings.js'
 import { createBindingsMethod } from '../parser/bindings.js'
-import { traverseNodes } from '../parser/exports.js'
+import { parseObject, traverseNodes } from '../parser/exports.js'
 import { getImports } from '../parser/imports.js'
 import { safelyParseSource, safelyReadSource } from '../parser/index.js'
 import type { ModuleFormat } from '../utils/module_format.js'
@@ -87,25 +87,38 @@ export const inSourceConfig = functionConfig
 export type InSourceConfig = z.infer<typeof inSourceConfig>
 
 /**
- * Extracts event subscription slugs from the default export expression,
- * if it's an object whose property names match known event handlers.
+ * Resolves the default export expression to an ObjectExpression if possible,
+ * following identifier bindings when needed.
  */
-const getEventSubscriptions = (
+const resolveObjectExpression = (
   expression: Expression | Declaration | undefined,
   getAllBindings: BindingMethod,
-): string[] => {
-  let objectExpression: ObjectExpression | undefined
-
+): ObjectExpression | undefined => {
   if (expression?.type === 'ObjectExpression') {
-    objectExpression = expression
-  } else if (expression?.type === 'Identifier') {
+    return expression
+  }
+
+  if (expression?.type === 'Identifier') {
     const binding = getAllBindings().get(expression.name)
 
     if (binding?.type === 'ObjectExpression') {
-      objectExpression = binding
+      return binding
     }
   }
 
+  return undefined
+}
+
+/**
+ * Extracts event subscription slugs from the default export expression,
+ * if it's an object whose property names match known event handlers.
+ */
+const getEventSubscriptions = (
+  expression: Expression | Declaration | undefined,
+  getAllBindings: BindingMethod,
+): string[] => {
+  const objectExpression = resolveObjectExpression(expression, getAllBindings)
+
   if (!objectExpression) {
     return []
   }
@@ -130,6 +143,41 @@ const getEventSubscriptions = (
   return events
 }
 
+/**
+ * Extracts a `config` property from the default export object expression,
+ * returning it as a plain object. This supports patterns like:
+ *
+ * ```js
+ * export default {
+ *   fetch() { ... },
+ *   config: { path: "/hello" }
+ * }
+ * ```
+ */
+const getConfigFromDefaultExport = (
+  expression: Expression | Declaration | undefined,
+  getAllBindings: BindingMethod,
+): Record<string, unknown> | undefined => {
+  const objectExpression = resolveObjectExpression(expression, getAllBindings)
+
+  if (!objectExpression) {
+    return undefined
+  }
+
+  for (const property of objectExpression.properties) {
+    if (
+      property.type === 'ObjectProperty' &&
+      property.key.type === 'Identifier' &&
+      property.key.name === 'config' &&
+      property.value.type === 'ObjectExpression'
+    ) {
+      return parseObject(property.value)
+    }
+  }
+
+  return undefined
+}
+
 const validateScheduleFunction = (functionFound: boolean, scheduleFound: boolean, functionName: string): void => {
   if (!functionFound) {
     throw new FunctionBundlingUserError(
@@ -205,7 +253,11 @@ export const parseSource = (source: string, { functionName }: FindISCDeclaration
       result.eventSubscriptions = eventSubscriptions
     }
 
-    const { data, error, success } = inSourceConfig.safeParse(configExport)
+    // Config from the default export object's `config` property is used as a
+    // fallback when no separate `export const config` exists.
+    const inlineConfig = getConfigFromDefaultExport(defaultExportExpression, getAllBindings)
+    const mergedConfigExport = Object.keys(configExport).length > 0 ? configExport : (inlineConfig ?? {})
+    const { data, error, success } = inSourceConfig.safeParse(mergedConfigExport)
 
     if (success) {
       result.config = data
diff --git a/packages/zip-it-and-ship-it/src/runtimes/node/parser/exports.ts b/packages/zip-it-and-ship-it/src/runtimes/node/parser/exports.ts
index 928520dd75..ae5cb9f3f1 100644
--- a/packages/zip-it-and-ship-it/src/runtimes/node/parser/exports.ts
+++ b/packages/zip-it-and-ship-it/src/runtimes/node/parser/exports.ts
@@ -206,7 +206,7 @@ const parseConfigESMExport = (node: Statement) => {
  * subtree. Only values supported by the `parsePrimitive` method are returned,
  * and any others will be ignored and excluded from the resulting object.
  */
-const parseObject = (node: ObjectExpression) =>
+export const parseObject = (node: ObjectExpression) =>
   node.properties.reduce(
     (acc, property): Record<string, unknown> => {
       if (property.type === 'ObjectProperty' && property.key.type === 'Identifier') {
diff --git a/packages/zip-it-and-ship-it/tests/unit/runtimes/node/in_source_config.test.ts b/packages/zip-it-and-ship-it/tests/unit/runtimes/node/in_source_config.test.ts
index e61b542c2d..cd6ac3cd94 100644
--- a/packages/zip-it-and-ship-it/tests/unit/runtimes/node/in_source_config.test.ts
+++ b/packages/zip-it-and-ship-it/tests/unit/runtimes/node/in_source_config.test.ts
@@ -905,4 +905,57 @@ describe('V2 API', () => {
       runtimeAPIVersion: 2,
     })
   })
+
+  describe('Inline config in default export object', () => {
+    test('Extracts config from the default export object', () => {
+      const source = `export default {
+        fetch() { return new Response("Hello") },
+        config: { path: "/hello" }
+      }`
+
+      const isc = parseSource(source, options)
+
+      expect(isc.runtimeAPIVersion).toBe(2)
+      expect(isc.config).toEqual({ path: ['/hello'] })
+      expect(isc.routes).toEqual([{ pattern: '/hello', literal: '/hello', methods: [], prefer_static: undefined }])
+      expect(isc.eventSubscriptions).toEqual(['fetch'])
+    })
+
+    test('Extracts config from a binding-resolved default export object', () => {
+      const source = `const handlers = {
+        fetch() { return new Response("Hello") },
+        config: { path: "/api" }
+      }
+      export default handlers`
+
+      const isc = parseSource(source, options)
+
+      expect(isc.runtimeAPIVersion).toBe(2)
+      expect(isc.config).toEqual({ path: ['/api'] })
+      expect(isc.routes).toHaveLength(1)
+    })
+
+    test('Named config export takes precedence over inline config', () => {
+      const source = `export default {
+        fetch() { return new Response("Hello") },
+        config: { path: "/inline" }
+      }
+      export const config = { path: "/named" }`
+
+      const isc = parseSource(source, options)
+
+      expect(isc.config).toEqual({ path: ['/named'] })
+    })
+
+    test('Ignores non-object config property', () => {
+      const source = `export default {
+        fetch() { return new Response("Hello") },
+        config: "not-an-object"
+      }`
+
+      const isc = parseSource(source, options)
+
+      expect(isc.config).toEqual({})
+    })
+  })
 })