diff --git a/README.md b/README.md
index 8adda583d..5058fe2ea 100644
--- a/README.md
+++ b/README.md
@@ -10,7 +10,7 @@ See [simplex.chat](https://simplex.chat) website for chat demo and the explanati
 SMP protocol is semi-formally defined [here](https://github.com/simplex-chat/protocol).
 
 Currently only these features are available:
-- simple 1-2-1 chat with multiple people in the same terminal window.
+- simple 1-to-1 chat with multiple people in the same terminal window.
 - auto-populated recipient name - just type your messages.
 - default server is available to play with - `smp.simplex.im:5223` - and you can deploy your own (`smp-server` executable in this repo).
 - no global identity or names visible to the server(s) - for the privacy of contacts and conversations.
@@ -51,16 +51,15 @@ $ dog-food
 
 > **NOTE:** When running chat client executable built with the latter approach, if you encounter ``version `GLIBC_2.28' not found`` error, rebuild it with `haskell:8.8.4-stretch` base image instead (you'd have to change it in your local [Dockerfile](Dockerfile)).
 
-`dog-food` (as in "eating your own dog food" - it is an early prototype) starts chat client with default parameters. By default, SQLite database file is created in the working directory (`smp-chat.db`), and the default SMP server is `smp.simplex.im:5223`.
+`dog-food` (as in "eating your own dog food" - it is an early prototype) starts chat client with default parameters. By default, app data directory is created in the home directory (`~/.simplex`, or `%APPDATA%/simplex` on Windows), and SQLite database file `smp-chat.db` is initialized in it. The default SMP server is `smp.simplex.im:5223`.
 
-To specify a different chat database location run:
+To specify a different file path for the chat database use `-d` command line option:
 
 ```shell
-$ mkdir ~/simplex
-$ dog-food -d ~/simplex/my-chat.db
+$ dog-food -d my-chat.db
 ```
 
-You can deploy your own server and set client to use it via command line option:
+If you deployed your own SMP server you can set client to use it via `-s` option:
 
 ```shell
 $ dog-food -s smp.example.com:5223
diff --git a/apps/dog-food/ChatOptions.hs b/apps/dog-food/ChatOptions.hs
index 7051796a8..c95ddea85 100644
--- a/apps/dog-food/ChatOptions.hs
+++ b/apps/dog-food/ChatOptions.hs
@@ -6,6 +6,7 @@ import qualified Data.Attoparsec.ByteString.Char8 as A
 import qualified Data.ByteString.Char8 as B
 import Options.Applicative
 import Simplex.Messaging.Agent.Transmission (SMPServer (..), smpServerP)
+import System.FilePath (combine)
 import Types
 
 data ChatOpts = ChatOpts
@@ -15,8 +16,9 @@ data ChatOpts = ChatOpts
     termMode :: TermMode
   }
 
-chatOpts :: Parser ChatOpts
-chatOpts =
+chatOpts :: FilePath -> Parser ChatOpts
+chatOpts appDir = do
+  let defaultDbFilePath = combine appDir "smp-chat.db"
   ChatOpts
     <$> option
       (Just <$> str)
@@ -30,8 +32,8 @@ chatOpts =
       ( long "database"
           <> short 'd'
           <> metavar "DB_FILE"
-          <> help "sqlite database filename (smp-chat.db)"
-          <> value "smp-chat.db"
+          <> help ("sqlite database file path (" ++ defaultDbFilePath ++ ")")
+          <> value defaultDbFilePath
       )
     <*> option
       parseSMPServer
@@ -60,12 +62,12 @@ parseTermMode = maybeReader $ \case
   "editor" -> Just TermModeEditor
   _ -> Nothing
 
-getChatOpts :: IO ChatOpts
-getChatOpts = execParser opts
+getChatOpts :: FilePath -> IO ChatOpts
+getChatOpts appDir = execParser opts
   where
     opts =
       info
-        (chatOpts <**> helper)
+        (chatOpts appDir <**> helper)
         ( fullDesc
             <> header "Chat prototype using Simplex Messaging Protocol (SMP)"
             <> progDesc "Start chat with DB_FILE file and use SERVER as SMP server"
diff --git a/apps/dog-food/Main.hs b/apps/dog-food/Main.hs
index d93094565..4c1f87abb 100644
--- a/apps/dog-food/Main.hs
+++ b/apps/dog-food/Main.hs
@@ -27,6 +27,7 @@ import Simplex.Messaging.Agent.Env.SQLite
 import Simplex.Messaging.Agent.Transmission
 import Simplex.Messaging.Client (smpDefaultConfig)
 import Simplex.Messaging.Util (bshow, raceAny_)
+import System.Directory (getAppUserDataDirectory)
 import Types
 
 cfg :: AgentConfig
@@ -116,8 +117,11 @@ chatHelpInfo =
 
 main :: IO ()
 main = do
-  ChatOpts {dbFileName, smpServer, name, termMode} <- getChatOpts
-  putStrLn "simpleX chat prototype, \"/help\" for usage information"
+  appDir <- getAppUserDataDirectory "simplex"
+  ChatOpts {dbFileName, smpServer, name, termMode} <- getChatOpts appDir
+  putStrLn "simpleX chat prototype"
+  putStrLn $ "db: " ++ dbFileName
+  putStrLn "type \"/help\" for usage information"
   let user = Contact <$> name
   t <- getChatClient smpServer user
   ct <- newChatTerminal (tbqSize cfg) user termMode
diff --git a/package.yaml b/package.yaml
index fe5704410..83000817e 100644
--- a/package.yaml
+++ b/package.yaml
@@ -19,6 +19,8 @@ dependencies:
   - bytestring == 0.10.*
   - containers
   - cryptonite == 0.26.*
+  - directory == 1.3.*
+  - filepath == 1.4.*
   - iso8601-time == 0.1.*
   - memory == 0.15.*
   - mtl
diff --git a/src/Simplex/Messaging/Agent/Env/SQLite.hs b/src/Simplex/Messaging/Agent/Env/SQLite.hs
index b0291085b..6ecd85ea2 100644
--- a/src/Simplex/Messaging/Agent/Env/SQLite.hs
+++ b/src/Simplex/Messaging/Agent/Env/SQLite.hs
@@ -18,7 +18,7 @@ data AgentConfig = AgentConfig
     rsaKeySize :: Int,
     connIdBytes :: Int,
     tbqSize :: Natural,
-    dbFile :: String,
+    dbFile :: FilePath,
     smpCfg :: SMPClientConfig
   }
 
diff --git a/src/Simplex/Messaging/Agent/Store/SQLite.hs b/src/Simplex/Messaging/Agent/Store/SQLite.hs
index b73dea5b6..ad72ca047 100644
--- a/src/Simplex/Messaging/Agent/Store/SQLite.hs
+++ b/src/Simplex/Messaging/Agent/Store/SQLite.hs
@@ -40,19 +40,23 @@ import Simplex.Messaging.Protocol (MsgBody)
 import qualified Simplex.Messaging.Protocol as SMP
 import Simplex.Messaging.Util (liftIOEither)
 import System.Exit (ExitCode (ExitFailure), exitWith)
+import System.FilePath (takeDirectory)
 import Text.Read (readMaybe)
+import UnliftIO.Directory (createDirectoryIfMissing)
 import qualified UnliftIO.Exception as E
 
 -- * SQLite Store implementation
 
 data SQLiteStore = SQLiteStore
-  { dbFilename :: String,
+  { dbFilePath :: FilePath,
     dbConn :: DB.Connection
   }
 
-createSQLiteStore :: MonadUnliftIO m => String -> m SQLiteStore
-createSQLiteStore dbFilename = do
-  store <- connectSQLiteStore dbFilename
+createSQLiteStore :: MonadUnliftIO m => FilePath -> m SQLiteStore
+createSQLiteStore dbFilePath = do
+  let dbDir = takeDirectory dbFilePath
+  createDirectoryIfMissing False dbDir
+  store <- connectSQLiteStore dbFilePath
   compileOptions <- liftIO (DB.query_ (dbConn store) "pragma COMPILE_OPTIONS;" :: IO [[T.Text]])
   let threadsafeOption = find (isPrefixOf "THREADSAFE=") (concat compileOptions)
   liftIO $ case threadsafeOption of
@@ -65,10 +69,10 @@ createSQLiteStore dbFilename = do
   liftIO . createSchema $ dbConn store
   return store
 
-connectSQLiteStore :: MonadUnliftIO m => String -> m SQLiteStore
-connectSQLiteStore dbFilename = do
-  dbConn <- liftIO $ DB.open dbFilename
-  return SQLiteStore {dbFilename, dbConn}
+connectSQLiteStore :: MonadUnliftIO m => FilePath -> m SQLiteStore
+connectSQLiteStore dbFilePath = do
+  dbConn <- liftIO $ DB.open dbFilePath
+  return SQLiteStore {dbFilePath, dbConn}
 
 instance (MonadUnliftIO m, MonadError StoreError m) => MonadAgentStore SQLiteStore m where
   createRcvConn :: SQLiteStore -> RcvQueue -> m ()
diff --git a/tests/AgentTests/SQLiteTests.hs b/tests/AgentTests/SQLiteTests.hs
index 3fe5c0d6b..fe6593c88 100644
--- a/tests/AgentTests/SQLiteTests.hs
+++ b/tests/AgentTests/SQLiteTests.hs
@@ -37,7 +37,7 @@ withStore = before createStore . after removeStore
     removeStore :: SQLiteStore -> IO ()
     removeStore store = do
       DB.close $ dbConn store
-      removeFile $ dbFilename store
+      removeFile $ dbFilePath store
 
 returnsResult :: (Eq a, Eq e, Show a, Show e) => ExceptT e IO a -> a -> Expectation
 action `returnsResult` r = runExceptT action `shouldReturn` Right r