diff --git a/nvm.sh b/nvm.sh
index ccd6bc1..d28ce9e 100644
--- a/nvm.sh
+++ b/nvm.sh
@@ -2106,21 +2106,32 @@ nvm_die_on_prefix() {
   fi
 
   local NVM_NPM_PREFIX
-  NVM_NPM_PREFIX="$(npm config --loglevel=warn get prefix)"
-  if ! (nvm_tree_contains_path "$NVM_DIR" "$NVM_NPM_PREFIX" >/dev/null 2>&1); then
-    if [ "_$NVM_DELETE_PREFIX" = "_1" ]; then
-      npm config --loglevel=warn delete prefix
-    else
-      nvm deactivate >/dev/null 2>&1
-      nvm_err "nvm is not compatible with the npm config \"prefix\" option: currently set to \"$NVM_NPM_PREFIX\""
-      if nvm_has 'npm'; then
-        nvm_err "Run \`npm config delete prefix\` or \`$NVM_COMMAND\` to unset it."
-      else
-        nvm_err "Run \`$NVM_COMMAND\` to unset it."
-      fi
-      return 10
+
+  declare -a npmrcs=("." "$HOME")
+
+  for npmrc in "${npmrcs[@]}"; do
+    if [ -f "${npmrc}/.npmrc" ]; then
+      NVM_NPM_PREFIX=$(grep ^prefix= ${npmrc}/.npmrc | sed s/prefix=\\\(.*\\\)$/\\1/)
+      break
     fi
-  fi
+  done
+
+	if [[ -n $NVM_NPM_PREFIX ]]; then
+		if ! (nvm_tree_contains_path "$NVM_DIR" "$NVM_NPM_PREFIX" >/dev/null 2>&1); then
+			if [ "_$NVM_DELETE_PREFIX" = "_1" ]; then
+				npm config --loglevel=warn delete prefix
+			else
+				nvm deactivate >/dev/null 2>&1
+			  nvm_err "nvm is not compatible with the npm config \"prefix\" option: currently set to \"$NVM_NPM_PREFIX\""
+				if nvm_has 'npm'; then
+					nvm_err "Run \`npm config delete prefix\` or \`$NVM_COMMAND\` to unset it."
+				else
+					nvm_err "Run \`$NVM_COMMAND\` to unset it."
+				fi
+			  return 10
+		  fi
+	  fi
+	fi
 }
 
 # Succeeds if $IOJS_VERSION represents an io.js version that has a