diff --git a/package.json b/package.json
index 49f4665ce0..4e5ed05c74 100644
--- a/package.json
+++ b/package.json
@@ -80,7 +80,7 @@
     "debug": "^2.2.0",
     "fs-blob-store": "^5.2.1",
     "hapi": "^13.3.0",
-    "ipfs-api": "github:ipfs/js-ipfs-api#1fd9749",
+    "ipfs-api": "github:ipfs/js-ipfs-api#f3e2d42",
     "ipfs-blocks": "^0.1.0",
     "ipfs-data-importing": "^0.3.3",
     "ipfs-merkle-dag": "^0.3.0",
diff --git a/src/cli/commands/config.js b/src/cli/commands/config.js
index 86c4527aea..e328fcf14f 100644
--- a/src/cli/commands/config.js
+++ b/src/cli/commands/config.js
@@ -33,6 +33,17 @@ module.exports = Command.extend({
       if (!value) {
         // Get the value of a given key
 
+        if (utils.isDaemonOn()) {
+          return ipfs.config.get(key, (err, config) => {
+            if (err) {
+              log.error(err)
+              throw new Error('failed to read the config')
+            }
+
+            console.log(config.Value)
+          })
+        }
+
         ipfs.config.show((err, config) => {
           if (err) {
             log.error(err)
@@ -56,6 +67,15 @@ module.exports = Command.extend({
           }
         }
 
+        if (utils.isDaemonOn()) {
+          return ipfs.config.set(key, value, (err) => {
+            if (err) {
+              log.error(err)
+              throw new Error('failed to save the config')
+            }
+          })
+        }
+
         ipfs.config.show((err, originalConfig) => {
           if (err) {
             log.error(err)
diff --git a/src/cli/commands/config/edit.js b/src/cli/commands/config/edit.js
index 2770cecdc5..5bcfde40cc 100644
--- a/src/cli/commands/config/edit.js
+++ b/src/cli/commands/config/edit.js
@@ -86,6 +86,9 @@ module.exports = Command.extend({
       }
 
       function saveConfig (config, next) {
+        config = utils.isDaemonOn()
+          ? new Buffer(JSON.stringify(config)) : config
+
         ipfs.config.replace(config, (err) => {
           if (err) {
             log.error(err)
diff --git a/src/cli/commands/config/replace.js b/src/cli/commands/config/replace.js
index 258000d6a1..c9d5672d32 100644
--- a/src/cli/commands/config/replace.js
+++ b/src/cli/commands/config/replace.js
@@ -4,6 +4,7 @@ const path = require('path')
 const log = debug('cli:config')
 log.error = debug('cli:config:error')
 const utils = require('../../utils')
+const fs = require('fs')
 
 module.exports = Command.extend({
   desc: 'Replaces the config with <file>',
@@ -15,14 +16,16 @@ module.exports = Command.extend({
       if (err) {
         throw err
       }
-      const config = require(path.resolve(process.cwd(), configPath))
 
-      ipfs.config.replace(config, (err, version) => {
+      const filePath = path.resolve(process.cwd(), configPath)
+
+      const config = utils.isDaemonOn()
+        ? filePath : JSON.parse(fs.readFileSync(filePath, 'utf8'))
+
+      ipfs.config.replace(config, (err) => {
         if (err) {
           throw err
         }
-
-        console.log(version)
       })
     })
   }
diff --git a/test/cli-tests/test-config.js b/test/cli-tests/test-config.js
index f7a8badd42..41fe69300d 100644
--- a/test/cli-tests/test-config.js
+++ b/test/cli-tests/test-config.js
@@ -3,87 +3,220 @@
 const expect = require('chai').expect
 const nexpect = require('nexpect')
 const fs = require('fs')
+const httpAPI = require('../../src/http-api')
 
 describe('config', () => {
+  const repoTests = require('./index').repoTests
+  const configPath = repoTests + '/config'
+  const originalConfigPath = process.cwd() + '/test/go-ipfs-repo/config'
+  const updatedConfig = () => JSON.parse(fs.readFileSync(configPath, 'utf8'))
+  const restoreConfig = () => fs.writeFileSync(configPath, fs.readFileSync(originalConfigPath, 'utf8'), 'utf8')
+
   describe('api offline', () => {
-    const repoTests = require('./index').repoTests
-    const configPath = repoTests + '/config'
-
-    const updatedConfig = () => JSON.parse(fs.readFileSync(configPath, 'utf8'))
-
-    it('get a config key value', (done) => {
-      nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'Identity.PeerID'])
-        .run((err, stdout, exitcode) => {
-          const expected = 'QmQ2zigjQikYnyYUSXZydNXrDRhBut2mubwJBaLXobMt3A'
-          expect(stdout[0]).to.equal(expected)
-          expect(err).to.not.exist
-          expect(exitcode).to.equal(0)
-          done()
-        })
-    })
+    describe('get/set', () => {
+      it('get a config key value', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'Identity.PeerID'])
+          .run((err, stdout, exitcode) => {
+            const expected = 'QmQ2zigjQikYnyYUSXZydNXrDRhBut2mubwJBaLXobMt3A'
+            expect(stdout[0]).to.equal(expected)
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(0)
+            done()
+          })
+      })
+
+      it('set a config key with a string value', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', 'bar'])
+          .run((err, stdout, exitcode) => {
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(0)
+            expect(updatedConfig().foo).to.equal('bar')
+            done()
+          })
+      })
+
+      it('set a config key with true', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', true, '--bool'])
+          .run((err, stdout, exitcode) => {
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(0)
+            expect(updatedConfig().foo).to.equal(true)
+            done()
+          })
+      })
+
+      it('set a config key with false', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', false, '--bool'])
+          .run((err, stdout, exitcode) => {
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(0)
+            expect(updatedConfig().foo).to.equal(false)
+            done()
+          })
+      })
+
+      it('set a config key with json', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', '{"bar": 0}', '--json'])
+          .run((err, stdout, exitcode) => {
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(0)
+            expect(updatedConfig().foo).to.deep.equal({ bar: 0 })
+            done()
+          })
+      })
 
-    it('set a config key with a string value', (done) => {
-      nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', 'bar'])
-        .run((err, stdout, exitcode) => {
-          expect(err).to.not.exist
-          expect(exitcode).to.equal(0)
-          expect(updatedConfig().foo).to.equal('bar')
-          done()
-        })
+      it('set a config key with invalid json', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', '{"bar: 0}', '--json'])
+          .run((err, stdout, exitcode) => {
+            const expected = 'error\tinvalid JSON provided'
+            expect(stdout[0]).to.equal(expected)
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(1)
+            done()
+          })
+      })
+
+      it('call config with no arguments', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config'])
+          .run((err, stdout, exitcode) => {
+            const expected = "error\targument 'key' is required"
+            expect(stdout[0]).to.equal(expected)
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(1)
+            done()
+          })
+      })
     })
 
-    it('set a config key with true', (done) => {
-      nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', true, '--bool'])
-        .run((err, stdout, exitcode) => {
-          expect(err).to.not.exist
-          expect(exitcode).to.equal(0)
-          expect(updatedConfig().foo).to.equal(true)
-          done()
-        })
+    describe('replace', () => {
+      it('replace config with file', (done) => {
+        const filePath = 'test/test-data/otherconfig'
+        const expectedConfig = JSON.parse(fs.readFileSync(filePath, 'utf8'))
+
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'replace', filePath])
+          .run((err, stdout, exitcode) => {
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(0)
+
+            expect(updatedConfig()).to.deep.equal(expectedConfig)
+            done()
+          })
+      })
+
+      after(() => {
+        restoreConfig()
+      })
     })
+  })
 
-    it('set a config key with false', (done) => {
-      nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', false, '--bool'])
-        .run((err, stdout, exitcode) => {
-          expect(err).to.not.exist
-          expect(exitcode).to.equal(0)
-          expect(updatedConfig().foo).to.equal(false)
-          done()
-        })
+  describe('api running', () => {
+    before((done) => {
+      httpAPI.start((err) => {
+        expect(err).to.not.exist
+        done()
+      })
     })
 
-    it('set a config key with json', (done) => {
-      nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', '{"bar": 0}', '--json'])
-        .run((err, stdout, exitcode) => {
-          expect(err).to.not.exist
-          expect(exitcode).to.equal(0)
-          expect(updatedConfig().foo).to.deep.equal({ bar: 0 })
-          done()
-        })
+    after((done) => {
+      httpAPI.stop((err) => {
+        expect(err).to.not.exist
+        done()
+      })
     })
 
-    it('set a config key with invalid json', (done) => {
-      nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', '{"bar: 0}', '--json'])
-        .run((err, stdout, exitcode) => {
-          const expected = 'error\tinvalid JSON provided'
-          expect(stdout[0]).to.equal(expected)
-          expect(err).to.not.exist
-          expect(exitcode).to.equal(1)
-          done()
-        })
+    describe('get/set', () => {
+      it('get a config key value', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'Identity.PeerID'])
+          .run((err, stdout, exitcode) => {
+            const expected = 'QmQ2zigjQikYnyYUSXZydNXrDRhBut2mubwJBaLXobMt3A'
+            expect(stdout[0]).to.equal(expected)
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(0)
+            done()
+          })
+      })
+
+      it('set a config key with a string value', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', 'bar'])
+          .run((err, stdout, exitcode) => {
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(0)
+            expect(updatedConfig().foo).to.equal('bar')
+            done()
+          })
+      })
+
+      it('set a config key with true', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', true, '--bool'])
+          .run((err, stdout, exitcode) => {
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(0)
+            expect(updatedConfig().foo).to.equal(true)
+            done()
+          })
+      })
+
+      it('set a config key with false', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', false, '--bool'])
+          .run((err, stdout, exitcode) => {
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(0)
+            expect(updatedConfig().foo).to.equal(false)
+            done()
+          })
+      })
+
+      it('set a config key with json', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', '{"bar": 0}', '--json'])
+          .run((err, stdout, exitcode) => {
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(0)
+            expect(updatedConfig().foo).to.deep.equal({ bar: 0 })
+            done()
+          })
+      })
+
+      it('set a config key with invalid json', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'foo', '{"bar: 0}', '--json'])
+          .run((err, stdout, exitcode) => {
+            const expected = 'error\tinvalid JSON provided'
+            expect(stdout[0]).to.equal(expected)
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(1)
+            done()
+          })
+      })
+
+      it('call config with no arguments', (done) => {
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config'])
+          .run((err, stdout, exitcode) => {
+            const expected = "error\targument 'key' is required"
+            expect(stdout[0]).to.equal(expected)
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(1)
+            done()
+          })
+      })
     })
 
-    it('call config with no arguments', (done) => {
-      nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config'])
-        .run((err, stdout, exitcode) => {
-          const expected = "error\targument 'key' is required"
-          expect(stdout[0]).to.equal(expected)
-          expect(err).to.not.exist
-          expect(exitcode).to.equal(1)
-          done()
-        })
+    describe('replace', () => {
+      it('replace config with file', (done) => {
+        const filePath = 'test/test-data/otherconfig'
+        const expectedConfig = JSON.parse(fs.readFileSync(filePath, 'utf8'))
+
+        nexpect.spawn('node', [process.cwd() + '/src/cli/bin.js', 'config', 'replace', filePath])
+          .run((err, stdout, exitcode) => {
+            expect(err).to.not.exist
+            expect(exitcode).to.equal(0)
+
+            expect(updatedConfig()).to.deep.equal(expectedConfig)
+            done()
+          })
+      })
+
+      after(() => {
+        restoreConfig()
+      })
     })
   })
-
-  describe('api running', () => {})
 })