diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7dba736..c983599 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,11 @@
 
 # [0.0.16]
 
+* If `iwyu.compile_commands` is set to the default `auto`, then the extension will try:
+  - `${workspaceFolder}/compile_commands.json`,
+  - `${workspaceFolder}/build/compile_commands.json`,
+  - `${fileWorkspaceFolder}/compile_commands.json`, and
+  - `${fileWorkspaceFolder}/build/compile_commands.json`.
 * Added rudimentary support for `${fileWorkspaceFolder}` in `iwyu.compile_commands` settings.
 
 # [0.0.15]
diff --git a/README.md b/README.md
index 68202e2..fae76aa 100644
--- a/README.md
+++ b/README.md
@@ -53,8 +53,12 @@ easily achievable with all projects. The standard clang configurations also have
 
 This extension has the following general settings:
 
-- `iwyu.compile_commands` Path to `compile_commands.json` file (supports `${workspaceFolder}` and
-  `${workspaceRoot}`).
+- `iwyu.compile_commands` Path to `compile_commands.json` file (supports `${workspaceFolder}`,
+  `${workspaceRoot}` and `${fileWorkspaceFolder}`). If set to the default `auto`, then the extension will try:
+  - `${workspaceFolder}/compile_commands.json`,
+  - `${workspaceFolder}/build/compile_commands.json`,
+  - `${fileWorkspaceFolder}/compile_commands.json`, and
+  - `${fileWorkspaceFolder}/build/compile_commands.json`.
 - `iwyu.filter_iwu_output`: Regexp expression filter for iwyu output. This will be used as {here} in
   '#include.*({here})'. For instance in order to not add system includes under '__fwd/*.', set this to '<__fwd/'. This
   does not result in removing such headers, it merely prevents adding them, so it won't produce diagnostics for such includes.
diff --git a/package-lock.json b/package-lock.json
index 272ae56..39e75d5 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,17 +1,17 @@
 {
     "name": "helly25iwyu",
-    "version": "0.0.1",
+    "version": "0.0.16",
     "lockfileVersion": 3,
     "requires": true,
     "packages": {
         "": {
             "name": "helly25iwyu",
-            "version": "0.0.1",
+            "version": "0.0.16",
             "license": "Apache-2.0",
             "devDependencies": {
                 "@types/glob": "^8.1.0",
                 "@types/mocha": "^10.0.1",
-                "@types/node": "16.x",
+                "@types/node": "^16.18.101",
                 "@types/vscode": "^1.78.0",
                 "@typescript-eslint/eslint-plugin": "^5.59.1",
                 "@typescript-eslint/parser": "^5.59.1",
@@ -187,9 +187,9 @@
             "dev": true
         },
         "node_modules/@types/node": {
-            "version": "16.18.34",
-            "resolved": "https://registry.npmjs.org/@types/node/-/node-16.18.34.tgz",
-            "integrity": "sha512-VmVm7gXwhkUimRfBwVI1CHhwp86jDWR04B5FGebMMyxV90SlCmFujwUHrxTD4oO+SOYU86SoxvhgeRQJY7iXFg==",
+            "version": "16.18.101",
+            "resolved": "https://registry.npmjs.org/@types/node/-/node-16.18.101.tgz",
+            "integrity": "sha512-AAsx9Rgz2IzG8KJ6tXd6ndNkVcu+GYB6U/SnFAaokSPNx2N7dcIIfnighYUNumvj6YS2q39Dejz5tT0NCV7CWA==",
             "dev": true
         },
         "node_modules/@types/semver": {
diff --git a/package.json b/package.json
index 44de9f4..02680fc 100644
--- a/package.json
+++ b/package.json
@@ -7,7 +7,7 @@
         "Include What You Use",
         "include-what-you-use"
     ],
-    "version": "0.0.15",
+    "version": "0.0.16",
     "publisher": "helly25",
     "license": "Apache-2.0",
     "repository": {
@@ -41,8 +41,8 @@
             "properties": {
                 "iwyu.compile_commands": {
                     "type": "string",
-                    "default": "${workspaceFolder}/compile_commands.json",
-                    "markdownDescription": "Path to `compile_commands.json` file (supports `${workspaceFolder}` and `${workspaceRoot}`)."
+                    "default": "auto",
+                    "markdownDescription": "Path to `compile_commands.json` file (supports `${workspaceFolder}`, `${fileWorkspaceFolder}` and `${workspaceRoot}`). If this is set to the default `auto`, then the extension will try `${workspaceFolder}/compile_commands.json`, `${workspaceFolder}/build/compile_commands.json`, `${fileWorkspaceFolder}/compile_commands.json` and `${fileWorkspaceFolder}/build/compile_commands.json`."
                 },
                 "iwyu.filter_iwyu_output": {
                     "type": "string",
@@ -183,16 +183,16 @@
         "test": "node ./out/test/runTest.js"
     },
     "devDependencies": {
-        "@types/vscode": "^1.78.0",
         "@types/glob": "^8.1.0",
         "@types/mocha": "^10.0.1",
-        "@types/node": "16.x",
+        "@types/node": "^16.18.101",
+        "@types/vscode": "^1.78.0",
         "@typescript-eslint/eslint-plugin": "^5.59.1",
         "@typescript-eslint/parser": "^5.59.1",
+        "@vscode/test-electron": "^2.3.0",
         "eslint": "^8.39.0",
         "glob": "^8.1.0",
         "mocha": "^10.2.0",
-        "typescript": "^5.0.4",
-        "@vscode/test-electron": "^2.3.0"
+        "typescript": "^5.0.4"
     }
-}
\ No newline at end of file
+}
diff --git a/src/extension.ts b/src/extension.ts
index c804030..b2c4bda 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -249,6 +249,7 @@ class ConfigData {
     workspacefolder: string;
     config: vscode.WorkspaceConfiguration;
     compileCommandsData: CompileCommandsData;
+    compileCommandsJsonPath: string = "";
 
     constructor(workspacefolder: string) {
         this.workspacefolder = workspacefolder;
@@ -295,9 +296,30 @@ class ConfigData {
     }
 
     compileCommandsJson(): string {
-        let compileCommandsJsonDefault = "${workspaceFolder}/compile_commands.json";
-        let compileCommandsJson = this.config.get("compile_commands", compileCommandsJsonDefault);
-        return this.replaceWorkspaceVars(compileCommandsJson);
+        let compileCommandsJsonDefault = "auto";
+        let compileCommandsJsonPath = this.config.get("compile_commands", compileCommandsJsonDefault);
+        const tests: readonly string[] = compileCommandsJsonPath === compileCommandsJsonDefault ?
+            [
+                "${workspaceFolder}/compile_commands.json",
+                "${workspaceFolder}/build/compile_commands.json",
+                "${fileWorkspaceFolder}/compile_commands.json",
+                "${fileWorkspaceFolder}/build/compile_commands.json",
+            ]
+            : [compileCommandsJsonPath];
+        for (let test of tests) {
+            try {
+                test = this.replaceWorkspaceVars(test);
+                fs.statSync(test);
+                compileCommandsJsonPath = test;
+                break;
+            }
+            catch (err) {
+                // Ignore, caught later.
+            }
+        }
+        log(DEBUG, "Using compileCommandsJson = '" + compileCommandsJsonPath + "'.");
+        this.compileCommandsJsonPath = compileCommandsJsonPath;
+        return this.compileCommandsJsonPath;
     }
 
     updateConfig() {
@@ -305,10 +327,11 @@ class ConfigData {
     }
 
     updateCompileCommands() {
+        let compileCommandsJsonLast = this.compileCommandsJsonPath;
         let compileCommandsJson = this.compileCommandsJson();
         try {
-            let stats = fs.statSync(compileCommandsJson);
-            if (stats.mtimeMs !== this.compileCommandsData.mtimeMs) {
+            let stats = fs.statSync(this.compileCommandsJsonPath);
+            if (stats.mtimeMs !== this.compileCommandsData.mtimeMs || compileCommandsJsonLast !== this.compileCommandsJsonPath) {
                 this.compileCommandsData = this.parseCompileCommands();
             }
         }