diff --git a/docs/cli/configuration.md b/docs/cli/configuration.md
index a03a325afd3..28ba6a40260 100644
--- a/docs/cli/configuration.md
+++ b/docs/cli/configuration.md
@@ -535,7 +535,8 @@ the `excludedProjectEnvVars` setting in your `settings.json` file.
   - This is useful for development and testing.
 - **`GEMINI_SYSTEM_MD`**:
   - Overrides the base system prompt with the contents of a Markdown file.
-  - If set to `1` or `true`, it uses the file at `.gemini/system.md`.
+  - If set to `1` or `true`, it uses the file at `.gemini/system.md`. If that
+    file is missing, it falls back to `~/.gemini/system.md`.
   - If set to a file path, it uses that file. The path can be absolute or
     relative. `~` is supported for the home directory.
   - The specified file must exist.
diff --git a/docs/cli/system-prompt.md b/docs/cli/system-prompt.md
index c7fe5fc4ba1..7ecf55f489c 100644
--- a/docs/cli/system-prompt.md
+++ b/docs/cli/system-prompt.md
@@ -27,7 +27,7 @@ via a `.gemini/.env` file. See
 - Use the project default path (`.gemini/system.md`):
   - `GEMINI_SYSTEM_MD=true` or `GEMINI_SYSTEM_MD=1`
   - The CLI reads `./.gemini/system.md` (relative to your current project
-    directory).
+    directory). If it does not exist, it falls back to `~/.gemini/system.md`.
 
 - Use a custom file path:
   - `GEMINI_SYSTEM_MD=/absolute/path/to/my-system.md`
@@ -85,7 +85,8 @@ GEMINI.md focused on high‑level guidance and project specifics.
 
 - Error: `missing system prompt file '…'`
   - Ensure the referenced path exists and is readable.
-  - For `GEMINI_SYSTEM_MD=1|true`, create `./.gemini/system.md` in your project.
+  - For `GEMINI_SYSTEM_MD=1|true`, create `./.gemini/system.md` in your project
+    or `~/.gemini/system.md` in your home directory.
 - Override not taking effect
   - Confirm the variable is loaded (use `.gemini/.env` or export in your shell).
   - Paths are resolved from the current working directory; try an absolute path.
diff --git a/docs/get-started/configuration.md b/docs/get-started/configuration.md
index a6e0d68f343..552229290f4 100644
--- a/docs/get-started/configuration.md
+++ b/docs/get-started/configuration.md
@@ -1152,7 +1152,8 @@ the `advanced.excludedEnvVars` setting in your `settings.json` file.
   - Accepts `true`, `false`, `docker`, `podman`, or a custom command string.
 - **`GEMINI_SYSTEM_MD`**:
   - Replaces the built‑in system prompt with content from a Markdown file.
-  - `true`/`1`: Use project default path `./.gemini/system.md`.
+  - `true`/`1`: Use project default path `./.gemini/system.md`; if missing, fall
+    back to `~/.gemini/system.md`.
   - Any other string: Treat as a path (relative/absolute supported, `~`
     expands).
   - `false`/`0` or unset: Use the built‑in prompt. See
diff --git a/packages/core/src/core/prompts.test.ts b/packages/core/src/core/prompts.test.ts
index cb346b01c36..6f9e6d1e990 100644
--- a/packages/core/src/core/prompts.test.ts
+++ b/packages/core/src/core/prompts.test.ts
@@ -231,6 +231,33 @@ describe('Core System Prompt (prompts.ts)', () => {
       },
     );
 
+    it.each(['1', 'true'])(
+      'should fall back to home system.md when GEMINI_SYSTEM_MD is "%s" and project file is missing',
+      (value) => {
+        const defaultPath = path.resolve(path.join(GEMINI_DIR, 'system.md'));
+        const homeDir = '/Users/test';
+        const homePath = path.resolve(
+          path.join(homeDir, GEMINI_DIR, 'system.md'),
+        );
+        vi.stubEnv('GEMINI_SYSTEM_MD', value);
+        vi.spyOn(os, 'homedir').mockReturnValue(homeDir);
+        vi.mocked(fs.existsSync).mockImplementation((targetPath) => {
+          if (targetPath === defaultPath) {
+            return false;
+          }
+          if (targetPath === homePath) {
+            return true;
+          }
+          return false;
+        });
+        vi.mocked(fs.readFileSync).mockReturnValue('custom system prompt');
+
+        const prompt = getCoreSystemPrompt(mockConfig);
+        expect(fs.readFileSync).toHaveBeenCalledWith(homePath, 'utf8');
+        expect(prompt).toBe('custom system prompt');
+      },
+    );
+
     it('should read from custom path when GEMINI_SYSTEM_MD provides one, preserving case', () => {
       const customPath = path.resolve('/custom/path/SyStEm.Md');
       vi.stubEnv('GEMINI_SYSTEM_MD', customPath);
diff --git a/packages/core/src/core/prompts.ts b/packages/core/src/core/prompts.ts
index 0165ad6228e..d1c62696521 100644
--- a/packages/core/src/core/prompts.ts
+++ b/packages/core/src/core/prompts.ts
@@ -77,6 +77,18 @@ export function resolvePathFromEnv(envVar?: string): {
   };
 }
 
+function getGlobalSystemMdPath(): string | null {
+  try {
+    return path.join(os.homedir(), GEMINI_DIR, 'system.md');
+  } catch (error) {
+    debugLogger.warn(
+      'Could not resolve home directory for system prompt fallback.',
+      error,
+    );
+    return null;
+  }
+}
+
 export function getCoreSystemPrompt(
   config: Config,
   userMemory?: string,
@@ -101,7 +113,21 @@ export function getCoreSystemPrompt(
 
     // require file to exist when override is enabled
     if (!fs.existsSync(systemMdPath)) {
-      throw new Error(`missing system prompt file '${systemMdPath}'`);
+      if (!systemMdResolution.isSwitch) {
+        throw new Error(`missing system prompt file '${systemMdPath}'`);
+      }
+      const globalSystemMdPath = getGlobalSystemMdPath();
+      if (!globalSystemMdPath) {
+        throw new Error(
+          `missing system prompt file '${systemMdPath}' (failed to resolve home directory)`,
+        );
+      }
+      if (!fs.existsSync(globalSystemMdPath)) {
+        throw new Error(
+          `missing system prompt file '${systemMdPath}' (also checked '${globalSystemMdPath}')`,
+        );
+      }
+      systemMdPath = globalSystemMdPath;
     }
   }