diff --git a/monkey/monkey_island.py b/monkey/monkey_island.py
index 650cfe95d..958a1f529 100644
--- a/monkey/monkey_island.py
+++ b/monkey/monkey_island.py
@@ -16,7 +16,10 @@ if "__main__" == __name__:
     # This is here in order to catch EVERYTHING, some functions are being called on
     # imports, so the log init needs to be first.
     try:
-        server_config_path = os.path.expanduser(island_args.server_config)
+        if island_args.server_config:
+            server_config_path = os.path.expanduser(island_args.server_config)
+        else:
+            server_config_path = config_loader.create_default_server_config_path()
 
         config = config_loader.load_server_config_from_file(server_config_path)
 
@@ -32,4 +35,4 @@ if "__main__" == __name__:
 
     from monkey_island.cc.main import main  # noqa: E402
 
-    main(config["data_dir"], island_args.setup_only, island_args.server_config)
+    main(config["data_dir"], island_args.setup_only, server_config_path)
diff --git a/monkey/monkey_island/cc/arg_parser.py b/monkey/monkey_island/cc/arg_parser.py
index 6e12ef38f..982776230 100644
--- a/monkey/monkey_island/cc/arg_parser.py
+++ b/monkey/monkey_island/cc/arg_parser.py
@@ -1,7 +1,5 @@
 from dataclasses import dataclass
 
-from monkey_island.cc.server_utils.consts import DEFAULT_SERVER_CONFIG_PATH
-
 
 @dataclass
 class IslandArgs:
@@ -25,10 +23,7 @@ def parse_cli_args() -> IslandArgs:
         "compiling/packaging Islands.",
     )
     parser.add_argument(
-        "--server-config",
-        action="store",
-        help="The path to the server configuration file.",
-        default=DEFAULT_SERVER_CONFIG_PATH,
+        "--server-config", action="store", help="The path to the server configuration file."
     )
     args = parser.parse_args()
 
diff --git a/monkey/monkey_island/cc/server_utils/consts.py b/monkey/monkey_island/cc/server_utils/consts.py
index f0dba26dc..1c0e53d84 100644
--- a/monkey/monkey_island/cc/server_utils/consts.py
+++ b/monkey/monkey_island/cc/server_utils/consts.py
@@ -3,12 +3,13 @@ import os
 __author__ = "itay.mizeretz"
 
 MONKEY_ISLAND_ABS_PATH = os.path.join(os.getcwd(), "monkey_island")
+
+DEFAULT_DATA_DIR = os.path.join(MONKEY_ISLAND_ABS_PATH, "cc")
+
 DEFAULT_MONKEY_TTL_EXPIRY_DURATION_IN_SECONDS = 60 * 5
 
-DEFAULT_SERVER_CONFIG_PATH = os.path.join(MONKEY_ISLAND_ABS_PATH, "cc", "server_config.json")
+DEFAULT_SERVER_CONFIG_PATH = os.path.join(DEFAULT_DATA_DIR, "server_config.json")
 
 DEFAULT_DEVELOP_SERVER_CONFIG_PATH = os.path.join(
     MONKEY_ISLAND_ABS_PATH, "cc", "server_config.json.develop"
 )
-
-DEFAULT_DATA_DIR = os.path.join(MONKEY_ISLAND_ABS_PATH, "cc")
diff --git a/monkey/monkey_island/config_loader.py b/monkey/monkey_island/config_loader.py
index aaa9185d7..036be2c69 100644
--- a/monkey/monkey_island/config_loader.py
+++ b/monkey/monkey_island/config_loader.py
@@ -1,11 +1,20 @@
 import json
 import os
 
-from monkey_island.cc.server_utils.consts import DEFAULT_DATA_DIR
+import monkey_island.cc.environment.server_config_generator as server_config_generator
+from monkey_island.cc.server_utils.consts import DEFAULT_DATA_DIR, DEFAULT_SERVER_CONFIG_PATH
 
 DEFAULT_LOG_LEVEL = "INFO"
 
 
+def create_default_server_config_path():
+    if not os.path.isfile(DEFAULT_SERVER_CONFIG_PATH):
+        if not os.path.isdir(DEFAULT_DATA_DIR):
+            os.mkdir(DEFAULT_DATA_DIR, mode=0o700)
+        server_config_generator.create_default_config_file(DEFAULT_SERVER_CONFIG_PATH)
+    return DEFAULT_SERVER_CONFIG_PATH
+
+
 def load_server_config_from_file(server_config_path):
     with open(server_config_path, "r") as f:
         config_content = f.read()