diff --git a/CHANGELOG.md b/CHANGELOG.md
index 209f895..8b21b66 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Literate.jl changelog
 
+## Version `v2.5`
+
+* ![Feature][badge-feature] The output directory now defaults to `pwd()` ([TBD][TBD]).
+
 ## Version `v2.4`
 
 * ![Feature][badge-feature] Markdown output can now be executed and the result included
diff --git a/src/Literate.jl b/src/Literate.jl
index 06973e3..9f64fb9 100644
--- a/src/Literate.jl
+++ b/src/Literate.jl
@@ -299,14 +299,17 @@ See the manual section about [Configuration](@ref) for more information.
 const DEFAULT_CONFIGURATION=nothing # Dummy const for documentation
 
 """
-    Literate.script(inputfile, outputdir; config::Dict=Dict(), kwargs...)
+    Literate.script(inputfile, outputdir=pwd(); config::Dict=Dict(), kwargs...)
 
 Generate a plain script file from `inputfile` and write the result to `outputdir`.
 
+!!! compat "Literate 2.5"
+    Default output directory `pwd` requires at least Literate version 2.5.
+
 See the manual section on [Configuration](@ref) for documentation
 of possible configuration with `config` and other keyword arguments.
 """
-function script(inputfile, outputdir; config::Dict=Dict(), kwargs...)
+function script(inputfile, outputdir=pwd(); config::Dict=Dict(), kwargs...)
     # Create configuration by merging default and userdefined
     config = create_configuration(inputfile; user_config=config, user_kwargs=kwargs)
 
@@ -351,6 +354,10 @@ function script(inputfile, outputdir; config::Dict=Dict(), kwargs...)
     isdir(outputdir) || error("not a directory: $(outputdir)")
     outputfile = joinpath(outputdir, config["name"]::String * ".jl")
 
+    if inputfile == outputfile
+        throw(ArgumentError("outputfile (`$outputfile`) is identical to inputfile (`$inputfile`)"))
+    end
+
     @info "writing result to `$(Base.contractuser(outputfile))`"
     write(outputfile, content)
 
@@ -358,15 +365,18 @@ function script(inputfile, outputdir; config::Dict=Dict(), kwargs...)
 end
 
 """
-    Literate.markdown(inputfile, outputdir; config::Dict=Dict(), kwargs...)
+    Literate.markdown(inputfile, outputdir=pwd(); config::Dict=Dict(), kwargs...)
 
 Generate a markdown file from `inputfile` and write the result
 to the directory `outputdir`.
 
+!!! compat "Literate 2.5"
+    Default output directory `pwd` requires at least Literate version 2.5.
+
 See the manual section on [Configuration](@ref) for documentation
 of possible configuration with `config` and other keyword arguments.
 """
-function markdown(inputfile, outputdir; config::Dict=Dict(), kwargs...)
+function markdown(inputfile, outputdir=pwd(); config::Dict=Dict(), kwargs...)
     # Create configuration by merging default and userdefined
     config = create_configuration(inputfile; user_config=config, user_kwargs=kwargs, type=:md)
 
@@ -487,14 +497,17 @@ line_is_nbmeta(line::Pair) = line_is_nbmeta(line.second)
 line_is_nbmeta(line) = startswith(line, "%% ")
 
 """
-    Literate.notebook(inputfile, outputdir; config::Dict=Dict(), kwargs...)
+    Literate.notebook(inputfile, outputdir=pwd(); config::Dict=Dict(), kwargs...)
 
 Generate a notebook from `inputfile` and write the result to `outputdir`.
 
+!!! compat "Literate 2.5"
+    Default output directory `pwd` requires at least Literate version 2.5.
+
 See the manual section on [Configuration](@ref) for documentation
 of possible configuration with `config` and other keyword arguments.
 """
-function notebook(inputfile, outputdir; config::Dict=Dict(), kwargs...)
+function notebook(inputfile, outputdir=pwd(); config::Dict=Dict(), kwargs...)
     # Create configuration by merging default and userdefined
     config = create_configuration(inputfile; user_config=config, user_kwargs=kwargs)
 
diff --git a/test/runtests.jl b/test/runtests.jl
index dec04f7..73cea63 100644
--- a/test/runtests.jl
+++ b/test/runtests.jl
@@ -413,6 +413,11 @@ const GITLAB_ENV = Dict(
 
             # verify that inputfile exists
             @test_throws ArgumentError Literate.script("nonexistent.jl", outdir)
+
+            # default output directory
+            Literate.script(inputfile; name="default-output-directory")
+            @test isfile("default-output-directory.jl")
+            @test_throws ArgumentError Literate.script(inputfile)
         end
     end
 end end
@@ -684,6 +689,11 @@ end end
 
             # verify that inputfile exists
             @test_throws ArgumentError Literate.markdown("nonexistent.jl", outdir)
+
+            # default output directory
+            @test !isfile("inputfile.md")
+            Literate.markdown(inputfile; execute=false)
+            @test isfile("inputfile.md")
         end
     end
 end end
@@ -983,6 +993,11 @@ end end
             # verify that inputfile exists
             @test_throws ArgumentError Literate.notebook("nonexistent.jl", outdir)
 
+            # default output directory
+            @test !isfile("inputfile.ipynb")
+            Literate.notebook(inputfile; execute=false)
+            @test isfile("inputfile.ipynb")
+
             # world time problem with `IJulia.display_dict`
             write(inputfile, """
             struct VegaLiteRenderable end