diff --git a/CHANGELOG.md b/CHANGELOG.md
index d6a319f..99565bc 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,12 @@ All notable changes to ExaFS will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## [1.1.7] - 2025-10-16
+
+### Fixed
+- Fixed config loading to use Flask instance folder
+- Resolves path issues when package is installed via pip
+
 ## [1.1.6] - 2025-10-08
 
 ### Fixed
@@ -268,4 +274,5 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 [0.5.0]: https://github.com/CESNET/exafs/compare/v0.4.8...v0.5.0
 [0.4.8]: https://github.com/CESNET/exafs/compare/v0.4.7...v0.4.8
 [0.4.7]: https://github.com/CESNET/exafs/compare/v0.4.6...v0.4.7
-[0.4.6]: https://github.com/CESNET/exafs/releases/tag/v0.4.6
\ No newline at end of file
+[0.4.6]: https://github.com/CESNET/exafs/releases/tag/v0.4.6
+
diff --git a/flowapp/__about__.py b/flowapp/__about__.py
index 35407e8..b12417c 100755
--- a/flowapp/__about__.py
+++ b/flowapp/__about__.py
@@ -1,4 +1,4 @@
-__version__ = "1.1.6"
+__version__ = "1.1.7"
 __title__ = "ExaFS"
 __description__ = "Tool for creation, validation, and execution of ExaBGP messages."
 __author__ = "CESNET / Jiri Vrany, Petr Adamec, Josef Verich, Jakub Man"
diff --git a/flowapp/__init__.py b/flowapp/__init__.py
index 9b9616a..d1ea49d 100644
--- a/flowapp/__init__.py
+++ b/flowapp/__init__.py
@@ -1,4 +1,5 @@
 # -*- coding: utf-8 -*-
+import os
 from flask import Flask, redirect, render_template, session, url_for
 
 from flask_sso import SSO
@@ -23,7 +24,8 @@
 
 
 def create_app(config_object=None):
-    app = Flask(__name__)
+    # Enable instance_relative_config to use /app/instance folder
+    app = Flask(__name__, instance_relative_config=True)
 
     # Load the default configuration for dashboard and main menu
     app.config.from_object(InstanceConfig)
@@ -31,9 +33,11 @@ def create_app(config_object=None):
         app.config.from_object(config_object)
 
     # Allow override of instance config from external file
+    # This now looks in /app/instance/config_override.py instead of ../instance_config_override.py
     try:
-        app.config.from_pyfile("../instance_config_override.py", silent=False)
-    except FileNotFoundError:
+        app.config.from_pyfile("config_override.py", silent=False)
+    except FileNotFoundError as e:
+        print(f"Instance config override file not found: {e.filename}, using defaults.")
         pass  # No override file, use defaults
 
     app.config.setdefault("VERSION", __version__)