diff --git a/natscontext/context.go b/natscontext/context.go
index 12e0dc3..612f873 100644
--- a/natscontext/context.go
+++ b/natscontext/context.go
@@ -502,6 +502,18 @@ func (c *Context) loadActiveContext() error {
 	// performing environment variable expansion for the path of the cerds.
 	c.config.Creds = os.ExpandEnv(c.config.Creds)
 
+	usr, err := user.Current()
+	if err != nil {
+		return err
+	}
+
+	// expand tilde to current user's home directory
+	c.config.Creds = strings.Replace(c.config.Creds, "~", usr.HomeDir, 1)
+	c.config.NKey = strings.Replace(c.config.NKey, "~", usr.HomeDir, 1)
+	c.config.Cert = strings.Replace(c.config.Cert, "~", usr.HomeDir, 1)
+	c.config.Key = strings.Replace(c.config.Key, "~", usr.HomeDir, 1)
+	c.config.CA = strings.Replace(c.config.CA, "~", usr.HomeDir, 1)
+
 	if c.config.NSCLookup != "" {
 		err := c.resolveNscLookup()
 		if err != nil {
diff --git a/natscontext/context_test.go b/natscontext/context_test.go
index d484bee..5e7ed80 100644
--- a/natscontext/context_test.go
+++ b/natscontext/context_test.go
@@ -127,4 +127,21 @@ func TestContext(t *testing.T) {
 	if err != nil || (config.Name != "gotest" && config.ServerURL() != "demo.nats.io" && config.Token() != "use-nkeys!") {
 		t.Fatalf("could not load context file: %s", err)
 	}
+
+	// test tilde expansion
+	if config.NKey() == "~/.keys/nats/example/prod.nkey" {
+		t.Fatalf("invalid expansion of HOME directory - %s", config.NKey())
+	}
+	if config.Creds() == "~/.keys/nats/example/creds" {
+		t.Fatalf("invalid expansion of HOME directory - %s", config.Creds())
+	}
+	if config.Certificate() == "~/.keys/nats/example/public.crt" {
+		t.Fatalf("invalid expansion of HOME directory - %s", config.Certificate())
+	}
+	if config.Key() == "~/.keys/nats/example/public.key" {
+		t.Fatalf("invalid expansion of HOME directory - %s", config.Key())
+	}
+	if config.CA() == "~/.keys/nats/example/public.ca" {
+		t.Fatalf("invalid expansion of HOME directory - %s", config.CA())
+	}
 }
diff --git a/natscontext/testdata/gotest.json b/natscontext/testdata/gotest.json
index 3019e73..636442f 100644
--- a/natscontext/testdata/gotest.json
+++ b/natscontext/testdata/gotest.json
@@ -1,4 +1,9 @@
 {
   "url": "demo.nats.io",
-  "token": "use-nkeys!"
+  "token": "use-nkeys!",
+  "nkey": "~/.keys/nats/example/prod.nkey",
+  "creds": "~/.keys/nats/example/creds",
+  "key": "~/.keys/nats/example/public.key",
+  "cert": "~/.keys/nats/example/public.crt",
+  "ca": "~/.keys/nats/example/public.ca"
 }