diff --git a/ale_linters/php/phpstan.vim b/ale_linters/php/phpstan.vim
index ecd80a83..ca12211c 100644
--- a/ale_linters/php/phpstan.vim
+++ b/ale_linters/php/phpstan.vim
@@ -3,7 +3,7 @@
 
 " Set to change the ruleset
 let g:ale_php_phpstan_executable = get(g:, 'ale_php_phpstan_executable', 'phpstan')
-let g:ale_php_phpstan_level = get(g:, 'ale_php_phpstan_level', '4')
+let g:ale_php_phpstan_level = get(g:, 'ale_php_phpstan_level', '')
 let g:ale_php_phpstan_configuration = get(g:, 'ale_php_phpstan_configuration', '')
 
 function! ale_linters#php#phpstan#GetCommand(buffer, version) abort
@@ -12,14 +12,26 @@ function! ale_linters#php#phpstan#GetCommand(buffer, version) abort
     \   ? ' -c ' . l:configuration
     \   : ''
 
+    let l:level =  ale#Var(a:buffer, 'php_phpstan_level')
+    let l:config_file_exists = ale#path#FindNearestFile(a:buffer, 'phpstan.neon')
+
+    if empty(l:level) && empty(l:config_file_exists)
+        " if no configuration file is found, then use 4 as a default level
+        let l:level = '4'
+    endif
+
+    let l:level_option = !empty(l:level)
+    \   ? ' -l ' . l:level
+    \   : ''
+
     let l:error_format = ale#semver#GTE(a:version, [0, 10, 3])
     \   ? ' --error-format raw'
     \   : ' --errorFormat raw'
 
-    return '%e analyze -l'
-    \   . ale#Var(a:buffer, 'php_phpstan_level')
+    return '%e analyze --no-progress'
     \   . l:error_format
     \   . l:configuration_option
+    \   . l:level_option
     \   . ' %s'
 endfunction
 
@@ -35,7 +47,7 @@ function! ale_linters#php#phpstan#Handle(buffer, lines) abort
         call add(l:output, {
         \   'lnum': l:match[2] + 0,
         \   'text': l:match[3],
-        \   'type': 'W',
+        \   'type': 'E',
         \})
     endfor
 
diff --git a/test/command_callback/test_phpstan_command_callbacks.vader b/test/command_callback/test_phpstan_command_callbacks.vader
index a9df2d7c..72524c55 100644
--- a/test/command_callback/test_phpstan_command_callbacks.vader
+++ b/test/command_callback/test_phpstan_command_callbacks.vader
@@ -1,34 +1,66 @@
 Before:
+  call delete('./phpstan.neon')
   call ale#assert#SetUpLinterTest('php', 'phpstan')
 
   GivenCommandOutput ['0.10.2']
 
 After:
+  call delete('./phpstan.neon')
   call ale#assert#TearDownLinterTest()
 
 Execute(Custom executables should be used for the executable and command):
   let g:ale_php_phpstan_executable = 'phpstan_test'
 
   AssertLinter 'phpstan_test',
-  \ ale#Escape('phpstan_test') . ' analyze -l4 --errorFormat raw %s'
+  \ ale#Escape('phpstan_test') . ' analyze --no-progress --errorFormat raw -l 4 %s'
 
 Execute(project with level set to 3):
   call ale#test#SetFilename('phpstan-test-files/foo/test.php')
   let g:ale_php_phpstan_level = 3
 
   AssertLinter 'phpstan',
-  \ ale#Escape('phpstan') . ' analyze -l3 --errorFormat raw %s'
+  \ ale#Escape('phpstan') . ' analyze --no-progress --errorFormat raw -l 3 %s'
 
 Execute(Custom phpstan configuration file):
   let g:ale_php_phpstan_configuration = 'phpstan_config'
 
   AssertLinter 'phpstan',
-  \ ale#Escape('phpstan') . ' analyze -l4 --errorFormat raw -c phpstan_config %s'
+  \ ale#Escape('phpstan') . ' analyze --no-progress --errorFormat raw -c phpstan_config -l 4 %s'
 
 Execute(Choose the right format for error format param):
   GivenCommandOutput ['0.10.3']
 
   AssertLinter 'phpstan', [
   \ ale#Escape('phpstan') . ' --version',
-  \ ale#Escape('phpstan') . ' analyze -l4 --error-format raw %s'
+  \ ale#Escape('phpstan') . ' analyze --no-progress --error-format raw -l 4 %s'
+  \ ]
+
+Execute(Configuration file exists in current directory):
+  call writefile(['parameters:', '  level: 7'], './phpstan.neon')
+  let g:ale_php_phpstan_level = ''
+  let g:ale_php_phpstan_configuration = ''
+
+  AssertLinter 'phpstan', [
+  \ ale#Escape('phpstan') . ' --version',
+  \ ale#Escape('phpstan') . ' analyze --no-progress --errorFormat raw %s'
+  \ ]
+
+Execute(Configuration file exists in current directory, but force phpstan level):
+  call writefile(['parameters:', '  level: 7'], './phpstan.neon')
+  let g:ale_php_phpstan_configuration = ''
+  let g:ale_php_phpstan_level = '7'
+
+  AssertLinter 'phpstan', [
+  \ ale#Escape('phpstan') . ' --version',
+  \ ale#Escape('phpstan') . ' analyze --no-progress --errorFormat raw -l 7 %s'
+  \ ]
+
+Execute(Configuration file exists in current directory, but force phpstan configuration):
+  call writefile(['parameters:', '  level: 7'], './phpstan.neon')
+  let g:ale_php_phpstan_level = ''
+  let g:ale_php_phpstan_configuration = 'phpstan.custom.neon'
+
+  AssertLinter 'phpstan', [
+  \ ale#Escape('phpstan') . ' --version',
+  \ ale#Escape('phpstan') . ' analyze --no-progress --errorFormat raw -c phpstan.custom.neon %s'
   \ ]
diff --git a/test/handler/test_phpstan_handler.vader b/test/handler/test_phpstan_handler.vader
index 207a7758..67fdb759 100644
--- a/test/handler/test_phpstan_handler.vader
+++ b/test/handler/test_phpstan_handler.vader
@@ -14,7 +14,7 @@ Execute(Output without errors should be parsed correctly):
 
   AssertEqual
   \ [],
-  \ ale_linters#php#phpstan#Handle(bufnr(''), [" 1/1 [▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓] 100%"])
+  \ ale_linters#php#phpstan#Handle(bufnr(''), [])
 
 Execute(Output with some errors should be parsed correctly):
   call ale#test#SetFilename('phpstan-test-files/foo/test.php')
@@ -24,21 +24,20 @@ Execute(Output with some errors should be parsed correctly):
   \   {
   \     'lnum': 9,
   \     'text': 'Call to method format() on an unknown class DateTimeImutable.',
-  \     'type': 'W'
+  \     'type': 'E'
   \   },
   \   {
   \     'lnum': 16,
   \     'text': 'Sample message.',
-  \     'type': 'W'
+  \     'type': 'E'
   \   },
   \   {
   \     'lnum': 192,
   \     'text': 'Invalid command testCommand.',
-  \     'type': 'W'
+  \     'type': 'E'
   \   }
   \ ],
   \ ale_linters#php#phpstan#Handle(bufnr(''), [
-  \   ' 1/1 [▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓] 100%',
   \   'phpstan-test-files/foo/test.php:9:Call to method format() on an unknown class DateTimeImutable.',
   \   'phpstan-test-files/foo/test.php:16:Sample message.',
   \   'phpstan-test-files/foo/test.php:192:Invalid command testCommand.',
@@ -52,11 +51,10 @@ Execute(Output should be parsed correctly with Windows paths):
   \   {
   \     'lnum': 9,
   \     'text': 'Access to an undefined property Test::$var.',
-  \     'type': 'W'
+  \     'type': 'E'
   \   }
   \ ],
   \ ale_linters#php#phpstan#Handle(bufnr(''), [
-  \   ' 1/1 [▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓] 100%',
   \   'D:\phpstan-test-files\foo\test.php:9:Access to an undefined property Test::$var.',
   \])
 
@@ -68,10 +66,9 @@ Execute(Output for .inc files should be parsed correctly):
   \   {
   \     'lnum': 9,
   \     'text': 'Access to an undefined property Test::$var.',
-  \     'type': 'W'
+  \     'type': 'E'
   \   }
   \ ],
   \ ale_linters#php#phpstan#Handle(bufnr(''), [
-  \   ' 1/1 [▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓] 100%',
   \   '/phpstan-test-files/foo/test.inc:9:Access to an undefined property Test::$var.',
   \])