diff --git a/lib/irb/init.rb b/lib/irb/init.rb
index b69f68d53..64420a1b5 100644
--- a/lib/irb/init.rb
+++ b/lib/irb/init.rb
@@ -410,7 +410,6 @@ def IRB.rc_file(ext = IRBRC_EXT)
         @CONF[:RC_NAME_GENERATOR] ||= rcgen
         if File.exist?(rcgen.call(IRBRC_EXT))
           @CONF[:RC_NAME_GENERATOR] = rcgen
-          break
         end
       end
     end
diff --git a/test/irb/test_init.rb b/test/irb/test_init.rb
index b6a8f5529..b5a195c97 100644
--- a/test/irb/test_init.rb
+++ b/test/irb/test_init.rb
@@ -50,6 +50,27 @@ def test_rc_file
       end
     end
 
+    def test_rc_file_loading_order
+      tmpdir = @tmpdir
+      Dir.chdir(tmpdir) do
+        # tmpdir is ENV["HOME"], so another dir is needed
+        project_dir = "#{tmpdir}/project"
+        FileUtils.mkdir_p(project_dir)
+        Dir.chdir(project_dir) do
+          ENV["XDG_CONFIG_HOME"] = "#{tmpdir}/xdg"
+          FileUtils.mkdir_p("#{tmpdir}/xdg/irb")
+          FileUtils.touch("#{tmpdir}/xdg/irb"+"/.irb#{IRB::IRBRC_EXT}")
+          # ENV["HOME"] .irbrc
+          FileUtils.touch(tmpdir+"/.irb#{IRB::IRBRC_EXT}")
+          # project level .irbrc
+          FileUtils.touch(project_dir+"/.irb#{IRB::IRBRC_EXT}")
+          IRB.conf[:RC_NAME_GENERATOR] = nil
+          assert_equal(project_dir+"/.irb#{IRB::IRBRC_EXT}", IRB.rc_file)
+          assert_equal(project_dir+"/.irb_history", IRB.rc_file("_history"))
+        end
+      end
+    end
+
     def test_rc_file_in_subdir
       tmpdir = @tmpdir
       Dir.chdir(tmpdir) do