diff --git a/Rakefile b/Rakefile
index 212b5810e..9c2e975ce 100644
--- a/Rakefile
+++ b/Rakefile
@@ -82,7 +82,7 @@ namespace :docs do
 
     instance_methods_to_document = meths.select { |method| method.scope != :class }
     class_methods_to_document = meths.select { |method| method.scope == :class }
-    configuration_methods_to_document = registry.get("ViewComponent::Config").meths.select(&:reader?)
+    configuration_methods_to_document = registry.get("ViewComponent::ApplicationConfig").meths.select(&:reader?)
     test_helper_methods_to_document = registry
       .get("ViewComponent::TestHelpers")
       .meths
diff --git a/app/controllers/concerns/view_component/preview_actions.rb b/app/controllers/concerns/view_component/preview_actions.rb
index 1a4e7536e..0f66c1d66 100644
--- a/app/controllers/concerns/view_component/preview_actions.rb
+++ b/app/controllers/concerns/view_component/preview_actions.rb
@@ -54,12 +54,12 @@ def previews
 
     # :doc:
     def default_preview_layout
-      ViewComponent::Base.config.default_preview_layout
+      Rails.application.config.view_component.previews.default_layout
     end
 
     # :doc:
     def show_previews?
-      ViewComponent::Base.config.show_previews
+      Rails.application.config.view_component.previews.show
     end
 
     # :doc:
@@ -102,7 +102,7 @@ def prepend_application_view_paths
     end
 
     def prepend_preview_examples_view_path
-      prepend_view_path(ViewComponent::Base.preview_paths)
+      prepend_view_path(Rails.application.config.view_component.previews.paths)
     end
   end
 end
diff --git a/app/helpers/preview_helper.rb b/app/helpers/preview_helper.rb
index edc232a4e..86e3fb991 100644
--- a/app/helpers/preview_helper.rb
+++ b/app/helpers/preview_helper.rb
@@ -48,6 +48,6 @@ def prism_language_name_by_template_path(template_file_path:)
   # :nocov:
 
   def serve_static_preview_assets?
-    ViewComponent::Base.config.show_previews && Rails.application.config.public_file_server.enabled
+    Rails.application.config.view_component.show_previews && Rails.application.config.public_file_server.enabled
   end
 end
diff --git a/app/views/view_components/preview.html.erb b/app/views/view_components/preview.html.erb
index c12aa6eb0..71e555c94 100644
--- a/app/views/view_components/preview.html.erb
+++ b/app/views/view_components/preview.html.erb
@@ -4,6 +4,6 @@
   <%= render template: @render_args[:template], locals: @render_args[:locals] || {} %>
 <% end %>
 
-<% if ViewComponent::Base.config.show_previews_source %>
+<% if Rails.application.config.view_component.previews.show_source %>
   <%= preview_source %>
 <% end %>
diff --git a/docs/CHANGELOG.md b/docs/CHANGELOG.md
index ac7b9f2a5..8887e2b69 100644
--- a/docs/CHANGELOG.md
+++ b/docs/CHANGELOG.md
@@ -12,6 +12,10 @@ nav_order: 5
 
 ## 4.0.0
 
+* BREAKING: Make most configuration local to component instances.
+
+    Simon Fish
+
 * BREAKING: Require [non-EOL](https://endoflife.date/rails) Rails (`>= 7.1.0`).
 
     *Joel Hawksley*
diff --git a/lib/rails/generators/abstract_generator.rb b/lib/rails/generators/abstract_generator.rb
index 8159f4e64..fad034ed0 100644
--- a/lib/rails/generators/abstract_generator.rb
+++ b/lib/rails/generators/abstract_generator.rb
@@ -29,7 +29,8 @@ def file_name
     end
 
     def component_path
-      ViewComponent::Base.config.view_component_path
+      # FIXME: Doesn't yet handle multiple component paths
+      Rails.application.config.view_component.generate.view_component_paths!.first
     end
 
     def stimulus_controller
@@ -42,15 +43,15 @@ def stimulus_controller
     end
 
     def sidecar?
-      options["sidecar"] || ViewComponent::Base.config.generate.sidecar
+      options["sidecar"] || Rails.application.config.view_component.generate.sidecar
     end
 
     def stimulus?
-      options["stimulus"] || ViewComponent::Base.config.generate.stimulus_controller
+      options["stimulus"] || Rails.application.config.view_component.generate.stimulus_controller
     end
 
     def typescript?
-      options["typescript"] || ViewComponent::Base.config.generate.typescript
+      options["typescript"] || Rails.application.config.view_component.generate.typescript
     end
   end
 end
diff --git a/lib/rails/generators/component/component_generator.rb b/lib/rails/generators/component/component_generator.rb
index d5e4b8b3c..a96cd9615 100644
--- a/lib/rails/generators/component/component_generator.rb
+++ b/lib/rails/generators/component/component_generator.rb
@@ -13,12 +13,13 @@ class ComponentGenerator < Rails::Generators::NamedBase
       check_class_collision suffix: "Component"
 
       class_option :inline, type: :boolean, default: false
-      class_option :locale, type: :boolean, default: ViewComponent::Base.config.generate.locale
-      class_option :parent, type: :string, desc: "The parent class for the generated component"
-      class_option :preview, type: :boolean, default: ViewComponent::Base.config.generate.preview
-      class_option :sidecar, type: :boolean, default: false
+      class_option :locale, type: :boolean, default: Rails.application.config.view_component.generate.locale
+      class_option :parent, type: :string, desc: "The parent class for the generated component",
+        default: Rails.application.config.view_component.generate.component_parent_class
+      class_option :preview, type: :boolean, default: Rails.application.config.view_component.generate.preview
+      class_option :sidecar, type: :boolean, default: Rails.application.config.view_component.generate.sidecar
       class_option :stimulus, type: :boolean,
-        default: ViewComponent::Base.config.generate.stimulus_controller
+        default: Rails.application.config.view_component.generate.stimulus_controller
       class_option :skip_suffix, type: :boolean, default: false
 
       def create_component_file
@@ -42,7 +43,7 @@ def create_component_file
       def parent_class
         return options[:parent] if options[:parent]
 
-        ViewComponent::Base.config.component_parent_class || default_parent_class
+        Rails.application.config.view_component.generate.component_parent_class || default_parent_class
       end
 
       def initialize_signature
diff --git a/lib/rails/generators/locale/component_generator.rb b/lib/rails/generators/locale/component_generator.rb
index 55f735353..f713d3473 100644
--- a/lib/rails/generators/locale/component_generator.rb
+++ b/lib/rails/generators/locale/component_generator.rb
@@ -12,7 +12,7 @@ class ComponentGenerator < ::Rails::Generators::NamedBase
       class_option :sidecar, type: :boolean, default: false
 
       def create_locale_file
-        if ViewComponent::Base.config.generate.distinct_locale_files
+        if Rails.application.config.view_component.generate.distinct_locale_files
           I18n.available_locales.each do |locale|
             create_file destination(locale), translations_hash([locale]).to_yaml
           end
diff --git a/lib/rails/generators/preview/component_generator.rb b/lib/rails/generators/preview/component_generator.rb
index abb6fbd07..308c25187 100644
--- a/lib/rails/generators/preview/component_generator.rb
+++ b/lib/rails/generators/preview/component_generator.rb
@@ -4,13 +4,13 @@ module Preview
   module Generators
     class ComponentGenerator < ::Rails::Generators::NamedBase
       source_root File.expand_path("templates", __dir__)
-      class_option :preview_path, type: :string, desc: "Path for previews, required when multiple preview paths are configured", default: ViewComponent::Base.config.generate.preview_path
+      class_option :preview_path, type: :string, desc: "Path for previews, required when multiple preview paths are configured", default: Rails.application.config.view_component.generate.preview_path
 
       argument :attributes, type: :array, default: [], banner: "attribute"
       check_class_collision suffix: "ComponentPreview"
 
       def create_preview_file
-        preview_paths = ViewComponent::Base.config.preview_paths
+        preview_paths = Rails.application.config.view_component.previews.paths
         optional_path = options[:preview_path]
         return if preview_paths.count > 1 && optional_path.blank?
 
diff --git a/lib/rails/generators/rspec/component_generator.rb b/lib/rails/generators/rspec/component_generator.rb
index 605ada5fb..cf6ce2b18 100644
--- a/lib/rails/generators/rspec/component_generator.rb
+++ b/lib/rails/generators/rspec/component_generator.rb
@@ -16,7 +16,7 @@ def create_test_file
       private
 
       def spec_component_path
-        return "spec/components" unless ViewComponent::Base.config.generate.use_component_path_for_rspec_tests
+        return "spec/components" unless Rails.application.config.view_component.generate.use_component_path_for_rspec_tests
 
         configured_component_path = component_path
         if configured_component_path.start_with?("app#{File::SEPARATOR}")
diff --git a/lib/rails/generators/stimulus/component_generator.rb b/lib/rails/generators/stimulus/component_generator.rb
index f81912ddf..6b25bbf50 100644
--- a/lib/rails/generators/stimulus/component_generator.rb
+++ b/lib/rails/generators/stimulus/component_generator.rb
@@ -8,8 +8,8 @@ class ComponentGenerator < ::Rails::Generators::NamedBase
       include ViewComponent::AbstractGenerator
 
       source_root File.expand_path("templates", __dir__)
-      class_option :sidecar, type: :boolean, default: false
-      class_option :typescript, type: :boolean, default: false
+      class_option :sidecar, type: :boolean, default: Rails.application.config.view_component.generate.sidecar
+      class_option :typescript, type: :boolean, default: Rails.application.config.view_component.generate.typescript
 
       def create_stimulus_controller
         template "component_controller.#{filetype}", destination
diff --git a/lib/view_component.rb b/lib/view_component.rb
index 62c9cd2cb..d8ae6ba16 100644
--- a/lib/view_component.rb
+++ b/lib/view_component.rb
@@ -6,12 +6,12 @@
 module ViewComponent
   extend ActiveSupport::Autoload
 
+  autoload :ApplicationConfig
   autoload :Base
   autoload :CaptureCompatibility
   autoload :Compiler
   autoload :CompileCache
   autoload :ComponentError
-  autoload :Config
   autoload :Deprecation
   autoload :InlineTemplate
   autoload :Instrumentation
diff --git a/lib/view_component/config.rb b/lib/view_component/application_config.rb
similarity index 72%
rename from lib/view_component/config.rb
rename to lib/view_component/application_config.rb
index c2c8d6620..fda5eba12 100644
--- a/lib/view_component/config.rb
+++ b/lib/view_component/application_config.rb
@@ -3,7 +3,7 @@
 require "view_component/deprecation"
 
 module ViewComponent
-  class Config
+  class ApplicationConfig
     class << self
       # `new` without any arguments initializes the default configuration, but
       # it's important to differentiate in case that's no longer the case in
@@ -11,21 +11,31 @@ class << self
       alias_method :default, :new
 
       def defaults
-        ActiveSupport::OrderedOptions.new.merge!({
-          generate: default_generate_options,
-          preview_controller: "ViewComponentsController",
-          preview_route: "/rails/view_components",
-          show_previews_source: false,
+        ActiveSupport::OrderedOptions[
+          generate: ActiveSupport::OrderedOptions[
+            sidecar: false,
+            stimulus_controller: false,
+            typescript: false,
+            locale: false,
+            distinct_locale_files: false,
+            preview: false,
+            preview_path: "",
+            use_component_path_for_rspec_tests: false,
+            view_component_paths: ["app/components"],
+            component_parent_class: nil
+          ],
+          previews: ActiveSupport::OrderedOptions[
+            show: (Rails.env.development? || Rails.env.test?),
+            controller: "ViewComponentsController",
+            route: "/rails/view_components",
+            show_source: (Rails.env.development? || Rails.env.test?),
+            paths: default_preview_paths,
+            default_layout: nil
+          ],
           instrumentation_enabled: false,
-          use_deprecated_instrumentation_name: true,
-          view_component_path: "app/components",
-          component_parent_class: nil,
-          show_previews: Rails.env.development? || Rails.env.test?,
-          preview_paths: default_preview_paths,
           test_controller: "ApplicationController",
-          default_preview_layout: nil,
-          capture_compatibility_patch_enabled: false
-        })
+          capture_compatibility_patch_enabled: false,
+        ]
       end
 
       # @!attribute generate
@@ -97,68 +107,71 @@ def defaults
       # For example, if the `view_component_path` is
       # `app/views/components`, then the generator will create a new spec file
       # in `spec/views/components/` rather than the default `spec/components/`.
+      #
+      # #### `#view_component_path``
+      #
+      # The path in which components, their templates, and their sidecars should
+      # be stored:
+      #
+      #      config.view_component.generate.view_component_paths = "app/components"
+      #
+      # Defaults to `"app/components"`.
+      # TODO: It looks like this was actually the default path generators would use.
+      #       I think it's used elsewhere inside `base.rb` for some reason, though.
+      #
+      # #### `#component_parent_class`
+      # 
+      # The parent class from which generated components will inherit.
+      # Defaults to `nil`. If this is falsy, generators will use
+      # `"ApplicationComponent"` if defined, `"ViewComponent::Base"` otherwise.
 
-      # @!attribute preview_controller
+      
+      # @!attribute previews
       # @return [String]
+      # The subset of configuration options relating to previews.
+      #
+      # #### `#show`
+      #
+      # Whether component previews are enabled.
+      # Defaults to `true` in development and test environments.
+      #
+      # #### `#controller`
+      #
       # The controller used for previewing components.
       # Defaults to `ViewComponentsController`.
-
-      # @!attribute preview_route
-      # @return [String]
+      #
+      # #### `route`
+      #
       # The entry route for component previews.
       # Defaults to `"/rails/view_components"`.
-
-      # @!attribute show_previews_source
-      # @return [Boolean]
+      #
+      # #### `show_source`
+      #
       # Whether to display source code previews in component previews.
       # Defaults to `false`.
+      # 
+      # #### `paths`
+      #
+      # The locations in which component previews will be looked up.
+      # Defaults to `['test/components/previews']` relative to your Rails root.
+      #
+      # #### `#default_layout`
+      # 
+      # A custom default layout used for the previews index page and individual
+      # previews.
+      # Defaults to `nil`. If this is falsy, `"component_preview"` is used.
 
       # @!attribute instrumentation_enabled
       # @return [Boolean]
       # Whether ActiveSupport notifications are enabled.
       # Defaults to `false`.
 
-      # @!attribute use_deprecated_instrumentation_name
-      # @return [Boolean]
-      # Whether ActiveSupport Notifications use the private name `"!render.view_component"`
-      # or are made more publicly available via `"render.view_component"`.
-      # Will default to `false` in next major version.
-      # Defaults to `true`.
-
-      # @!attribute view_component_path
-      # @return [String]
-      # The path in which components, their templates, and their sidecars should
-      # be stored.
-      # Defaults to `"app/components"`.
-
-      # @!attribute component_parent_class
-      # @return [String]
-      # The parent class from which generated components will inherit.
-      # Defaults to `nil`. If this is falsy, generators will use
-      # `"ApplicationComponent"` if defined, `"ViewComponent::Base"` otherwise.
-
-      # @!attribute show_previews
-      # @return [Boolean]
-      # Whether component previews are enabled.
-      # Defaults to `true` in development and test environments.
-
-      # @!attribute preview_paths
-      # @return [Array<String>]
-      # The locations in which component previews will be looked up.
-      # Defaults to `['test/components/previews']` relative to your Rails root.
-
       # @!attribute test_controller
       # @return [String]
       # The controller used for testing components.
       # Can also be configured on a per-test basis using `#with_controller_class`.
       # Defaults to `ApplicationController`.
 
-      # @!attribute default_preview_layout
-      # @return [String]
-      # A custom default layout used for the previews index page and individual
-      # previews.
-      # Defaults to `nil`. If this is falsy, `"component_preview"` is used.
-
       # @!attribute capture_compatibility_patch_enabled
       # @return [Boolean]
       # Enables the experimental capture compatibility patch that makes ViewComponent
@@ -171,8 +184,6 @@ def default_preview_paths
       end
 
       def default_rails_preview_paths
-        return [] unless defined?(Rails.root) && Dir.exist?("#{Rails.root}/test/components/previews")
-
         ["#{Rails.root}/test/components/previews"]
       end
 
@@ -189,22 +200,8 @@ def registered_rails_engines_with_previews
           defined?(descendant.root) && Dir.exist?("#{descendant.root}/test/components/previews")
         end
       end
-
-      def default_generate_options
-        options = ActiveSupport::OrderedOptions.new(false)
-        options.preview_path = ""
-        options
-      end
     end
 
-    # @!attribute current
-    # @return [ViewComponent::Config]
-    # Returns the current ViewComponent::Config. This is persisted against this
-    # class so that config options remain accessible before the rest of
-    # ViewComponent has loaded. Defaults to an instance of ViewComponent::Config
-    # with all other documented defaults set.
-    class_attribute :current, default: defaults, instance_predicate: false
-
     def initialize
       @config = self.class.defaults
     end
diff --git a/lib/view_component/base.rb b/lib/view_component/base.rb
index 5099901a9..745b283cb 100644
--- a/lib/view_component/base.rb
+++ b/lib/view_component/base.rb
@@ -2,10 +2,10 @@
 
 require "action_view"
 require "active_support/configurable"
+require "view_component/application_config"
 require "view_component/collection"
 require "view_component/compile_cache"
 require "view_component/compiler"
-require "view_component/config"
 require "view_component/errors"
 require "view_component/inline_template"
 require "view_component/preview"
@@ -19,17 +19,40 @@
 
 module ViewComponent
   class Base < ActionView::Base
-    class << self
-      delegate(*ViewComponent::Config.defaults.keys, to: :config)
+    class Configuration
+      def initialize
+        @config = ActiveSupport::OrderedOptions[
+          test_controller: "ApplicationController"
+        ]
+      end
 
-      # Returns the current config.
-      #
-      # @return [ActiveSupport::OrderedOptions]
-      def config
-        ViewComponent::Config.current
+      delegate_missing_to :@config
+
+      def deep_dup
+        new.instance_variable_set(:@config, @config.deep_dup)
+      end
+    end
+    # Returns the current config.
+    #
+    # @return [ActiveSupport::OrderedOptions]
+    def self.configuration
+      @_configuration ||= if respond_to?(:superclass) && superclass.respond_to?(:configuration)
+        superclass.configuration.inheritable_copy
+      else
+        # create a new "anonymous" class that will host the compiled reader methods
+        Class.new(ActiveSupport::Configurable::Configuration).new
       end
     end
 
+    def configuration
+      @_configuration ||= self.class.configuration.inheritable_copy
+    end
+
+    def self.configure(&block)
+      configuration.instance_eval(&block)
+      configuration.compile_methods!
+    end
+
     include ViewComponent::InlineTemplate
     include ViewComponent::UseHelpers
     include ViewComponent::Slotable
@@ -39,6 +62,10 @@ def config
     RESERVED_PARAMETER = :content
     VC_INTERNAL_DEFAULT_FORMAT = :html
 
+    def config
+      Rails.application.config
+    end
+
     # For CSRF authenticity tokens in forms
     delegate :form_authenticity_token, :protect_against_forgery?, :config, to: :helpers
 
@@ -542,10 +569,12 @@ def render_template_for(requested_details)
         child.identifier = caller_locations(1, 10).reject { |l| l.base_label == "inherited" }[0].path
 
         # If Rails application is loaded, removes the first part of the path and the extension.
+        # TODO: probably a way to rework this, seems like it's load order dependent at the moment?
         if defined?(Rails) && Rails.application
-          child.virtual_path = child.identifier.gsub(
-            /(.*#{Regexp.quote(ViewComponent::Base.config.view_component_path)})|(\.rb)/, ""
-          )
+          child.virtual_path = Rails.application.config.view_component.generate.view_component_paths!
+            .inject(child.identifier) do |identifier, path|
+            identifier.gsub(/.*#{Regexp.quote(path)}/, "")
+          end
         end
 
         # Set collection parameter to the extended component
@@ -558,6 +587,10 @@ def render_template_for(requested_details)
           child.instance_variable_set(:@__vc_ancestor_calls, vc_ancestor_calls)
         end
 
+        child.class_eval do
+          @_configuration = nil
+        end
+
         super
       end
 
diff --git a/lib/view_component/engine.rb b/lib/view_component/engine.rb
index 40b9d305c..25473cdf5 100644
--- a/lib/view_component/engine.rb
+++ b/lib/view_component/engine.rb
@@ -1,12 +1,12 @@
 # frozen_string_literal: true
 
 require "rails"
-require "view_component/config"
+require "view_component/application_config"
 require "view_component/deprecation"
 
 module ViewComponent
   class Engine < Rails::Engine # :nodoc:
-    config.view_component = ViewComponent::Config.current
+    config.view_component = ViewComponent::ApplicationConfig.default
 
     if Rails.version.to_f < 8.0
       rake_tasks do
@@ -16,8 +16,8 @@ class Engine < Rails::Engine # :nodoc:
       initializer "view_component.stats_directories" do |app|
         require "rails/code_statistics"
 
-        if Rails.root.join(ViewComponent::Base.view_component_path).directory?
-          Rails::CodeStatistics.register_directory("ViewComponents", ViewComponent::Base.view_component_path)
+        if Rails.root.join(Rails.application.config.view_component.generate.view_component_paths!.first).directory?
+          Rails::CodeStatistics.register_directory("ViewComponents", Rails.application.config.view_component.generate.view_component_paths!.first)
         end
 
         if Rails.root.join("test/components").directory?
@@ -29,24 +29,20 @@ class Engine < Rails::Engine # :nodoc:
     initializer "view_component.set_configs" do |app|
       options = app.config.view_component
 
-      %i[generate preview_controller preview_route show_previews_source].each do |config_option|
-        options[config_option] ||= ViewComponent::Base.public_send(config_option)
-      end
-      options.instrumentation_enabled = false if options.instrumentation_enabled.nil?
-      options.show_previews = (Rails.env.development? || Rails.env.test?) if options.show_previews.nil?
-
-      if options.show_previews
-        # This is still necessary because when `config.view_component` is declared, `Rails.root` is unspecified.
-        options.preview_paths << "#{Rails.root}/test/components/previews" if defined?(Rails.root) && Dir.exist?(
-          "#{Rails.root}/test/components/previews"
-        )
+      # This is still necessary because when `config.view_component` is declared, `Rails.root` is unspecified.
+      options.previews.paths << "#{Rails.root}/test/components/previews" if defined?(Rails.root) && (
+        "#{Rails.root}/test/components/previews"
+      )
+      
+      # TODO: Custom error type, more informative error here
+      #       Also maybe there's a better time to call this.
+      # raise "Preview directories must exist" if options.show_previews && !options.preview_paths.all? { |path| Dir.exist?(path) }
 
-        if options.show_previews_source
-          require "method_source"
+      if options.previews.show && options.previews.show_source
+        require "method_source"
 
-          app.config.to_prepare do
-            MethodSource.instance_variable_set(:@lines_for_file, {})
-          end
+        app.config.to_prepare do
+          MethodSource.instance_variable_set(:@lines_for_file, {})
         end
       end
     end
@@ -56,12 +52,6 @@ class Engine < Rails::Engine # :nodoc:
         if app.config.view_component.instrumentation_enabled.present?
           # :nocov: Re-executing the below in tests duplicates initializers and causes order-dependent failures.
           ViewComponent::Base.prepend(ViewComponent::Instrumentation)
-          if app.config.view_component.use_deprecated_instrumentation_name
-            ViewComponent::Deprecation.deprecation_warning(
-              "!render.view_component",
-              "Use the new instrumentation key `render.view_component` instead. See https://viewcomponent.org/guide/instrumentation.html"
-            )
-          end
           # :nocov:
         end
       end
@@ -78,8 +68,8 @@ class Engine < Rails::Engine # :nodoc:
     initializer "view_component.set_autoload_paths" do |app|
       options = app.config.view_component
 
-      if options.show_previews && !options.preview_paths.empty?
-        paths_to_add = options.preview_paths - ActiveSupport::Dependencies.autoload_paths
+      if options.previews.show && !options.previews.paths.empty?
+        paths_to_add = options.previews.paths - ActiveSupport::Dependencies.autoload_paths
         ActiveSupport::Dependencies.autoload_paths.concat(paths_to_add) if paths_to_add.any?
       end
     end
@@ -97,7 +87,7 @@ class Engine < Rails::Engine # :nodoc:
     end
 
     def serve_static_preview_assets?(app_config)
-      app_config.view_component.show_previews && app_config.public_file_server.enabled
+      app_config.view_component.previews.show && app_config.public_file_server.enabled
     end
 
     initializer "compiler mode" do |_app|
@@ -107,19 +97,19 @@ def serve_static_preview_assets?(app_config)
     config.after_initialize do |app|
       options = app.config.view_component
 
-      if options.show_previews
+      if options.previews.show
         app.routes.prepend do
-          preview_controller = options.preview_controller.sub(/Controller$/, "").underscore
+          preview_controller = options.previews.controller!.sub(/Controller$/, "").underscore
 
           get(
-            options.preview_route,
+            options.previews.route!,
             to: "#{preview_controller}#index",
             as: :preview_view_components,
             internal: true
           )
 
           get(
-            "#{options.preview_route}/*path",
+            "#{options.previews.route!}/*path",
             to: "#{preview_controller}#previews",
             as: :preview_view_component,
             internal: true
diff --git a/lib/view_component/instrumentation.rb b/lib/view_component/instrumentation.rb
index d63efd283..96ed96390 100644
--- a/lib/view_component/instrumentation.rb
+++ b/lib/view_component/instrumentation.rb
@@ -10,7 +10,7 @@ def self.included(mod)
 
     def render_in(view_context, &block)
       ActiveSupport::Notifications.instrument(
-        notification_name,
+        "render.view_component",
         {
           name: self.class.name,
           identifier: self.class.identifier
@@ -19,13 +19,5 @@ def render_in(view_context, &block)
         super
       end
     end
-
-    private
-
-    def notification_name
-      return "!render.view_component" if ViewComponent::Base.config.use_deprecated_instrumentation_name
-
-      "render.view_component"
-    end
   end
 end
diff --git a/lib/view_component/preview.rb b/lib/view_component/preview.rb
index 737b3601e..808a4e954 100644
--- a/lib/view_component/preview.rb
+++ b/lib/view_component/preview.rb
@@ -107,7 +107,7 @@ def load_previews
       private
 
       def preview_paths
-        Base.preview_paths
+        Rails.application.config.view_component.previews.paths
       end
     end
   end
diff --git a/lib/view_component/test_helpers.rb b/lib/view_component/test_helpers.rb
index 6b6ace7b2..04a21a76d 100644
--- a/lib/view_component/test_helpers.rb
+++ b/lib/view_component/test_helpers.rb
@@ -84,7 +84,7 @@ def rendered_json
     # @param params [Hash] Parameters to be passed to the preview.
     # @return [Nokogiri::HTML]
     def render_preview(name, from: __vc_test_helpers_preview_class, params: {})
-      previews_controller = __vc_test_helpers_build_controller(Rails.application.config.view_component.preview_controller.constantize)
+      previews_controller = __vc_test_helpers_build_controller(Rails.application.config.view_component.previews.controller.constantize)
 
       # From what I can tell, it's not possible to overwrite all request parameters
       # at once, so we set them individually here.
@@ -245,7 +245,7 @@ def with_request_url(full_path, host: nil, method: nil)
     #
     # @return [ActionController::Base]
     def vc_test_controller
-      @vc_test_controller ||= __vc_test_helpers_build_controller(Base.test_controller.constantize)
+      @vc_test_controller ||= __vc_test_helpers_build_controller(Rails.application.config.view_component.test_controller.constantize)
     end
 
     # Access the request used by `render_inline`:
diff --git a/test/sandbox/app/components/config_base_component.rb b/test/sandbox/app/components/config_base_component.rb
new file mode 100644
index 000000000..a2fe47ac1
--- /dev/null
+++ b/test/sandbox/app/components/config_base_component.rb
@@ -0,0 +1,7 @@
+# frozen_string_literal: true
+
+class ConfigBaseComponent < ViewComponent::Base
+  configure do |config|
+    config.test_controller = "SomeController"
+  end
+end
diff --git a/test/sandbox/app/components/inherited_config_component.rb b/test/sandbox/app/components/inherited_config_component.rb
new file mode 100644
index 000000000..349c2d0df
--- /dev/null
+++ b/test/sandbox/app/components/inherited_config_component.rb
@@ -0,0 +1,7 @@
+# frozen_string_literal: true
+
+class InheritedConfigComponent < ConfigBaseComponent
+  configure do |config|
+    config.test_controller = "AnotherController"
+  end
+end
diff --git a/test/sandbox/config/application.rb b/test/sandbox/config/application.rb
index a92e48278..dc0c991f3 100644
--- a/test/sandbox/config/application.rb
+++ b/test/sandbox/config/application.rb
@@ -42,7 +42,7 @@ class Application < Rails::Application
 
     # Prepare test_set_no_duplicate_autoload_paths
     config.autoload_paths.push("#{config.root}/my/components/previews")
-    config.view_component.preview_paths << "#{config.root}/my/components/previews"
+    config.view_component.previews.paths << "#{config.root}/my/components/previews"
   end
 end
 
diff --git a/test/sandbox/config/environments/test.rb b/test/sandbox/config/environments/test.rb
index 857bb1676..a7b244929 100644
--- a/test/sandbox/config/environments/test.rb
+++ b/test/sandbox/config/environments/test.rb
@@ -30,10 +30,10 @@
   # Disable request forgery protection in test environment
   config.action_controller.allow_forgery_protection = false
 
-  config.view_component.show_previews = true
+  config.view_component.previews.show = true
 
-  config.view_component.preview_paths << "#{Rails.root}/lib/component_previews"
-  config.view_component.show_previews_source = true
+  config.view_component.previews.paths << "#{Rails.root}/lib/component_previews"
+  config.view_component.previews.show_source = true
   config.view_component.test_controller = "IntegrationExamplesController"
   config.view_component.capture_compatibility_patch_enabled = ENV["CAPTURE_PATCH_ENABLED"] == "true"
 
diff --git a/test/sandbox/test/base_test.rb b/test/sandbox/test/base_test.rb
index ac84a5a79..9cd75e3be 100644
--- a/test/sandbox/test/base_test.rb
+++ b/test/sandbox/test/base_test.rb
@@ -145,4 +145,12 @@ def test_no_method_error_does_not_reference_missing_helper
     MESSAGE
     assert !exception_message_regex.match?(exception.message)
   end
+
+  def test_configuration_dsl
+    assert_equal "SomeController", ConfigBaseComponent.new.configuration.test_controller
+  end
+
+  def test_inherited_configuration
+    assert_equal "AnotherController", InheritedConfigComponent.new.configuration.test_controller
+  end
 end
diff --git a/test/sandbox/test/config_test.rb b/test/sandbox/test/config_test.rb
index 0a74018b4..ec87cb340 100644
--- a/test/sandbox/test/config_test.rb
+++ b/test/sandbox/test/config_test.rb
@@ -5,18 +5,29 @@
 module ViewComponent
   class ConfigTest < TestCase
     def setup
-      @config = ViewComponent::Config.new
+      @config = ViewComponent::ApplicationConfig.new
     end
 
     def test_defaults_are_correct
-      assert_equal @config.generate, {preview_path: ""}
-      assert_equal @config.preview_controller, "ViewComponentsController"
-      assert_equal @config.preview_route, "/rails/view_components"
-      assert_equal @config.show_previews_source, false
+      assert_equal @config.generate, {
+        sidecar: false,
+        stimulus_controller: false,
+        typescript: false,
+        locale: false,
+        distinct_locale_files: false,
+        preview: false,
+        preview_path: "",
+        use_component_path_for_rspec_tests: false,
+        view_component_paths: ["app/components"],
+        component_parent_class: nil,
+      }
+      assert_equal @config.previews.controller, "ViewComponentsController"
+      assert_equal @config.previews.route, "/rails/view_components"
+      assert_equal @config.previews.show_source, true
       assert_equal @config.instrumentation_enabled, false
-      assert_equal @config.use_deprecated_instrumentation_name, true
-      assert_equal @config.show_previews, true
-      assert_equal @config.preview_paths, ["#{Rails.root}/test/components/previews"]
+      assert_equal @config.capture_compatibility_patch_enabled, false
+      assert_equal @config.previews.show, true
+      assert_equal @config.previews.paths, ["#{Rails.root}/test/components/previews"]
     end
 
     def test_all_methods_are_documented
@@ -28,9 +39,9 @@ def test_all_methods_are_documented
       Rake::Task["yard"].execute
       configuration_methods_to_document = YARD::RegistryStore.new.tap do |store|
         store.load!(".yardoc")
-      end.get("ViewComponent::Config").meths.select(&:reader?).reject { |meth| meth.name == :config }
-      default_options = ViewComponent::Config.defaults.keys
-      accessors = ViewComponent::Config.instance_methods(false).reject do |method_name|
+      end.get("ViewComponent::ApplicationConfig").meths.select(&:reader?).reject { |meth| meth.name == :config }
+      default_options = ViewComponent::ApplicationConfig.defaults.keys
+      accessors = ViewComponent::ApplicationConfig.instance_methods(false).reject do |method_name|
         method_name.to_s.end_with?("=") || method_name == :method_missing
       end
       options_defined_on_instance = Set[*default_options, *accessors]
diff --git a/test/sandbox/test/instrumentation_test.rb b/test/sandbox/test/instrumentation_test.rb
index b2d4d0490..65ad22103 100644
--- a/test/sandbox/test/instrumentation_test.rb
+++ b/test/sandbox/test/instrumentation_test.rb
@@ -4,29 +4,16 @@
 
 class InstrumentationTest < ViewComponent::TestCase
   def test_instrumentation
-    with_config_option(:use_deprecated_instrumentation_name, false) do
-      events = []
-      ActiveSupport::Notifications.subscribe("render.view_component") do |*args|
-        events << ActiveSupport::Notifications::Event.new(*args)
-      end
-      render_inline(InstrumentationComponent.new)
-
-      assert_selector("div", text: "hello,world!")
-      assert_equal(events.size, 1)
-      assert_equal("render.view_component", events[0].name)
-      assert_equal(events[0].payload[:name], "InstrumentationComponent")
-      assert_match("app/components/instrumentation_component.rb", events[0].payload[:identifier])
-    end
-  end
-
-  def test_instrumentation_with_deprecated_name
     events = []
-    ActiveSupport::Notifications.subscribe("!render.view_component") do |*args|
+    ActiveSupport::Notifications.subscribe("render.view_component") do |*args|
       events << ActiveSupport::Notifications::Event.new(*args)
     end
     render_inline(InstrumentationComponent.new)
 
+    assert_selector("div", text: "hello,world!")
     assert_equal(events.size, 1)
-    assert_equal("!render.view_component", events[0].name)
+    assert_equal("render.view_component", events[0].name)
+    assert_equal(events[0].payload[:name], "InstrumentationComponent")
+    assert_match("app/components/instrumentation_component.rb", events[0].payload[:identifier])
   end
 end
diff --git a/test/sandbox/test/integration_test.rb b/test/sandbox/test/integration_test.rb
index bf567e25b..5b73867f7 100644
--- a/test/sandbox/test/integration_test.rb
+++ b/test/sandbox/test/integration_test.rb
@@ -539,7 +539,7 @@ def test_render_component_in_turbo_stream
       expected_response_body = <<~TURBOSTREAM
         <turbo-stream action="update" target="area1"><template><span>Hello, world!</span></template></turbo-stream>
       TURBOSTREAM
-      if ViewComponent::Base.config.capture_compatibility_patch_enabled
+      if Rails.application.config.view_component.capture_compatibility_patch_enabled
         assert_equal expected_response_body, response.body
       else
         assert_not_equal expected_response_body, response.body
@@ -670,25 +670,6 @@ def test_cached_partial
     Rails.cache.clear
   end
 
-  def test_config_options_shared_between_base_and_engine
-    config_entrypoints = [Rails.application.config.view_component, ViewComponent::Base.config]
-    2.times do
-      config_entrypoints.first.yield_self do |config|
-        {
-          generate: config.generate.dup.tap { |c| c.sidecar = true },
-          preview_controller: "SomeOtherController",
-          preview_route: "/some/other/route",
-          show_previews_source: true
-        }.each do |option, value|
-          with_config_option(option, value, config_entrypoint: config) do
-            assert_equal(config.public_send(option), config_entrypoints.second.public_send(option))
-          end
-        end
-      end
-      config_entrypoints.rotate!
-    end
-  end
-
   def test_path_traversal_raises_error
     path = "../../README.md"
 
diff --git a/test/sandbox/test/rendering_test.rb b/test/sandbox/test/rendering_test.rb
index d19863f40..e5b094fd7 100644
--- a/test/sandbox/test/rendering_test.rb
+++ b/test/sandbox/test/rendering_test.rb
@@ -16,8 +16,8 @@ def test_render_inline_allocations
     MyComponent.ensure_compiled
 
     allocations = (Rails.version.to_f >= 8.0) ?
-      {"3.5.0" => 104, "3.4.1" => 104, "3.3.7" => 108} :
-      {"3.3.7" => 107, "3.3.0" => 120, "3.2.7" => 105, "3.1.6" => 118, "3.0.7" => 127}
+      {"3.5.0" => 107, "3.4.1" => 107, "3.3.7" => 111} :
+      {"3.3.7" => 110, "3.3.0" => 123, "3.2.7" => 108, "3.1.6" => 121, "3.0.7" => 130}
 
     assert_allocations(**allocations) do
       render_inline(MyComponent.new)
diff --git a/test/test_helper.rb b/test/test_helper.rb
index 5ea189c8d..1dcc4e086 100644
--- a/test/test_helper.rb
+++ b/test/test_helper.rb
@@ -68,35 +68,39 @@ def with_config_option(option_name, new_value, config_entrypoint: Rails.applicat
 # @yield Test code to run
 # @return [void]
 def with_preview_paths(new_value, &block)
-  with_config_option(:preview_paths, new_value, &block)
+  old_value = Rails.application.config.view_component.previews.paths
+  Rails.application.config.view_component.previews.paths = new_value
+  yield
+ensure
+  Rails.application.config.view_component.previews.paths = old_value
 end
 
 def with_preview_route(new_value)
-  old_value = Rails.application.config.view_component.preview_route
-  Rails.application.config.view_component.preview_route = new_value
+  old_value = Rails.application.config.view_component.previews.route
+  Rails.application.config.view_component.previews.route = new_value
   app.reloader.reload!
   yield
 ensure
-  Rails.application.config.view_component.preview_route = old_value
+  Rails.application.config.view_component.previews.route = old_value
   app.reloader.reload!
 end
 
 def with_preview_controller(new_value)
-  old_value = Rails.application.config.view_component.preview_controller
-  Rails.application.config.view_component.preview_controller = new_value
+  old_value = Rails.application.config.view_component.previews.controller
+  Rails.application.config.view_component.previews.controller = new_value
   app.reloader.reload!
   yield
 ensure
-  Rails.application.config.view_component.preview_controller = old_value
+  Rails.application.config.view_component.previews.controller = old_value
   app.reloader.reload!
 end
 
 def with_custom_component_path(new_value, &block)
-  with_config_option(:view_component_path, new_value, &block)
+  with_generate_option(:view_component_paths, [new_value], &block)
 end
 
 def with_custom_component_parent_class(new_value, &block)
-  with_config_option(:component_parent_class, new_value, &block)
+  with_generate_option(:component_parent_class, new_value, &block)
 end
 
 def with_application_component_class
@@ -139,6 +143,16 @@ def with_new_cache
   ViewComponent::CompileCache.cache = old_cache
 end
 
+def with_default_preview_layout(new_value, &block)
+  old_value = Rails.application.config.view_component.previews.default_layout
+  Rails.application.config.view_component.previews.default_layout = new_value
+  app.reloader.reload!
+  yield
+ensure
+  Rails.application.config.view_component.previews.default_layout = old_value
+  app.reloader.reload!
+end
+
 def without_template_annotations(&block)
   if ActionView::Base.respond_to?(:annotate_rendered_view_with_filenames)
     old_value = ActionView::Base.annotate_rendered_view_with_filenames
@@ -165,10 +179,6 @@ def modify_file(file, content)
   end
 end
 
-def with_default_preview_layout(layout, &block)
-  with_config_option(:default_preview_layout, layout, &block)
-end
-
 def with_compiler_development_mode(mode)
   previous_mode = ViewComponent::Compiler.development_mode
   ViewComponent::Compiler.development_mode = mode