diff --git a/docs/features/iol-runner-docker.md b/docs/features/iol-runner-docker.md
index 3d2c62fbe..231d6732d 100644
--- a/docs/features/iol-runner-docker.md
+++ b/docs/features/iol-runner-docker.md
@@ -128,9 +128,11 @@ from it boots with that configuration as its personal starting point.
 ```
 
 * The file lives in the controller's configs directory (the `configs_path`
-  server setting, e.g. `~/.config/GNS3/3.1/configs`) — the same place IOU
-  and VPCS base configs live. `%h` in the content is replaced with the node
-  name at start.
+  server setting, by default `~/GNS3/configs`) — the same place IOU and
+  VPCS base configs live. A minimal `iol-xe-base.txt` ships with the
+  server and is installed there on startup (never overwriting a
+  user-modified copy); an absolute path in the knob bypasses the directory
+  entirely. `%h` in the content is replaced with the node name at start.
 * **Creation materializes it once**: the controller reads the file and
   sends its content with the node; afterwards the knob is consumed and the
   template file is never referenced again — editing it does not affect
diff --git a/gns3server/configs/iol-xe-base.txt b/gns3server/configs/iol-xe-base.txt
new file mode 100644
index 000000000..fb275da85
--- /dev/null
+++ b/gns3server/configs/iol-xe-base.txt
@@ -0,0 +1,16 @@
+!
+service timestamps debug datetime msec
+service timestamps log datetime msec
+!
+hostname %h
+!
+no ip domain lookup
+!
+ip tcp synwait-time 5
+!
+line con 0
+ exec-timeout 0 0
+ privilege level 15
+ logging synchronous
+!
+end
diff --git a/tests/controller/test_controller.py b/tests/controller/test_controller.py
index dad07581e..412a9b019 100644
--- a/tests/controller/test_controller.py
+++ b/tests/controller/test_controller.py
@@ -462,6 +462,9 @@ async def test_install_base_configs(controller, config, tmpdir):
 
     await controller._install_base_configs()
     assert os.path.exists(str(tmpdir / 'iou_l3_base_startup-config.txt'))
+    # the IOL docker base config ships with the server too (referenced by the
+    # GNS3_IOL_STARTUP_CONFIG knob in the documented template)
+    assert os.path.exists(str(tmpdir / 'iol-xe-base.txt'))
 
     # Check is the file has not been overwritten
     with open(str(tmpdir / 'iou_l2_base_startup-config.txt')) as f: