diff --git a/.github/workflows/versions.yml b/.github/workflows/versions.yml
index 321f6efe..459f33cd 100644
--- a/.github/workflows/versions.yml
+++ b/.github/workflows/versions.yml
@@ -89,7 +89,7 @@ jobs:
       - name: Setup node from node version file
         uses: ./
         with:
-          node-version-file: '.nvmrc'
+          node-version-file: '__tests__/data/.nvmrc'
       - name: Verify node
         run: __tests__/verify-node.sh 14
 
diff --git a/README.md b/README.md
index 28636268..3e01b7fe 100644
--- a/README.md
+++ b/README.md
@@ -1,4 +1,5 @@
 # setup-node
+
 <p align="left">
   <a href="https://github.com/actions/setup-node/actions?query=workflow%3Abuild-test"><img alt="build-test status" src="https://github.com/actions/setup-node/workflows/build-test/badge.svg"></a> <a href="https://github.com/actions/setup-node/actions?query=workflow%3Aversions"><img alt="versions status" src="https://github.com/actions/setup-node/workflows/versions/badge.svg"></a> <a href="https://github.com/actions/setup-node/actions?query=workflow%3Aproxy"><img alt="proxy status" src="https://github.com/actions/setup-node/workflows/proxy/badge.svg"></a> 
 </p>
@@ -71,7 +72,6 @@ steps:
 - run: npm test
 ```
 
-
 ## Matrix Testing:
 ```yaml
 jobs:
@@ -93,7 +93,7 @@ jobs:
 ## Advanced usage
 
 1. [Check latest version](docs/advanced-usage.md#check-latest-version)
-2. [Using a node version file](docs/advanced-usage.md#Node-version-file)
+2. [Using a node version file](docs/advanced-usage.md#node-version-file)
 3. [Using different architectures](docs/advanced-usage.md#architecture)
 4. [Caching packages dependencies](docs/advanced-usage.md#caching-packages-dependencies)
 5. [Using multiple operating systems and architectures](docs/advanced-usage.md#multiple-operating-systems-and-architectures)
diff --git a/__tests__/installer.test.ts b/__tests__/installer.test.ts
index 6d91faf3..4565dd4c 100644
--- a/__tests__/installer.test.ts
+++ b/__tests__/installer.test.ts
@@ -65,7 +65,6 @@ describe('setup-node', () => {
     // io
     whichSpy = jest.spyOn(io, 'which');
     existsSpy = jest.spyOn(fs, 'existsSync');
-    readFileSyncSpy = jest.spyOn(fs, 'readFileSync');
     mkdirpSpy = jest.spyOn(io, 'mkdirP');
 
     // disable authentication portion for installer tests
@@ -95,6 +94,10 @@ describe('setup-node', () => {
       // uncomment to see debug output
       // process.stderr.write(msg + '\n');
     });
+    warningSpy.mockImplementation(msg => {
+      // uncomment to debug
+      // process.stderr.write('log:' + line + '\n');
+    });
   });
 
   afterEach(() => {
@@ -563,7 +566,7 @@ describe('setup-node', () => {
       await main.run();
 
       // Assert
-      expect(readFileSyncSpy).toHaveBeenCalledTimes(0);
+      expect(parseNodeVersionSpy).toHaveBeenCalledTimes(0);
     });
 
     it('not used if node-version-file not provided', async () => {
@@ -571,32 +574,73 @@ describe('setup-node', () => {
       await main.run();
 
       // Assert
-      expect(readFileSyncSpy).toHaveBeenCalledTimes(0);
+      expect(parseNodeVersionSpy).toHaveBeenCalledTimes(0);
     });
 
     it('reads node-version-file if provided', async () => {
       // Arrange
-      const versionSpec = 'v12';
+      const versionSpec = 'v14';
       const versionFile = '.nvmrc';
-      const expectedVersionSpec = '12';
+      const expectedVersionSpec = '14';
+      process.env['GITHUB_WORKSPACE'] = path.join(__dirname, 'data');
+      inputs['node-version-file'] = versionFile;
+
+      parseNodeVersionSpy.mockImplementation(() => expectedVersionSpec);
+      existsSpy.mockImplementationOnce(
+        input => input === path.join(__dirname, 'data', versionFile)
+      );
+      // Act
+      await main.run();
+
+      // Assert
+      expect(existsSpy).toHaveBeenCalledTimes(1);
+      expect(existsSpy).toHaveReturnedWith(true);
+      expect(parseNodeVersionSpy).toHaveBeenCalledWith(versionSpec);
+      expect(logSpy).toHaveBeenCalledWith(
+        `Resolved ${versionFile} as ${expectedVersionSpec}`
+      );
+    });
+
+    it('both node-version-file and node-version are provided', async () => {
+      inputs['node-version'] = '12';
+      const versionSpec = 'v14';
+      const versionFile = '.nvmrc';
+      const expectedVersionSpec = '14';
       process.env['GITHUB_WORKSPACE'] = path.join(__dirname, '..');
       inputs['node-version-file'] = versionFile;
 
-      readFileSyncSpy.mockImplementation(() => versionSpec);
       parseNodeVersionSpy.mockImplementation(() => expectedVersionSpec);
 
       // Act
       await main.run();
 
       // Assert
-      expect(readFileSyncSpy).toHaveBeenCalledTimes(1);
-      expect(readFileSyncSpy).toHaveBeenCalledWith(
-        path.join(process.env.GITHUB_WORKSPACE, versionFile),
-        'utf8'
+      expect(existsSpy).toHaveBeenCalledTimes(0);
+      expect(parseNodeVersionSpy).not.toHaveBeenCalled();
+      expect(warningSpy).toHaveBeenCalledWith(
+        'Both node-version and node-version-file inputs are specified, only node-version will be used'
       );
-      expect(parseNodeVersionSpy).toHaveBeenCalledWith(versionSpec);
-      expect(logSpy).toHaveBeenCalledWith(
-        `Resolved ${versionFile} as ${expectedVersionSpec}`
+    });
+
+    it('should throw an error if node-version-file is not found', async () => {
+      const versionFile = '.nvmrc';
+      const versionFilePath = path.join(__dirname, '..', versionFile);
+      inputs['node-version-file'] = versionFile;
+
+      inSpy.mockImplementation(name => inputs[name]);
+      existsSpy.mockImplementationOnce(
+        input => input === path.join(__dirname, 'data', versionFile)
+      );
+
+      // Act
+      await main.run();
+
+      // Assert
+      expect(existsSpy).toHaveBeenCalled();
+      expect(existsSpy).toHaveReturnedWith(false);
+      expect(parseNodeVersionSpy).not.toHaveBeenCalled();
+      expect(cnSpy).toHaveBeenCalledWith(
+        `::error::The specified node version file at: ${versionFilePath} does not exist${osm.EOL}`
       );
     });
   });
diff --git a/action.yml b/action.yml
index 66b170ca..900588b2 100644
--- a/action.yml
+++ b/action.yml
@@ -8,7 +8,7 @@ inputs:
   node-version:
     description: 'Version Spec of the version to use.  Examples: 12.x, 10.15.1, >=10.15.0'
   node-version-file:
-    description: 'File containing the version Spec of the version to use.  Examples: .nvmrc'
+    description: 'File containing the version Spec of the version to use.  Examples: .nvmrc, .node-version, .n-node-version'
   architecture:
     description: 'Target architecture for Node to use. Examples: x86, x64. Will use system architecture by default.'
   check-latest:
diff --git a/dist/setup/index.js b/dist/setup/index.js
index 65317ba5..fc9ea9fa 100644
--- a/dist/setup/index.js
+++ b/dist/setup/index.js
@@ -7006,7 +7006,7 @@ function resolveVersionInput() {
     let version = core.getInput('node-version') || core.getInput('version');
     const versionFileInput = core.getInput('node-version-file');
     if (version && versionFileInput) {
-        core.warning('Both node-version and node-version-file are specified');
+        core.warning('Both node-version and node-version-file inputs are specified, only node-version will be used');
     }
     if (version) {
         return version;
@@ -7014,7 +7014,7 @@ function resolveVersionInput() {
     if (versionFileInput) {
         const versionFilePath = path.join(process.env.GITHUB_WORKSPACE, versionFileInput);
         if (!fs_1.default.existsSync(versionFilePath)) {
-            throw new Error('No specified file exists');
+            throw new Error(`The specified node version file at: ${versionFilePath} does not exist`);
         }
         version = installer.parseNodeVersionFile(fs_1.default.readFileSync(versionFilePath, 'utf8'));
         core.info(`Resolved ${versionFileInput} as ${version}`);
diff --git a/docs/advanced-usage.md b/docs/advanced-usage.md
index a7eb6383..960772f5 100644
--- a/docs/advanced-usage.md
+++ b/docs/advanced-usage.md
@@ -21,9 +21,9 @@ steps:
 
 ## Node version file
   
-The `node-version-file` input contains the version of node used by project, for example `.nvmrc`. If both the `node-version` and the `node-version-file` inputs are provided the `node-version` input is used. 
-You can check [supported version syntax](https://github.com/actions/setup-node#supported-version-syntax)  
-> The action will search for the node version file relative to repository root.
+The `node-version-file` input accepts a path to a file containing the version of Node.js to be used by a project, for example `.nvmrc` or `.node-version`. If both the `node-version` and the `node-version-file` inputs are provided then the `node-version` input is used. 
+See [supported version syntax](https://github.com/actions/setup-node#supported-version-syntax) 
+> The action will search for the node version file relative to the repository root.
 
 ```yaml
 steps:
diff --git a/src/main.ts b/src/main.ts
index 434b868e..58c902b8 100644
--- a/src/main.ts
+++ b/src/main.ts
@@ -78,7 +78,9 @@ function resolveVersionInput(): string {
   const versionFileInput = core.getInput('node-version-file');
 
   if (version && versionFileInput) {
-    core.warning('Both node-version and node-version-file are specified');
+    core.warning(
+      'Both node-version and node-version-file inputs are specified, only node-version will be used'
+    );
   }
 
   if (version) {
@@ -91,7 +93,9 @@ function resolveVersionInput(): string {
       versionFileInput
     );
     if (!fs.existsSync(versionFilePath)) {
-      throw new Error('No specified file exists');
+      throw new Error(
+        `The specified node version file at: ${versionFilePath} does not exist`
+      );
     }
     version = installer.parseNodeVersionFile(
       fs.readFileSync(versionFilePath, 'utf8')