diff --git a/platformio/util.py b/platformio/util.py
index c29347d9..ef42b73c 100644
--- a/platformio/util.py
+++ b/platformio/util.py
@@ -46,7 +46,11 @@ def get_lib_dir():
         config = get_project_config()
         if (config.has_section("platformio") and
                 config.has_option("platformio", "lib_dir")):
-            return config.get("platformio", "lib_dir")
+            lib_dir = config.get("platformio", "lib_dir")
+            if lib_dir.startswith("~"):
+                return expanduser(lib_dir)
+            else:
+                return lib_dir
     except NotPlatformProject:
         pass
     return join(get_home_dir(), "lib")