diff --git a/libs/config/merge/merge.go b/libs/config/merge/merge.go
new file mode 100644
index 0000000000..896e212923
--- /dev/null
+++ b/libs/config/merge/merge.go
@@ -0,0 +1,98 @@
+package merge
+
+import (
+	"fmt"
+
+	"github.com/databricks/cli/libs/config"
+)
+
+// Merge recursively merges the specified values.
+//
+// Semantics are as follows:
+// * Merging x with nil or nil with x always yields x.
+// * Merging maps a and b means entries from map b take precedence.
+// * Merging sequences a and b means concatenating them.
+func Merge(a, b config.Value) (config.Value, error) {
+	return merge(a, b)
+}
+
+func merge(a, b config.Value) (config.Value, error) {
+	ak := a.Kind()
+	bk := b.Kind()
+
+	// If a is nil, return b.
+	if ak == config.KindNil {
+		return b, nil
+	}
+
+	// If b is nil, return a.
+	if bk == config.KindNil {
+		return a, nil
+	}
+
+	// Call the appropriate merge function based on the kind of a and b.
+	switch ak {
+	case config.KindMap:
+		if bk != config.KindMap {
+			return config.NilValue, fmt.Errorf("cannot merge map with %s", bk)
+		}
+		return mergeMap(a, b)
+	case config.KindSequence:
+		if bk != config.KindSequence {
+			return config.NilValue, fmt.Errorf("cannot merge sequence with %s", bk)
+		}
+		return mergeSequence(a, b)
+	default:
+		if ak != bk {
+			return config.NilValue, fmt.Errorf("cannot merge %s with %s", ak, bk)
+		}
+		return mergePrimitive(a, b)
+	}
+}
+
+func mergeMap(a, b config.Value) (config.Value, error) {
+	out := make(map[string]config.Value)
+	am := a.MustMap()
+	bm := b.MustMap()
+
+	// Add the values from a into the output map.
+	for k, v := range am {
+		out[k] = v
+	}
+
+	// Merge the values from b into the output map.
+	for k, v := range bm {
+		if _, ok := out[k]; ok {
+			// If the key already exists, merge the values.
+			merged, err := merge(out[k], v)
+			if err != nil {
+				return config.NilValue, err
+			}
+			out[k] = merged
+		} else {
+			// Otherwise, just set the value.
+			out[k] = v
+		}
+	}
+
+	// Preserve the location of the first value.
+	return config.NewValue(out, a.Location()), nil
+}
+
+func mergeSequence(a, b config.Value) (config.Value, error) {
+	as := a.MustSequence()
+	bs := b.MustSequence()
+
+	// Merging sequences means concatenating them.
+	out := make([]config.Value, len(as)+len(bs))
+	copy(out[:], as)
+	copy(out[len(as):], bs)
+
+	// Preserve the location of the first value.
+	return config.NewValue(out, a.Location()), nil
+}
+
+func mergePrimitive(a, b config.Value) (config.Value, error) {
+	// Merging primitive values means using the incoming value.
+	return b, nil
+}
diff --git a/libs/config/merge/merge_test.go b/libs/config/merge/merge_test.go
new file mode 100644
index 0000000000..c2e89f60a4
--- /dev/null
+++ b/libs/config/merge/merge_test.go
@@ -0,0 +1,207 @@
+package merge
+
+import (
+	"testing"
+
+	"github.com/databricks/cli/libs/config"
+	"github.com/stretchr/testify/assert"
+)
+
+func TestMergeMaps(t *testing.T) {
+	v1 := config.V(map[string]config.Value{
+		"foo": config.V("bar"),
+		"bar": config.V("baz"),
+	})
+
+	v2 := config.V(map[string]config.Value{
+		"bar": config.V("qux"),
+		"qux": config.V("foo"),
+	})
+
+	// Merge v2 into v1.
+	{
+		out, err := Merge(v1, v2)
+		assert.NoError(t, err)
+		assert.Equal(t, map[string]any{
+			"foo": "bar",
+			"bar": "qux",
+			"qux": "foo",
+		}, out.AsAny())
+	}
+
+	// Merge v1 into v2.
+	{
+		out, err := Merge(v2, v1)
+		assert.NoError(t, err)
+		assert.Equal(t, map[string]any{
+			"foo": "bar",
+			"bar": "baz",
+			"qux": "foo",
+		}, out.AsAny())
+	}
+}
+
+func TestMergeMapsNil(t *testing.T) {
+	v := config.V(map[string]config.Value{
+		"foo": config.V("bar"),
+	})
+
+	// Merge nil into v.
+	{
+		out, err := Merge(v, config.NilValue)
+		assert.NoError(t, err)
+		assert.Equal(t, map[string]any{
+			"foo": "bar",
+		}, out.AsAny())
+	}
+
+	// Merge v into nil.
+	{
+		out, err := Merge(config.NilValue, v)
+		assert.NoError(t, err)
+		assert.Equal(t, map[string]any{
+			"foo": "bar",
+		}, out.AsAny())
+	}
+}
+
+func TestMergeMapsError(t *testing.T) {
+	v := config.V(map[string]config.Value{
+		"foo": config.V("bar"),
+	})
+
+	other := config.V("string")
+
+	// Merge a string into v.
+	{
+		out, err := Merge(v, other)
+		assert.EqualError(t, err, "cannot merge map with string")
+		assert.Equal(t, config.NilValue, out)
+	}
+}
+
+func TestMergeSequences(t *testing.T) {
+	v1 := config.V([]config.Value{
+		config.V("bar"),
+		config.V("baz"),
+	})
+
+	v2 := config.V([]config.Value{
+		config.V("qux"),
+		config.V("foo"),
+	})
+
+	// Merge v2 into v1.
+	{
+		out, err := Merge(v1, v2)
+		assert.NoError(t, err)
+		assert.Equal(t, []any{
+			"bar",
+			"baz",
+			"qux",
+			"foo",
+		}, out.AsAny())
+	}
+
+	// Merge v1 into v2.
+	{
+		out, err := Merge(v2, v1)
+		assert.NoError(t, err)
+		assert.Equal(t, []any{
+			"qux",
+			"foo",
+			"bar",
+			"baz",
+		}, out.AsAny())
+	}
+}
+
+func TestMergeSequencesNil(t *testing.T) {
+	v := config.V([]config.Value{
+		config.V("bar"),
+	})
+
+	// Merge nil into v.
+	{
+		out, err := Merge(v, config.NilValue)
+		assert.NoError(t, err)
+		assert.Equal(t, []any{
+			"bar",
+		}, out.AsAny())
+	}
+
+	// Merge v into nil.
+	{
+		out, err := Merge(config.NilValue, v)
+		assert.NoError(t, err)
+		assert.Equal(t, []any{
+			"bar",
+		}, out.AsAny())
+	}
+}
+
+func TestMergeSequencesError(t *testing.T) {
+	v := config.V([]config.Value{
+		config.V("bar"),
+	})
+
+	other := config.V("string")
+
+	// Merge a string into v.
+	{
+		out, err := Merge(v, other)
+		assert.EqualError(t, err, "cannot merge sequence with string")
+		assert.Equal(t, config.NilValue, out)
+	}
+}
+
+func TestMergePrimitives(t *testing.T) {
+	v1 := config.V("bar")
+	v2 := config.V("baz")
+
+	// Merge v2 into v1.
+	{
+		out, err := Merge(v1, v2)
+		assert.NoError(t, err)
+		assert.Equal(t, "baz", out.AsAny())
+	}
+
+	// Merge v1 into v2.
+	{
+		out, err := Merge(v2, v1)
+		assert.NoError(t, err)
+		assert.Equal(t, "bar", out.AsAny())
+	}
+}
+
+func TestMergePrimitivesNil(t *testing.T) {
+	v := config.V("bar")
+
+	// Merge nil into v.
+	{
+		out, err := Merge(v, config.NilValue)
+		assert.NoError(t, err)
+		assert.Equal(t, "bar", out.AsAny())
+	}
+
+	// Merge v into nil.
+	{
+		out, err := Merge(config.NilValue, v)
+		assert.NoError(t, err)
+		assert.Equal(t, "bar", out.AsAny())
+	}
+}
+
+func TestMergePrimitivesError(t *testing.T) {
+	v := config.V("bar")
+	other := config.V(map[string]config.Value{
+		"foo": config.V("bar"),
+	})
+
+	// Merge a map into v.
+	{
+		out, err := Merge(v, other)
+		assert.EqualError(t, err, "cannot merge string with map")
+		assert.Equal(t, config.NilValue, out)
+	}
+}