diff --git a/app/session.h b/app/session.h
--- a/app/session.h
+++ b/app/session.h
@@ -41,7 +41,7 @@
         enum SessionType { Single, TwoHorizontal, TwoVertical, Quad };
         enum GrowthDirection { Up, Right, Down, Left };
 
-        explicit Session(SessionType type = Single, QWidget* parent = 0);
+        explicit Session(SessionType type = Single, QWidget* parent = 0, Session* previousSession = 0);
          ~Session();
 
         int id() { return m_sessionId; }
@@ -118,9 +118,9 @@
 
 
     private:
-        void setupSession(SessionType type);
+        void setupSession(SessionType type, Session* previousSession);
 
-        Terminal* addTerminal(QWidget* parent);
+        Terminal* addTerminal(QWidget* parent, Terminal *previousTerminal = 0);
         int split(Terminal* terminal, Qt::Orientation orientation);
 
         static int m_availableSessionId;
diff --git a/app/session.cpp b/app/session.cpp
--- a/app/session.cpp
+++ b/app/session.cpp
@@ -26,7 +26,7 @@
 
 int Session::m_availableSessionId = 0;
 
-Session::Session(SessionType type, QWidget* parent) : QObject(parent)
+Session::Session(SessionType type, QWidget* parent, Session *previousSession) : QObject(parent)
 {
     m_sessionId = m_availableSessionId;
     m_availableSessionId++;
@@ -38,7 +38,7 @@
     m_baseSplitter = new Splitter(Qt::Horizontal, parent);
     connect(m_baseSplitter, SIGNAL(destroyed()), this, SLOT(prepareShutdown()));
 
-    setupSession(type);
+    setupSession(type, previousSession);
 }
 
 Session::~Session()
@@ -48,13 +48,17 @@
     emit destroyed(m_sessionId);
 }
 
-void Session::setupSession(SessionType type)
+void Session::setupSession(SessionType type, Session *previousSession)
 {
+    Terminal* previousTerminal = nullptr;
+    if (previousSession != nullptr) {
+        previousTerminal = previousSession->getTerminal(previousSession->activeTerminalId());
+    }
     switch (type)
     {
         case Single:
         {
-            Terminal* terminal = addTerminal(m_baseSplitter);
+            Terminal* terminal = addTerminal(m_baseSplitter, previousTerminal);
             setActiveTerminal(terminal->id());
 
             break;
@@ -64,8 +68,8 @@
         {
             int splitterWidth = m_baseSplitter->width();
 
-            Terminal* terminal = addTerminal(m_baseSplitter);
-            addTerminal(m_baseSplitter);
+            Terminal* terminal = addTerminal(m_baseSplitter, previousTerminal);
+            addTerminal(m_baseSplitter, previousTerminal);
 
             QList<int> newSplitterSizes;
             newSplitterSizes << (splitterWidth / 2) << (splitterWidth / 2);
@@ -88,8 +92,8 @@
 
             int splitterHeight = m_baseSplitter->height();
 
-            Terminal* terminal = addTerminal(m_baseSplitter);
-            addTerminal(m_baseSplitter);
+            Terminal* terminal = addTerminal(m_baseSplitter, previousTerminal);
+            addTerminal(m_baseSplitter, previousTerminal);
 
             QList<int> newSplitterSizes;
             newSplitterSizes << (splitterHeight / 2) << (splitterHeight / 2);
@@ -119,11 +123,11 @@
             Splitter* lowerSplitter = new Splitter(Qt::Horizontal, m_baseSplitter);
             connect(lowerSplitter, SIGNAL(destroyed()), this, SLOT(cleanup()));
 
-            Terminal* terminal = addTerminal(upperSplitter);
-            addTerminal(upperSplitter);
+            Terminal* terminal = addTerminal(upperSplitter, previousTerminal);
+            addTerminal(upperSplitter, previousTerminal);
 
-            addTerminal(lowerSplitter);
-            addTerminal(lowerSplitter);
+            addTerminal(lowerSplitter, previousTerminal);
+            addTerminal(lowerSplitter, previousTerminal);
 
             QList<int> newSplitterSizes;
             newSplitterSizes << (splitterHeight / 2) << (splitterHeight / 2);
@@ -147,16 +151,22 @@
 
         default:
         {
-            addTerminal(m_baseSplitter);
+            addTerminal(m_baseSplitter, previousTerminal);
 
             break;
         }
     }
 }
 
-Terminal* Session::addTerminal(QWidget* parent)
+Terminal* Session::addTerminal(QWidget* parent, Terminal* previousTerminal)
 {
-    Terminal* terminal = new Terminal(parent);
+    Terminal* terminal = nullptr;
+    if (previousTerminal == nullptr) previousTerminal = getTerminal(activeTerminalId());
+
+    if (previousTerminal == nullptr)
+        terminal = new Terminal(parent);
+    else
+        terminal = new Terminal(parent, previousTerminal->getCwd());
     connect(terminal, SIGNAL(activated(int)), this, SLOT(setActiveTerminal(int)));
     connect(terminal, SIGNAL(manuallyActivated(Terminal*)), this, SIGNAL(terminalManuallyActivated(Terminal*)));
     connect(terminal, SIGNAL(titleChanged(int,QString)), this, SLOT(setTitle(int,QString)));
diff --git a/app/sessionstack.h b/app/sessionstack.h
--- a/app/sessionstack.h
+++ b/app/sessionstack.h
@@ -52,6 +52,8 @@
 
         bool requiresVisualEventOverlay();
 
+        Session* getSession(int sessionId);
+
 
     public Q_SLOTS:
         int addSessionImpl(Session::SessionType type = Session::Single);
diff --git a/app/sessionstack.cpp b/app/sessionstack.cpp
--- a/app/sessionstack.cpp
+++ b/app/sessionstack.cpp
@@ -51,7 +51,7 @@
 
 int SessionStack::addSessionImpl(Session::SessionType type)
 {
-    Session* session = new Session(type, this);
+    Session* session = new Session(type, this, getSession(m_activeSessionId));
     connect(session, SIGNAL(titleChanged(int,QString)), this, SIGNAL(titleChanged(int,QString)));
     connect(session, SIGNAL(terminalManuallyActivated(Terminal*)), this, SLOT(handleManualTerminalActivation(Terminal*)));
     connect(session, SIGNAL(keyboardInputBlocked(Terminal*)), m_visualEventOverlay, SLOT(indicateKeyboardInputBlocked(Terminal*)));
@@ -598,6 +598,13 @@
     return m_sessions.value(m_activeSessionId)->hasTerminalsWithKeyboardInputDisabled();
 }
 
+Session* SessionStack::getSession(int sessionId)
+{
+    if (!m_sessions.contains(sessionId)) return nullptr;
+
+    return m_sessions.value(sessionId);
+}
+
 void SessionStack::handleTerminalHighlightRequest(int terminalId)
 {
     Terminal* terminal = 0;
diff --git a/app/terminal.h b/app/terminal.h
--- a/app/terminal.h
+++ b/app/terminal.h
@@ -24,6 +24,7 @@
 
 #include <KParts/Part>
 
+#include <QDir>
 #include <QPointer>
 
 
@@ -37,7 +38,7 @@
     Q_OBJECT
 
     public:
-        explicit Terminal(QWidget* parent = 0);
+        explicit Terminal(QWidget* parent = 0, const QString& workingDir = QDir::homePath());
          ~Terminal();
 
         bool eventFilter(QObject* watched, QEvent* event) override;
@@ -49,6 +50,7 @@
         QWidget* terminalWidget() { return m_terminalWidget; }
 
         QWidget* splitter() { return m_parentSplitter; }
+        QString getCwd();
         void setSplitter(QWidget* splitter) { m_parentSplitter = splitter; }
 
         void runCommand(const QString& command);
diff --git a/app/terminal.cpp b/app/terminal.cpp
--- a/app/terminal.cpp
+++ b/app/terminal.cpp
@@ -42,7 +42,7 @@
 
 int Terminal::m_availableTerminalId = 0;
 
-Terminal::Terminal(QWidget* parent) : QObject(parent)
+Terminal::Terminal(QWidget* parent, const QString& workingDir) : QObject(parent)
 {
     m_terminalId = m_availableTerminalId;
     m_availableTerminalId++;
@@ -86,7 +86,7 @@
         disableOffendingPartActions();
 
         m_terminalInterface = qobject_cast<TerminalInterface*>(m_part);
-        if (m_terminalInterface) m_terminalInterface->showShellInDir(QDir::homePath());
+        if (m_terminalInterface)  m_terminalInterface->showShellInDir(workingDir);
     }
     else
         displayKPartLoadError();
@@ -233,6 +233,11 @@
     m_terminalInterface->sendInput(command + QStringLiteral("\n"));
 }
 
+QString Terminal::getCwd()
+{
+    return m_terminalInterface->currentWorkingDirectory();
+}
+
 void Terminal::manageProfiles()
 {
     QMetaObject::invokeMethod(m_part, "showManageProfilesDialog",