diff --git a/app/session.h b/app/session.h
--- a/app/session.h
+++ b/app/session.h
@@ -28,7 +28,7 @@
 
 #include <QMap>
 #include <QObject>
-
+#include <QDir>
 
 class Terminal;
 
@@ -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, QString dir = QDir::homePath(),  QWidget* parent = 0);
          ~Session();
 
         int id() { return m_sessionId; }
@@ -118,9 +118,9 @@
 
 
     private:
-        void setupSession(SessionType type);
+        void setupSession(SessionType type, QString dir);
 
-        Terminal* addTerminal(QWidget* parent);
+        Terminal* addTerminal(QWidget* parent, QString dir);
         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, QString dir, QWidget* parent) : 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, dir);
 }
 
 Session::~Session()
@@ -48,13 +48,13 @@
     emit destroyed(m_sessionId);
 }
 
-void Session::setupSession(SessionType type)
+void Session::setupSession(SessionType type, QString dir)
 {
     switch (type)
     {
         case Single:
         {
-            Terminal* terminal = addTerminal(m_baseSplitter);
+            Terminal* terminal = addTerminal(m_baseSplitter, dir);
             setActiveTerminal(terminal->id());
 
             break;
@@ -64,8 +64,8 @@
         {
             int splitterWidth = m_baseSplitter->width();
 
-            Terminal* terminal = addTerminal(m_baseSplitter);
-            addTerminal(m_baseSplitter);
+            Terminal* terminal = addTerminal(m_baseSplitter, dir);
+            addTerminal(m_baseSplitter, dir);
 
             QList<int> newSplitterSizes;
             newSplitterSizes << (splitterWidth / 2) << (splitterWidth / 2);
@@ -88,8 +88,8 @@
 
             int splitterHeight = m_baseSplitter->height();
 
-            Terminal* terminal = addTerminal(m_baseSplitter);
-            addTerminal(m_baseSplitter);
+            Terminal* terminal = addTerminal(m_baseSplitter, dir);
+            addTerminal(m_baseSplitter, dir);
 
             QList<int> newSplitterSizes;
             newSplitterSizes << (splitterHeight / 2) << (splitterHeight / 2);
@@ -119,11 +119,11 @@
             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, dir);
+            addTerminal(upperSplitter, dir);
 
-            addTerminal(lowerSplitter);
-            addTerminal(lowerSplitter);
+            addTerminal(lowerSplitter, dir);
+            addTerminal(lowerSplitter, dir);
 
             QList<int> newSplitterSizes;
             newSplitterSizes << (splitterHeight / 2) << (splitterHeight / 2);
@@ -147,16 +147,16 @@
 
         default:
         {
-            addTerminal(m_baseSplitter);
+            addTerminal(m_baseSplitter, dir);
 
             break;
         }
     }
 }
 
-Terminal* Session::addTerminal(QWidget* parent)
+Terminal* Session::addTerminal(QWidget* parent, QString dir)
 {
-    Terminal* terminal = new Terminal(parent);
+    Terminal* terminal = new Terminal(parent, dir);
     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)));
@@ -276,7 +276,7 @@
 int Session::split(Terminal* terminal, Qt::Orientation orientation)
 {
     Splitter* splitter = static_cast<Splitter*>(terminal->splitter());
-
+    QString currrntPath = m_terminals[activeTerminalId()]->getCurrentWorkingDirectory();
     if (splitter->count() == 1)
     {
         int splitterWidth = splitter->width();
@@ -284,7 +284,7 @@
         if (splitter->orientation() != orientation)
             splitter->setOrientation(orientation);
 
-        terminal = addTerminal(splitter);
+        terminal = addTerminal(splitter, currrntPath);
 
         QList<int> newSplitterSizes;
         newSplitterSizes << (splitterWidth / 2) << (splitterWidth / 2);
@@ -310,7 +310,7 @@
 
         terminal->setSplitter(newSplitter);
 
-        terminal = addTerminal(newSplitter);
+        terminal = addTerminal(newSplitter, currrntPath);
 
         splitter->setSizes(splitterSizes);
         QList<int> newSplitterSizes;
diff --git a/app/sessionstack.cpp b/app/sessionstack.cpp
--- a/app/sessionstack.cpp
+++ b/app/sessionstack.cpp
@@ -51,7 +51,16 @@
 
 int SessionStack::addSessionImpl(Session::SessionType type)
 {
-    Session* session = new Session(type, this);
+    Session* currentSession = m_sessions[m_activeSessionId];
+    QString currentPath;
+    if (currentSession)
+    {
+        currentPath = currentSession->getTerminal(currentSession->activeTerminalId())->getCurrentWorkingDirectory();
+    } else
+    {
+        QDir::homePath();
+    }
+    Session* session = new Session(type, currentPath, this);
     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*)));
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, QString dir = QDir::homePath());
          ~Terminal();
 
         bool eventFilter(QObject* watched, QEvent* event) override;
@@ -66,6 +67,7 @@
         void setMonitorSilenceEnabled(bool enabled);
 
         void deletePart();
+        QString getCurrentWorkingDirectory();
 
 
     Q_SIGNALS:
diff --git a/app/terminal.cpp b/app/terminal.cpp
--- a/app/terminal.cpp
+++ b/app/terminal.cpp
@@ -32,7 +32,6 @@
 
 #include <QAction>
 #include <QApplication>
-#include <QDir>
 #include <QHBoxLayout>
 #include <QLabel>
 #include <QWidget>
@@ -42,7 +41,7 @@
 
 int Terminal::m_availableTerminalId = 0;
 
-Terminal::Terminal(QWidget* parent) : QObject(parent)
+Terminal::Terminal(QWidget* parent, QString dir) : QObject(parent)
 {
     m_terminalId = m_availableTerminalId;
     m_availableTerminalId++;
@@ -86,7 +85,7 @@
         disableOffendingPartActions();
 
         m_terminalInterface = qobject_cast<TerminalInterface*>(m_part);
-        if (m_terminalInterface) m_terminalInterface->showShellInDir(QDir::homePath());
+        if (m_terminalInterface) m_terminalInterface->showShellInDir(dir);
     }
     else
         displayKPartLoadError();
@@ -301,3 +300,8 @@
 {
     emit silenceDetected(this);
 }
+
+QString Terminal::getCurrentWorkingDirectory()
+{
+    return m_terminalInterface->currentWorkingDirectory();
+}