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(const QString& workingDir, SessionType type = Single, QWidget* parent = 0);
          ~Session();
 
         int id() { return m_sessionId; }
@@ -120,9 +120,10 @@
     private:
         void setupSession(SessionType type);
 
-        Terminal* addTerminal(QWidget* parent);
+        Terminal* addTerminal(QWidget* parent, QString workingDir = QString());
         int split(Terminal* terminal, Qt::Orientation orientation);
 
+        QString m_workingDir;
         static int m_availableSessionId;
         int m_sessionId;
 
diff --git a/app/session.cpp b/app/session.cpp
--- a/app/session.cpp
+++ b/app/session.cpp
@@ -26,8 +26,9 @@
 
 int Session::m_availableSessionId = 0;
 
-Session::Session(SessionType type, QWidget* parent) : QObject(parent)
+Session::Session(const QString& workingDir, SessionType type, QWidget* parent) : QObject(parent)
 {
+    m_workingDir = workingDir;
     m_sessionId = m_availableSessionId;
     m_availableSessionId++;
 
@@ -154,9 +155,14 @@
     }
 }
 
-Terminal* Session::addTerminal(QWidget* parent)
+Terminal* Session::addTerminal(QWidget* parent, QString workingDir)
 {
-    Terminal* terminal = new Terminal(parent);
+    if (workingDir.isEmpty()) {
+        // fallback to session's default working dir
+        workingDir = m_workingDir;
+    }
+
+    Terminal* terminal = new Terminal(workingDir, parent);
     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)));
@@ -284,7 +290,7 @@
         if (splitter->orientation() != orientation)
             splitter->setOrientation(orientation);
 
-        terminal = addTerminal(splitter);
+        terminal = addTerminal(splitter, terminal->currentWorkingDirectory());
 
         QList<int> newSplitterSizes;
         newSplitterSizes << (splitterWidth / 2) << (splitterWidth / 2);
@@ -310,7 +316,7 @@
 
         terminal->setSplitter(newSplitter);
 
-        terminal = addTerminal(newSplitter);
+        terminal = addTerminal(newSplitter, terminal->currentWorkingDirectory());
 
         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 +51,11 @@
 
 int SessionStack::addSessionImpl(Session::SessionType type)
 {
-    Session* session = new Session(type, this);
+    Session* currentSession  = m_sessions.value(activeSessionId());
+    Terminal* currentTerminal = currentSession ? currentSession->getTerminal(currentSession->activeTerminalId()) : NULL;
+    QString workingDir = currentTerminal ? currentTerminal->currentWorkingDirectory() : QString();
+
+    Session* session = new Session(workingDir, type, 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
@@ -29,15 +29,15 @@
 
 class QKeyEvent;
 
-class TerminalInterface;
+class TerminalInterfaceV2;
 
 
 class Terminal : public QObject
 {
     Q_OBJECT
 
     public:
-        explicit Terminal(QWidget* parent = 0);
+        explicit Terminal(const QString& workingDir, QWidget* parent = 0);
          ~Terminal();
 
         bool eventFilter(QObject* watched, QEvent* event) override;
@@ -65,6 +65,8 @@
         bool monitorSilenceEnabled() { return m_monitorSilenceEnabled; }
         void setMonitorSilenceEnabled(bool enabled);
 
+        QString currentWorkingDirectory () const;
+
         void deletePart();
 
 
@@ -94,7 +96,7 @@
         int m_terminalId;
 
         KParts::Part* m_part;
-        TerminalInterface* m_terminalInterface;
+        TerminalInterfaceV2* m_terminalInterface;
         QWidget* m_partWidget;
         QPointer<QWidget> m_terminalWidget;
         QWidget* m_parentSplitter;
diff --git a/app/terminal.cpp b/app/terminal.cpp
--- a/app/terminal.cpp
+++ b/app/terminal.cpp
@@ -41,7 +41,7 @@
 
 int Terminal::m_availableTerminalId = 0;
 
-Terminal::Terminal(QWidget* parent) : QObject(parent)
+Terminal::Terminal(const QString& workingDir, QWidget* parent) : QObject(parent)
 {
     m_terminalId = m_availableTerminalId;
     m_availableTerminalId++;
@@ -84,7 +84,12 @@
 
         disableOffendingPartActions();
 
-        m_terminalInterface = qobject_cast<TerminalInterface*>(m_part);
+        m_terminalInterface = qobject_cast<TerminalInterfaceV2*>(m_part);
+
+        bool startInWorkingDir = m_terminalInterface->profileProperty(QStringLiteral("StartInCurrentSessionDir")).toBool();
+        if (startInWorkingDir && !workingDir.isEmpty()) {
+            m_terminalInterface->showShellInDir(workingDir);
+        }
     }
     else
         displayKPartLoadError();
@@ -299,3 +304,8 @@
 {
     emit silenceDetected(this);
 }
+
+QString Terminal::currentWorkingDirectory () const
+{
+    return m_terminalInterface->currentWorkingDirectory();
+}