diff --git a/Cargo.lock b/Cargo.lock
index 8ec01eb..b52e36b 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1298,6 +1298,7 @@ dependencies = [
  "paste",
  "ron",
  "rust-embed",
+ "rustix 0.38.34",
  "serde",
  "shlex",
  "smol_str",
diff --git a/Cargo.toml b/Cargo.toml
index eaa3846..2f9b2a8 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -23,6 +23,7 @@ ron = "0.8"
 serde = { version = "1", features = ["serde_derive"] }
 shlex = "1"
 tokio = { version = "1", features = ["sync"] }
+rustix = { version = "0.38", features = ["termios"] }
 # Internationalization
 i18n-embed = { version = "0.14", features = [
     "fluent-system",
diff --git a/i18n/en/cosmic_term.ftl b/i18n/en/cosmic_term.ftl
index b7146b6..7bc3b55 100644
--- a/i18n/en/cosmic_term.ftl
+++ b/i18n/en/cosmic_term.ftl
@@ -60,6 +60,8 @@ focus-follow-mouse = Typing focus follows mouse
 advanced = Advanced
 show-headerbar = Show header
 show-header-description = Reveal the header from the right-click menu.
+open-in-cwd = Use parent CWD
+open-in-cwd-description = Start new terms using the focused tab's working directory.
 
 # Find
 find-placeholder = Find...
diff --git a/src/config.rs b/src/config.rs
index 2652b6a..0832dcd 100644
--- a/src/config.rs
+++ b/src/config.rs
@@ -229,6 +229,8 @@ pub struct Config {
     pub font_stretch: u16,
     pub font_size_zoom_step_mul_100: u16,
     pub opacity: u8,
+    /// Open new terminal with the current working directory of the focused term
+    pub open_in_cwd: bool,
     pub profiles: BTreeMap<ProfileId, Profile>,
     pub show_headerbar: bool,
     pub use_bright_bold: bool,
@@ -253,6 +255,7 @@ impl Default for Config {
             font_stretch: Stretch::Normal.to_number(),
             font_weight: Weight::NORMAL.0,
             opacity: 100,
+            open_in_cwd: true,
             profiles: BTreeMap::new(),
             show_headerbar: true,
             syntax_theme_dark: COSMIC_THEME_DARK.to_string(),
diff --git a/src/main.rs b/src/main.rs
index 0b8f5cd..bb20357 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -335,6 +335,7 @@ pub enum Message {
     ProfileSyntaxTheme(ProfileId, ColorSchemeKind, usize),
     ProfileTabTitle(ProfileId, String),
     SelectAll(Option<segmented_button::Entity>),
+    SetOpenInCWD(bool),
     ShowAdvancedFontSettings(bool),
     ShowHeaderBar(bool),
     SyntaxTheme(ColorSchemeKind, usize),
@@ -1196,11 +1197,17 @@ impl App {
                 .toggler(self.config.focus_follow_mouse, Message::FocusFollowMouse),
         );
 
-        let advanced_section = widget::settings::view_section(fl!("advanced")).add(
-            widget::settings::item::builder(fl!("show-headerbar"))
-                .description(fl!("show-header-description"))
-                .toggler(self.config.show_headerbar, Message::ShowHeaderBar),
-        );
+        let advanced_section = widget::settings::view_section(fl!("advanced"))
+            .add(
+                widget::settings::item::builder(fl!("show-headerbar"))
+                    .description(fl!("show-header-description"))
+                    .toggler(self.config.show_headerbar, Message::ShowHeaderBar),
+            )
+            .add(
+                widget::settings::item::builder(fl!("open-in-cwd"))
+                    .description(fl!("open-in-cwd-description"))
+                    .toggler(self.config.open_in_cwd, Message::SetOpenInCWD),
+            );
 
         widget::settings::view_column(vec![
             appearance_section.into(),
@@ -1238,6 +1245,22 @@ impl App {
                     Some(colors) => {
                         let current_pane = self.pane_model.focus;
                         if let Some(tab_model) = self.pane_model.active_mut() {
+                            // Current working directory of the selected tab/terminal
+                            #[cfg(not(windows))]
+                            let cwd = self
+                                .config
+                                .open_in_cwd
+                                .then(|| {
+                                    tab_model.active_data::<Mutex<Terminal>>().and_then(
+                                        |terminal| {
+                                            terminal.lock().unwrap().current_working_directory()
+                                        },
+                                    )
+                                })
+                                .flatten();
+                            #[cfg(windows)]
+                            let cwd: Option<std::path::PathBuf> = None;
+
                             // Use the profile options, startup options, or defaults
                             let (options, tab_title_override) = match profile_id_opt
                                 .and_then(|profile_id| self.config.profiles.get(&profile_id))
@@ -1250,8 +1273,8 @@ impl App {
                                             shell = Some(tty::Shell::new(command, args));
                                         }
                                     }
-                                    let working_directory = (!profile.working_directory.is_empty())
-                                        .then(|| profile.working_directory.clone().into());
+                                    let working_directory = cwd
+                                        .or_else(|| Some(profile.working_directory.clone().into()));
 
                                     let options = tty::Options {
                                         shell,
@@ -1266,7 +1289,12 @@ impl App {
                                     };
                                     (options, tab_title_override)
                                 }
-                                None => (self.startup_options.take().unwrap_or_default(), None),
+                                None => {
+                                    let mut options =
+                                        self.startup_options.take().unwrap_or_default();
+                                    options.working_directory = cwd;
+                                    (options, None)
+                                }
                             };
                             let entity = tab_model
                                 .insert()
@@ -2198,6 +2226,12 @@ impl Application for App {
                 }
                 return self.update_focus();
             }
+            Message::SetOpenInCWD(open_in_cwd) => {
+                if open_in_cwd != self.config.open_in_cwd {
+                    self.config.open_in_cwd = open_in_cwd;
+                    return self.update_config();
+                }
+            }
             Message::ShowHeaderBar(show_headerbar) => {
                 if show_headerbar != self.config.show_headerbar {
                     config_set!(show_headerbar, show_headerbar);
diff --git a/src/terminal.rs b/src/terminal.rs
index 87541cd..7b807f4 100644
--- a/src/terminal.rs
+++ b/src/terminal.rs
@@ -25,6 +25,8 @@ use cosmic_text::{
     Weight, Wrap,
 };
 use indexmap::IndexSet;
+#[cfg(not(windows))]
+use rustix::fd::AsFd;
 use std::{
     borrow::Cow,
     collections::HashMap,
@@ -35,6 +37,8 @@ use std::{
     },
     time::Instant,
 };
+#[cfg(not(windows))]
+use std::{fs, path::PathBuf};
 use tokio::sync::mpsc;
 
 pub use alacritty_terminal::grid::Scroll as TerminalScroll;
@@ -214,6 +218,10 @@ pub struct Terminal {
     size: Size,
     use_bright_bold: bool,
     zoom_adj: i8,
+    #[cfg(not(windows))]
+    master_fd: Option<rustix::fd::OwnedFd>,
+    #[cfg(not(windows))]
+    shell_pid: rustix::process::Pid,
 }
 
 impl Terminal {
@@ -283,6 +291,11 @@ impl Terminal {
         let window_id = 0;
         let pty = tty::new(&options, size.into(), window_id)?;
 
+        #[cfg(not(windows))]
+        let master_fd = pty.file().as_fd().try_clone_to_owned().ok();
+        #[cfg(not(windows))]
+        let shell_pid = rustix::process::Pid::from_child(pty.child());
+
         let pty_event_loop = EventLoop::new(term.clone(), event_proxy, pty, options.hold, false)?;
         let notifier = Notifier(pty_event_loop.channel());
         let _pty_join_handle = pty_event_loop.spawn();
@@ -306,6 +319,10 @@ impl Terminal {
             term,
             use_bright_bold,
             zoom_adj: Default::default(),
+            #[cfg(not(windows))]
+            master_fd,
+            #[cfg(not(windows))]
+            shell_pid,
         })
     }
 
@@ -924,6 +941,32 @@ impl Terminal {
             );
         }
     }
+
+    /// Current working directory
+    #[cfg(not(windows))]
+    pub fn current_working_directory(&self) -> Option<PathBuf> {
+        // Largely based off of Alacritty
+        // https://github.com/alacritty/alacritty/blob/6bd1674bd80e73df0d41e4342ad4e34bb7d04f84/alacritty/src/daemon.rs#L85-L108
+        let pid = self
+            .master_fd
+            .as_ref()
+            .and_then(|pid| rustix::termios::tcgetpgrp(pid).ok())
+            .or(Some(self.shell_pid))?;
+
+        #[cfg(not(any(target_os = "freebsd", target_os = "macos")))]
+        let link_path = format!("/proc/{}/cwd", pid.as_raw_nonzero());
+        #[cfg(target_os = "freebsd")]
+        let link_path = format!("/compat/linux/proc/{}/cwd", pid.as_raw_nonzero());
+
+        #[cfg(not(target_os = "macos"))]
+        let cwd = fs::read_link(link_path).ok();
+
+        // TODO: macOS support
+        #[cfg(target_os = "macos")]
+        let cwd = None;
+
+        cwd
+    }
 }
 
 impl Drop for Terminal {