diff --git a/input.c b/input.c
index 11b46cf6..ca7d0ec2 100644
--- a/input.c
+++ b/input.c
@@ -282,6 +282,11 @@ keyboard_key(void *data, struct wl_keyboard *wl_keyboard, uint32_t serial,
             search_begin(term);
             goto maybe_repeat;
         }
+
+        else if (sym == XKB_KEY_Return) {
+            term_spawn_new(term);
+            goto maybe_repeat;
+        }
     }
 
 
diff --git a/main.c b/main.c
index a8776606..ee9900cb 100644
--- a/main.c
+++ b/main.c
@@ -223,8 +223,9 @@ main(int argc, char *const *argv)
     if ((wayl = wayl_init(fdm)) == NULL)
         goto out;
 
-    if (!as_server && (term = term_init(&conf, fdm, wayl, conf.term, argc, argv,
-                                        &term_shutdown_cb, &shutdown_ctx)) == NULL)
+    if (!as_server && (term = term_init(
+                           &conf, fdm, wayl, conf.term, "foot", argc, argv,
+                           &term_shutdown_cb, &shutdown_ctx)) == NULL)
         goto out;
 
     if (as_server && (server = server_init(&conf, fdm, wayl)) == NULL)
diff --git a/osc.c b/osc.c
index d69c34b9..d327d376 100644
--- a/osc.c
+++ b/osc.c
@@ -298,6 +298,66 @@ parse_rgb(const char *string, uint32_t *color)
     return true;
 }
 
+static uint8_t
+nibble2hex(char c)
+{
+    switch (c) {
+    case '0' ... '9': return c - '0';
+    case 'a' ... 'f': return c - 'a' + 10;
+    case 'A' ... 'F': return c - 'A' + 10;
+    }
+
+    assert(false);
+    return 0;
+}
+
+static void
+osc_set_pwd(struct terminal *term, char *string)
+{
+    LOG_DBG("PWD: URI: %s", string);
+
+    if (memcmp(string, "file://", 7) != 0)
+        return;
+    string += 7;
+
+    /* Skip past hostname */
+    if ((string = strchr(string, '/')) == NULL)
+        return;
+
+    /* Decode %xx encoded characters */
+    char *pwd = malloc(strlen(string) + 1);
+    char *p = pwd;
+
+    while (true) {
+        /* Find next '%' */
+        char *next = strchr(string, '%');
+
+        if (next == NULL) {
+            strcpy(p, string);
+            break;
+        }
+
+        /* Copy everything leading up to the '%' */
+        size_t prefix_len = next - string;
+        memcpy(p, string, prefix_len);
+        p += prefix_len;
+
+        if (isxdigit(next[1]) && isxdigit(next[2])) {
+            *p++ = nibble2hex(next[1]) << 4 | nibble2hex(next[2]);
+            *p = '\0';
+            string = next + 3;
+        } else {
+            *p++ = *next;
+            *p = '\0';
+            string = next + 1;
+        }
+    }
+
+    LOG_DBG("PWD: decoded: %s", pwd);
+    free(term->cwd);
+    term->cwd = pwd;
+}
+
 #if 0
 static void
 osc_notify(struct terminal *term, char *string)
@@ -396,6 +456,11 @@ osc_dispatch(struct terminal *term)
         break;
     }
 
+    case 7:
+        /* Update terminal's understanding of PWD */
+        osc_set_pwd(term, string);
+        break;
+
     case 10:
     case 11: {
         /* Set default foreground/background color */
diff --git a/server.c b/server.c
index 143af512..d871f816 100644
--- a/server.c
+++ b/server.c
@@ -213,7 +213,7 @@ fdm_client(struct fdm *fdm, int fd, int events, void *data)
     client->term = term_init(
         server->conf, server->fdm, server->wayl,
         strlen(term_env) > 0 ? term_env : server->conf->term,
-        argc, argv, &term_shutdown_handler, client);
+        "footclient", argc, argv, &term_shutdown_handler, client);
 
     if (client->term == NULL) {
         LOG_ERR("failed to instantiate new terminal");
diff --git a/slave.c b/slave.c
index 0b453c5d..bffa48a8 100644
--- a/slave.c
+++ b/slave.c
@@ -64,6 +64,7 @@ err:
         close(pts);
     if (ptmx != -1)
         close(ptmx);
+    close(err_fd);
     _exit(errno);
 }
 
diff --git a/terminal.c b/terminal.c
index 836785a0..f7f98407 100644
--- a/terminal.c
+++ b/terminal.c
@@ -465,7 +465,7 @@ initialize_fonts(struct terminal *term, const struct config *conf)
 
 struct terminal *
 term_init(const struct config *conf, struct fdm *fdm, struct wayland *wayl,
-          const char *term_env, int argc, char *const *argv,
+          const char *term_env, const char *foot_exe, int argc, char *const *argv,
           void (*shutdown_cb)(void *data, int exit_code), void *shutdown_data)
 {
     int ptmx = -1;
@@ -600,8 +600,19 @@ term_init(const struct config *conf, struct fdm *fdm, struct wayland *wayl,
         },
         .shutdown_cb = shutdown_cb,
         .shutdown_data = shutdown_data,
+        .foot_exe = strdup(foot_exe),
+        .cwd = NULL,
     };
 
+    {
+        size_t buf_len = 1024;
+        do {
+            term->cwd = realloc(term->cwd, buf_len);
+            getcwd(term->cwd, buf_len);
+            buf_len *= 2;
+        } while (errno == ERANGE);
+    }
+
     initialize_color_cube(term);
     if (!initialize_render_workers(term))
         goto err;
@@ -831,6 +842,9 @@ term_destroy(struct terminal *term)
     tll_free(term->ptmx_buffer);
     tll_free(term->tab_stops);
 
+    free(term->foot_exe);
+    free(term->cwd);
+
     int ret = EXIT_SUCCESS;
 
     if (term->slave > 0) {
@@ -1642,3 +1656,67 @@ term_flash(struct terminal *term, unsigned duration_ms)
         term->flash.active = true;
     }
 }
+
+bool
+term_spawn_new(const struct terminal *term)
+{
+    pid_t pid = fork();
+    if (pid < 0) {
+        LOG_ERRNO("failed to fork new terminal");
+        return false;
+    }
+
+    if (pid == 0) {
+        /* Child */
+        int pipe_fds[2] = {-1, -1};
+        if (pipe2(pipe_fds, O_CLOEXEC) < 0) {
+            LOG_ERRNO("failed to create pipe");
+            goto err;
+        }
+
+        /* Double fork */
+        pid_t pid2 = fork();
+        if (pid2 < 0) {
+            LOG_ERRNO("failed to double fork new terminal");
+            goto err;
+        }
+
+        if (pid2 == 0) {
+            /* Child */
+            close(pipe_fds[0]);
+            chdir(term->cwd);
+            execlp(term->foot_exe, term->foot_exe, NULL);
+            write(pipe_fds[1], &errno, sizeof(errno));
+            _exit(errno);
+        }
+
+        /* Parent */
+
+        close(pipe_fds[1]);
+
+        int _errno;
+        static_assert(sizeof(_errno) == sizeof(errno), "errno size mismatch");
+
+        ssize_t ret = read(pipe_fds[0], &_errno, sizeof(_errno));
+        close(pipe_fds[0]);
+
+        if (ret == 0)
+            _exit(0);
+        else if (ret < 0)
+            LOG_ERRNO("failed to read from pipe");
+        else {
+            LOG_ERRNO_P("%s: failed to spawn new terminal", _errno, term->foot_exe);
+            errno = _errno;
+            waitpid(pid2, NULL, 0);
+        }
+
+    err:
+        if (pipe_fds[0] != -1)
+            close(pipe_fds[0]);
+        _exit(errno);
+    }
+
+    int result;
+    waitpid(pid, &result, 0);
+    return WIFEXITED(result) && WEXITSTATUS(result) == 0;
+}
diff --git a/terminal.h b/terminal.h
index 4d82aeaa..0fe4c4dc 100644
--- a/terminal.h
+++ b/terminal.h
@@ -314,12 +314,15 @@ struct terminal {
     bool is_shutting_down;
     void (*shutdown_cb)(void *data, int exit_code);
     void *shutdown_data;
+
+    char *foot_exe;
+    char *cwd;
 };
 
 struct config;
 struct terminal *term_init(
     const struct config *conf, struct fdm *fdm, struct wayland *wayl,
-    const char *term_env, int argc, char *const *argv,
+    const char *term_env, const char *foot_exe, int argc, char *const *argv,
     void (*shutdown_cb)(void *data, int exit_code), void *shutdown_data);
 
 bool term_shutdown(struct terminal *term);
@@ -379,3 +382,4 @@ void term_xcursor_update(struct terminal *term);
 
 void term_set_window_title(struct terminal *term, const char *title);
 void term_flash(struct terminal *term, unsigned duration_ms);
+bool term_spawn_new(const struct terminal *term);