diff --git a/CHANGELOG.md b/CHANGELOG.md
index ea3fac1a..7a6efd08 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -63,8 +63,10 @@
 * `DECRPM` replies (to `DECRQM` queries) now report a value of `4`
   ("permanently reset") instead of `2` ("reset") for DEC private
   modes that are known but unsupported.
+* Set `PWD` environment variable in the slave process ([#1179][1179]).
 
 [1166]: https://codeberg.org/dnkl/foot/issues/1166
+[1179]: https://codeberg.org/dnkl/foot/issues/1179
 
 
 ### Deprecated
diff --git a/slave.c b/slave.c
index 6473ac7c..4dd80e6f 100644
--- a/slave.c
+++ b/slave.c
@@ -352,6 +352,7 @@ slave_spawn(int ptmx, int argc, const char *cwd, char *const *argv,
 
         setenv("TERM", term_env, 1);
         setenv("COLORTERM", "truecolor", 1);
+        setenv("PWD", cwd, 1);
 
 #if defined(FOOT_TERMINFO_PATH)
         setenv("TERMINFO", FOOT_TERMINFO_PATH, 1);