diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3afa1d3..fc80945 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -13,6 +13,8 @@
 - Small improvements to Dropdown(WithInput) UI components
 - Delay and wait for loadConfigs() after logging version info
   - This solves a small issue/annoyance where logs regarding loading logs appear before the version logging
+- When `${workingDirectory}` is present in a terminal command, the extension doesn't auto-`cd` anymore
+  - Normally the extension runs `cd <workingDirectory>; <terminalCommand>` or similar
 
 ### Development changes
 - Added `semver` as dependency in preparation of `FS_NOTIFY_ERRORS` flag
diff --git a/src/pseudoTerminal.ts b/src/pseudoTerminal.ts
index 077949f..ec77621 100644
--- a/src/pseudoTerminal.ts
+++ b/src/pseudoTerminal.ts
@@ -193,20 +193,25 @@ export async function createTerminal(options: TerminalOptions): Promise<SSHPseud
                 // There isn't a proper way of setting the working directory, but this should work in most cases
                 let { workingDirectory } = options;
                 workingDirectory = workingDirectory || actualConfig.root;
+                let cmd = joinCommands(commands, separator)!;
                 if (workingDirectory) {
-                    // TODO: Maybe replace with `connection.home`?
-                    if (workingDirectory.startsWith('~')) {
-                        // So `cd "~/a/b/..." apparently doesn't work, but `~/"a/b/..."` does
-                        // `"~"` would also fail but `~/""` works fine it seems
-                        workingDirectory = `~/"${workingDirectory.substr(2)}"`;
+                    if (cmd.includes('${workingDirectory}')) {
+                        cmd = cmd.replace(/\${workingDirectory}/g, workingDirectory);
                     } else {
-                        workingDirectory = `"${workingDirectory}"`;
+                        // TODO: Maybe replace with `connection.home`?
+                        if (workingDirectory.startsWith('~')) {
+                            // So `cd "~/a/b/..." apparently doesn't work, but `~/"a/b/..."` does
+                            // `"~"` would also fail but `~/""` works fine it seems
+                            workingDirectory = `~/"${workingDirectory.substr(2)}"`;
+                        } else {
+                            workingDirectory = `"${workingDirectory}"`;
+                        }
+                        cmd = joinCommands([`cd ${workingDirectory}`, ...commands], separator)!;
                     }
-                    commands.unshift(`cd ${workingDirectory}`);
+                } else {
+                    cmd = cmd.replace(/\${workingDirectory}/g, '');
                 }
                 const pseudoTtyOptions: PseudoTtyOptions = { ...PSEUDO_TTY_OPTIONS, cols: dims?.columns, rows: dims?.rows };
-                let cmd = joinCommands(commands, separator)!;
-                cmd = cmd.replace(/\${workingDirectory}/g, workingDirectory || '');
                 Logging.debug(`Starting shell for ${connection.actualConfig.name}: ${cmd}`);
                 const channel = await toPromise<ClientChannel | undefined>(cb => client.exec(cmd, { pty: pseudoTtyOptions }, cb));
                 if (!channel) throw new Error('Could not create remote terminal');