diff --git a/apps/desktop/electron/main.ts b/apps/desktop/electron/main.ts
index a19201147ce..df73863a53c 100644
--- a/apps/desktop/electron/main.ts
+++ b/apps/desktop/electron/main.ts
@@ -1,6 +1,6 @@
 type Method = string
 import type { ExecFileSyncOptionsWithStringEncoding } from 'node:child_process'
-import { execFileSync, spawn } from 'node:child_process'
+import { execFile, execFileSync, spawn } from 'node:child_process'
 import crypto from 'node:crypto'
 import fs from 'node:fs'
 import http from 'node:http'
@@ -8353,6 +8353,51 @@ function terminalChannel(id, suffix) {
   return `hermes:terminal:${id}:${suffix}`
 }
 
+// Best-effort read of a live PTY child's current working directory so a
+// reopened tab can restart the shell where the user last `cd`'d, instead of the
+// tab's original launch dir. Shell-agnostic (no prompt/OSC config needed) on
+// POSIX; Windows has no cheap per-process cwd query without a native module, so
+// it returns null and the caller falls back to the launch cwd.
+function readProcessCwd(pid) {
+  return new Promise(resolve => {
+    if (!Number.isInteger(pid) || pid <= 0) {
+      resolve(null)
+
+      return
+    }
+
+    if (process.platform === 'linux') {
+      fs.promises
+        .readlink(`/proc/${pid}/cwd`)
+        .then(target => resolve(target || null))
+        .catch(() => resolve(null))
+
+      return
+    }
+
+    if (process.platform === 'darwin') {
+      // lsof ships with macOS; -Fn emits the cwd fd's path on an `n<path>` line.
+      execFile('lsof', ['-a', '-p', String(pid), '-d', 'cwd', '-Fn'], { timeout: 2000 }, (err, stdout) => {
+        if (err) {
+          resolve(null)
+
+          return
+        }
+
+        const line = String(stdout || '')
+          .split('\n')
+          .find(entry => entry.startsWith('n'))
+
+        resolve(line ? line.slice(1) : null)
+      })
+
+      return
+    }
+
+    resolve(null)
+  })
+}
+
 function disposeTerminalSession(id) {
   const sessionInfo = terminalSessions.get(id)
 
@@ -8591,6 +8636,16 @@ ipcMain.handle('hermes:terminal:resize', (_event, id, size = {}) => {
 
   return true
 })
+ipcMain.handle('hermes:terminal:cwd', async (_event, id) => {
+  const sessionInfo = terminalSessions.get(String(id || ''))
+
+  if (!sessionInfo) {
+    return null
+  }
+
+  return readProcessCwd(sessionInfo.pty.pid)
+})
+
 ipcMain.handle('hermes:terminal:dispose', (_event, id) => disposeTerminalSession(String(id || '')))
 
 ipcMain.handle('hermes:updates:check', async () =>
diff --git a/apps/desktop/electron/preload.ts b/apps/desktop/electron/preload.ts
index 8b6a14b0cf7..35d31e2d294 100644
--- a/apps/desktop/electron/preload.ts
+++ b/apps/desktop/electron/preload.ts
@@ -136,6 +136,7 @@ contextBridge.exposeInMainWorld('hermesDesktop', {
     }
   },
   terminal: {
+    cwd: id => ipcRenderer.invoke('hermes:terminal:cwd', id),
     dispose: id => ipcRenderer.invoke('hermes:terminal:dispose', id),
     resize: (id, size) => ipcRenderer.invoke('hermes:terminal:resize', id, size),
     start: options => ipcRenderer.invoke('hermes:terminal:start', options),
diff --git a/apps/desktop/src/app/right-sidebar/terminal/instance.tsx b/apps/desktop/src/app/right-sidebar/terminal/instance.tsx
index 399407d8169..933916b640e 100644
--- a/apps/desktop/src/app/right-sidebar/terminal/instance.tsx
+++ b/apps/desktop/src/app/right-sidebar/terminal/instance.tsx
@@ -19,12 +19,20 @@ interface TerminalInstanceProps {
   cwd: string
   active: boolean
   onAddSelectionToChat: (text: string, label?: string) => void
+  restoreCwd?: string
   reviveBuffer?: string
 }
 
 /** One persistent xterm+PTY. Every open tab stays mounted (so its shell and
  *  scrollback survive tab switches); only the active one is shown. */
-export function TerminalInstance({ id, active, cwd, onAddSelectionToChat, reviveBuffer }: TerminalInstanceProps) {
+export function TerminalInstance({
+  id,
+  active,
+  cwd,
+  onAddSelectionToChat,
+  restoreCwd,
+  reviveBuffer
+}: TerminalInstanceProps) {
   const { t } = useI18n()
 
   const { addSelectionToChat, hostRef, selection, selectionStyle, status } = useTerminalSession({
@@ -32,6 +40,7 @@ export function TerminalInstance({ id, active, cwd, onAddSelectionToChat, revive
     cwd,
     active,
     onAddSelectionToChat,
+    restoreCwd,
     reviveBuffer,
     onShell: shell => reportTerminalShell(id, shell)
   })
diff --git a/apps/desktop/src/app/right-sidebar/terminal/revive-buffer.test.ts b/apps/desktop/src/app/right-sidebar/terminal/revive-buffer.test.ts
new file mode 100644
index 00000000000..9e02179368e
--- /dev/null
+++ b/apps/desktop/src/app/right-sidebar/terminal/revive-buffer.test.ts
@@ -0,0 +1,97 @@
+import { describe, expect, it } from 'vitest'
+
+import { cleanReviveSnapshot, isIdlePromptOnly, parseOscCwd } from './use-terminal-session'
+
+// A default-PowerShell idle prompt: no blank-line separator before it.
+const PS_PROMPT = 'PS C:\\Users\\Aleksandr>'
+
+describe('isIdlePromptOnly', () => {
+  it('is true for an empty or whitespace-only buffer', () => {
+    expect(isIdlePromptOnly('')).toBe(true)
+    expect(isIdlePromptOnly('\r\n  \r\n')).toBe(true)
+  })
+
+  it('is true for a lone prompt line', () => {
+    expect(isIdlePromptOnly(PS_PROMPT)).toBe(true)
+  })
+
+  it('is true for a buffer that is only repeated identical prompts (accumulation)', () => {
+    expect(isIdlePromptOnly([PS_PROMPT, PS_PROMPT, PS_PROMPT].join('\r\n'))).toBe(true)
+  })
+
+  it('ignores blank gaps between repeated prompts (the "gapped" variant)', () => {
+    expect(isIdlePromptOnly([PS_PROMPT, '', '', PS_PROMPT].join('\r\n'))).toBe(true)
+  })
+
+  it('is false when the buffer holds a real command and output', () => {
+    expect(isIdlePromptOnly([PS_PROMPT, 'cd project', 'PS C:\\Users\\Aleksandr\\project>'].join('\r\n'))).toBe(false)
+  })
+
+  it('is false when two different prompts are present (cwd actually changed)', () => {
+    expect(isIdlePromptOnly([PS_PROMPT, 'PS C:\\Users\\Aleksandr\\project>'].join('\r\n'))).toBe(false)
+  })
+})
+
+describe('cleanReviveSnapshot', () => {
+  it('drops a spaced trailing prompt block after a blank separator (starship)', () => {
+    const snapshot = ['echo hi', 'hi', '', PS_PROMPT].join('\r\n')
+
+    expect(cleanReviveSnapshot(snapshot)).toBe('echo hi\r\nhi')
+  })
+
+  it('drops a multi-line prompt block after a blank separator (powerline)', () => {
+    const snapshot = ['work', '', '┌─ user@host ~/project', '└─$'].join('\r\n')
+
+    expect(cleanReviveSnapshot(snapshot)).toBe('work')
+  })
+
+  it('drops a single-line trailing prompt with no preceding blank line (PowerShell)', () => {
+    // Default PowerShell prints no blank line before its prompt; the fresh shell
+    // reprints it on boot, so the redundant idle prompt must be trimmed here.
+    const snapshot = ['echo hi', 'hi', PS_PROMPT].join('\r\n')
+
+    expect(cleanReviveSnapshot(snapshot)).toBe('echo hi\r\nhi')
+  })
+
+  it('keeps command output and drops only the trailing prompt on a long history', () => {
+    const history = ['cmd1', 'out1', 'cmd2', 'out2']
+    const snapshot = [...history, PS_PROMPT].join('\r\n')
+
+    expect(cleanReviveSnapshot(snapshot)).toBe(history.join('\r\n'))
+  })
+
+  it('reduces a lone prompt to an empty buffer', () => {
+    expect(cleanReviveSnapshot(PS_PROMPT)).toBe('')
+    expect(cleanReviveSnapshot([PS_PROMPT, '', ''].join('\r\n'))).toBe('')
+  })
+
+  it('returns empty for a blank-only buffer without throwing', () => {
+    expect(cleanReviveSnapshot('')).toBe('')
+    expect(cleanReviveSnapshot('\r\n  \r\n')).toBe('')
+  })
+})
+
+describe('parseOscCwd', () => {
+  it('parses an OSC 7 file URI and percent-decodes it', () => {
+    expect(parseOscCwd(7, 'file://host/Users/al/my%20project')).toBe('/Users/al/my project')
+  })
+
+  it('strips the leading slash from a Windows OSC 7 file URI', () => {
+    expect(parseOscCwd(7, 'file:///C:/Users/Aleksandr/project')).toBe('C:/Users/Aleksandr/project')
+  })
+
+  it('ignores non-file OSC 7 payloads', () => {
+    expect(parseOscCwd(7, 'https://example.com')).toBeNull()
+    expect(parseOscCwd(7, '')).toBeNull()
+  })
+
+  it('parses an OSC 9;9 cwd payload and unquotes it', () => {
+    expect(parseOscCwd(9, '9;"C:\\Users\\Aleksandr"')).toBe('C:\\Users\\Aleksandr')
+    expect(parseOscCwd(9, '9;/home/al/src')).toBe('/home/al/src')
+  })
+
+  it('ignores OSC 9 sub-commands other than 9;<path> (e.g. progress)', () => {
+    expect(parseOscCwd(9, '4;3')).toBeNull()
+    expect(parseOscCwd(9, 'some notification')).toBeNull()
+  })
+})
diff --git a/apps/desktop/src/app/right-sidebar/terminal/terminals.test.ts b/apps/desktop/src/app/right-sidebar/terminal/terminals.test.ts
index b04e1e12710..eb99e7a7821 100644
--- a/apps/desktop/src/app/right-sidebar/terminal/terminals.test.ts
+++ b/apps/desktop/src/app/right-sidebar/terminal/terminals.test.ts
@@ -87,4 +87,37 @@ describe('terminal store persistence', () => {
     closeAllTerminals()
     expect(window.localStorage.getItem(STORAGE_KEY)).toBeNull()
   })
+
+  it('restores and persists the last observed cwd so a reopened tab lands where the user cd-d', async () => {
+    window.localStorage.setItem(
+      STORAGE_KEY,
+      JSON.stringify({
+        activeTerminalId: 'term-one',
+        terminals: [{ auto: false, cwd: '/repo', id: 'term-one', restoreCwd: '/repo/packages/api', title: 'zsh' }]
+      })
+    )
+
+    const { $terminals, updateTerminalRestoreCwd } = await loadTerminalStore()
+
+    expect($terminals.get()[0]?.restoreCwd).toBe('/repo/packages/api')
+
+    updateTerminalRestoreCwd('term-one', '/repo/packages/web')
+    expect($terminals.get()[0]?.restoreCwd).toBe('/repo/packages/web')
+    expect(JSON.parse(window.localStorage.getItem(STORAGE_KEY) ?? '{}').terminals[0].restoreCwd).toBe(
+      '/repo/packages/web'
+    )
+  })
+
+  it('never attaches a restore cwd to an agent tab and ignores empty values', async () => {
+    const { $terminals, createTerminal, ensureAgentTerminal, updateTerminalRestoreCwd } = await loadTerminalStore()
+
+    const userId = createTerminal('/repo')
+    const agentId = ensureAgentTerminal('proc-1', 'background task')!
+
+    updateTerminalRestoreCwd(agentId, '/somewhere')
+    updateTerminalRestoreCwd(userId, '   ')
+
+    expect($terminals.get().find(term => term.id === agentId)?.restoreCwd).toBeUndefined()
+    expect($terminals.get().find(term => term.id === userId)?.restoreCwd).toBeUndefined()
+  })
 })
diff --git a/apps/desktop/src/app/right-sidebar/terminal/terminals.ts b/apps/desktop/src/app/right-sidebar/terminal/terminals.ts
index 2d716242ab3..c86f57aeeae 100644
--- a/apps/desktop/src/app/right-sidebar/terminal/terminals.ts
+++ b/apps/desktop/src/app/right-sidebar/terminal/terminals.ts
@@ -19,6 +19,10 @@ export interface TerminalEntry {
    *  (the project root if opened in one, else the backend's default). Switching
    *  sessions never moves or recreates a terminal. */
   cwd: string
+  /** Last observed working directory of the live shell (tracked via the PTY
+   *  cwd probe / OSC 7). Used to reopen the tab where the user last `cd`'d
+   *  rather than the original launch dir. User tabs only. */
+  restoreCwd?: string
   /** Serialized xterm scrollback from the last session, replayed on relaunch so
    *  the tab reopens with its recent history (VS Code parity). Processes are NOT
    *  revived — a fresh shell starts beneath the restored buffer. Captured live
@@ -34,6 +38,7 @@ interface PersistedTerminalEntry {
   auto: boolean
   cwd: string
   id: string
+  restoreCwd?: string
   reviveBuffer?: string
   title: string
 }
@@ -59,6 +64,7 @@ function sanitizePersistedTerminal(value: unknown): PersistedTerminalEntry | nul
   const id = typeof record.id === 'string' ? record.id.trim() : ''
   const title = typeof record.title === 'string' ? record.title.trim() : ''
   const cwd = typeof record.cwd === 'string' ? record.cwd : ''
+  const restoreCwd = typeof record.restoreCwd === 'string' && record.restoreCwd ? record.restoreCwd : undefined
   const reviveBuffer = typeof record.reviveBuffer === 'string' ? record.reviveBuffer : undefined
 
   if (!id) {
@@ -69,6 +75,7 @@ function sanitizePersistedTerminal(value: unknown): PersistedTerminalEntry | nul
     auto: typeof record.auto === 'boolean' ? record.auto : true,
     cwd,
     id,
+    ...(restoreCwd ? { restoreCwd } : {}),
     ...(reviveBuffer ? { reviveBuffer } : {}),
     title: title || 'Terminal'
   }
@@ -116,6 +123,7 @@ function persistTerminals(list: readonly TerminalEntry[], activeTerminalId: null
       auto: term.auto,
       cwd: term.cwd,
       id: term.id,
+      ...(term.restoreCwd ? { restoreCwd: term.restoreCwd } : {}),
       ...(term.reviveBuffer ? { reviveBuffer: term.reviveBuffer } : {}),
       title: term.title
     }))
@@ -309,6 +317,27 @@ export function updateTerminalReviveBuffer(id: string, reviveBuffer: string): vo
   )
 }
 
+/** Record the shell's latest working directory for a tab so the next launch can
+ *  restart the PTY there instead of the original launch dir. User tabs only;
+ *  no-ops when the value is empty or unchanged to avoid redundant persistence. */
+export function updateTerminalRestoreCwd(id: string, restoreCwd: string): void {
+  const next = restoreCwd.trim()
+
+  if (!next) {
+    return
+  }
+
+  $terminals.set(
+    $terminals.get().map(term => {
+      if (term.id !== id || term.kind !== 'user' || term.restoreCwd === next) {
+        return term
+      }
+
+      return { ...term, restoreCwd: next }
+    })
+  )
+}
+
 export function renameTerminal(id: string, title: string): void {
   const trimmed = title.trim()
 
diff --git a/apps/desktop/src/app/right-sidebar/terminal/use-terminal-session.ts b/apps/desktop/src/app/right-sidebar/terminal/use-terminal-session.ts
index 931b8fec624..c1b09487c6f 100644
--- a/apps/desktop/src/app/right-sidebar/terminal/use-terminal-session.ts
+++ b/apps/desktop/src/app/right-sidebar/terminal/use-terminal-session.ts
@@ -21,7 +21,7 @@ import {
   terminalSelectionLabel,
   terminalTheme
 } from './selection'
-import { closeTerminal, updateTerminalReviveBuffer } from './terminals'
+import { closeTerminal, updateTerminalRestoreCwd, updateTerminalReviveBuffer } from './terminals'
 
 // How many scrollback lines to serialize for relaunch restore. Mirrors VS Code's
 // terminal.integrated.persistentSessionScrollback default; the store caps the
@@ -33,6 +33,11 @@ const PERSISTENT_SESSION_SCROLLBACK = 200
 // renderer tears down), then at most once per window while output streams.
 const SNAPSHOT_THROTTLE_MS = 750
 
+// Minimum gap between main-side PTY cwd probes. The probe spawns lsof on macOS,
+// so keep it well throttled — cwd only changes on a `cd`, which the reporter
+// already reads off the next output snapshot anyway.
+const CWD_PROBE_THROTTLE_MS = 2000
+
 // True once the page/app is tearing down (Cmd+Q, Alt+F4, window close, reload).
 // App quit kills the PTYs from the main process, which fires onExit in the
 // renderer — but React skips effect cleanups on teardown, so the per-instance
@@ -168,38 +173,55 @@ function stripInitialPromptGap(data: string) {
   return prefix
 }
 
+// A row's content with ANSI escapes and all whitespace stripped — '' for a
+// spacer / prompt-gap / zsh `%` marker row.
+const visibleText = (line: string) => stripEscapeSequences(line).replace(/[\s%]/g, '')
+
 // Trim the shell's trailing idle prompt from a serialized snapshot before it's
 // persisted. Without it, the saved buffer ends in the old prompt, so the next
-// launch replays it directly above the fresh shell's prompt ("double bar"). The
-// prompt is the short block after the last blank line (starship's add_newline
-// gap); only a short tail is dropped, so real command output is never trimmed and
-// configs without that blank line simply keep the historical prompt (no loss).
-function cleanReviveSnapshot(serialized: string): string {
-  const visible = (line: string) => stripEscapeSequences(line).replace(/[\s%]/g, '')
+// launch replays it directly above the fresh shell's prompt ("double bar").
+//
+// An interactive shell always reprints its prompt after a command finishes, so
+// the tail of an idle buffer is the prompt, never real history. Two prompt
+// shapes exist:
+//   - Spaced/multi-line (starship add_newline, powerline): a blank line sits
+//     just above the prompt, so the short block after the last blank is dropped.
+//   - Single-line (default PowerShell `PS C:\..>`, bash `user@host:~$`): no blank
+//     separator, so the final line itself is the prompt and is dropped.
+// The fresh shell reprints the current prompt on boot either way, so only the
+// redundant idle prompt is removed — command output is preserved.
+export function cleanReviveSnapshot(serialized: string): string {
   const lines = serialized.split(/\r?\n/)
 
-  while (lines.length && visible(lines[lines.length - 1]) === '') {
+  while (lines.length && !visibleText(lines[lines.length - 1])) {
     lines.pop()
   }
 
-  let lastBlank = -1
-
-  for (let i = lines.length - 1; i >= 0; i -= 1) {
-    if (visible(lines[i]) === '') {
-      lastBlank = i
-
-      break
-    }
+  if (lines.length === 0) {
+    return ''
   }
 
-  // A prompt is a short block; a long tail after the blank is real output, leave it.
-  if (lastBlank >= 0 && lines.length - 1 - lastBlank <= 3) {
-    lines.length = lastBlank
-  }
+  const lastBlank = lines.findLastIndex(line => !visibleText(line))
+  const spacedPrompt = lastBlank >= 0 && lines.length - 1 - lastBlank <= 3
+
+  // Spaced prompt (starship/powerline): drop the block after the blank
+  // separator. Otherwise the last line is the single-line prompt itself.
+  lines.length = spacedPrompt ? lastBlank : lines.length - 1
 
   return lines.join('\r\n')
 }
 
+// True when a revive buffer holds no real scrollback: empty, or only repeats of
+// one line (the idle prompt). This is the idle-accumulation signature (#61572) —
+// each relaunch replayed the saved prompt(s) and the fresh shell printed one more
+// below, growing the tab by a line per cycle. Real sessions vary (prompt +
+// command + output), so genuine short histories are never mistaken for idle.
+export function isIdlePromptOnly(serialized: string): boolean {
+  const lines = serialized.split(/\r?\n/).map(visibleText).filter(Boolean)
+
+  return lines.length === 0 || lines.every(line => line === lines[0])
+}
+
 interface UseTerminalSessionOptions {
   /** Renderer-side terminal id (the tab handle), used to key the agent reader. */
   id: string
@@ -207,12 +229,52 @@ interface UseTerminalSessionOptions {
   /** Only the active tab is visible, owns the agent reader, and runs injections. */
   active: boolean
   onAddSelectionToChat: (text: string, label?: string) => void
+  /** Last observed shell cwd from the previous session; the fresh PTY starts
+   *  here (falling back to `cwd`) so a prior `cd` survives a relaunch. */
+  restoreCwd?: string
   /** Serialized scrollback from the previous session, replayed once on mount. */
   reviveBuffer?: string
   /** Reports the resolved shell name once the PTY is live (for the tab label). */
   onShell?: (shell: string) => void
 }
 
+// Parse a working directory out of a cwd-reporting OSC payload. Covers OSC 7
+// (`file://host/path`, emitted by many bash/zsh integrations) and OSC 9;9
+// (`9;<path>`, ConEmu/Windows-Terminal style some PowerShell profiles emit).
+// Returns null for anything unrecognized so callers can ignore it.
+export function parseOscCwd(code: 7 | 9, payload: string): string | null {
+  if (code === 9) {
+    // OSC 9;9;<path> — the leading "9;" selects the cwd sub-command.
+    if (!payload.startsWith('9;')) {
+      return null
+    }
+
+    const raw = payload.slice(2).trim().replace(/^"|"$/g, '')
+
+    return raw || null
+  }
+
+  // OSC 7 — a file URI. Strip the scheme + authority and percent-decode.
+  const match = /^file:\/\/[^/]*(\/.*)$/.exec(payload.trim())
+
+  if (!match) {
+    return null
+  }
+
+  let raw = match[1]
+
+  try {
+    raw = decodeURIComponent(raw)
+  } catch {
+    // Keep the undecoded path if it isn't valid percent-encoding.
+  }
+
+  // Windows file URIs carry a leading slash before the drive (`/C:/Users`).
+  const windows = /^\/[A-Za-z]:[\\/]/.exec(raw)
+
+  return (windows ? raw.slice(1) : raw) || null
+}
+
 // Bind the palette to the live skin surface so the terminal blends with the app
 // (and the contrast clamp has a real background to work against).
 function withSurface(theme: ReturnType<typeof terminalTheme>) {
@@ -314,6 +376,7 @@ export function useTerminalSession({
   cwd,
   active,
   onAddSelectionToChat,
+  restoreCwd,
   reviveBuffer,
   onShell
 }: UseTerminalSessionOptions) {
@@ -336,6 +399,15 @@ export function useTerminalSession({
   // Snapshot the revive buffer once: live snapshots feed updateTerminalReviveBuffer
   // and would otherwise re-arm replay on every store-driven re-render.
   const initialReviveBufferRef = useRef(reviveBuffer)
+  // The cwd to boot the fresh PTY in — the last dir the prior session observed
+  // (survives a `cd`), captured once so store-driven re-renders don't move it.
+  const initialRestoreCwdRef = useRef(restoreCwd)
+  // Latest cwd seen this session; de-dupes redundant store writes.
+  const lastObservedCwdRef = useRef<string | null>(null)
+  // Whether the user ever fed input into this session (keystrokes, paste,
+  // drag-and-drop paths, or an injected command). Gates idle-buffer handling in
+  // persistSnapshot so an untouched tab never re-saves an accumulating snapshot.
+  const hasSessionActivityRef = useRef(false)
   const shellNameRef = useRef('shell')
   const selectionLabelRef = useRef('')
   const selectionRef = useRef('')
@@ -473,6 +545,50 @@ export function useTerminalSession({
       term.write('\r\n')
     }
 
+    // Track the shell's working directory so a reopened tab restarts where the
+    // user last `cd`'d. Two independent signals feed it: cwd-reporting OSC
+    // sequences (immediate, for shells configured to emit them) and a periodic
+    // PTY cwd probe on the main side (shell-agnostic on POSIX). The store
+    // updater de-dupes, so both feeding it is harmless.
+    const recordCwd = (next: string | null | undefined) => {
+      const value = (next ?? '').trim()
+
+      if (!value || value === lastObservedCwdRef.current) {
+        return
+      }
+
+      lastObservedCwdRef.current = value
+      updateTerminalRestoreCwd(id, value)
+    }
+
+    const cwdOscHandlers = ([7, 9] as const).map(code =>
+      term.parser.registerOscHandler(code, payload => {
+        recordCwd(parseOscCwd(code, payload))
+
+        return false // let the sequence propagate; we only observe it
+      })
+    )
+
+    cleanup.push(() => cwdOscHandlers.forEach(handler => handler.dispose()))
+
+    let cwdProbeAt = 0
+
+    const probeCwd = () => {
+      const sessionId = sessionIdRef.current
+
+      if (!sessionId || !terminalApi.cwd || Date.now() - cwdProbeAt < CWD_PROBE_THROTTLE_MS) {
+        return
+      }
+
+      cwdProbeAt = Date.now()
+      void terminalApi
+        .cwd(sessionId)
+        .then(recordCwd)
+        .catch(() => {
+          // Best-effort: no cwd probe on this platform (e.g. Windows).
+        })
+    }
+
     // Capture the buffer on a leading-edge throttle and persist synchronously via
     // the store. No unload hook: by the time the user quits, a recent snapshot is
     // already on disk (the prior beforeunload-based attempt lost the last output).
@@ -486,12 +602,31 @@ export function useTerminalSession({
 
       lastSnapshotAt = Date.now()
 
+      // No user input this session: never re-serialize. The live buffer now holds
+      // the replayed history plus a fresh boot prompt, and re-saving that is
+      // exactly what grew idle tabs by one prompt line per relaunch (#61572).
+      // If the buffer we loaded carried no real scrollback (empty, or only a
+      // repeated prompt), clear it so the next launch shows a single fresh prompt
+      // and any pre-existing accumulation heals. Otherwise leave the prior
+      // snapshot untouched so real history from an earlier active session
+      // survives an idle reopen instead of being overwritten.
+      if (!hasSessionActivityRef.current) {
+        if (isIdlePromptOnly(initialReviveBufferRef.current ?? '')) {
+          updateTerminalReviveBuffer(id, '')
+        }
+
+        return
+      }
+
       try {
         const snapshot = serialize.serialize({ scrollback: PERSISTENT_SESSION_SCROLLBACK })
         updateTerminalReviveBuffer(id, cleanReviveSnapshot(snapshot))
       } catch {
         // Best-effort restore: never let serialization break a live terminal.
       }
+
+      // A user command may have `cd`'d; refresh the persisted cwd (throttled).
+      probeCwd()
     }
 
     const scheduleSnapshot = () => {
@@ -544,6 +679,7 @@ export function useTerminalSession({
         return
       }
 
+      hasSessionActivityRef.current = true
       void terminalApi.write(id, `${paths.map(p => quotePathForShell(p, shellNameRef.current)).join(' ')} `)
       term.focus()
       triggerHaptic('selection')
@@ -640,6 +776,7 @@ export function useTerminalSession({
     })
 
     const dataDisposable = term.onData(data => {
+      hasSessionActivityRef.current = true
       const id = sessionIdRef.current
 
       if (id) {
@@ -661,7 +798,10 @@ export function useTerminalSession({
 
     const startSession = () =>
       void terminalApi
-        .start({ cols: term.cols, cwd, rows: term.rows })
+        // Prefer the prior session's last cwd so a reopened tab lands where the
+        // user last `cd`'d; the main side falls back to the launch cwd (then
+        // home) if that dir no longer exists.
+        .start({ cols: term.cols, cwd: initialRestoreCwdRef.current || cwd, rows: term.rows })
         .then(session => {
           if (disposed) {
             void terminalApi.dispose(session.id)
@@ -846,6 +986,7 @@ export function useTerminalSession({
         return
       }
 
+      hasSessionActivityRef.current = true
       void window.hermesDesktop?.terminal?.write(sessionId, `${command}\r`)
       $terminalInjection.set(null)
       termRef.current?.focus()
diff --git a/apps/desktop/src/app/right-sidebar/terminal/workspace.tsx b/apps/desktop/src/app/right-sidebar/terminal/workspace.tsx
index b8b62f50999..a15899c816b 100644
--- a/apps/desktop/src/app/right-sidebar/terminal/workspace.tsx
+++ b/apps/desktop/src/app/right-sidebar/terminal/workspace.tsx
@@ -56,6 +56,7 @@ export function TerminalWorkspace({ onAddSelectionToChat }: TerminalWorkspacePro
             id={term.id}
             key={term.id}
             onAddSelectionToChat={onAddSelectionToChat}
+            restoreCwd={term.restoreCwd}
             reviveBuffer={term.reviveBuffer}
           />
         )
diff --git a/apps/desktop/src/global.d.ts b/apps/desktop/src/global.d.ts
index a6f82fa309d..b7d0fd8cd1d 100644
--- a/apps/desktop/src/global.d.ts
+++ b/apps/desktop/src/global.d.ts
@@ -163,6 +163,10 @@ declare global {
         scanRepos: (roots: string[], options?: { maxDepth?: number }) => Promise<{ root: string; label: string }[]>
       }
       terminal: {
+        /** Best-effort current working directory of the live PTY child (POSIX
+         *  only; null on Windows or when unavailable). Used to reopen a tab
+         *  where the user last `cd`'d. */
+        cwd: (id: string) => Promise<string | null>
         dispose: (id: string) => Promise<boolean>
         onData: (id: string, callback: (payload: string) => void) => () => void
         onExit: (id: string, callback: (payload: HermesTerminalExit) => void) => () => void