Terminal sessions start at root directory and prompt doesn't display current path
Description:
-
Issue: When starting a terminal session in Cursor, it defaults to the root directory (
/) instead of the project directory. Additionally, the prompt does not display the current working directory. -
Steps to Reproduce:
- Open Cursor.
- Start a new terminal session.
- Run any command (e.g.,
npm run dev) - Notice it looks for files in wrong directory
- Expected Behavior: The terminal should start in the project directory, and the prompt should display the current working directory.
- Actual Behavior: The terminal starts at the root directory, and the prompt does not show the current path.
-
Environment:
- Cursor Version: [Your Cursor Version]
- Operating System: Windows 10.0.26100
- Additional Context: This issue began occurring on September 27, 2025. It affects all projects and persists across restarts. Manual Cursor terminal works fine, but the terminal tool is broken.
Good afternoon, colleagues. I have encountered a similar issue. Is there any solution available?
In the end moving the app-project folder to another location on the dev device (PC in my case) reset the configuration settings so that the Agent initiated terminal sessions start in the active app-project's folder, and not the PC's root folder.
Detail - this was happening in all my apps. I had them all in a central "code/" folder, so I moved that "code/" folder to a better location on my PC.
It was a frustrating path to find the simple fix of just relocating project folders. I didn't test moving the project folders back, but I imagine that would persist the fix.
Good luck with your case. I've had a difficult time with Cursor initiated terminal sessions. Through iteration, I finally got a good method down for dependable consistent terminal sessions initiated by Cursor agent...until the next update, at least.
Chris Blanc
On Wed, Oct 29, 2025, 4:52 AM System X - Files @.***> wrote:
SystemXFiles left a comment (cursor/cursor#3632) https://github.com/cursor/cursor/issues/3632#issuecomment-3460424830
Good afternoon, colleagues. I have encountered a similar issue. Is there any solution available?
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