diff --git a/docs/changelog.rst b/docs/changelog.rst
index f4a1ccd96..6868d231f 100644
--- a/docs/changelog.rst
+++ b/docs/changelog.rst
@@ -129,6 +129,9 @@ To update |kitty|, :doc:`follow the instructions <binary>`.
   It can now increment font size and reset it. It also only acts on the
   active top-level window, by default (:iss:`1581`)
 
+- When launching child processes set the :code:`PWD` environment variable
+  (:iss:`1595`)
+
 0.13.3 [2019-01-19]
 ------------------------------
 
diff --git a/kitty/child.py b/kitty/child.py
index fc91bd1bc..50a4ac460 100644
--- a/kitty/child.py
+++ b/kitty/child.py
@@ -168,6 +168,8 @@ class Child:
         env.update(self.env)
         env['TERM'] = self.opts.term
         env['COLORTERM'] = 'truecolor'
+        if self.cwd:
+            env['PWD'] = self.cwd
         if os.path.isdir(terminfo_dir):
             env['TERMINFO'] = terminfo_dir
         env = tuple('{}={}'.format(k, v) for k, v in env.items())