diff --git a/src/web-ui/src/app/scenes/shell/ShellNav.scss b/src/web-ui/src/app/scenes/shell/ShellNav.scss
index bcffa2658..9271dac63 100644
--- a/src/web-ui/src/app/scenes/shell/ShellNav.scss
+++ b/src/web-ui/src/app/scenes/shell/ShellNav.scss
@@ -327,12 +327,19 @@
     min-width: 0;
   }
 
-  &__terminal-item {
+  &__terminal-item-row {
     display: flex;
     align-items: center;
     gap: 6px;
     width: 100%;
-    height: 32px;
+  }
+
+  &__terminal-item {
+    display: flex;
+    flex-direction: column;
+    gap: 0;
+    width: 100%;
+    min-height: 32px;
     padding: 0 $size-gap-2;
     border: none;
     border-radius: $size-radius-base;
@@ -343,10 +350,17 @@
     font-size: var(--font-size-sm);
     font-weight: 400;
     position: relative;
+    justify-content: center;
     transition:
       color $motion-fast $easing-standard,
       background $motion-fast $easing-standard;
 
+    &.has-cwd {
+      padding-top: 4px;
+      padding-bottom: 4px;
+      justify-content: center;
+    }
+
     &:hover {
       color: var(--color-text-primary);
       background: var(--element-bg-medium, var(--element-bg-soft));
@@ -447,6 +461,17 @@
     }
   }
 
+  &__terminal-cwd {
+    display: block;
+    padding-left: 20px;
+    font-size: var(--font-size-xxs);
+    line-height: 1.3;
+    color: var(--color-text-muted);
+    overflow: hidden;
+    text-overflow: ellipsis;
+    white-space: nowrap;
+  }
+
   &__cmd-indicator {
     flex-shrink: 0;
     padding: 2px 5px;
diff --git a/src/web-ui/src/app/scenes/shell/components/ShellNavEntryItem.tsx b/src/web-ui/src/app/scenes/shell/components/ShellNavEntryItem.tsx
index db180a449..abff6446d 100644
--- a/src/web-ui/src/app/scenes/shell/components/ShellNavEntryItem.tsx
+++ b/src/web-ui/src/app/scenes/shell/components/ShellNavEntryItem.tsx
@@ -26,6 +26,14 @@ interface ShellNavEntryItemProps {
   ) => void;
 }
 
+function getDisplayCwd(entry: ShellEntry): string | null {
+  const cwd = entry.workingDirectory ?? entry.cwd;
+  if (!cwd || cwd.trim().length === 0) {
+    return null;
+  }
+  return cwd;
+}
+
 const ShellNavEntryItem: React.FC<ShellNavEntryItemProps> = ({
   entry,
   isActive,
@@ -37,6 +45,8 @@ const ShellNavEntryItem: React.FC<ShellNavEntryItemProps> = ({
   onOpen,
   onOpenContextMenu,
 }) => {
+  const displayCwd = getDisplayCwd(entry);
+
   return (
     <div
       role="button"
@@ -44,6 +54,7 @@ const ShellNavEntryItem: React.FC<ShellNavEntryItemProps> = ({
       className={[
         'bitfun-shell-nav__terminal-item',
         isActive && 'is-active',
+        displayCwd && 'has-cwd',
       ].filter(Boolean).join(' ')}
       onClick={() => { void onOpen(entry); }}
       onKeyDown={(event) => {
@@ -60,40 +71,48 @@ const ShellNavEntryItem: React.FC<ShellNavEntryItemProps> = ({
         onOpenContextMenu(event, menuItems, { entry });
       }}
     >
-      <Tooltip content={entry.name} placement="right">
-        <span className="bitfun-shell-nav__terminal-item-main">
-          {showSavedBadge ? (
-            <Bookmark size={14} className="bitfun-shell-nav__terminal-icon bitfun-shell-nav__terminal-icon--saved" />
-          ) : (
-            <SquareTerminal size={14} className="bitfun-shell-nav__terminal-icon" />
-          )}
+      <div className="bitfun-shell-nav__terminal-item-row">
+        <Tooltip content={entry.name} placement="right">
+          <span className="bitfun-shell-nav__terminal-item-main">
+            {showSavedBadge ? (
+              <Bookmark size={14} className="bitfun-shell-nav__terminal-icon bitfun-shell-nav__terminal-icon--saved" />
+            ) : (
+              <SquareTerminal size={14} className="bitfun-shell-nav__terminal-icon" />
+            )}
 
-          <span className="bitfun-shell-nav__terminal-label">{entry.name}</span>
+            <span className="bitfun-shell-nav__terminal-label">{entry.name}</span>
 
-          {showSavedBadge ? (
-            <span className="bitfun-shell-nav__saved-indicator">{savedBadgeLabel}</span>
-          ) : null}
+            {showSavedBadge ? (
+              <span className="bitfun-shell-nav__saved-indicator">{savedBadgeLabel}</span>
+            ) : null}
 
-          {entry.startupCommand ? (
-            <span className="bitfun-shell-nav__cmd-indicator">{startupCommandBadgeLabel}</span>
-          ) : null}
+            {entry.startupCommand ? (
+              <span className="bitfun-shell-nav__cmd-indicator">{startupCommandBadgeLabel}</span>
+            ) : null}
 
-          <span className={`bitfun-shell-nav__terminal-dot${entry.isRunning ? ' is-running' : ' is-stopped'}`} />
-        </span>
-      </Tooltip>
+            <span className={`bitfun-shell-nav__terminal-dot${entry.isRunning ? ' is-running' : ' is-stopped'}`} />
+          </span>
+        </Tooltip>
+
+        <Tooltip content={quickAction.title} placement="right">
+          <button
+            type="button"
+            className="bitfun-shell-nav__terminal-close"
+            onClick={(event) => {
+              event.stopPropagation();
+              quickAction.onClick();
+            }}
+          >
+            {quickAction.icon}
+          </button>
+        </Tooltip>
+      </div>
 
-      <Tooltip content={quickAction.title} placement="right">
-        <button
-          type="button"
-          className="bitfun-shell-nav__terminal-close"
-          onClick={(event) => {
-            event.stopPropagation();
-            quickAction.onClick();
-          }}
-        >
-          {quickAction.icon}
-        </button>
-      </Tooltip>
+      {displayCwd ? (
+        <span className="bitfun-shell-nav__terminal-cwd" title={displayCwd}>
+          {displayCwd}
+        </span>
+      ) : null}
     </div>
   );
 };