amirlehmam · amirlehmam · Jul 16, 2026 · Jul 14, 2026
diff --git a/src/renderer/App.tsx b/src/renderer/App.tsx
@@ -154,9 +154,22 @@ function applyShellState(cmd: any, ws: WorkspaceInfo, deps: MetaDeps): void {
 /** Dispatch a surface-scoped metadata command to the owning workspace. */
 function handleSurfaceMetadata(cmd: any, ws: WorkspaceInfo, deps: MetaDeps): void {
   switch (cmd.command) {
-    case 'report_pwd':
-      deps.updateWorkspaceMetadata(ws.id, { cwd: cmd.args?.[0] });
+    case 'report_pwd': {
+      const pwd = cmd.args?.[0];
+      deps.updateWorkspaceMetadata(ws.id, { cwd: pwd });
+      // Also store cwd at the surface level so the tab label can show the project folder.
+      if (pwd && cmd.surfaceId) {
+        const { updateSurface } = useStore.getState();
+        for (const paneId of getAllPaneIds(ws.splitTree)) {
+          const leaf = findLeaf(ws.splitTree, paneId);
+          if (leaf?.surfaces.some((s) => s.id === cmd.surfaceId)) {
+            updateSurface(ws.id, paneId, cmd.surfaceId, { currentCwd: pwd });
+            break;
+          }
+        }
+      }
       break;
+    }
     case 'report_git_branch':
       deps.updateWorkspaceMetadata(ws.id, { gitBranch: cmd.args?.[0], gitDirty: cmd.args?.[1] === 'dirty' });
       break;

diff --git a/src/renderer/components/SplitPane/surface-label.ts b/src/renderer/components/SplitPane/surface-label.ts
@@ -13,13 +13,23 @@ export function getShellLabel(shell?: string): string | null {
   return normalized.replace(/\.exe$/i, '').replace(/[-_]/g, ' ').replace(/\b\w/g, (char) => char.toUpperCase());
 }
 
+/** Extract the last path segment from a cwd string for use as a tab label. */
+function cwdFolderName(cwd: string): string | null {
+  const normalized = cwd.replace(/\\/g, '/').replace(/\/$/, '');
+  const lastSegment = normalized.split('/').pop();
+  return lastSegment || null;
+}
+
 export function getSurfaceLabel(surface: SurfaceRef, agentLabel?: string, workspaceShell?: string): string {
   if (surface.customTitle) return surface.customTitle;
   if (agentLabel) return agentLabel;
 
   switch (surface.type) {
-    case 'terminal':
+    case 'terminal': {
+      const folder = surface.currentCwd ? cwdFolderName(surface.currentCwd) : null;
+      if (folder) return folder;
       return getShellLabel(surface.shell || workspaceShell) || 'Terminal';
+    }
     case 'browser':
       return 'Browser';
     case 'markdown':

diff --git a/src/shared/types.ts b/src/shared/types.ts
@@ -20,6 +20,8 @@ export interface SurfaceRef {
   colorScheme?: string;
   /** Per-surface working directory override (quick-launch profiles — issue #32). */
   cwd?: string;
+  /** Live working directory updated by shell integration on every prompt. */
+  currentCwd?: string;
   /** Commands run once after the terminal PTY spawns (quick-launch profiles — issue #32). */
   startupCommands?: string[];
   /** Initial URL for a browser surface created from a quick-launch profile (issue #32). */

diff --git a/tests/unit/surface-label.test.ts b/tests/unit/surface-label.test.ts
@@ -44,4 +44,32 @@ describe('surface labels', () => {
     expect(getSurfaceLabel(surface('surf-markdown', { type: 'markdown' }))).toBe('Markdown');
     expect(getSurfaceLabel(surface('surf-diff', { type: 'diff' }))).toBe('Diff');
   });
+
+  it('shows the folder name from currentCwd for terminal labels', () => {
+    expect(
+      getSurfaceLabel(
+        surface('surf-1', { currentCwd: 'C:\\Users\\me\\coding\\wmux' }),
+        undefined,
+        'pwsh.exe',
+      ),
+    ).toBe('wmux');
+  });
+
+  it('falls back to shell name when currentCwd is empty', () => {
+    expect(
+      getSurfaceLabel(
+        surface('surf-1', { currentCwd: '' }),
+        undefined,
+        'pwsh.exe',
+      ),
+    ).toBe('PowerShell');
+  });
+
+  it('prefers custom title over currentCwd', () => {
+    expect(
+      getSurfaceLabel(
+        surface('surf-1', { customTitle: 'My Tab', currentCwd: 'C:\\Users\\me\\coding\\wmux' }),
+      ),
+    ).toBe('My Tab');
+  });
 });