diff --git a/native/WinLauncher/WinLauncher/WinLauncher.cpp b/native/WinLauncher/WinLauncher/WinLauncher.cpp
index 40c3fcd55935..4037a880404b 100644
--- a/native/WinLauncher/WinLauncher/WinLauncher.cpp
+++ b/native/WinLauncher/WinLauncher/WinLauncher.cpp
@@ -579,6 +579,10 @@ bool LoadVMOptions()
   vmOptionLines.push_back(std::string("-Djava.library.path=") + binDirs);
   AddPredefinedVMOptions(vmOptionLines);
 
+  char curDir[_MAX_PATH];
+  GetCurrentDirectoryA(_MAX_PATH - 1, curDir);
+  vmOptionLines.push_back(std::string("-Dide.launcher.initialWorkingDir=\"") + curDir + "\"");
+
   vmOptionCount = vmOptionLines.size() + 1;
   vmOptions = (JavaVMOption*)malloc(vmOptionCount * sizeof(JavaVMOption));
 
@@ -608,18 +612,14 @@ bool LoadJVMLibrary()
     dllName = clientDllName;
   }
 
-  // Call SetDllDirectory to allow jvm.dll to load the corresponding runtime libraries.
-  SetDllDirectoryA(binDir.c_str());
+  // Call SetCurrentDirectory to allow jvm.dll to load the corresponding runtime libraries.
+  SetCurrentDirectoryA(binDir.c_str());
   hJVM = LoadLibraryA(dllName.c_str());
   if (hJVM)
   {
     pCreateJavaVM = (JNI_createJavaVM) GetProcAddress(hJVM, "JNI_CreateJavaVM");
   }
 
-  // Now clean up the SetDllDirectory context, because otherwise it will pollute the child processes (and that is
-  // often unwanted for any user programs started from IDE).
-  SetDllDirectoryA(nullptr);
-
   if (!pCreateJavaVM)
   {
     std::string jvmError = "Failed to load JVM DLL ";
diff --git a/platform/platform-impl/src/com/intellij/idea/ApplicationLoader.kt b/platform/platform-impl/src/com/intellij/idea/ApplicationLoader.kt
index ceba4249aeed..a807100875d6 100644
--- a/platform/platform-impl/src/com/intellij/idea/ApplicationLoader.kt
+++ b/platform/platform-impl/src/com/intellij/idea/ApplicationLoader.kt
@@ -351,7 +351,9 @@ open class IdeStarter : ApplicationStarter {
     var project: Project? = null
     if (commandLineArgs.firstOrNull() != null) {
       LOG.info("ApplicationLoader.loadProject")
-      project = CommandLineProcessor.processExternalCommandLine(commandLineArgs, null).getFirst()
+      val currentDirectory = System.getProperty("ide.launcher.initialWorkingDir")
+      LOG.info("ide.launcher.initialWorkingDir: $currentDirectory")
+      project = CommandLineProcessor.processExternalCommandLine(commandLineArgs, currentDirectory).getFirst()
     }
     return project
   }