diff --git a/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/TerminalView.kt b/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/TerminalView.kt
index 476dc885f417..c43a7296e844 100644
--- a/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/TerminalView.kt
+++ b/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/TerminalView.kt
@@ -2,6 +2,7 @@ package com.intellij.terminal.frontend.view
 
 import com.intellij.openapi.Disposable
 import com.intellij.openapi.actionSystem.DataKey
+import com.intellij.platform.eel.annotations.NativePath
 import com.intellij.terminal.TerminalTitle
 import kotlinx.coroutines.CoroutineScope
 import kotlinx.coroutines.Deferred
@@ -16,6 +17,7 @@ import org.jetbrains.plugins.terminal.view.TerminalOutputModelsSet
 import org.jetbrains.plugins.terminal.view.TerminalSendTextBuilder
 import org.jetbrains.plugins.terminal.view.shellIntegration.TerminalShellIntegration
 import java.awt.event.KeyEvent
+import java.nio.file.Path
 import javax.swing.JComponent
 
 @ApiStatus.Internal
@@ -98,6 +100,17 @@ interface TerminalView {
    */
   val keyEventsFlow: Flow<TerminalKeyEvent>
 
+  /**
+   * Absolute [Path] of the current working directory of the terminal process.
+   *
+   * When [TerminalShellIntegration] is available, it is used to track the working directory.
+   * Otherwise, the OS-specific heuristics and polling approach will be used.
+   *
+   * Can be null if process is not started yet.
+   * Or if shell integration is not available and OS-specific heuristics fail to determine the working directory of the process.
+   */
+  val workingDirectoryFlow: StateFlow<Path?>
+
   /**
    * Can be used to get or await the shell integration initialization.
    *
@@ -144,7 +157,8 @@ interface TerminalView {
    * Returns null if the shell process is not connected yet to the [TerminalView]
    * or if the initial value is not yet received from the backend.
    */
-  fun getCurrentDirectory(): String?
+  @Deprecated("Use workingDirectoryFlow instead.", ReplaceWith("workingDirectoryFlow.value"))
+  fun getCurrentDirectory(): @NativePath String?
 
   /**
    * A shortcut to schedule sending the specified text to the shell process
diff --git a/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/TerminalToolWindowSplitContentProvider.kt b/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/TerminalToolWindowSplitContentProvider.kt
index 7cb106124c76..cf92f46162f7 100644
--- a/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/TerminalToolWindowSplitContentProvider.kt
+++ b/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/TerminalToolWindowSplitContentProvider.kt
@@ -1,12 +1,9 @@
 package com.intellij.terminal.frontend.view.impl
 
 import com.intellij.openapi.project.Project
-import com.intellij.platform.eel.path.EelPath
-import com.intellij.platform.eel.provider.asNioPath
 import com.intellij.terminal.frontend.toolwindow.TerminalToolWindowTabsManager
 import com.intellij.terminal.frontend.toolwindow.findTabByContent
 import com.intellij.terminal.frontend.toolwindow.impl.shouldUseReworkedTerminal
-import com.intellij.terminal.frontend.view.TerminalView
 import com.intellij.toolWindow.ToolWindowSplitContentProvider
 import com.intellij.ui.content.Content
 import org.jetbrains.plugins.terminal.TerminalOptionsProvider
@@ -14,8 +11,6 @@ import org.jetbrains.plugins.terminal.TerminalTabState
 import org.jetbrains.plugins.terminal.TerminalToolWindowManager
 import org.jetbrains.plugins.terminal.fus.TerminalStartupFusInfo
 import org.jetbrains.plugins.terminal.fus.TerminalTabOpeningWay
-import org.jetbrains.plugins.terminal.util.getNow
-import java.nio.file.Path
 
 internal class TerminalToolWindowSplitContentProvider : ToolWindowSplitContentProvider {
   override fun createContentCopy(project: Project, content: Content): Content {
@@ -32,7 +27,7 @@ internal class TerminalToolWindowSplitContentProvider : ToolWindowSplitContentPr
   private fun createReworkedTerminalContent(project: Project, content: Content, fusInfo: TerminalStartupFusInfo): Content {
     val manager = TerminalToolWindowTabsManager.getInstance(project)
     val originalView = manager.findTabByContent(content)?.view
-    val currentDirectory = originalView?.getCurrentDirectoryPath()
+    val currentDirectory = originalView?.workingDirectoryFlow?.value
 
     return manager.createTabBuilder()
       .workingDirectory(currentDirectory?.toString())
@@ -42,14 +37,6 @@ internal class TerminalToolWindowSplitContentProvider : ToolWindowSplitContentPr
       .content
   }
 
-  private fun TerminalView.getCurrentDirectoryPath(): Path? {
-    val currentDirectory = getCurrentDirectory() ?: return null
-    val session = sessionDeferred.getNow() ?: return null
-    return runCatching {
-      EelPath.parse(currentDirectory, session.eelDescriptor).asNioPath()
-    }.getOrNull()
-  }
-
   private fun createClassicTerminalContent(
     project: Project,
     originalContent: Content,
diff --git a/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/TerminalViewImpl.kt b/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/TerminalViewImpl.kt
index 5f8625f1d750..dd525e599c95 100644
--- a/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/TerminalViewImpl.kt
+++ b/plugins/terminal/frontend/src/com/intellij/terminal/frontend/view/impl/TerminalViewImpl.kt
@@ -21,6 +21,7 @@ import com.intellij.openapi.util.registry.Registry
 import com.intellij.openapi.wm.IdeFocusManager
 import com.intellij.platform.eel.provider.LocalEelDescriptor
 import com.intellij.platform.util.coroutines.childScope
+import com.intellij.platform.util.coroutines.flow.mapStateIn
 import com.intellij.psi.PsiDocumentManager
 import com.intellij.terminal.JBTerminalSystemSettingsProviderBase
 import com.intellij.terminal.TerminalTitle
@@ -91,6 +92,7 @@ import org.jetbrains.plugins.terminal.hyperlinks.session.TerminalHyperlinksSessi
 import org.jetbrains.plugins.terminal.session.TerminalGridSize
 import org.jetbrains.plugins.terminal.session.TerminalStartupOptions
 import org.jetbrains.plugins.terminal.session.impl.TerminalSession
+import org.jetbrains.plugins.terminal.util.convertNativePathToNioPath
 import org.jetbrains.plugins.terminal.util.getNow
 import org.jetbrains.plugins.terminal.view.TerminalContentChangeEvent
 import org.jetbrains.plugins.terminal.view.TerminalCursorOffsetChangeEvent
@@ -117,6 +119,7 @@ import java.awt.event.ComponentEvent
 import java.awt.event.FocusEvent
 import java.awt.event.FocusListener
 import java.awt.event.KeyEvent
+import java.nio.file.Path
 import javax.swing.JComponent
 import javax.swing.JPanel
 import kotlin.coroutines.cancellation.CancellationException
@@ -181,6 +184,8 @@ class TerminalViewImpl(
   override val keyEventsFlow: Flow<TerminalKeyEvent> = mutableKeyEventsFlow.asSharedFlow()
   private val inputInterceptors = ContainerUtil.createLockFreeCopyOnWriteList<TerminalInputInterceptor>()
 
+  override val workingDirectoryFlow: StateFlow<Path?>
+
   override val shellIntegrationDeferred: CompletableDeferred<TerminalShellIntegration> =
     CompletableDeferred(coroutineScope.coroutineContext.job)
   override val startupOptionsDeferred: CompletableDeferred<TerminalStartupOptions> =
@@ -191,6 +196,12 @@ class TerminalViewImpl(
 
   init {
     sessionModel = TerminalSessionModelImpl()
+    workingDirectoryFlow = sessionModel.terminalState.mapStateIn(coroutineScope.childScope("workingDirectoryFlow")) {
+      val directoryString = it.currentDirectory ?: return@mapStateIn null
+      val eelDescriptor = sessionDeferred.getNow()?.eelDescriptor ?: return@mapStateIn null
+      convertNativePathToNioPath(directoryString, eelDescriptor)
+    }
+
     encodingManager = TerminalKeyEncodingManager(sessionModel, coroutineScope.childScope("TerminalKeyEncodingManager"))
 
     terminalInput = TerminalInput(
@@ -750,7 +761,7 @@ class TerminalViewImpl(
 
   override fun toString(): String {
     val commandText = startupOptionsDeferred.getNow()?.let { "${it.shellCommand}" }
-    return "TerminalViewImpl(state=${sessionState.value}, command=$commandText, cwd=${getCurrentDirectory()})"
+    return "TerminalViewImpl(state=${sessionState.value}, command=$commandText, cwd=${workingDirectoryFlow.value})"
   }
 
   private inner class TerminalPanel(initialContent: Editor) : BorderLayoutPanel(), UiDataProvider, TerminalPanelMarker {
diff --git a/plugins/terminal/src/org/jetbrains/plugins/terminal/util/TerminalUtil.kt b/plugins/terminal/src/org/jetbrains/plugins/terminal/util/TerminalUtil.kt
index d55117e5ed5f..72a2b8c24fd5 100644
--- a/plugins/terminal/src/org/jetbrains/plugins/terminal/util/TerminalUtil.kt
+++ b/plugins/terminal/src/org/jetbrains/plugins/terminal/util/TerminalUtil.kt
@@ -13,6 +13,11 @@ import com.intellij.openapi.keymap.Keymap
 import com.intellij.openapi.keymap.KeymapManager
 import com.intellij.openapi.keymap.ex.KeymapManagerEx
 import com.intellij.openapi.util.Disposer
+import com.intellij.platform.eel.EelDescriptor
+import com.intellij.platform.eel.annotations.NativePath
+import com.intellij.platform.eel.path.EelPath
+import com.intellij.platform.eel.path.EelPathException
+import com.intellij.platform.eel.provider.asNioPath
 import com.intellij.util.concurrency.annotations.RequiresBackgroundThread
 import com.intellij.util.concurrency.annotations.RequiresReadLockAbsence
 import com.intellij.util.io.awaitExit
@@ -250,3 +255,22 @@ internal fun String?.toExistentNioDirectory(labelToLogOnFailure: String? = null)
   }
   return null
 }
+
+/**
+ * @return null if failed to convert [remotePath] to nio Path.
+ */
+@ApiStatus.Internal
+fun convertNativePathToNioPath(remotePath: @NativePath String, descriptor: EelDescriptor): Path? {
+  val eelPath: EelPath = try {
+    EelPath.parse(remotePath, descriptor)
+  }
+  catch (_: EelPathException) {
+    return null
+  }
+  return try {
+    eelPath.asNioPath()
+  }
+  catch (_: IllegalArgumentException) {
+    null
+  }
+}