diff --git a/kitty/boss.py b/kitty/boss.py
index 8880143c6..ea30a17d7 100644
--- a/kitty/boss.py
+++ b/kitty/boss.py
@@ -4,6 +4,7 @@
 
 import atexit
 import json
+import os
 import re
 import socket
 from functools import partial
@@ -221,7 +222,9 @@ class Boss:
                 args, rest = parse_args(msg['args'][1:])
                 args.args = rest
                 opts = create_opts(args)
-                session = create_session(opts, args)
+                if not os.path.isabs(args.directory):
+                    args.directory = os.path.join(msg['cwd'], args.directory)
+                session = create_session(opts, args, respect_cwd=True)
                 self.add_os_window(session, wclass=args.cls, wname=args.name, size=initial_window_size(opts, self.cached_values), startup_id=startup_id)
             else:
                 log_error('Unknown message received from peer, ignoring')
diff --git a/kitty/main.py b/kitty/main.py
index 0dc3a58e3..85128b55b 100644
--- a/kitty/main.py
+++ b/kitty/main.py
@@ -165,7 +165,9 @@ def _main():
         is_first = single_instance(args.instance_group)
         if not is_first:
             import json
-            data = {'cmd': 'new_instance', 'args': tuple(sys.argv), 'startup_id': os.environ.get('DESKTOP_STARTUP_ID')}
+            data = {'cmd': 'new_instance', 'args': tuple(sys.argv),
+                    'startup_id': os.environ.get('DESKTOP_STARTUP_ID'),
+                    'cwd': os.getcwd()}
             data = json.dumps(data, ensure_ascii=False).encode('utf-8')
             single_instance.socket.sendall(data)
             return
diff --git a/kitty/session.py b/kitty/session.py
index 49fea3727..8ab79fe46 100644
--- a/kitty/session.py
+++ b/kitty/session.py
@@ -105,7 +105,7 @@ def parse_session(raw, opts):
     return ans
 
 
-def create_session(opts, args=None, special_window=None, cwd_from=None):
+def create_session(opts, args=None, special_window=None, cwd_from=None, respect_cwd=False):
     if args and args.session:
         with open(args.session) as f:
             return parse_session(f.read(), opts)
@@ -122,6 +122,8 @@ def create_session(opts, args=None, special_window=None, cwd_from=None):
         cmd = args.args if args and args.args else resolved_shell(opts)
         from kitty.tabs import SpecialWindow
         k = {'cwd_from': cwd_from}
+        if respect_cwd:
+            k['cwd'] = args.directory
         if getattr(args, 'title', None):
             k['override_title'] = args.title
         special_window = SpecialWindow(cmd, **k)