diff --git a/src/execute.c b/src/execute.c
index 21095a20d..ad60ef96b 100644
--- a/src/execute.c
+++ b/src/execute.c
@@ -373,6 +373,7 @@ do_executev (const char *shell, int flags, char *const argv[])
     {
         update_panels (UP_OPTIMIZE, UP_KEEPSEL);
         update_xterm_title_path ();
+        update_terminal_cwd ();
     }
 
     do_refresh ();
@@ -567,6 +568,7 @@ toggle_subshell (void)
     {
         update_panels (UP_OPTIMIZE, UP_KEEPSEL);
         update_xterm_title_path ();
+        update_terminal_cwd ();
     }
 
     if (was_sigwinch != 0 || tty_got_winch ())
diff --git a/src/filemanager/layout.c b/src/filemanager/layout.c
index 11607720d..de326f375 100644
--- a/src/filemanager/layout.c
+++ b/src/filemanager/layout.c
@@ -913,6 +913,7 @@ setup_panels (void)
     widget_set_visibility (WIDGET (the_bar), mc_global.keybar_visible);
 
     update_xterm_title_path ();
+    update_terminal_cwd ();
 
     /* unlock */
     if (active)
@@ -1567,7 +1568,7 @@ update_xterm_title_path (void)
         g_free (login);
         g_free (path);
 
-        fprintf (stdout, "\33]0;%s\7", str_term_form (p));
+        fprintf (stdout, ESC_STR "]0;%s" ESC_STR "\\", str_term_form (p));
         g_free (p);
 
         if (!mc_global.tty.alternate_plus_minus)
@@ -1577,3 +1578,26 @@ update_xterm_title_path (void)
 }
 
 /* --------------------------------------------------------------------------------------------- */
+
+/** Tell the current directory to the terminal so it can open new tabs there */
+void
+update_terminal_cwd (void)
+{
+    if (mc_global.tty.xterm_flag && vfs_current_is_local ())
+    {
+        const gchar *host;
+        char *path, *path_uri;
+
+        host = g_get_host_name ();
+        path = vfs_path_to_str_flags (current_panel->cwd_vpath, 0, VPF_NONE);
+        path_uri = g_uri_escape_string (path, "/", FALSE);
+
+        fprintf (stdout, ESC_STR "]7;file://%s%s" ESC_STR "\\", host, path_uri);
+        (void) fflush (stdout);
+
+        g_free (path_uri);
+        g_free (path);
+    }
+}
+
+/* --------------------------------------------------------------------------------------------- */
diff --git a/src/filemanager/layout.h b/src/filemanager/layout.h
index 2566cfa32..685f2c371 100644
--- a/src/filemanager/layout.h
+++ b/src/filemanager/layout.h
@@ -90,6 +90,7 @@ int load_prompt (int fd, void *unused);
 #endif
 
 void update_xterm_title_path (void);
+void update_terminal_cwd (void);
 
 void title_path_prepare (char **path, char **login);
 
diff --git a/src/filemanager/panel.c b/src/filemanager/panel.c
index b1174c0bf..f14fd38d7 100644
--- a/src/filemanager/panel.c
+++ b/src/filemanager/panel.c
@@ -3436,6 +3436,7 @@ panel_do_cd_int (WPanel * panel, const vfs_path_t * new_dir_vpath, enum cd_enum
     load_hint (FALSE);
     panel->dirty = TRUE;
     update_xterm_title_path ();
+    update_terminal_cwd ();
 
     vfs_path_free (olddir_vpath, TRUE);
 
@@ -3823,6 +3824,7 @@ panel_callback (Widget * w, Widget * sender, widget_msg_t msg, int parm, void *d
             subshell_chdir (panel->cwd_vpath);
 
         update_xterm_title_path ();
+        update_terminal_cwd ();
         select_item (panel);
 
         bb = buttonbar_find (h);