diff --git a/src/main/runtime/terminal/launch/mobile-terminal-startup.ts b/src/main/runtime/terminal/launch/mobile-terminal-startup.ts
index 123565e4689..98e78822d47 100644
--- a/src/main/runtime/terminal/launch/mobile-terminal-startup.ts
+++ b/src/main/runtime/terminal/launch/mobile-terminal-startup.ts
@@ -91,7 +91,8 @@ export abstract class OrcaRuntimeWithResolveMobileSessionTerminalCommand extends
       ...resolveResumeLaunchRecipe(launchConfig),
       platform: launchRuntime.platform,
       shell: agentLaunchQuotingShell(launchRuntime),
-      isRemote: Boolean(workspace.connectionId)
+      isRemote: Boolean(workspace.connectionId),
+      launchCwd: workspace.path
     })
     if (!startupPlan) {
       return null
diff --git a/src/main/ssh/orcad-migration-path-fields.ts b/src/main/ssh/orcad-migration-path-fields.ts
index 4c395619ca6..402fd14e206 100644
--- a/src/main/ssh/orcad-migration-path-fields.ts
+++ b/src/main/ssh/orcad-migration-path-fields.ts
@@ -123,6 +123,10 @@ export const ORCAD_MIGRATION_PATH_FIELDS: readonly {
     at: 'dormantState.workspaceSession.sleepingAgentSessionsByPaneKey{}.providerSession.transcriptPath',
     kind: 'absolute'
   },
+  {
+    at: 'dormantState.workspaceSession.sleepingAgentSessionsByPaneKey{}.providerSession.cwd',
+    kind: 'absolute'
+  },
   {
     at: 'dormantState.workspaceSession.sleepingAgentSessionsByPaneKey{}.launchConfig.ompResumeFilePath',
     kind: 'absolute'
diff --git a/src/renderer/src/components/terminal-pane/pty-connection/cold-restore-resume-startup.ts b/src/renderer/src/components/terminal-pane/pty-connection/cold-restore-resume-startup.ts
index 5b40a0d73c5..1ca88396138 100644
--- a/src/renderer/src/components/terminal-pane/pty-connection/cold-restore-resume-startup.ts
+++ b/src/renderer/src/components/terminal-pane/pty-connection/cold-restore-resume-startup.ts
@@ -93,7 +93,8 @@ export function bindBuildColdRestoreAgentResumeStartup(session: ConnectPanePtySe
       cmdOverrides: state.settings?.agentCmdOverrides ?? {},
       ...resolveResumeLaunchRecipe(launchConfig),
       platform: resumeTarget.platform,
-      shell: resumeTarget.shell
+      shell: resumeTarget.shell,
+      launchCwd: session.worktree?.path
     })
     if (!startupPlan) {
       return null
diff --git a/src/renderer/src/components/terminal-pane/remote-runtime-pty-transport.ts b/src/renderer/src/components/terminal-pane/remote-runtime-pty-transport.ts
index 4ee52dc906c..0a1933a946e 100644
--- a/src/renderer/src/components/terminal-pane/remote-runtime-pty-transport.ts
+++ b/src/renderer/src/components/terminal-pane/remote-runtime-pty-transport.ts
@@ -1,4 +1,5 @@
 import { readTerminalSpawnDeferral } from '../../../../shared/host-spawn-admission'
+import { agentProviderSessionForEnsure } from '../../../../shared/agent-session-resume'
 import { remoteRestoreSpawnIntentParams } from '../../runtime/remote-restore-spawn-intent'
 import { createAgentSessionKeyboardOptions } from '@/runtime/agent-session-keyboard-capability'
 import { createRemoteRuntimeDisconnectedInputGrace } from './remote-runtime-disconnected-input-grace'
@@ -3451,7 +3452,7 @@ export function createRemoteRuntimePtyTransport(
                     ...keyboardOptions,
                     worktree: toRuntimeTerminalWorktreeSelector(worktreeId),
                     agent: launchAgentToSend!,
-                    providerSession: resumeProviderSessionToSend,
+                    providerSession: agentProviderSessionForEnsure(resumeProviderSessionToSend),
                     ...(launchConfigToSend?.ompResumeFilePath
                       ? { ompResumeFilePath: launchConfigToSend.ompResumeFilePath }
                       : {}),
diff --git a/src/renderer/src/lib/sleeping-agent-session-launch.ts b/src/renderer/src/lib/sleeping-agent-session-launch.ts
index e5cfe10bfa3..5df77c13dc2 100644
--- a/src/renderer/src/lib/sleeping-agent-session-launch.ts
+++ b/src/renderer/src/lib/sleeping-agent-session-launch.ts
@@ -58,7 +58,8 @@ export function launchSleepingAgentSession(
     cmdOverrides: state.settings?.agentCmdOverrides ?? {},
     ...resolveResumeLaunchRecipe(launchConfig),
     platform: resumeTarget.platform,
-    shell: resumeTarget.shell
+    shell: resumeTarget.shell,
+    launchCwd: state.getKnownWorktreeById(record.worktreeId)?.path
   })
   if (!startupPlan) {
     toast.error(
diff --git a/src/renderer/src/runtime/web-runtime-terminal-create-operation.ts b/src/renderer/src/runtime/web-runtime-terminal-create-operation.ts
index 458618402d0..257c2a085cd 100644
--- a/src/renderer/src/runtime/web-runtime-terminal-create-operation.ts
+++ b/src/renderer/src/runtime/web-runtime-terminal-create-operation.ts
@@ -3,6 +3,7 @@ import { createAgentSessionKeyboardOptions } from './agent-session-keyboard-capa
 import type { RuntimeRpcResponse } from '../../../shared/runtime-rpc-envelope'
 import type { RuntimeMobileSessionCreateTerminalResult } from '../../../shared/runtime-types'
 import { toRuntimeExecutionHostId } from '../../../shared/execution-host'
+import { agentProviderSessionForEnsure } from '../../../shared/agent-session-resume'
 import { translate } from '../i18n/i18n'
 import { useAppStore } from '../store'
 import { agentResumeHostAuthorityCapability } from './agent-resume-host-authority-capability'
@@ -109,7 +110,7 @@ export async function createWebRuntimeSessionTerminalResult(
                         kind: 'explicit',
                         worktree: toRuntimeWorktreeSelector(args.worktreeId),
                         agent,
-                        providerSession: args.providerSession!,
+                        providerSession: agentProviderSessionForEnsure(args.providerSession!),
                         ...(args.launchConfig?.ompResumeFilePath
                           ? { ompResumeFilePath: args.launchConfig.ompResumeFilePath }
                           : {}),
diff --git a/src/shared/agent-hook-listener-claude-turn-state.test.ts b/src/shared/agent-hook-listener-claude-turn-state.test.ts
index 62733d0f56e..07420b6c4c6 100644
--- a/src/shared/agent-hook-listener-claude-turn-state.test.ts
+++ b/src/shared/agent-hook-listener-claude-turn-state.test.ts
@@ -91,6 +91,46 @@ describe('shared agent-hook-listener', () => {
     })
   })
 
+  it('records the folder a Claude session started in, not the one its Bash tool moved to (#16960)', () => {
+    const sessionId = '55555555-5555-4555-8555-555555555555'
+    normalizeAndAccept(state, 'claude', {
+      hook_event_name: 'UserPromptSubmit',
+      session_id: sessionId,
+      prompt: 'go',
+      cwd: '/repo/pkg'
+    })
+    // Claude's hook cwd follows `cd` inside its Bash tool.
+    const afterCd = normalizeAndAccept(state, 'claude', {
+      hook_event_name: 'PostToolUse',
+      session_id: sessionId,
+      tool_name: 'Bash',
+      cwd: '/repo/pkg/sub'
+    })
+    const cleared = normalizeAndAccept(state, 'claude', {
+      hook_event_name: 'SessionStart',
+      source: 'clear',
+      session_id: '66666666-6666-4666-8666-666666666666',
+      cwd: '/repo/pkg'
+    })
+    const clearedPrompt = normalizeAndAccept(state, 'claude', {
+      hook_event_name: 'UserPromptSubmit',
+      session_id: '66666666-6666-4666-8666-666666666666',
+      prompt: 'next',
+      cwd: '/repo/pkg/sub'
+    })
+    const resumedElsewhere = normalizeAndAccept(state, 'claude', {
+      hook_event_name: 'SessionStart',
+      source: 'resume',
+      session_id: '77777777-7777-4777-8777-777777777777',
+      cwd: '/elsewhere'
+    })
+
+    expect(afterCd?.providerSession).toMatchObject({ id: sessionId, cwd: '/repo/pkg' })
+    expect(cleared?.providerSession?.cwd).toBe('/repo/pkg')
+    expect(clearedPrompt?.providerSession?.cwd).toBe('/repo/pkg')
+    expect(resumedElsewhere?.providerSession?.cwd).toBe('/elsewhere')
+  })
+
   it('resets stale Claude turn state when SessionStart announces a new session on the pane', () => {
     normalizeAndAccept(state, 'claude', { hook_event_name: 'UserPromptSubmit', prompt: 'fix bug' })
     normalizeAndAccept(state, 'claude', {
diff --git a/src/shared/agent-hook-listener-hermes-codex-droid.test.ts b/src/shared/agent-hook-listener-hermes-codex-droid.test.ts
index 8b5b7f6ba36..506dd687687 100644
--- a/src/shared/agent-hook-listener-hermes-codex-droid.test.ts
+++ b/src/shared/agent-hook-listener-hermes-codex-droid.test.ts
@@ -5,7 +5,7 @@ import {
 } from './agent-hook-listener/listener-state'
 import { normalizeHookPayload } from './agent-hook-listener'
 import { clearGrokSessionPathLookupCacheForTests } from './grok-session-paths'
-import { PANE_KEY } from './agent-hook-listener-test-harness'
+import { normalizeAndAccept, PANE_KEY } from './agent-hook-listener-test-harness'
 
 describe('shared agent-hook-listener', () => {
   let state: HookListenerState
@@ -234,6 +234,23 @@ describe('shared agent-hook-listener', () => {
     expect(working?.payload.interactivePrompt).toBeUndefined()
   })
 
+  it('records the new folder when Codex forks a thread elsewhere (/cd, /worktree)', () => {
+    normalizeAndAccept(state, 'codex', {
+      hook_event_name: 'UserPromptSubmit',
+      session_id: 'thread-a',
+      prompt: 'go',
+      cwd: '/repo/a'
+    })
+    const forked = normalizeAndAccept(state, 'codex', {
+      hook_event_name: 'SessionStart',
+      session_id: 'thread-b',
+      source: 'startup',
+      cwd: '/repo/b'
+    })
+
+    expect(forked?.providerSession).toMatchObject({ id: 'thread-b', cwd: '/repo/b' })
+  })
+
   it('clears stale Droid tool input when a same-tool update has explicit unpreviewable input', () => {
     normalizeHookPayload(
       state,
diff --git a/src/shared/agent-hook-listener/pane-provider-session.ts b/src/shared/agent-hook-listener/pane-provider-session.ts
index 2a30d20ee3a..33d24770f85 100644
--- a/src/shared/agent-hook-listener/pane-provider-session.ts
+++ b/src/shared/agent-hook-listener/pane-provider-session.ts
@@ -1,6 +1,7 @@
 import type { AgentHookSource } from '../agent-hook-relay'
 import {
   extractAgentProviderSession,
+  readPathFromKeys,
   type AgentProviderSessionMetadata
 } from '../agent-session-resume'
 import type { HookListenerState } from './listener-state'
@@ -17,8 +18,35 @@ export function readPaneProviderSession(
   if (source === 'codex' && readString(hookPayload, 'agent_id')) {
     return null
   }
-  return extractAgentProviderSession(
+  const providerSession = extractAgentProviderSession(
     source,
     source === 'hermes' ? withHermesPaneSessionId(state, paneKey, hookPayload) : hookPayload
   )
+  if (!providerSession) {
+    return null
+  }
+  const cwd = readAgentCwd(state, source, paneKey, providerSession.id, hookPayload)
+  return cwd ? { ...providerSession, cwd } : providerSession
+}
+
+/** The folder the pane's agent started in. Only Claude/Codex hooks are known to report it (Cursor's cwd is a shell command's). */
+function readAgentCwd(
+  state: HookListenerState,
+  source: AgentHookSource,
+  paneKey: string,
+  sessionId: string,
+  hookPayload: Record<string, unknown>
+): string | undefined {
+  if (source !== 'claude' && source !== 'codex') {
+    return undefined
+  }
+  const previous = state.lastStatusByPaneKey.get(paneKey)
+  const previousCwd = previous?.source === source ? previous.providerSession?.cwd : undefined
+  // Claude's hook cwd follows its Bash tool's `cd`; /clear and compact restart in the same process.
+  const keepsPreviousFolder =
+    previous?.providerSession?.id === sessionId ||
+    (source === 'claude' &&
+      hookPayload.hook_event_name === 'SessionStart' &&
+      (hookPayload.source === 'clear' || hookPayload.source === 'compact'))
+  return previousCwd && keepsPreviousFolder ? previousCwd : readPathFromKeys(hookPayload, ['cwd'])
 }
diff --git a/src/shared/agent-session-resume.ts b/src/shared/agent-session-resume.ts
index 42cf5897dac..393cf55d971 100644
--- a/src/shared/agent-session-resume.ts
+++ b/src/shared/agent-session-resume.ts
@@ -41,6 +41,8 @@ export type AgentProviderSessionMetadata = {
   id: string
   /** Prefer hook-reported transcript paths: recent Claude filenames differ from session_id. Claude/Codex still resume by ID; Pi uses session_file as its --session locator. */
   transcriptPath?: string
+  /** Folder the agent ran in; resume runs there, not the pane's start folder (#16960). */
+  cwd?: string
 }
 
 export type SleepingAgentLaunchConfig = {
@@ -131,8 +133,8 @@ function readSessionId(record: Record<string, unknown>, keys: readonly string[])
   return null
 }
 
-/** Read the hook-reported transcript path; recent Claude filenames cannot be reconstructed from session ID. */
-function readTranscriptPathFromKeys(
+/** Read a hook-reported path; recent Claude transcript filenames cannot be reconstructed from session ID. */
+export function readPathFromKeys(
   record: Record<string, unknown>,
   keys: readonly string[]
 ): string | undefined {
@@ -154,7 +156,7 @@ function withTranscriptPath(
   payload: Record<string, unknown>,
   keys: readonly string[] = ['transcript_path', 'transcriptPath']
 ): AgentProviderSessionMetadata {
-  const transcriptPath = readTranscriptPathFromKeys(payload, keys)
+  const transcriptPath = readPathFromKeys(payload, keys)
   return transcriptPath ? { ...metadata, transcriptPath } : metadata
 }
 
@@ -176,8 +178,22 @@ export function normalizeAgentProviderSession(raw: unknown): AgentProviderSessio
     return null
   }
   // Persisted/relay paths cross trust boundaries too; reject controls as for hook paths.
-  const transcriptPath = readTranscriptPathFromKeys(record, ['transcriptPath'])
-  return transcriptPath ? { key, id, transcriptPath } : { key, id }
+  const transcriptPath = readPathFromKeys(record, ['transcriptPath'])
+  const cwd = readPathFromKeys(record, ['cwd'])
+  return {
+    key,
+    id,
+    ...(transcriptPath ? { transcriptPath } : {}),
+    ...(cwd ? { cwd } : {})
+  }
+}
+
+/** Older hosts' strict ensureAgentSession schema rejects the newer `cwd` field. */
+export function agentProviderSessionForEnsure(
+  providerSession: AgentProviderSessionMetadata
+): AgentProviderSessionMetadata {
+  const { cwd: _cwd, ...identity } = providerSession
+  return identity
 }
 
 /** Compare the provider-owned values that identify the CLI resume target.
diff --git a/src/shared/tui-agent-resume-startup.ts b/src/shared/tui-agent-resume-startup.ts
index 1d41e21e3f9..8d278010467 100644
--- a/src/shared/tui-agent-resume-startup.ts
+++ b/src/shared/tui-agent-resume-startup.ts
@@ -12,6 +12,9 @@ import { resolveStartupShell, type AgentStartupShell } from './tui-agent-startup
 import { TUI_AGENT_CONFIG } from './tui-agent-config'
 import type { TuiAgent } from './tui-agent'
 import { buildAgentResumeLaunchCommand } from './agent-resume-launch-command'
+import { buildAiVaultResumeShellCommand } from './ai-vault-resume-command'
+import { normalizeRuntimePathForComparison } from './cross-platform-path'
+import { parseWslUncPath } from './wsl-paths'
 
 export function buildAgentResumeStartupPlan(args: {
   agent: ResumableTuiAgent
@@ -28,6 +31,8 @@ export function buildAgentResumeStartupPlan(args: {
   isRemote?: boolean
   /** The caller chose the terminal folder on purpose, so Codex must not ask for the recorded one. */
   resumeInLaunchCwd?: boolean
+  /** Folder the resume shell starts in; an agent recorded elsewhere is resumed from its own folder (#16960). */
+  launchCwd?: string | null
   /** Open a copy of the conversation instead of re-entering it; null for agents that cannot. */
   fork?: boolean
 }): AgentStartupPlan | null {
@@ -68,7 +73,17 @@ export function buildAgentResumeStartupPlan(args: {
     ...args,
     agentCommand: baseCommand.commandWithoutSessionOptions
   })
-  const launchCommand = buildAgentResumeLaunchCommand(args.agent, baseCommand.command, argv, shell)
+  const resumeCommand = buildAgentResumeLaunchCommand(args.agent, baseCommand.command, argv, shell)
+  const agentCwd = args.providerSession.cwd
+  const launchCommand =
+    agentCwd && args.launchCwd && !args.resumeInLaunchCwd && !isSameFolder(agentCwd, args.launchCwd)
+      ? buildAiVaultResumeShellCommand({
+          resumeCommand,
+          cwd: agentCwd,
+          platform: args.platform,
+          shell
+        })
+      : resumeCommand
   const applied = baseCommand.appliedSessionOptions
   return {
     agent: args.agent,
@@ -81,3 +96,11 @@ export function buildAgentResumeStartupPlan(args: {
     ...(args.agentEnv ? { env: { ...args.agentEnv } } : {})
   }
 }
+
+/** WSL panes start at a UNC path while the agent reports its Linux path. */
+function isSameFolder(agentCwd: string, launchCwd: string): boolean {
+  const launchPath = parseWslUncPath(launchCwd)?.linuxPath ?? launchCwd
+  return (
+    normalizeRuntimePathForComparison(agentCwd) === normalizeRuntimePathForComparison(launchPath)
+  )
+}
diff --git a/src/shared/tui-agent-startup.spec.ts b/src/shared/tui-agent-startup.spec.ts
index 2f19a542c17..cec14d4f8f6 100644
--- a/src/shared/tui-agent-startup.spec.ts
+++ b/src/shared/tui-agent-startup.spec.ts
@@ -455,6 +455,23 @@ describe('tui agent startup plans', () => {
     expect(plan?.startupCommandDelivery).toBe('shell-ready')
   })
 
+  it('resumes an agent from the folder it ran in when the pane starts elsewhere (#16960)', () => {
+    const resume = (cwd: string, launchCwd: string) =>
+      buildAgentResumeStartupPlan({
+        agent: 'claude',
+        providerSession: { key: 'session_id', id: 's1', cwd },
+        cmdOverrides: {},
+        platform: 'darwin',
+        launchCwd
+      })?.launchCommand
+
+    expect(resume('/repo/pkg', '/repo')).toBe("cd '/repo/pkg' && claude '--resume' 's1'")
+    expect(resume('/repo/', '/repo')).toBe("claude '--resume' 's1'")
+    expect(resume('/home/me/repo', '\\\\wsl.localhost\\Ubuntu\\home\\me\\repo')).toBe(
+      "claude '--resume' 's1'"
+    )
+  })
+
   it('quotes Windows resume argv for cmd.exe when shell is cmd', () => {
     const plan = buildAgentResumeStartupPlan({
       agent: 'grok',
diff --git a/src/shared/workspace-session-sleeping-agents.ts b/src/shared/workspace-session-sleeping-agents.ts
index bdabab8abdb..e8fe4aaf735 100644
--- a/src/shared/workspace-session-sleeping-agents.ts
+++ b/src/shared/workspace-session-sleeping-agents.ts
@@ -19,7 +19,8 @@ const agentProviderSessionSchema = z.preprocess(
     key: z.enum(['session_id', 'conversation_id']),
     id: z.string().min(1).max(512),
     // Pi resume requires its persisted authoritative transcript path.
-    transcriptPath: z.string().min(1).optional()
+    transcriptPath: z.string().min(1).optional(),
+    cwd: z.string().min(1).optional()
   })
 )