diff --git a/ui/src/components/ChatInterface.tsx b/ui/src/components/ChatInterface.tsx
index 3a44b1a9a2425be1f9d2ea89982876c39ae5e334..746fc8104644329f4a4a597cde5742d2a916ace5 100644
--- a/ui/src/components/ChatInterface.tsx
+++ b/ui/src/components/ChatInterface.tsx
@@ -1364,7 +1364,9 @@ function ChatInterface({
                   <button
                     onClick={() => {
                       setShowOverflowMenu(false);
-                      window.open(terminalURL, "_blank");
+                      const cwd = currentConversation?.cwd || selectedCwd || "";
+                      const url = terminalURL.replace("WORKING_DIR", encodeURIComponent(cwd));
+                      window.open(url, "_blank");
                     }}
                     className="overflow-menu-item"
                   >