diff --git a/dlight.terminal/src/org/netbeans/modules/dlight/terminal/action/TerminalSupportImpl.java b/dlight.terminal/src/org/netbeans/modules/dlight/terminal/action/TerminalSupportImpl.java
--- a/dlight.terminal/src/org/netbeans/modules/dlight/terminal/action/TerminalSupportImpl.java
+++ b/dlight.terminal/src/org/netbeans/modules/dlight/terminal/action/TerminalSupportImpl.java
@@ -213,6 +213,8 @@
                         String shell = hostInfo.getLoginShell();
                         if (dir != null) {
                             npb.setWorkingDirectory(dir);
+                        } else {
+                            npb.setWorkingDirectory(System.getProperty("user.home"));
                         }
 //                            npb.setWorkingDirectory("${HOME}");
                         npb.setExecutable(shell);