diff --git a/src/App.tsx b/src/App.tsx
index dcf6828..a54b2bb 100644
--- a/src/App.tsx
+++ b/src/App.tsx
@@ -9,6 +9,7 @@ import {
 } from './lib/terminalApi';
 import { getDefaultTheme, type TerminalTheme } from './lib/terminalTheme';
 import { type TerminalChunk } from './stores/useTerminalStore';
+import { extractPowerShellPromptPath } from './lib/utils';
 
 const DEFAULT_CWD = '/workspace';
 const DEFAULT_FONT_SIZE = 14;
@@ -22,6 +23,7 @@ function TerminalPanel({ initialCwd, connectDelay = 0, autoFocus = false }: { in
   const [isConnected, setIsConnected] = useState(false);
   const [isConnecting, setIsConnecting] = useState(false);
   const [error, setError] = useState<string | null>(null);
+  const [currentPath, setCurrentPath] = useState(initialCwd);
 
   const [sessionId, setSessionId] = useState<string | null>(null);
   const sessionIdRef = useRef<string | null>(null);
@@ -102,7 +104,11 @@ function TerminalPanel({ initialCwd, connectDelay = 0, autoFocus = false }: { in
               setIsConnected(true);
               setIsConnecting(false);
             } else if (event.type === 'data' && event.data) {
-                            const newChunk: TerminalChunk = {
+              const osc7Path = extractPowerShellPromptPath(event.data);
+              if (osc7Path) {
+                setCurrentPath(osc7Path);
+              }
+              const newChunk: TerminalChunk = {
                 id: nextChunkIdRef.current++,
                 data: event.data,
               };
@@ -151,7 +157,8 @@ function TerminalPanel({ initialCwd, connectDelay = 0, autoFocus = false }: { in
   return (
     <div className="h-full w-full flex flex-col bg-[#1e1e1e] border border-[#3c3c3c]">
       {/* Panel header */}
-      <div className="px-2 py-1 bg-[#2d2d2d] border-b border-[#3c3c3c] flex items-center justify-end">
+      <div className="px-2 py-1 bg-[#2d2d2d] border-b border-[#3c3c3c] flex items-center justify-between">
+        <span className="truncate text-white text-xs">{currentPath}</span>
         <span className={isConnected ? 'text-[#4caf50]' : 'text-[#808080]'}>
           {isConnected ? '●' : isConnecting ? '○' : '○'}
         </span>
diff --git a/src/lib/utils.ts b/src/lib/utils.ts
index f0187d3..4df0f32 100644
--- a/src/lib/utils.ts
+++ b/src/lib/utils.ts
@@ -57,3 +57,17 @@ export function isMobileDeviceViaCSS(): boolean {
 
   return false;
 }
+
+const PS_PROMPT_REGEX = /\(([^)]+)\)\s*PS\s+([^\n>]+)>|PS\s+([^\n>]+)>/g;
+
+export function extractPowerShellPromptPath(data: string): string | null {
+  let lastMatch: RegExpMatchArray | null = null;
+  const regex = new RegExp(PS_PROMPT_REGEX);
+  let match;
+  while ((match = regex.exec(data)) !== null) {
+    lastMatch = match;
+  }
+  if (!lastMatch) return null;
+  const path = lastMatch[3] || lastMatch[2];
+  return path.trim() || null;
+}