2 files changed, 13 insertions, 1 deletions
diff --git a/docs/next/CHANGELOG.md b/docs/next/CHANGELOG.md
index 2f336838..bba8a29d 100644
--- a/docs/next/CHANGELOG.md
+++ b/docs/next/CHANGELOG.md
@@ -2,6 +2,9 @@
 
 ## Unreleased
 
+### Added
+- Added `terminal.new_cwd` to choose whether new panes, tabs, and workspaces follow the source pane/workspace, start in `$HOME`, use Herdr's process directory, or use a fixed path.
+
 ## [0.6.1] - 2026-05-22
 
 ### Added
diff --git a/docs/next/website/src/content/docs/configuration.mdx b/docs/next/website/src/content/docs/configuration.mdx
index 72dc610c..9cea753e 100644
--- a/docs/next/website/src/content/docs/configuration.mdx
+++ b/docs/next/website/src/content/docs/configuration.mdx
@@ -45,7 +45,7 @@ You can also open the global menu in Herdr and choose `reload config`.
 
 Reload applies most UI settings without restarting panes. Startup-only settings still need a restart.
 
-## Default shell
+## Terminal defaults
 
 Set the executable Herdr uses for newly created interactive panes:
 
@@ -56,6 +56,15 @@ default_shell = "nu"
 
 When unset or empty, Herdr uses `$SHELL`, then `/bin/sh`. This is an executable name or path, not a shell command line. Existing panes keep their current shell until they are recreated. Command panes still run through `/bin/sh -c`; detached custom command keybindings use Herdr's existing `/bin/sh -lc` path.
 
+Set the working directory policy for new panes, tabs, and workspaces:
+
+```toml
+[terminal]
+new_cwd = "follow"
+```
+
+`new_cwd = "follow"` keeps the default behavior and inherits the source pane or workspace. Use `"home"` to always start in `$HOME`, `"current"` to use Herdr's process directory, or a fixed path such as `"~/Projects"`. Explicit `--cwd` values from the CLI or socket API still take precedence.
+
 ## Worktrees
 
 Set the root directory Herdr uses for Git worktree checkouts created from the sidebar: