3 files changed, 53 insertions, 1 deletions
diff --git a/src/app/creation.rs b/src/app/creation.rs
index f8edd676..3f643986 100644
--- a/src/app/creation.rs
+++ b/src/app/creation.rs
@@ -14,6 +14,7 @@ pub(crate) fn resolve_new_terminal_cwd(
 ) -> PathBuf {
     match policy {
         NewTerminalCwdConfig::Follow => follow_cwd
+            .or_else(|| std::env::var_os("HOME").map(PathBuf::from))
             .or_else(|| std::env::current_dir().ok())
             .unwrap_or_else(|| PathBuf::from("/")),
         NewTerminalCwdConfig::Home => std::env::var_os("HOME")
diff --git a/src/app/mod.rs b/src/app/mod.rs
index 0c2feb67..1914c895 100644
--- a/src/app/mod.rs
+++ b/src/app/mod.rs
@@ -806,6 +806,10 @@ impl App {
                 needs_render = true;
             }
 
+            if self.ensure_default_workspace() {
+                needs_render = true;
+            }
+
             let now = Instant::now();
             self.sync_animation_timer(now);
             self.sync_host_mouse_capture(&mut host_mouse_capture_active)?;
@@ -934,6 +938,33 @@ impl App {
         Ok(())
     }
 
+    pub(crate) fn ensure_default_workspace(&mut self) -> bool {
+        if !self.state.workspaces.is_empty() || self.state.mode == Mode::Onboarding {
+            return false;
+        }
+
+        let previous_mode = self.state.mode;
+        let preserve_mode = matches!(
+            previous_mode,
+            Mode::ReleaseNotes | Mode::ProductAnnouncement | Mode::Settings
+        );
+        let cwd = self.resolve_new_terminal_cwd(None);
+
+        match self.create_workspace_with_options(cwd, true) {
+            Ok(_) => {
+                if preserve_mode {
+                    self.state.mode = previous_mode;
+                }
+                true
+            }
+            Err(err) => {
+                tracing::error!(err = %err, "failed to create default workspace");
+                self.state.mode = Mode::Navigate;
+                false
+            }
+        }
+    }
+
     pub(crate) fn dismiss_release_notes(&mut self) {
         let preview = self
             .state
@@ -2644,6 +2675,18 @@ mod tests {
     }
 
     #[test]
+    fn new_terminal_cwd_follow_without_source_uses_home() {
+        let Some(home) = std::env::var_os("HOME").map(std::path::PathBuf::from) else {
+            return;
+        };
+
+        let cwd =
+            creation::resolve_new_terminal_cwd(&crate::config::NewTerminalCwdConfig::Follow, None);
+
+        assert_eq!(cwd, home);
+    }
+
+    #[test]
     fn new_terminal_cwd_path_uses_configured_path() {
         let cwd = creation::resolve_new_terminal_cwd(
             &crate::config::NewTerminalCwdConfig::Path("/tmp/herdr-fixed".into()),
diff --git a/src/app/runtime.rs b/src/app/runtime.rs
index 5bfa9141..fe971bf5 100644
--- a/src/app/runtime.rs
+++ b/src/app/runtime.rs
@@ -62,8 +62,16 @@ impl App {
         msg: crate::api::ApiRequestMessage,
     ) -> bool {
         let previous_mode = self.state.mode;
-        let changed = crate::api::request_changes_ui(&msg.request);
+        let mut changed = crate::api::request_changes_ui(&msg.request);
+        let skip_default_workspace = matches!(
+            &msg.request.method,
+            crate::api::schema::Method::ServerStop(_)
+                | crate::api::schema::Method::ServerLiveHandoff(_)
+        );
         let response = self.handle_api_request(msg.request);
+        if !skip_default_workspace {
+            changed |= self.ensure_default_workspace();
+        }
         let _ = msg.respond_to.send(response);
         self.sync_prefix_input_source(previous_mode);
         changed