diff --git a/terminatorlib/optionparse.py b/terminatorlib/optionparse.py
index 19c759a3..09a67eab 100755
--- a/terminatorlib/optionparse.py
+++ b/terminatorlib/optionparse.py
@@ -108,7 +108,7 @@ WM_WINDOW_ROLE property on the window')
         else:
             err('OptionParse::parse_options: %s does not exist' %
                     options.working_directory)
-            sys.exit(1)
+            options.working_directory = ''
 
     if options.layout is None:
         options.layout = 'default'
diff --git a/terminatorlib/terminal.py b/terminatorlib/terminal.py
index 97da9b35..abac61bf 100755
--- a/terminatorlib/terminal.py
+++ b/terminatorlib/terminal.py
@@ -1061,6 +1061,11 @@ for %s (%s)' % (name, urlplugin.__class__.__name__))
                 details[1]))
             command = 'telnet %s %s' % (details[0], details[1])
 
+        if options and options.working_directory and \
+           options.working_directory != '':
+            self.set_cwd(options.working_directory)
+            options.working_directory = ''
+
         if type(command) is list:
             shell = util.path_lookup(command[0])
             args = command