diff --git a/terminatorlib/terminal.py b/terminatorlib/terminal.py
index 06042a80..cc258f20 100755
--- a/terminatorlib/terminal.py
+++ b/terminatorlib/terminal.py
@@ -1482,7 +1482,7 @@ for %s (%s)' % (name, urlplugin.__class__.__name__))
         self.emit('ungroup-tab')
 
     def key_new_window(self):
-        self.terminator.new_window()
+        self.terminator.new_window(self.terminator.pid_cwd(self.pid))
 
     def key_new_terminator(self):
         cmd = sys.argv[0]
diff --git a/terminatorlib/terminator.py b/terminatorlib/terminator.py
index 9edf7027..16860068 100755
--- a/terminatorlib/terminator.py
+++ b/terminatorlib/terminator.py
@@ -139,11 +139,13 @@ class Terminator(Borg):
             dbg('Terminator::deregister_terminal: %d terminals remain' %
                     len(self.terminals))
 
-    def new_window(self):
+    def new_window(self, cwd=None):
         """Create a window with a Terminal in it"""
         maker = Factory()
         window = maker.make('Window')
         terminal = maker.make('Terminal')
+        if cwd:
+            terminal.set_cwd(cwd)
         window.add(terminal)
         window.show()
         terminal.spawn_child()