diff --git a/kitty/launch.py b/kitty/launch.py
index c5762ac77..7f34a6b20 100644
--- a/kitty/launch.py
+++ b/kitty/launch.py
@@ -14,7 +14,7 @@
 from .tabs import Tab, TabManager
 from .types import run_once
 from .utils import log_error, resolve_custom_file, set_primary_selection, which
-from .window import CwdRequest, Watchers, Window
+from .window import CwdRequest, CwdRequestType, Watchers, Window
 
 try:
     from typing import TypedDict
@@ -62,6 +62,8 @@ def options_spec() -> str:
 --cwd
 The working directory for the newly launched child. Use the special value
 :code:`current` to use the working directory of the currently active window.
+The special value :code:`last_reported` uses the last working directory
+reported by the shell (needs :ref:`shell_integration` to work).
 
 
 --env
@@ -359,6 +361,9 @@ def launch(
         if opts.cwd == 'current':
             if active:
                 kw['cwd_from'] = CwdRequest(active)
+        elif opts.cwd == 'last_reported':
+            if active:
+                kw['cwd_from'] = CwdRequest(active, CwdRequestType.last_reported)
         else:
             kw['cwd'] = opts.cwd
     if opts.location != 'default':
diff --git a/kitty/window.py b/kitty/window.py
index 57c4fd6b5..80bba945d 100644
--- a/kitty/window.py
+++ b/kitty/window.py
@@ -78,6 +78,10 @@ def modify_argv_for_launch_with_cwd(self, argv: List[str]) -> str:
     @property
     def cwd_of_child(self) -> Optional[str]:
         window = get_boss().window_id_map.get(self.window_id)
+        if window and self.request_type is CwdRequestType.last_reported and window.screen.last_reported_cwd:
+            cwd = path_from_osc7_url(window.screen.last_reported_cwd)
+            if cwd:
+                return cwd
         return window.cwd_of_child if window else None