diff --git a/root/init.go b/root/init.go
index facc8b3..5414260 100644
--- a/root/init.go
+++ b/root/init.go
@@ -42,8 +42,14 @@ if [ -n "$IRIS_PID" ] && [ -n "$IRIS_FD" ]; then
     print -u $IRIS_FD -N -r -- "$LBUFFER" 2>/dev/null
   }
 
+  _iris_sync_cwd() {
+    print -u $IRIS_FD -N -r -- "IRIS_CWD:$PWD" 2>/dev/null
+  }
+
   _iris_precmd() {
-    print -u $IRIS_FD -N -r -- "IRIS_CMD_STOP" 2>/dev/null
+    local iris_exit_code=$?
+    _iris_sync_cwd
+    print -u $IRIS_FD -N -r -- "IRIS_CMD_STOP:$iris_exit_code" 2>/dev/null
   }
 
   _iris_preexec() {
@@ -56,6 +62,7 @@ if [ -n "$IRIS_PID" ] && [ -n "$IRIS_FD" ]; then
   add-zle-hook-widget line-pre-redraw _iris_send_lbuffer
   add-zsh-hook precmd _iris_precmd
   add-zsh-hook preexec _iris_preexec
+  add-zsh-hook chpwd _iris_sync_cwd
 fi
 `)
 		case "bash":
@@ -75,7 +82,9 @@ fi
 # Iris Autocomplete Hook
 if [ -n "$IRIS_PID" ] && [ -n "$IRIS_FD" ]; then
   _iris_bash_precmd() {
-    printf "IRIS_CMD_STOP\x00" >&$IRIS_FD 2>/dev/null
+    local iris_exit_code=$?
+    printf "IRIS_CWD:%%s\x00" "$PWD" >&$IRIS_FD 2>/dev/null
+    printf "IRIS_CMD_STOP:%%s\x00" "$iris_exit_code" >&$IRIS_FD 2>/dev/null
   }
 
   if [[ ";$PROMPT_COMMAND;" != *";_iris_bash_precmd;"* ]]; then
@@ -103,10 +112,15 @@ end
 # Iris Autocomplete Hook
 if set -q IRIS_PID; and set -q IRIS_FD
     function _iris_fish_postexec --on-event fish_postexec
-        echo -n -e "IRIS_CMD_STOP\x00" >&$IRIS_FD 2>/dev/null
+        set -l iris_exit_code $status
+        printf "IRIS_CWD:%%s\x00" "$PWD" >&$IRIS_FD 2>/dev/null
+        printf "IRIS_CMD_STOP:%%s\x00" "$iris_exit_code" >&$IRIS_FD 2>/dev/null
+    end
+    function _iris_fish_prompt --on-event fish_prompt
+        printf "IRIS_CWD:%%s\x00" "$PWD" >&$IRIS_FD 2>/dev/null
     end
     function _iris_fish_preexec --on-event fish_preexec
-        echo -n -e "IRIS_CMD_START\x00" >&$IRIS_FD 2>/dev/null
+        printf "IRIS_CMD_START\x00" >&$IRIS_FD 2>/dev/null
     end
 end
 `)
diff --git a/root/wrapper.go b/root/wrapper.go
index fd8c742..ea67c9c 100644
--- a/root/wrapper.go
+++ b/root/wrapper.go
@@ -386,6 +386,11 @@ func runWrapper() {
 		for scanner.Scan() {
 			query := scanner.Text()
 
+			if cwd, ok := strings.CutPrefix(query, "IRIS_CWD:"); ok {
+				spec.SetCWD(cwd)
+				continue
+			}
+
 			if query == "IRIS_CMD_START" {
 				isCommandActive.Store(true)
 				bufferMu.Lock()
diff --git a/spec/filegen.go b/spec/filegen.go
index 0a72a9d..bb86cb5 100644
--- a/spec/filegen.go
+++ b/spec/filegen.go
@@ -6,24 +6,49 @@ import (
 	"path/filepath"
 	"sort"
 	"strings"
+	"sync"
 
 	"github.com/versenilvis/iris/internal/config"
 )
 
-// for tracking current working dir
-var ShellPID int
+var (
+	// ShellPID tracks the underlying shell process.
+	ShellPID int
+
+	shellCWDMu sync.RWMutex
+	shellCWD   string
+)
+
+// SetCWD updates the working directory reported by the underlying shell.
+// Shell integrations call this whenever the prompt directory changes.
+func SetCWD(cwd string) {
+	if cwd != "" && !filepath.IsAbs(cwd) {
+		return
+	}
+
+	shellCWDMu.Lock()
+	shellCWD = cwd
+	shellCWDMu.Unlock()
+}
 
 // GetCWD returns the current working directory of the underlying shell
-// on Linux, it reads it from /proc/[pid]/cwd
+// reported by shell integration. Linux can also read it from /proc/[pid]/cwd.
 func GetCWD() string {
+	shellCWDMu.RLock()
+	cwd := shellCWD
+	shellCWDMu.RUnlock()
+	if cwd != "" {
+		return cwd
+	}
+
 	if ShellPID > 0 {
 		path := fmt.Sprintf("/proc/%d/cwd", ShellPID)
-		cwd, err := os.Readlink(path)
+		procCWD, err := os.Readlink(path)
 		if err == nil {
-			return cwd
+			return procCWD
 		}
 	}
-	cwd, _ := os.Getwd()
+	cwd, _ = os.Getwd()
 	return cwd
 }
 
diff --git a/spec/filegen_test.go b/spec/filegen_test.go
index f7c5439..3d6ba00 100644
--- a/spec/filegen_test.go
+++ b/spec/filegen_test.go
@@ -8,6 +8,8 @@ import (
 )
 
 func TestFileGenerator(t *testing.T) {
+	SetCWD("")
+
 	// Setup mock files
 	tmp := t.TempDir()
 	_ = os.MkdirAll(filepath.Join(tmp, "src"), 0755)
@@ -92,3 +94,50 @@ func TestFileGenerator(t *testing.T) {
 		}
 	})
 }
+
+func TestGetCWDUsesShellReportedDirectory(t *testing.T) {
+	launcherDir := t.TempDir()
+	shellDir := t.TempDir()
+	if err := os.WriteFile(filepath.Join(shellDir, "from-shell.txt"), nil, 0644); err != nil {
+		t.Fatal(err)
+	}
+
+	oldWd, err := os.Getwd()
+	if err != nil {
+		t.Fatal(err)
+	}
+	if err := os.Chdir(launcherDir); err != nil {
+		t.Fatal(err)
+	}
+	t.Cleanup(func() {
+		SetCWD("")
+		_ = os.Chdir(oldWd)
+	})
+
+	SetCWD(shellDir)
+	if got := GetCWD(); got != shellDir {
+		t.Fatalf("GetCWD() = %q, want shell-reported directory %q", got, shellDir)
+	}
+
+	results := FileGenerator()([]string{"cat", ""}, "cat ", "")
+	found := false
+	for _, result := range results {
+		if result.Cmd == "from-shell.txt" {
+			found = true
+			break
+		}
+	}
+	if !found {
+		t.Fatalf("FileGenerator() did not read suggestions from shell directory %q", shellDir)
+	}
+}
+
+func TestSetCWDRejectsRelativePaths(t *testing.T) {
+	SetCWD("")
+	t.Cleanup(func() { SetCWD("") })
+
+	SetCWD("relative/path")
+	if got := GetCWD(); got == "relative/path" {
+		t.Fatalf("GetCWD() accepted relative shell directory %q", got)
+	}
+}