diff --git a/docs/changelog.md b/docs/changelog.md
index 6f6a588a5..446be3fd4 100644
--- a/docs/changelog.md
+++ b/docs/changelog.md
@@ -69,6 +69,7 @@ As features stabilize some brief notes about them will accumulate here.
 * `DecreaseFontSize` wasn't quite the inverse of `IncreaseFontSize`. Thanks to [@Funami580](https://github.com/Funami580)! [#1997](https://github.com/wez/wezterm/pull/1997)
 * Wayland: unable to paste text that was copied before starting the initial wezterm window. Thanks to [@Funami580](https://github.com/Funami580)! [#1994](https://github.com/wez/wezterm/pull/1994) [#1385](https://github.com/wez/wezterm/issues/1385)
 * Unicode NFD text could incorrectly render with repeated glyphs [#2032](https://github.com/wez/wezterm/issues/2032)
+* Windows: spawning new panes/tabs wouldn't automatically use the working directory of the current pane when OSC 7 was not being used [#2036](https://github.com/wez/wezterm/issues/2036)
 
 ### 20220408-101518-b908e2dd
 
diff --git a/mux/src/localpane.rs b/mux/src/localpane.rs
index 66415f238..edb59d7b2 100644
--- a/mux/src/localpane.rs
+++ b/mux/src/localpane.rs
@@ -818,7 +818,10 @@ impl LocalPane {
 
         #[cfg(windows)]
         if let Some(fg) = self.divine_foreground_process() {
-            return Url::parse(&format!("file://localhost{}", fg.cwd.display())).ok();
+            // Since windows paths typically start with something like C:\,
+            // we cannot simply stick `localhost` on the front; we have to
+            // omit the hostname otherwise the url parser is unhappy.
+            return Url::parse(&format!("file://{}", fg.cwd.display())).ok();
         }
 
         #[allow(unreachable_code)]