diff --git a/src/node/plugin.ts b/src/node/plugin.ts
index 72f4d0e6c..1e9e901c7 100644
--- a/src/node/plugin.ts
+++ b/src/node/plugin.ts
@@ -65,6 +65,7 @@ export class PluginAPI {
      */
     private readonly csPlugin = "",
     private readonly csPluginPath = `${path.join(util.paths.data, "plugins")}:/usr/share/code-server/plugins`,
+    private readonly workingDirectory: string | undefined = undefined,
   ) {
     this.logger = logger.named("pluginapi")
   }
@@ -249,6 +250,7 @@ export class PluginAPI {
 
     p.init({
       logger: logger,
+      workingDirectory: this.workingDirectory,
     })
 
     logger.debug("loaded")
diff --git a/src/node/routes/index.ts b/src/node/routes/index.ts
index 0070c6957..1c4483ffe 100644
--- a/src/node/routes/index.ts
+++ b/src/node/routes/index.ts
@@ -145,7 +145,8 @@ export const register = async (
   app.use("/static", _static.router)
   app.use("/update", update.router)
 
-  const papi = new PluginAPI(logger, process.env.CS_PLUGIN, process.env.CS_PLUGIN_PATH)
+  const workingDir = args._ && args._.length > 0 ? path.resolve(args._[args._.length - 1]) : undefined
+  const papi = new PluginAPI(logger, process.env.CS_PLUGIN, process.env.CS_PLUGIN_PATH, workingDir)
   await papi.loadPlugins()
   papi.mount(app, wsApp)
   app.use("/api/applications", apps.router(papi))
diff --git a/typings/pluginapi.d.ts b/typings/pluginapi.d.ts
index 65d5f9afd..1802f089f 100644
--- a/typings/pluginapi.d.ts
+++ b/typings/pluginapi.d.ts
@@ -212,6 +212,11 @@ export interface PluginConfig {
    * All plugin logs should be logged via this logger.
    */
   readonly logger: Logger
+
+  /**
+   * Plugins should default to this directory when applicable.
+   */
+  readonly workingDirectory?: string
 }
 
 /**