diff --git a/src/vs/platform/terminal/node/terminalProfiles.ts b/src/vs/platform/terminal/node/terminalProfiles.ts
index eef8265402979..e289fbc34fc06 100644
--- a/src/vs/platform/terminal/node/terminalProfiles.ts
+++ b/src/vs/platform/terminal/node/terminalProfiles.ts
@@ -127,6 +127,8 @@ async function detectAvailableWindowsProfiles(
 				{ path: `${process.env['HOMEDRIVE']}\\msys64\\usr\\bin\\bash.exe`, isUnsafe: true },
 			],
 			args: ['--login', '-i'],
+			// CHERE_INVOKING retains current working directory
+			env: { CHERE_INVOKING: '1' },
 			icon: Codicon.terminalBash,
 			isAutoDetected: true
 		});