diff --git a/pkg/agent/core.go b/pkg/agent/core.go
index 65901ba..1eaf6df 100644
--- a/pkg/agent/core.go
+++ b/pkg/agent/core.go
@@ -137,6 +137,8 @@ func expandSystemPrompt(content, cwd string) string {
 	}
 	mapper := func(key string) string {
 		switch key {
+		case "PWD":
+			return cwd
 		case "PRIME_DATE":
 			return time.Now().Format("2006-01-02")
 		case "PRIME_PLATFORM":
diff --git a/pkg/agent/core_test.go b/pkg/agent/core_test.go
index bac5847..bd9555c 100644
--- a/pkg/agent/core_test.go
+++ b/pkg/agent/core_test.go
@@ -544,6 +544,14 @@ func TestExpandSystemPrompt_IsGitFalse(t *testing.T) {
 	}
 }
 
+func TestExpandSystemPrompt_PWDUsesCWD(t *testing.T) {
+	dir := t.TempDir()
+	got := expandSystemPrompt("${PWD}", dir)
+	if got != dir {
+		t.Errorf("got %q; want %q", got, dir)
+	}
+}
+
 // --- BuildAgentEnv: missing system prompt ---
 
 func TestBuildAgentEnv_MissingSystemPrompt(t *testing.T) {