diff --git a/deployment/ladill-jail-bashrc b/deployment/ladill-jail-bashrc
new file mode 100644
index 0000000..680307f
--- /dev/null
+++ b/deployment/ladill-jail-bashrc
@@ -0,0 +1,8 @@
+# Ladill jail interactive shell rc: keep the user's shell config, start in the
+# requested directory, and report the working directory to the control panel via
+# OSC 7 on every prompt so the toolbar shows the live full path.
+[ -r /etc/bash.bashrc ] && . /etc/bash.bashrc
+[ -r "$HOME/.bashrc" ] && . "$HOME/.bashrc"
+[ -n "${LADILL_START_DIR:-}" ] && cd "$LADILL_START_DIR" 2>/dev/null
+__ladill_cwd() { printf '\033]7;file://%s%s\007' "${HOSTNAME:-ladill}" "$PWD"; }
+case "$-" in *i*) PROMPT_COMMAND="__ladill_cwd${PROMPT_COMMAND:+; $PROMPT_COMMAND}"; __ladill_cwd ;; esac
diff --git a/deployment/ladill-jailsh b/deployment/ladill-jailsh
index 19f409b..e4df9a4 100755
--- a/deployment/ladill-jailsh
+++ b/deployment/ladill-jailsh
@@ -28,5 +28,5 @@ mount -t tmpfs -o mode=0755,nosuid,nodev tmpfs "$JAIL/run"
 mount --bind "$JAIL/run/passwd" "$JAIL/etc/passwd"
 mount --bind "$JAIL/run/group" "$JAIL/etc/group"
 export HOME="/home/$U" USER="$U" LOGNAME="$U" SHELL=/bin/bash PATH=/usr/bin:/bin
-export TERM="${TERM:-xterm-256color}"
-exec /usr/sbin/chroot --userspec="$UID_:$GID_" "$JAIL" /bin/bash -l -c "cd '/home/$U$REL' 2>/dev/null || cd ~; exec /bin/bash -l"
+export TERM="${TERM:-xterm-256color}" LADILL_START_DIR="/home/$U$REL" HOSTNAME="$(hostname 2>/dev/null || echo ladill)"
+exec /usr/sbin/chroot --userspec="$UID_:$GID_" "$JAIL" /bin/bash --rcfile /etc/ladill-jail-bashrc -i
diff --git a/deployment/setup-terminal-jail.sh b/deployment/setup-terminal-jail.sh
index ee88290..9c64957 100755
--- a/deployment/setup-terminal-jail.sh
+++ b/deployment/setup-terminal-jail.sh
@@ -27,6 +27,9 @@ install -d -m 1777 "$JAIL/tmp"
 # any customer enumerate every tenant. ladill-jailsh injects a per-session
 # passwd/group (root + the current user only) inside each session's namespace.
 
+echo "==> Installing the interactive rc (keeps user prompt + reports cwd via OSC 7)"
+install -o root -g root -m 644 "$(dirname "$0")/ladill-jail-bashrc" "$JAIL/etc/ladill-jail-bashrc"
+
 echo "==> Installing the jailed-shell launcher + scoped sudoers"
 install -o root -g root -m 755 "$(dirname "$0")/ladill-jailsh" /usr/local/sbin/ladill-jailsh
 echo 'www-data ALL=(root) NOPASSWD: /usr/local/sbin/ladill-jailsh *' > /etc/sudoers.d/ladill-jailsh
diff --git a/resources/js/hosting-terminal.js b/resources/js/hosting-terminal.js
index 8ecf6b5..d444569 100644
--- a/resources/js/hosting-terminal.js
+++ b/resources/js/hosting-terminal.js
@@ -25,6 +25,11 @@ window.hostingInteractiveTerminal = (config = {}) => {
     termHasOutput: false,
     currentPath: config.initialPath ?? '/public_html',
     currentPathLabel: `Starting in ${config.initialPath === '/' ? `/home/${config.username ?? ''}` : `/home/${config.username ?? ''}${config.initialPath ?? '/public_html'}`}`,
+    // Full working-directory path shown in the toolbar; updated live from the
+    // shell's OSC 7 cwd report as the user navigates.
+    fullPath: config.initialPath === '/'
+        ? `/home/${config.username ?? ''}`
+        : `/home/${config.username ?? ''}${config.initialPath ?? '/public_html'}`,
     promptPath() {
         if (this.currentPath === '/' || !this.currentPath) {
             return '~';
@@ -79,6 +84,18 @@ window.hostingInteractiveTerminal = (config = {}) => {
         this.fitAddon = new FitAddon();
         this.term.loadAddon(this.fitAddon);
         this.term.open(this.$refs.terminal);
+        // The shell reports its working directory via OSC 7 (file://host/path);
+        // capture it so the toolbar shows the live full path as the user cd's.
+        this.term.parser?.registerOscHandler(7, (data) => {
+            try {
+                let p = String(data || '').replace(/^file:\/\/[^/]*/, '');
+                p = decodeURIComponent(p);
+                if (p) {
+                    this.fullPath = p.replace(/\/$/, '') || '/';
+                }
+            } catch (e) { /* ignore malformed cwd reports */ }
+            return true;
+        });
         this.term.onData((data) => {
             if (this.sessionId) {
                 this.queueInput(data);
diff --git a/resources/views/hosting/panel/terminal.blade.php b/resources/views/hosting/panel/terminal.blade.php
index 3271922..08e4cc3 100644
--- a/resources/views/hosting/panel/terminal.blade.php
+++ b/resources/views/hosting/panel/terminal.blade.php
@@ -24,7 +24,7 @@
                 <div class="flex items-center gap-2 pl-3">
                     <span class="font-mono text-xs text-white/40">{{ $account->username }}@ladill</span>
                     <span class="text-white/20">:</span>
-                    <span class="font-mono text-xs text-emerald-400/80" x-text="promptPath()">~</span>
+                    <span class="font-mono text-xs text-emerald-400/80" x-text="fullPath">~</span>
                 </div>
             </div>