diff --git a/lua/custom/plugins/fterm.lua b/lua/custom/plugins/fterm.lua
index 49e3be04..c5a3a186 100644
--- a/lua/custom/plugins/fterm.lua
+++ b/lua/custom/plugins/fterm.lua
@@ -6,8 +6,22 @@ return {
         height = 0.6,
         width = 0.6,
       },
+      -- Initial cmd setting is generic, will be dynamically updated later
       cmd = 'Powershell.exe',
     }
+
+    -- Custom function to toggle FTerm with dynamic working directory
+    local function toggle_ft_with_cwd()
+      local cwd = vim.fn.getcwd()
+      -- Update the cmd to change directory to cwd upon opening
+      require('FTerm'):setup {
+        cmd = 'Powershell.exe -NoLogo -NoExit -Command "cd \'' .. cwd .. '\'"',
+      }
+      -- Toggle FTerm after updating the command
+      require('FTerm').toggle()
+    end
+
+    -- Keymap to use the custom toggle function
+    vim.keymap.set('n', '<leader>tt', toggle_ft_with_cwd, { noremap = true, silent = true, desc = '[T]oggle [T]erminal' })
   end,
-  vim.keymap.set('n', '<leader>tt', ':lua require("FTerm").toggle()<CR>', { noremap = true, silent = true, desc = '[T]oggle [T]erminal' }),
 }