diff --git a/zellij-server/src/plugins/unit/plugin_tests.rs b/zellij-server/src/plugins/unit/plugin_tests.rs
index 031f0100e3..f3a6fed8bf 100644
--- a/zellij-server/src/plugins/unit/plugin_tests.rs
+++ b/zellij-server/src/plugins/unit/plugin_tests.rs
@@ -6873,5 +6873,9 @@ pub fn open_command_pane_background_plugin_command() {
             }
         })
         .clone();
-    assert_snapshot!(format!("{:#?}", new_tab_event));
+    // we do the replace below to avoid the randomness of the temporary folder in the snapshot
+    // while still testing it
+    assert_snapshot!(
+        format!("{:#?}", new_tab_event).replace(&format!("{:?}", temp_folder.path()), "\"CWD\"")
+    );
 }
diff --git a/zellij-server/src/plugins/unit/snapshots/zellij_server__plugins__plugin_tests__open_command_pane_background_plugin_command.snap b/zellij-server/src/plugins/unit/snapshots/zellij_server__plugins__plugin_tests__open_command_pane_background_plugin_command.snap
index 8c86f8f34a..e8cb7daf65 100644
--- a/zellij-server/src/plugins/unit/snapshots/zellij_server__plugins__plugin_tests__open_command_pane_background_plugin_command.snap
+++ b/zellij-server/src/plugins/unit/snapshots/zellij_server__plugins__plugin_tests__open_command_pane_background_plugin_command.snap
@@ -1,7 +1,7 @@
 ---
 source: zellij-server/src/plugins/./unit/plugin_tests.rs
-assertion_line: 6876
-expression: "format!(\"{:#?}\", new_tab_event)"
+assertion_line: 6878
+expression: "format!(\"{:#?}\",\n        new_tab_event).replace(&format!(\"{:?}\", temp_folder.path()),\n    \"\\\"CWD\\\"\")"
 ---
 Some(
     SpawnTerminal(
@@ -13,7 +13,9 @@ Some(
                         "arg1",
                         "arg2",
                     ],
-                    cwd: None,
+                    cwd: Some(
+                        "CWD",
+                    ),
                     hold_on_close: true,
                     hold_on_start: false,
                     originating_plugin: Some(
diff --git a/zellij-server/src/plugins/zellij_exports.rs b/zellij-server/src/plugins/zellij_exports.rs
index 4f7f04b60b..6c737b413f 100644
--- a/zellij-server/src/plugins/zellij_exports.rs
+++ b/zellij-server/src/plugins/zellij_exports.rs
@@ -660,7 +660,10 @@ fn open_command_pane_background(
     context: BTreeMap<String, String>,
 ) {
     let command = command_to_run.path;
-    let cwd = command_to_run.cwd.map(|cwd| env.plugin_cwd.join(cwd));
+    let cwd = command_to_run
+        .cwd
+        .map(|cwd| env.plugin_cwd.join(cwd))
+        .or_else(|| Some(env.plugin_cwd.clone()));
     let args = command_to_run.args;
     let direction = None;
     let hold_on_close = true;
diff --git a/zellij-utils/src/kdl/kdl_layout_parser.rs b/zellij-utils/src/kdl/kdl_layout_parser.rs
index f19cc9a2bd..81e97a7e23 100644
--- a/zellij-utils/src/kdl/kdl_layout_parser.rs
+++ b/zellij-utils/src/kdl/kdl_layout_parser.rs
@@ -1177,6 +1177,9 @@ impl<'a> KdlLayoutParser<'a> {
         };
         if let Some(cwd_prefix) = &self.cwd_prefix(tab_cwd.as_ref())? {
             pane_layout.add_cwd_to_layout(&cwd_prefix);
+            for floating_pane in child_floating_panes.iter_mut() {
+                floating_pane.add_cwd_to_layout(&cwd_prefix);
+            }
         }
         Ok((is_focused, tab_name, pane_layout, child_floating_panes))
     }
@@ -1583,6 +1586,9 @@ impl<'a> KdlLayoutParser<'a> {
         }
         if let Some(cwd_prefix) = self.cwd_prefix(tab_cwd.as_ref())? {
             tab_layout.add_cwd_to_layout(&cwd_prefix);
+            for floating_pane in tab_template_floating_panes.iter_mut() {
+                floating_pane.add_cwd_to_layout(&cwd_prefix);
+            }
         }
         tab_layout.external_children_index = None;
         Ok((