diff --git a/codex-rs/core/src/tools/handlers/shell/shell_command.rs b/codex-rs/core/src/tools/handlers/shell/shell_command.rs
index 4c98c988c5..c8e8698a7f 100644
--- a/codex-rs/core/src/tools/handlers/shell/shell_command.rs
+++ b/codex-rs/core/src/tools/handlers/shell/shell_command.rs
@@ -9,6 +9,7 @@ use crate::exec_env::create_env;
 use crate::function_tool::FunctionCallError;
 use crate::maybe_emit_implicit_skill_invocation;
 use crate::session::turn_context::TurnContext;
+use crate::session::turn_context::TurnEnvironment;
 use crate::shell::Shell;
 use crate::tools::context::ToolInvocation;
 use crate::tools::context::ToolPayload;
@@ -50,6 +51,19 @@ pub(crate) struct ShellCommandHandlerOptions {
 }
 
 impl ShellCommandHandler {
+    fn compatible_execution_cwd(
+        turn_context: &TurnContext,
+    ) -> codex_utils_absolute_path::AbsolutePathBuf {
+        turn_context
+            .environments
+            .primary()
+            .and_then(TurnEnvironment::compatible_cwd)
+            .unwrap_or_else(|| {
+                #[allow(deprecated)]
+                turn_context.cwd.clone()
+            })
+    }
+
     pub(crate) fn new(options: ShellCommandHandlerOptions) -> Self {
         let backend = match options.backend_config {
             ShellCommandBackendConfig::Classic => ShellCommandBackend::Classic,
@@ -92,8 +106,11 @@ impl ShellCommandHandler {
         let shell = session.user_shell();
         let use_login_shell = Self::resolve_use_login_shell(params.login, allow_login_shell)?;
         let command = Self::base_command(shell.as_ref(), &params.command, use_login_shell);
-        #[allow(deprecated)]
-        let cwd = turn_context.resolve_path(params.workdir.clone());
+        let base_cwd = Self::compatible_execution_cwd(turn_context);
+        let cwd = params
+            .workdir
+            .as_ref()
+            .map_or(base_cwd.clone(), |workdir| base_cwd.join(workdir));
 
         Ok(ExecParams {
             command,
@@ -176,16 +193,14 @@ impl ShellCommandHandler {
             ));
         }
 
-        #[allow(deprecated)]
-        let cwd = resolve_workdir_base_path(&arguments, &turn.cwd)?;
+        let base_cwd = Self::compatible_execution_cwd(turn.as_ref());
+        let cwd = resolve_workdir_base_path(&arguments, &base_cwd)?;
         let params: ShellCommandToolCallParams = parse_arguments_with_base_path(&arguments, &cwd)?;
-        #[allow(deprecated)]
-        let workdir = turn.resolve_path(params.workdir.clone());
         maybe_emit_implicit_skill_invocation(
             session.as_ref(),
             turn.as_ref(),
             &params.command,
-            &workdir,
+            &cwd,
         )
         .await;
         let prefix_rule = params.prefix_rule.clone();
diff --git a/codex-rs/core/src/tools/handlers/shell_tests.rs b/codex-rs/core/src/tools/handlers/shell_tests.rs
index e42e0739ec..27c3f4866f 100644
--- a/codex-rs/core/src/tools/handlers/shell_tests.rs
+++ b/codex-rs/core/src/tools/handlers/shell_tests.rs
@@ -130,6 +130,41 @@ async fn shell_command_handler_to_exec_params_uses_session_shell_and_turn_contex
     assert_eq!(exec_params.arg0, None);
 }
 
+#[tokio::test]
+async fn shell_command_handler_uses_selected_local_environment_cwd() {
+    let (session, mut turn_context) = make_session_and_context().await;
+    let selected = turn_context.environments.turn_environments[0].clone();
+    let selected_dir = tempfile::tempdir().expect("selected cwd");
+    let selected_cwd = selected_dir.path().to_path_buf().abs();
+    turn_context.environments.turn_environments[0] = TurnEnvironment::new(
+        selected.environment_id,
+        selected.environment,
+        selected_cwd.clone(),
+        selected.shell,
+    );
+    let params = ShellCommandToolCallParams {
+        command: "echo hello".to_string(),
+        workdir: Some("subdir".to_string()),
+        login: None,
+        timeout_ms: None,
+        sandbox_permissions: None,
+        additional_permissions: None,
+        prefix_rule: None,
+        justification: None,
+    };
+
+    let exec_params = ShellCommandHandler::to_exec_params(
+        &params,
+        &session,
+        &turn_context,
+        session.thread_id,
+        /*allow_login_shell*/ false,
+    )
+    .expect("selected local environment should be executable");
+
+    assert_eq!(exec_params.cwd, selected_cwd.join("subdir"));
+}
+
 #[test]
 fn shell_command_handler_respects_explicit_login_flag() {
     let (_tx, shell_snapshot) = watch::channel(Some(Arc::new(ShellSnapshot {