diff --git a/plugins/org.eclipse.dd.gdb/src/org/eclipse/dd/gdb/internal/provisional/launching/FinalLaunchSequence.java b/plugins/org.eclipse.dd.gdb/src/org/eclipse/dd/gdb/internal/provisional/launching/FinalLaunchSequence.java
index 66ebbe93e6e..b2a0b56f2f6 100644
--- a/plugins/org.eclipse.dd.gdb/src/org/eclipse/dd/gdb/internal/provisional/launching/FinalLaunchSequence.java
+++ b/plugins/org.eclipse.dd.gdb/src/org/eclipse/dd/gdb/internal/provisional/launching/FinalLaunchSequence.java
@@ -10,18 +10,26 @@
  *******************************************************************************/
 package org.eclipse.dd.gdb.internal.provisional.launching;
 
+import java.io.File;
+import java.io.FileNotFoundException;
 import java.util.ArrayList;
 import java.util.List;
 
 import org.eclipse.cdt.core.CCorePlugin;
 import org.eclipse.cdt.core.IProcessInfo;
 import org.eclipse.cdt.core.IProcessList;
+import org.eclipse.cdt.core.model.ICProject;
 import org.eclipse.cdt.debug.core.ICDTLaunchConfigurationConstants;
 import org.eclipse.cdt.debug.internal.core.sourcelookup.CSourceLookupDirector;
+import org.eclipse.core.resources.IContainer;
+import org.eclipse.core.resources.IProject;
+import org.eclipse.core.resources.IResource;
+import org.eclipse.core.resources.ResourcesPlugin;
 import org.eclipse.core.runtime.CoreException;
 import org.eclipse.core.runtime.IPath;
 import org.eclipse.core.runtime.IProgressMonitor;
 import org.eclipse.core.runtime.IStatus;
+import org.eclipse.core.runtime.Path;
 import org.eclipse.core.runtime.Status;
 import org.eclipse.core.runtime.jobs.Job;
 import org.eclipse.core.variables.VariablesPlugin;
@@ -39,8 +47,9 @@ import org.eclipse.dd.mi.service.MIBreakpointsManager;
 import org.eclipse.dd.mi.service.command.commands.CLIAttach;
 import org.eclipse.dd.mi.service.command.commands.CLIMonitorListProcesses;
 import org.eclipse.dd.mi.service.command.commands.CLISource;
-import org.eclipse.dd.mi.service.command.commands.MIGDBSetArgs;
+import org.eclipse.dd.mi.service.command.commands.MIEnvironmentCD;
 import org.eclipse.dd.mi.service.command.commands.MIFileExecAndSymbols;
+import org.eclipse.dd.mi.service.command.commands.MIGDBSetArgs;
 import org.eclipse.dd.mi.service.command.commands.MIGDBSetAutoSolib;
 import org.eclipse.dd.mi.service.command.commands.MIGDBSetSolibSearchPath;
 import org.eclipse.dd.mi.service.command.commands.MITargetSelect;
@@ -136,6 +145,68 @@ public class FinalLaunchSequence extends Sequence {
     			requestMonitor.done();
     		}    		
         }},
+    	/*
+    	 * Specify GDB's working directory
+    	 */
+        new Step() {
+        	
+        	private File getWorkingDirectory(RequestMonitor requestMonitor) {
+       			IPath path = null;
+           		try {
+        			String location = fLaunch.getLaunchConfiguration().getAttribute(ICDTLaunchConfigurationConstants.ATTR_WORKING_DIRECTORY, 
+        																		    (String)null);
+            		if (location != null) {
+            			String expandedLocation = VariablesPlugin.getDefault().getStringVariableManager().performStringSubstitution(location);
+            			if (expandedLocation.length() > 0) {
+            				path = new Path(expandedLocation);
+            			}
+            		}
+
+            		if (path == null) {
+            			// default working dir is the project if this config has a project
+            			ICProject cp = LaunchUtils.getCProject(fLaunch.getLaunchConfiguration());
+            			if (cp != null) {
+            				IProject p = cp.getProject();
+            				return p.getLocation().toFile();
+            			}
+            		} else {
+            			if (path.isAbsolute()) {
+            				File dir = new File(path.toOSString());
+            				if (dir.isDirectory()) {
+            					return dir;
+            				}
+            			} else {
+            				IResource res = ResourcesPlugin.getWorkspace().getRoot().findMember(path);
+            				if (res instanceof IContainer && res.exists()) {
+            					return res.getLocation().toFile();
+            				}
+            			}
+
+            			requestMonitor.setStatus(new Status(IStatus.ERROR, GdbPlugin.PLUGIN_ID, -1, 
+        						LaunchMessages.getString("AbstractCLaunchDelegate.Working_directory_does_not_exist"), //$NON-NLS-1$
+        						new FileNotFoundException(LaunchMessages.getFormattedString(
+        								"AbstractCLaunchDelegate.WORKINGDIRECTORY_PATH_not_found", path.toOSString())))); //$NON-NLS-1$
+        				requestMonitor.done();
+            		}
+           		} catch (CoreException e) {
+           			requestMonitor.setStatus(new Status(IStatus.ERROR, GdbPlugin.PLUGIN_ID, -1, "Cannot get working directory", e)); //$NON-NLS-1$
+           			requestMonitor.done();
+           		}
+
+        		return null;
+        	}
+
+        @Override
+        public void execute(final RequestMonitor requestMonitor) {
+        	File dir = getWorkingDirectory(requestMonitor);
+        	if (dir != null) {
+        		fCommandControl.queueCommand(
+        				new MIEnvironmentCD(fCommandControl.getControlDMContext(), dir.getAbsolutePath()), 
+        				new DataRequestMonitor<MIInfo>(getExecutor(), requestMonitor));
+        	} else {
+        		requestMonitor.done();
+        	}
+        }},
         /*
          * Tell GDB to automatically load or not the shared library symbols
          */
diff --git a/plugins/org.eclipse.dd.mi/src/org/eclipse/dd/mi/service/command/commands/MIEnvironmentCD.java b/plugins/org.eclipse.dd.mi/src/org/eclipse/dd/mi/service/command/commands/MIEnvironmentCD.java
new file mode 100644
index 00000000000..5969386ba0d
--- /dev/null
+++ b/plugins/org.eclipse.dd.mi/src/org/eclipse/dd/mi/service/command/commands/MIEnvironmentCD.java
@@ -0,0 +1,28 @@
+/*******************************************************************************
+ * Copyright (c) 2000, 2008 QNX Software Systems and others.
+ * All rights reserved. This program and the accompanying materials
+ * are made available under the terms of the Eclipse Public License v1.0
+ * which accompanies this distribution, and is available at
+ * http://www.eclipse.org/legal/epl-v10.html
+ *
+ * Contributors:
+ *     QNX Software Systems - Initial API and implementation'
+ *     Ericsson             - Updated for DSF
+ *******************************************************************************/
+package org.eclipse.dd.mi.service.command.commands;
+
+import org.eclipse.dd.mi.service.command.MIControlDMContext;
+import org.eclipse.dd.mi.service.command.output.MIInfo;
+
+/**
+ *      -environment-cd PATHDIR
+ *
+ *   Set GDB's working directory.
+ * 
+ */
+public class MIEnvironmentCD extends MICommand <MIInfo> 
+{
+	public MIEnvironmentCD(MIControlDMContext ctx, String path) {
+		super(ctx, "-environment-cd", new String[]{path}); //$NON-NLS-1$
+	}
+}
\ No newline at end of file