diff --git a/src/cmd/ksh93/bltins/cd_pwd.c b/src/cmd/ksh93/bltins/cd_pwd.c
index 30a39833f..6262b9003 100644
--- a/src/cmd/ksh93/bltins/cd_pwd.c
+++ b/src/cmd/ksh93/bltins/cd_pwd.c
@@ -57,7 +57,7 @@ int	b_cd(int argc, char *argv[],Shbltin_t *context)
 	register Shell_t *shp = context->shp;
 	int saverrno=0;
 	int rval,flag=0;
-	static char *oldpwd;
+	char *oldpwd;
 	Namval_t *opwdnod, *pwdnod;
 	if(sh_isoption(SH_RESTRICTED))
 	{
@@ -87,8 +87,6 @@ int	b_cd(int argc, char *argv[],Shbltin_t *context)
 		errormsg(SH_DICT,ERROR_usage(2),"%s",optusage((char*)0));
 		UNREACHABLE();
 	}
-	if(oldpwd && oldpwd!=shp->pwd && oldpwd!=e_dot)
-		free(oldpwd);
 	oldpwd = path_pwd(shp,0);
 	opwdnod = sh_scoped(shp,OLDPWDNOD);
 	pwdnod = sh_scoped(shp,PWDNOD);
@@ -229,25 +227,25 @@ success:
 		while(--flag>0 && dir[flag]=='/')
 			dir[flag] = 0;
 		nv_putval(pwdnod,dir,NV_RDONLY);
+		nv_onattr(pwdnod,NV_EXPORT);
+		if(shp->pwd)
+			free((void*)shp->pwd);
+		shp->pwd = sh_strdup(pwdnod->nvalue.cp);
 	}
 	else
 	{
 		/* pathcanon() failed to canonicalize the directory, which happens when 'cd' is invoked from a
 		   nonexistent PWD with a relative path as the argument. Reinitialize $PWD as it will be wrong. */
-		char *cp = getcwd(NIL(char*),0);
-		if(cp)
-		{
-			nv_putval(pwdnod,cp,NV_RDONLY);
-			free(cp);
-		}
-		else
+		if(shp->pwd)
+			free((void*)shp->pwd);
+		shp->pwd = NIL(const char*);
+		path_pwd(shp,0);
+		if(*shp->pwd != '/')
 		{
 			errormsg(SH_DICT,ERROR_system(1),e_direct);
 			UNREACHABLE();
 		}
 	}
-	nv_onattr(pwdnod,NV_NOFREE|NV_EXPORT);
-	shp->pwd = pwdnod->nvalue.cp;
 	nv_scan(sh_subtracktree(1),rehash,(void*)0,NV_TAGGED,NV_TAGGED);
 	path_newdir(shp,shp->pathlist);
 	path_newdir(shp,shp->cdpathlist);
diff --git a/src/cmd/ksh93/sh/path.c b/src/cmd/ksh93/sh/path.c
index 7776028e7..edb975876 100644
--- a/src/cmd/ksh93/sh/path.c
+++ b/src/cmd/ksh93/sh/path.c
@@ -256,6 +256,7 @@ char *path_pwd(Shell_t *shp,int flag)
 	{
 		/* Check if $HOME is a path to the PWD; this ensures $PWD == $HOME
 		   at login, even if $HOME is a path that contains symlinks */
+		char tofree = 0;
 		cp = nv_getval(sh_scoped(shp,HOME));
 		if(!(cp && *cp=='/' && test_inode(cp,e_dot)))
 		{
@@ -263,17 +264,19 @@ char *path_pwd(Shell_t *shp,int flag)
 			cp = getcwd(NIL(char*),0);
 			if(!cp)
 				return((char*)e_dot);
+			tofree++;
 		}
 		/* Store in PWD variable */
 		if(shp->subshell)
 			pwdnod = sh_assignok(pwdnod,1);
-		nv_offattr(pwdnod,NV_NOFREE);
 		nv_putval(pwdnod,cp,NV_RDONLY);
+		if(tofree)
+			free(cp);
 	}
-	nv_onattr(pwdnod,NV_NOFREE|NV_EXPORT);
+	nv_onattr(pwdnod,NV_EXPORT);
 	/* Set shell PWD */
-	shp->pwd = (char*)(pwdnod->nvalue.cp);
-	return(cp);
+	shp->pwd = sh_strdup(pwdnod->nvalue.cp);
+	return((char*)shp->pwd);
 }
 
 /*
diff --git a/src/cmd/ksh93/sh/subshell.c b/src/cmd/ksh93/sh/subshell.c
index 344b5e8b5..3039b9795 100644
--- a/src/cmd/ksh93/sh/subshell.c
+++ b/src/cmd/ksh93/sh/subshell.c
@@ -82,7 +82,6 @@ static struct subshell
 	pid_t		subpid;	/* child process id */
 	Sfio_t*		saveout;/* saved standard output */
 	char		*pwd;	/* present working directory */
-	const char	*shpwd;	/* saved pointer to sh.pwd */
 	void		*jobs;	/* save job info */
 	mode_t		mask;	/* saved umask */
 	short		tmpfd;	/* saved tmp file descriptor */
@@ -213,7 +212,6 @@ void sh_subfork(void)
 	else
 	{
 		/* this is the child part of the fork */
-		/* setting subpid to 1 causes subshell to exit when reached */
 		sh_onstate(SH_FORKED);
 		subshell_data = 0;
 		shp->subshell = 0;
@@ -561,9 +559,6 @@ Sfio_t *sh_subshell(Shell_t *shp,Shnode_t *t, volatile int flags, int comsub)
 		path_get(shp,e_dot);
 		shp->pathinit = 0;
 	}
-#if _lib_fchdir
-	sp->pwdfd = -1;
-#endif /* _lib_fchdir */
 	if(!shp->pwd)
 		path_pwd(shp,0);
 	sp->bckpid = shp->bckpid;
@@ -584,8 +579,8 @@ Sfio_t *sh_subshell(Shell_t *shp,Shnode_t *t, volatile int flags, int comsub)
 	if(!shp->subshare)
 	{
 		struct subshell *xp;
-		sp->shpwd = shp->pwd;
 #if _lib_fchdir
+		sp->pwdfd = -1;
 		for(xp=sp->prev; xp; xp=xp->prev) 
 		{
 			if(xp->pwdfd>0 && xp->pwd && strcmp(xp->pwd,shp->pwd)==0)
@@ -687,6 +682,17 @@ Sfio_t *sh_subshell(Shell_t *shp,Shnode_t *t, volatile int flags, int comsub)
 #if _lib_fchdir
 			if(sp->pwdfd < 0 && !shp->subshare)	/* if we couldn't get a file descriptor to our PWD ... */
 				sh_subfork();			/* ...we have to fork, as we cannot fchdir back to it. */
+#else
+			if(!shp->subshare)
+			{
+				if(sp->pwd && access(sp->pwd,X_OK)<0)
+				{
+					free(sp->pwd);
+					sp->pwd = NIL(char*);
+				}
+				if(!sp->pwd)
+					sh_subfork();
+			}
 #endif /* _lib_fchdir */
 			sh_offstate(SH_INTERACTIVE);
 			sh_exec(t,flags);
@@ -842,32 +848,21 @@ Sfio_t *sh_subshell(Shell_t *shp,Shnode_t *t, volatile int flags, int comsub)
 			free((void*)savsig);
 		}
 		shp->options = sp->options;
-		if(shp->pwd != sp->pwd && (!shp->pwd || !sp->pwd || strcmp(sp->pwd,shp->pwd)))
-		{
-			/* restore the present working directory */
-			Namval_t *pwdnod = sh_scoped(shp,PWDNOD);
+		/* restore the present working directory */
 #if _lib_fchdir
-			if(fchdir(sp->pwdfd) < 0)
+		if(sp->pwdfd > 0 && fchdir(sp->pwdfd) < 0)
 #else
-			if(!sp->pwd || chdir(sp->pwd) < 0)
+		if(sp->pwd && strcmp(sp->pwd,shp->pwd) && chdir(sp->pwd) < 0)
 #endif /* _lib_fchdir */
-			{
-				saveerrno = errno;
-				fatalerror = 2;
-			}
-			shp->pwd=sp->pwd;
-			path_newdir(shp,shp->pathlist);
-			if(nv_isattr(pwdnod,NV_NOFREE))
-				pwdnod->nvalue.cp = (const char*)sp->pwd;
-		}
-		else if(sp->shpwd != shp->pwd)
 		{
-			shp->pwd = sp->pwd;
-			if(PWDNOD->nvalue.cp==sp->shpwd)
-				PWDNOD->nvalue.cp = sp->pwd;
+			saveerrno = errno;
+			fatalerror = 2;
 		}
-		else
-			free((void*)sp->pwd);
+		else if(sp->pwd && strcmp(sp->pwd,shp->pwd))
+			path_newdir(shp,shp->pathlist);
+		if(shp->pwd)
+			free((void*)shp->pwd);
+		shp->pwd = sp->pwd;
 #if _lib_fchdir
 		if(sp->pwdclose)
 			close(sp->pwdfd);
@@ -940,6 +935,8 @@ Sfio_t *sh_subshell(Shell_t *shp,Shnode_t *t, volatile int flags, int comsub)
 				UNREACHABLE();
 			case 2:
 				/* reinit PWD as it will be wrong */
+				if(shp->pwd)
+					free((void*)shp->pwd);
 				shp->pwd = NIL(const char*);
 				path_pwd(shp,0);
 				errno = saveerrno;