diff --git a/include/process.h b/include/process.h
index ea1994f14f2..b98cf9f7f55 100644
--- a/include/process.h
+++ b/include/process.h
@@ -155,7 +155,8 @@ extern void PROCESS_CallUserSignalProc( UINT uCode, HMODULE hModule );
 extern BOOL PROCESS_Create( HFILE hFile, LPCSTR filename, LPSTR cmd_line, LPCSTR env, 
                             LPSECURITY_ATTRIBUTES psa, LPSECURITY_ATTRIBUTES tsa,
                             BOOL inherit, DWORD flags,
-                            STARTUPINFOA *startup, PROCESS_INFORMATION *info );
+                            STARTUPINFOA *startup, PROCESS_INFORMATION *info,
+			    LPCSTR lpCurrentDirectory );
 
 static inline PDB WINE_UNUSED *PROCESS_Current(void)
 {
diff --git a/loader/module.c b/loader/module.c
index 65db9cf3424..ebfd12357ac 100644
--- a/loader/module.c
+++ b/loader/module.c
@@ -949,9 +949,6 @@ BOOL WINAPI CreateProcessA( LPCSTR lpApplicationName, LPSTR lpCommandLine,
         FIXME("(%s,...): PROFILE_KERNEL ignored\n", name);
     if (dwCreationFlags & PROFILE_SERVER)
         FIXME("(%s,...): PROFILE_SERVER ignored\n", name);
-    if (lpCurrentDirectory)
-        FIXME("(%s,...): lpCurrentDirectory %s ignored\n", 
-                      name, lpCurrentDirectory);
     if (lpStartupInfo->lpDesktop)
         FIXME("(%s,...): lpStartupInfo->lpDesktop %s ignored\n", 
                       name, lpStartupInfo->lpDesktop);
@@ -984,7 +981,7 @@ BOOL WINAPI CreateProcessA( LPCSTR lpApplicationName, LPSTR lpCommandLine,
         retv = PROCESS_Create( -1, name, tidy_cmdline, lpEnvironment, 
                                lpProcessAttributes, lpThreadAttributes,
                                bInheritHandles, dwCreationFlags,
-                               lpStartupInfo, lpProcessInfo );
+                               lpStartupInfo, lpProcessInfo, lpCurrentDirectory );
         goto done;
     }
 
@@ -998,7 +995,7 @@ BOOL WINAPI CreateProcessA( LPCSTR lpApplicationName, LPSTR lpCommandLine,
         retv = PROCESS_Create( hFile, name, tidy_cmdline, lpEnvironment, 
                                lpProcessAttributes, lpThreadAttributes,
                                bInheritHandles, dwCreationFlags,
-                               lpStartupInfo, lpProcessInfo );
+                               lpStartupInfo, lpProcessInfo, lpCurrentDirectory);
         break;
 
     case SCS_PIF_BINARY:
diff --git a/scheduler/process.c b/scheduler/process.c
index 3334591c540..8aea56c144f 100644
--- a/scheduler/process.c
+++ b/scheduler/process.c
@@ -674,7 +674,8 @@ static void exec_wine_binary( char **argv, char **envp )
  *
  * Fork and exec a new Unix process, checking for errors.
  */
-static int fork_and_exec( const char *filename, char *cmdline, const char *env )
+static int fork_and_exec( const char *filename, char *cmdline,
+                          const char *env, const char *newdir )
 {
     int fd[2];
     int pid, err;
@@ -690,6 +691,9 @@ static int fork_and_exec( const char *filename, char *cmdline, const char *env )
         char **argv = build_argv( cmdline, filename ? 0 : 2 );
         char **envp = build_envp( env );
         close( fd[0] );
+
+	if (newdir) chdir(newdir);
+
         if (argv && envp)
         {
             if (!filename)
@@ -725,10 +729,11 @@ static int fork_and_exec( const char *filename, char *cmdline, const char *env )
 BOOL PROCESS_Create( HFILE hFile, LPCSTR filename, LPSTR cmd_line, LPCSTR env, 
                      LPSECURITY_ATTRIBUTES psa, LPSECURITY_ATTRIBUTES tsa,
                      BOOL inherit, DWORD flags, LPSTARTUPINFOA startup,
-                     LPPROCESS_INFORMATION info )
+                     LPPROCESS_INFORMATION info, LPCSTR lpCurrentDirectory )
 {
     int pid;
     const char *unixfilename = NULL;
+    const char *unixdir = NULL;
     DOS_FULL_NAME full_name;
     HANDLE load_done_evt = -1;
     struct new_process_request *req = get_req_buffer();
@@ -757,6 +762,17 @@ BOOL PROCESS_Create( HFILE hFile, LPCSTR filename, LPSTR cmd_line, LPCSTR env,
     req->cmd_show = startup->wShowWindow;
     req->alloc_fd = 0;
 
+    if (lpCurrentDirectory) {
+        if (DOSFS_GetFullName( lpCurrentDirectory, TRUE, &full_name ))
+	    unixdir = full_name.long_name;
+    } else {
+	CHAR	buf[260];
+	if (GetCurrentDirectoryA(sizeof(buf),buf)) {
+	    if (DOSFS_GetFullName( buf, TRUE, &full_name ))
+		unixdir = full_name.long_name;
+	}
+    }
+
     if (hFile == -1)  /* unix process */
     {
         unixfilename = filename;
@@ -772,7 +788,7 @@ BOOL PROCESS_Create( HFILE hFile, LPCSTR filename, LPSTR cmd_line, LPCSTR env,
 
     /* fork and execute */
 
-    pid = fork_and_exec( unixfilename, cmd_line, env ? env : GetEnvironmentStringsA() );
+    pid = fork_and_exec( unixfilename, cmd_line, env ? env : GetEnvironmentStringsA(), unixdir );
 
     wait_req->cancel   = (pid == -1);
     wait_req->pinherit = (psa && (psa->nLength >= sizeof(*psa)) && psa->bInheritHandle);