diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1fbe6c6e2..7affc760f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,7 +2,11 @@
 
 ## [Unreleased] 0.1.3
 
-_Add notes here for the next release._
+### Features
+- Added `cwd` option to command reply config for setting the working directory where commands execute. Essential for Claude Code to have proper project context.
+
+### Developer notes
+- Command auto-replies now pass `{ timeoutMs, cwd }` into the command runner; custom runners/tests that stub `runCommandWithTimeout` should accept the options object as well as the legacy numeric timeout.
 
 ## 0.1.2 — 2025-11-25
 
diff --git a/docs/claude-config.md b/docs/claude-config.md
index 91d314009..076e53ad5 100644
--- a/docs/claude-config.md
+++ b/docs/claude-config.md
@@ -21,6 +21,8 @@ warelay reads `~/.warelay/warelay.json` (JSON5 accepted). Add a command-mode rep
     allowFrom: ["+15551234567"],
     reply: {
       mode: "command",
+      // Working directory for command execution (useful for Claude Code project context).
+      cwd: "/Users/you/Projects/my-project",
       // Prepended before the inbound body; good for system prompts.
       bodyPrefix: "You are a concise WhatsApp assistant. Keep replies under 1500 characters.\n\n",
       // Claude CLI argv; the final element is the prompt/body provided by warelay.
@@ -38,6 +40,7 @@ warelay reads `~/.warelay/warelay.json` (JSON5 accepted). Add a command-mode rep
 ```
 
 Notes on this configuration:
+- `cwd` sets the working directory where the command runs. This is essential for Claude Code to have the right project context—Claude will see the project's `CLAUDE.md`, have access to project files, and understand the codebase structure.
 - warelay automatically injects a Claude identity prefix and the correct `--output-format`/`-p` flags when `command[0]` is `claude` and `claudeOutputFormat` is set.
 - Sessions are stored in `~/.warelay/sessions.json`; `scope: per-sender` keeps separate threads for each contact.
 - `bodyPrefix` is added before the inbound message body that reaches Claude. The string above mirrors the built-in 1500-character WhatsApp guardrail.
diff --git a/src/auto-reply/reply.ts b/src/auto-reply/reply.ts
index 886493703..e6178a603 100644
--- a/src/auto-reply/reply.ts
+++ b/src/auto-reply/reply.ts
@@ -288,11 +288,13 @@ export async function getReplyFromConfig(
 				[CLAUDE_IDENTITY_PREFIX, existingBody].filter(Boolean).join("\n\n"),
 			];
 		}
-		logVerbose(`Running command auto-reply: ${finalArgv.join(" ")}`);
+		logVerbose(
+			`Running command auto-reply: ${finalArgv.join(" ")}${reply.cwd ? ` (cwd: ${reply.cwd})` : ""}`,
+		);
 		const started = Date.now();
 		try {
 			const { stdout, stderr, code, signal, killed } = await enqueueCommand(
-				() => commandRunner(finalArgv, timeoutMs),
+				() => commandRunner(finalArgv, { timeoutMs, cwd: reply.cwd }),
 				{
 					onWait: (waitMs, queuedAhead) => {
 						if (isVerbose()) {
diff --git a/src/config/config.ts b/src/config/config.ts
index bf405a40f..4ba46a362 100644
--- a/src/config/config.ts
+++ b/src/config/config.ts
@@ -26,6 +26,7 @@ export type WarelayConfig = {
 			mode: ReplyMode;
 			text?: string; // for mode=text, can contain {{Body}}
 			command?: string[]; // for mode=command, argv with templates
+			cwd?: string; // working directory for command execution
 			template?: string; // prepend template string when building command/prompt
 			timeoutSeconds?: number; // optional command timeout; defaults to 600s
 			bodyPrefix?: string; // optional string prepended to Body before templating
@@ -43,6 +44,7 @@ const ReplySchema = z
 		mode: z.union([z.literal("text"), z.literal("command")]),
 		text: z.string().optional(),
 		command: z.array(z.string()).optional(),
+		cwd: z.string().optional(),
 		template: z.string().optional(),
 		timeoutSeconds: z.number().int().positive().optional(),
 		bodyPrefix: z.string().optional(),
diff --git a/src/process/exec.ts b/src/process/exec.ts
index 75c2cca30..db8fd59c8 100644
--- a/src/process/exec.ts
+++ b/src/process/exec.ts
@@ -43,14 +43,26 @@ export type SpawnResult = {
 	killed: boolean;
 };
 
+export type CommandOptions = {
+	timeoutMs: number;
+	cwd?: string;
+};
+
 export async function runCommandWithTimeout(
 	argv: string[],
-	timeoutMs: number,
+	optionsOrTimeout: number | CommandOptions,
 ): Promise<SpawnResult> {
+	const options: CommandOptions =
+		typeof optionsOrTimeout === "number"
+			? { timeoutMs: optionsOrTimeout }
+			: optionsOrTimeout;
+	const { timeoutMs, cwd } = options;
+
 	// Spawn with inherited stdin (TTY) so tools like `claude` don't hang.
 	return await new Promise((resolve, reject) => {
 		const child = spawn(argv[0], argv.slice(1), {
 			stdio: ["inherit", "pipe", "pipe"],
+			cwd,
 		});
 		let stdout = "";
 		let stderr = "";