diff --git a/src/environment/shell.go b/src/environment/shell.go
index fb2815d1..185efac1 100644
--- a/src/environment/shell.go
+++ b/src/environment/shell.go
@@ -726,8 +726,9 @@ func (env *ShellEnvironment) TemplateCache() *TemplateCache {
 		val := splitted[1:]
 		tmplCache.Env[key] = strings.Join(val, separator)
 	}
-	tmplCache.PWD = env.Pwd()
-	tmplCache.Folder = Base(env, tmplCache.PWD)
+	pwd := env.Pwd()
+	tmplCache.PWD = strings.Replace(pwd, env.Home(), "~", 1)
+	tmplCache.Folder = Base(env, pwd)
 	tmplCache.UserName = env.User()
 	if host, err := env.Host(); err == nil {
 		tmplCache.HostName = host
diff --git a/src/segments/git.go b/src/segments/git.go
index f1ac3407..1a2fe35d 100644
--- a/src/segments/git.go
+++ b/src/segments/git.go
@@ -160,7 +160,8 @@ func (g *Git) shouldDisplay() bool {
 	}
 
 	// convert the worktree file path to a windows one when in wsl 2 shared folder
-	g.Dir = strings.TrimSuffix(g.convertToWindowsPath(gitdir.Path), "/.git")
+	dir := strings.Replace(gitdir.Path, g.env.Home(), "~", 1) // align with template PWD
+	g.Dir = strings.TrimSuffix(g.convertToWindowsPath(dir), "/.git")
 
 	if !gitdir.IsDir {
 		return g.hasWorktree(gitdir)
@@ -168,7 +169,7 @@ func (g *Git) shouldDisplay() bool {
 
 	g.workingDir = gitdir.Path
 	g.rootDir = gitdir.Path
-	g.realDir = g.Dir
+	g.realDir = strings.TrimSuffix(g.convertToWindowsPath(gitdir.Path), "/.git")
 	return true
 }
 
diff --git a/src/segments/git_test.go b/src/segments/git_test.go
index 5afc2564..adbf87ee 100644
--- a/src/segments/git_test.go
+++ b/src/segments/git_test.go
@@ -47,6 +47,7 @@ func TestEnabledInWorkingDirectory(t *testing.T) {
 	env.On("IsWsl").Return(false)
 	env.On("HasParentFilePath", ".git").Return(fileInfo, nil)
 	env.On("PathSeparator").Return("/")
+	env.On("Home").Return("/Users/posh")
 	g := &Git{
 		scm: scm{
 			env:   env,