diff --git a/gtk/gtkfilechooserdefault.c b/gtk/gtkfilechooserdefault.c
index 2b98846746..2d1923d77e 100644
--- a/gtk/gtkfilechooserdefault.c
+++ b/gtk/gtkfilechooserdefault.c
@@ -3787,6 +3787,7 @@ shortcuts_pane_create (GtkFileChooserDefault *impl,
 		       GtkSizeGroup          *size_group)
 {
   impl->places_sidebar = gtk_places_sidebar_new ();
+  gtk_places_sidebar_set_show_cwd (GTK_PLACES_SIDEBAR (impl->places_sidebar), TRUE);
 
   g_signal_connect (impl->places_sidebar, "location-selected",
 		    G_CALLBACK (places_sidebar_location_selected_cb),
diff --git a/gtk/gtkplacessidebar.c b/gtk/gtkplacessidebar.c
index 3fb2cc2022..38320a8c83 100644
--- a/gtk/gtkplacessidebar.c
+++ b/gtk/gtkplacessidebar.c
@@ -120,6 +120,7 @@ struct _GtkPlacesSidebar {
 	guint show_properties : 1;
 	guint show_trash : 1;
 	guint trash_is_full : 1;
+	guint show_cwd : 1;
 };
 
 struct _GtkPlacesSidebarClass {
@@ -653,6 +654,7 @@ update_places (GtkPlacesSidebar *sidebar)
 	GSList *bookmarks, *sl;
 	int index;
 	char *location, *mount_uri, *name, *last_uri, *identifier;
+	char *home_uri;
 	char *bookmark_name;
 	GIcon *icon;
 	GFile *root;
@@ -702,16 +704,63 @@ update_places (GtkPlacesSidebar *sidebar)
 		g_object_unref (icon);
 	}
 
+	/* compute the $HOME URI here; we'll use it when we generate the $CWD item as well as the $HOME item */
+
+	home_uri = get_home_directory_uri ();
+
+	/* cwd */
+	if (sidebar->show_cwd) {
+		char *cwd;
+		GFile *home_file;
+
+		cwd = g_get_current_dir (); 
+		root = g_file_new_for_path (cwd);
+		g_free (cwd);
+
+		home_file = g_file_new_for_uri (home_uri);
+
+		if (!g_file_equal (home_file, root)) {
+			GFileInfo *info;
+
+			info = g_file_query_info (root,
+						  "standard::display-name,standard::icon",
+						  G_FILE_QUERY_INFO_NONE,
+						  NULL,
+						  NULL); /* NULL-GError */
+
+			/* FIXME: we are getting file info synchronously.  We may want to do it async at some point. */
+			if (info) {
+				bookmark_name = g_strdup (g_file_info_get_display_name (info));
+				icon = g_file_info_get_icon (info); /* FIXME: use symbolic icon */
+				mount_uri = g_file_get_uri (root);
+				tooltip = g_file_get_parse_name (root);
+
+				add_place (sidebar, PLACES_BUILT_IN,
+					   SECTION_COMPUTER,
+					   bookmark_name, icon, mount_uri,
+					   NULL, NULL, NULL, 0,
+					   tooltip);
+
+				g_free (mount_uri);
+				g_free (tooltip);
+				g_free (bookmark_name);
+
+				g_object_unref (info);
+			}
+		}
+
+		g_object_unref (home_file);
+	}
+
 	/* home folder */
-	mount_uri = get_home_directory_uri ();
 	icon = g_themed_icon_new (ICON_NAME_HOME);
 	add_place (sidebar, PLACES_BUILT_IN,
 		   SECTION_COMPUTER,
 		   _("Home"), icon,
-		   mount_uri, NULL, NULL, NULL, 0,
+		   home_uri, NULL, NULL, NULL, 0,
 		   _("Open your personal folder"));
 	g_object_unref (icon);
-	g_free (mount_uri);
+	g_free (home_uri);
 
 	if (sidebar->show_desktop) {
 		/* desktop */
@@ -3909,3 +3958,12 @@ gtk_places_sidebar_set_trash_is_full (GtkPlacesSidebar *sidebar, gboolean is_ful
 	update_places (sidebar);
 	bookmarks_check_popup_sensitivity (sidebar);
 }
+
+void
+gtk_places_sidebar_set_show_cwd (GtkPlacesSidebar *sidebar, gboolean show_cwd)
+{
+	g_return_if_fail (GTK_IS_PLACES_SIDEBAR (sidebar));
+
+	sidebar->show_cwd = !!show_cwd;
+	update_places (sidebar);
+}
diff --git a/gtk/gtkplacessidebar.h b/gtk/gtkplacessidebar.h
index 749399d72f..98bac73c7b 100644
--- a/gtk/gtkplacessidebar.h
+++ b/gtk/gtkplacessidebar.h
@@ -68,6 +68,8 @@ void gtk_places_sidebar_set_show_properties (GtkPlacesSidebar *sidebar, gboolean
 void gtk_places_sidebar_set_show_trash (GtkPlacesSidebar *sidebar, gboolean show_trash);
 void gtk_places_sidebar_set_trash_is_full (GtkPlacesSidebar *sidebar, gboolean is_full);
 
+void gtk_places_sidebar_set_show_cwd (GtkPlacesSidebar *sidebar, gboolean show_cwd);
+
 G_END_DECLS
 
 #endif /* __GTK_PLACES_SIDEBAR_H__ */