diff --git a/src/vs/workbench/contrib/terminal/browser/media/shellIntegration.fish b/src/vs/workbench/contrib/terminal/browser/media/shellIntegration.fish
index b21517cf07fe7..8db7aca4ad975 100644
--- a/src/vs/workbench/contrib/terminal/browser/media/shellIntegration.fish
+++ b/src/vs/workbench/contrib/terminal/browser/media/shellIntegration.fish
@@ -75,7 +75,7 @@ end
 # Sent whenever a new fish prompt is about to be displayed.
 # Updates the current working directory.
 function __vsc_update_cwd --on-event fish_prompt
-	__vsc_esc P "Cwd=$(__vsc_escape_value "$PWD")"
+	__vsc_esc P Cwd=(__vsc_escape_value "$PWD")
 
 	# If a command marker exists, remove it.
 	# Otherwise, the commandline is empty and no command was run.