diff --git a/airflow/operators/bash.py b/airflow/operators/bash.py
index ff8edcba51aa7..f1edb0d46d91c 100644
--- a/airflow/operators/bash.py
+++ b/airflow/operators/bash.py
@@ -59,8 +59,10 @@ class BashOperator(BaseOperator):
     :param skip_on_exit_code: If task exits with this exit code, leave the task
         in ``skipped`` state (default: 99). If set to ``None``, any non-zero
         exit code will be treated as a failure.
-    :param cwd: Working directory to execute the command in.
+    :param cwd: Working directory to execute the command in (templated).
         If None (default), the command is run in a temporary directory.
+        To use current DAG folder as the working directory,
+        you might set template ``{{ dag_run.dag.folder }}``.
 
     Airflow will evaluate the exit code of the Bash command. In general, a non-zero exit code will result in
     task failure and zero will result in task success.
@@ -130,7 +132,7 @@ class BashOperator(BaseOperator):
 
     """
 
-    template_fields: Sequence[str] = ("bash_command", "env")
+    template_fields: Sequence[str] = ("bash_command", "env", "cwd")
     template_fields_renderers = {"bash_command": "bash", "env": "json"}
     template_ext: Sequence[str] = (".sh", ".bash")
     ui_color = "#f0ede4"
diff --git a/tests/models/test_renderedtifields.py b/tests/models/test_renderedtifields.py
index 0f733bc8c1544..2652218e1d42d 100644
--- a/tests/models/test_renderedtifields.py
+++ b/tests/models/test_renderedtifields.py
@@ -137,9 +137,11 @@ def test_get_templated_fields(self, templated_field, expected_rendered_field, da
         session.add(rtif)
         session.flush()
 
-        assert {"bash_command": expected_rendered_field, "env": None} == RTIF.get_templated_fields(
-            ti=ti, session=session
-        )
+        assert {
+            "bash_command": expected_rendered_field,
+            "env": None,
+            "cwd": None,
+        } == RTIF.get_templated_fields(ti=ti, session=session)
         # Test the else part of get_templated_fields
         # i.e. for the TIs that are not stored in RTIF table
         # Fetching them will return None
@@ -261,7 +263,7 @@ def test_write(self, dag_maker):
             )
             .first()
         )
-        assert ("test_write", "test", {"bash_command": "echo test_val", "env": None}) == result
+        assert ("test_write", "test", {"bash_command": "echo test_val", "env": None, "cwd": None}) == result
 
         # Test that overwrite saves new values to the DB
         Variable.delete("test_key")
@@ -287,7 +289,7 @@ def test_write(self, dag_maker):
         assert (
             "test_write",
             "test",
-            {"bash_command": "echo test_val_updated", "env": None},
+            {"bash_command": "echo test_val_updated", "env": None, "cwd": None},
         ) == result_updated
 
     @mock.patch.dict(os.environ, {"AIRFLOW_VAR_API_KEY": "secret"})
@@ -301,8 +303,10 @@ def test_redact(self, redact, dag_maker):
             )
         dr = dag_maker.create_dagrun()
         redact.side_effect = [
-            "val 1",
-            "val 2",
+            # Order depends on order in Operator template_fields
+            "val 1",  # bash_command
+            "val 2",  # env
+            "val 3",  # cwd
         ]
 
         ti = dr.task_instances[0]
@@ -311,4 +315,5 @@ def test_redact(self, redact, dag_maker):
         assert rtif.rendered_fields == {
             "bash_command": "val 1",
             "env": "val 2",
+            "cwd": "val 3",
         }
diff --git a/tests/models/test_taskinstance.py b/tests/models/test_taskinstance.py
index 8431381a6ff92..0d9d4df0f4f7c 100644
--- a/tests/models/test_taskinstance.py
+++ b/tests/models/test_taskinstance.py
@@ -636,7 +636,11 @@ def test_retry_handling(self, dag_maker):
         """
         Test that task retries are handled properly
         """
-        expected_rendered_ti_fields = {"env": None, "bash_command": "echo test_retry_handling; exit 1"}
+        expected_rendered_ti_fields = {
+            "env": None,
+            "bash_command": "echo test_retry_handling; exit 1",
+            "cwd": None,
+        }
 
         with dag_maker(dag_id="test_retry_handling") as dag:
             task = BashOperator(
diff --git a/tests/operators/test_bash.py b/tests/operators/test_bash.py
index d00477b11837a..7a52790bcb0b7 100644
--- a/tests/operators/test_bash.py
+++ b/tests/operators/test_bash.py
@@ -20,6 +20,7 @@
 import os
 import signal
 from datetime import datetime, timedelta
+from pathlib import Path
 from time import sleep
 from unittest import mock
 
@@ -244,3 +245,22 @@ def test_bash_operator_kill(self, dag_maker):
                 os.kill(proc.pid, signal.SIGTERM)
                 assert False, "BashOperator's subprocess still running after stopping on timeout!"
                 break
+
+    @pytest.mark.db_test
+    def test_templated_fields(self, create_task_instance_of_operator):
+        ti = create_task_instance_of_operator(
+            BashOperator,
+            # Templated fields
+            bash_command='echo "{{ dag_run.dag_id }}"',
+            env={"FOO": "{{ ds }}"},
+            cwd="{{ dag_run.dag.folder }}",
+            # Other parameters
+            dag_id="test_templated_fields_dag",
+            task_id="test_templated_fields_task",
+            execution_date=timezone.datetime(2024, 2, 1, tzinfo=timezone.utc),
+        )
+        ti.render_templates()
+        task: BashOperator = ti.task
+        assert task.bash_command == 'echo "test_templated_fields_dag"'
+        assert task.env == {"FOO": "2024-02-01"}
+        assert task.cwd == Path(__file__).absolute().parent.as_posix()
diff --git a/tests/serialization/test_dag_serialization.py b/tests/serialization/test_dag_serialization.py
index 3b8fe1e7b0500..47a284e93f738 100644
--- a/tests/serialization/test_dag_serialization.py
+++ b/tests/serialization/test_dag_serialization.py
@@ -169,7 +169,7 @@ def detect_task_dependencies(task: Operator) -> DagDependency | None:  # type: i
                 "ui_color": "#f0ede4",
                 "ui_fgcolor": "#000",
                 "template_ext": [".sh", ".bash"],
-                "template_fields": ["bash_command", "env"],
+                "template_fields": ["bash_command", "env", "cwd"],
                 "template_fields_renderers": {"bash_command": "bash", "env": "json"},
                 "bash_command": "echo {{ task.task_id }}",
                 "_task_type": "BashOperator",
@@ -2150,7 +2150,7 @@ def test_operator_expand_serde():
         },
         "task_id": "a",
         "operator_extra_links": [],
-        "template_fields": ["bash_command", "env"],
+        "template_fields": ["bash_command", "env", "cwd"],
         "template_ext": [".sh", ".bash"],
         "template_fields_renderers": {"bash_command": "bash", "env": "json"},
         "ui_color": "#f0ede4",
@@ -2168,7 +2168,7 @@ def test_operator_expand_serde():
         "downstream_task_ids": [],
         "task_id": "a",
         "template_ext": [".sh", ".bash"],
-        "template_fields": ["bash_command", "env"],
+        "template_fields": ["bash_command", "env", "cwd"],
         "template_fields_renderers": {"bash_command": "bash", "env": "json"},
         "ui_color": "#f0ede4",
         "ui_fgcolor": "#000",