diff --git a/packages/core/src/index.ts b/packages/core/src/index.ts
index d50f9a34f88..b6f522e8e82 100644
--- a/packages/core/src/index.ts
+++ b/packages/core/src/index.ts
@@ -286,7 +286,7 @@ export {
 
 // Util
 export { findFileWithViewer, findFile, isSpecialDirectory } from './core/find-file'
-export { expandHomeDir, cwd } from './util/home'
+export { expandHomeDir, cwd, fallbackCWD } from './util/home'
 export { flatten } from './core/utility'
 export { promiseEach } from './util/async'
 export { isHTML, isPromise } from './util/types'
diff --git a/packages/core/src/util/home.ts b/packages/core/src/util/home.ts
index 9d564d2ad1c..b5994f52649 100644
--- a/packages/core/src/util/home.ts
+++ b/packages/core/src/util/home.ts
@@ -14,7 +14,7 @@
  * limitations under the License.
  */
 
-import { join } from 'path'
+import { dirname, join } from 'path'
 import { homedir as home } from 'os'
 
 import { inBrowser } from '../core/capabilities'
@@ -37,6 +37,15 @@ export const expandHomeDir = function(path: string): string {
 
 export default expandHomeDir
 
+/** In case of error, e.g. removed CWD, this is our fallback plan */
+export function fallbackCWD(cwd?: string) {
+  if (cwd) {
+    return dirname(cwd)
+  } else {
+    return process.env.HOME || _homedir || '/'
+  }
+}
+
 export const cwd = () => {
   try {
     return (
@@ -45,9 +54,9 @@ export const cwd = () => {
   } catch (err) {
     // it could be that the underlying directory disappeared
     // see https://github.com/kubernetes-sigs/kui/issues/8160
-    console.error(err)
+    console.error('Using fallback plan due to error', err)
 
     // fallback plan:
-    return process.env.PWD || process.env.HOME || _homedir || '/'
+    return fallbackCWD()
   }
 }
diff --git a/plugins/plugin-bash-like/src/tab-state/index.ts b/plugins/plugin-bash-like/src/tab-state/index.ts
index 1c8af7b1fe5..8a0b041812c 100644
--- a/plugins/plugin-bash-like/src/tab-state/index.ts
+++ b/plugins/plugin-bash-like/src/tab-state/index.ts
@@ -15,7 +15,7 @@
  */
 
 import Debug from 'debug'
-import { TabState, cwd as kuiCwd, registerTabState, inBrowser } from '@kui-shell/core'
+import { TabState, cwd as kuiCwd, fallbackCWD, registerTabState, inBrowser } from '@kui-shell/core'
 
 import getTabState from './get'
 import { apiVersion, name } from './key'
@@ -43,8 +43,19 @@ const restore = (tab: TabState) => {
       debug('changing cwd', process.env.PWD, cwd)
       process.env.PWD = cwd
     } else {
-      debug('changing cwd', process.cwd(), cwd)
-      process.chdir(cwd)
+      try {
+        debug('changing cwd', cwd)
+        process.chdir(cwd)
+      } catch (err) {
+        console.error(`Error in chdir, using fallback plan: ${fallbackCWD(cwd)}`, err)
+        try {
+          process.chdir(fallbackCWD(cwd))
+        } catch (err) {
+          // wow, things really are weird, then
+          console.error(err)
+          process.chdir(fallbackCWD())
+        }
+      }
     }
   }
 }
diff --git a/plugins/plugin-bash-like/src/test/bash-like/cd.ts b/plugins/plugin-bash-like/src/test/bash-like/cd.ts
index 817f2afdf43..7c25701a81c 100644
--- a/plugins/plugin-bash-like/src/test/bash-like/cd.ts
+++ b/plugins/plugin-bash-like/src/test/bash-like/cd.ts
@@ -18,7 +18,7 @@ import { dirSync } from 'tmp'
 import { v4 as uuid } from 'uuid'
 import { dirname, join, normalize } from 'path'
 
-import { Common, CLI, ReplExpect, Selectors } from '@kui-shell/test'
+import { Common, CLI, ReplExpect, Selectors, Util } from '@kui-shell/test'
 import { expandHomeDir } from '@kui-shell/core'
 
 const ROOT = dirname(require.resolve('@kui-shell/core/tests/package.json'))
@@ -178,3 +178,36 @@ describe(`remove current directory ${process.env.MOCHA_RUN_TARGET || ''}`, funct
       .catch(Common.oops(this, true))
   )
 })
+
+// see https://github.com/kubernetes-sigs/kui/issues/8173
+describe(`remove current directory with tab switch ${process.env.MOCHA_RUN_TARGET ||
+  ''}`, function(this: Common.ISuite) {
+  before(Common.before(this))
+  after(Common.after(this))
+  Util.closeAllExceptFirstTab.bind(this)()
+
+  const { name: tmp } = dirSync()
+
+  pit(`should cd to our tmp dir ${tmp}`, () =>
+    CLI.command(`cd ${tmp}`, this.app)
+      .then(ReplExpect.okWithString(tmp))
+      .catch(Common.oops(this, true))
+  )
+
+  pit('should create new tab', () => Util.clickNewTabButton(this, 2))
+  pit('should switch to that tab', () => Util.switchToTopLevelTabViaClick(this, 2))
+
+  pit(`should remove our tmp dir ${tmp}`, () =>
+    CLI.command(`rmdir ${tmp}`, this.app)
+      .then(ReplExpect.ok)
+      .catch(Common.oops(this, true))
+  )
+
+  pit('should switch back to the first tab', () => Util.switchToTopLevelTabViaClick(this, 1))
+
+  pit(`should show parent of pwd as ${tmp}`, () =>
+    CLI.command(`pwd`, this.app)
+      .then(ReplExpect.okWithString(dirname(tmp)))
+      .catch(Common.oops(this, true))
+  )
+})