diff --git a/crates/nu-utils/src/sample_config/default_env.nu b/crates/nu-utils/src/sample_config/default_env.nu
index 0269f3ffc..34ea16e4f 100644
--- a/crates/nu-utils/src/sample_config/default_env.nu
+++ b/crates/nu-utils/src/sample_config/default_env.nu
@@ -1,10 +1,16 @@
 # Nushell Environment Config File
 
 def create_left_prompt [] {
+    let home = ($env | get -i (if $nu.os-info.name == "windows" { "USERPROFILE" } else { "HOME" }) | into string)
+    let dir = ([
+        ($env.PWD | str substring 0..($home | str length) | str replace -s $home "~"),
+        ($env.PWD | str substring ($home | str length)..)
+    ] | str join)
+
     let path_segment = if (is-admin) {
-        $"(ansi red_bold)($env.PWD)"
+        $"(ansi red_bold)($dir)"
     } else {
-        $"(ansi green_bold)($env.PWD)"
+        $"(ansi green_bold)($dir)"
     }
 
     $path_segment