diff --git a/cmd/limactl/shell.go b/cmd/limactl/shell.go
index 36454010965..dbe8a7543f5 100644
--- a/cmd/limactl/shell.go
+++ b/cmd/limactl/shell.go
@@ -8,7 +8,6 @@ import (
 	"fmt"
 	"os"
 	"os/exec"
-	"path"
 	"runtime"
 	"strconv"
 	"strings"
@@ -17,6 +16,7 @@ import (
 	"github.com/coreos/go-semver/semver"
 	"github.com/lima-vm/lima/pkg/instance"
 	"github.com/lima-vm/lima/pkg/ioutilx"
+	"github.com/lima-vm/lima/pkg/limayaml"
 	networks "github.com/lima-vm/lima/pkg/networks/reconcile"
 	"github.com/lima-vm/lima/pkg/sshutil"
 	"github.com/lima-vm/lima/pkg/store"
@@ -139,10 +139,10 @@ func shellAction(cmd *cobra.Command, args []string) error {
 	if workDir != "" {
 		changeDirCmd = fmt.Sprintf("cd %s || exit 1", shellescape.Quote(workDir))
 		// FIXME: check whether y.Mounts contains the home, not just len > 0
-	} else if len(inst.Config.Mounts) > 0 {
+	} else if len(inst.Config.Mounts) > 0 || inst.VMType == limayaml.WSL2 {
 		hostCurrentDir, err := os.Getwd()
 		if err == nil && runtime.GOOS == "windows" {
-			hostCurrentDir, err = mountDirFromWindowsDir(hostCurrentDir)
+			hostCurrentDir, err = mountDirFromWindowsDir(inst, hostCurrentDir)
 		}
 		if err == nil {
 			changeDirCmd = fmt.Sprintf("cd %s", shellescape.Quote(hostCurrentDir))
@@ -152,7 +152,7 @@ func shellAction(cmd *cobra.Command, args []string) error {
 		}
 		hostHomeDir, err := os.UserHomeDir()
 		if err == nil && runtime.GOOS == "windows" {
-			hostHomeDir, err = mountDirFromWindowsDir(hostHomeDir)
+			hostHomeDir, err = mountDirFromWindowsDir(inst, hostHomeDir)
 		}
 		if err == nil {
 			changeDirCmd = fmt.Sprintf("%s || cd %s", changeDirCmd, shellescape.Quote(hostHomeDir))
@@ -244,12 +244,12 @@ func shellAction(cmd *cobra.Command, args []string) error {
 	return sshCmd.Run()
 }
 
-func mountDirFromWindowsDir(dir string) (string, error) {
-	dir, err := ioutilx.WindowsSubsystemPath(dir)
-	if err == nil && !strings.HasPrefix(dir, "/mnt/") {
-		dir = path.Join("/mnt", dir)
+func mountDirFromWindowsDir(inst *store.Instance, dir string) (string, error) {
+	if inst.VMType == limayaml.WSL2 {
+		distroName := "lima-" + inst.Name
+		return ioutilx.WindowsSubsystemPathForLinux(dir, distroName)
 	}
-	return dir, err
+	return ioutilx.WindowsSubsystemPath(dir)
 }
 
 func shellBashComplete(cmd *cobra.Command, _ []string, _ string) ([]string, cobra.ShellCompDirective) {
diff --git a/pkg/ioutilx/ioutilx.go b/pkg/ioutilx/ioutilx.go
index cd91e40c77f..9b5ccbe019a 100644
--- a/pkg/ioutilx/ioutilx.go
+++ b/pkg/ioutilx/ioutilx.go
@@ -53,7 +53,16 @@ func WindowsSubsystemPath(orig string) (string, error) {
 	out, err := exec.Command("cygpath", filepath.ToSlash(orig)).CombinedOutput()
 	if err != nil {
 		logrus.WithError(err).Errorf("failed to convert path to mingw, maybe not using Git ssh?")
-		return orig, err
+		return "", err
+	}
+	return strings.TrimSpace(string(out)), nil
+}
+
+func WindowsSubsystemPathForLinux(orig, distro string) (string, error) {
+	out, err := exec.Command("wsl", "-d", distro, "--exec", "wslpath", filepath.ToSlash(orig)).CombinedOutput()
+	if err != nil {
+		logrus.WithError(err).Errorf("failed to convert path to mingw, maybe wsl command is not operational?")
+		return "", err
 	}
 	return strings.TrimSpace(string(out)), nil
 }
diff --git a/pkg/osutil/user.go b/pkg/osutil/user.go
index b34f5c3d59f..8a47ffee58d 100644
--- a/pkg/osutil/user.go
+++ b/pkg/osutil/user.go
@@ -7,6 +7,7 @@ import (
 	"fmt"
 	"os/exec"
 	"os/user"
+	"path"
 	"path/filepath"
 	"regexp"
 	"runtime"
@@ -149,7 +150,19 @@ func LimaUser(limaVersion string, warn bool) *user.User {
 			if err != nil {
 				logrus.Debug(err)
 			} else {
-				home += ".linux"
+				// Trim mount prefix within Subsystem
+				// cygwin/msys2 cygpath could have prefix for drive mounts configured via /etc/fstab
+				// wsl wslpath could have prefix for drive mounts configured via [automount] section in wsl.conf
+				drivePath, err := ioutilx.WindowsSubsystemPath(filepath.VolumeName(limaUser.HomeDir) + "/")
+				if err != nil {
+					logrus.Debug(err)
+				} else {
+					prefix := path.Dir(strings.TrimSuffix(drivePath, "/"))
+					if prefix != "/" {
+						home = strings.TrimPrefix(home, prefix)
+					}
+					home += ".linux"
+				}
 			}
 			if home == "" {
 				drive := filepath.VolumeName(limaUser.HomeDir)
@@ -160,10 +173,6 @@ func LimaUser(limaVersion string, warn bool) *user.User {
 				home += ".linux"
 			}
 			if !regexPath.MatchString(limaUser.HomeDir) {
-				// Trim prefix of well known default mounts
-				if strings.HasPrefix(home, "/mnt/") {
-					home = strings.TrimPrefix(home, "/mnt")
-				}
 				warning := fmt.Sprintf("local home %q is not a valid Linux path (must match %q); using %q home instead",
 					limaUser.HomeDir, regexPath.String(), home)
 				warnings = append(warnings, warning)