diff --git a/README.md b/README.md
index cea0eee..7e121ff 100644
--- a/README.md
+++ b/README.md
@@ -36,6 +36,7 @@ Claude HUD gives you better insights into what's happening in your Claude Code s
 
 | What You See | Why It Matters |
 |--------------|----------------|
+| **Project name** | Always know which project you're working in |
 | **Context health** | Know exactly how full your context window is before it's too late |
 | **Tool activity** | Watch Claude read, edit, and search files as it happens |
 | **Agent tracking** | See which subagents are running and what they're doing |
@@ -45,8 +46,9 @@ Claude HUD gives you better insights into what's happening in your Claude Code s
 
 ### Session Info
 ```
-[Opus 4.5] ████░░░░░░ 19% | 2 CLAUDE.md | 8 rules | 6 MCPs | 6 hooks | ⏱️ 1m
+📁 my-project | [Opus 4.5] ████░░░░░░ 19% | 2 CLAUDE.md | 8 rules | 6 MCPs | 6 hooks | ⏱️ 1m
 ```
+- **Project** — Current working directory folder name
 - **Model** — Current model in use
 - **Context bar** — Visual meter with color coding (green → yellow → red as it fills)
 - **Config counts** — Rules, MCPs, and hooks loaded
diff --git a/src/render/session-line.ts b/src/render/session-line.ts
index db17a10..aaa9fc9 100644
--- a/src/render/session-line.ts
+++ b/src/render/session-line.ts
@@ -1,3 +1,4 @@
+import path from 'node:path';
 import type { RenderContext } from '../types.js';
 import { getContextPercent, getModelName } from '../stdin.js';
 import { coloredBar, cyan, dim, red, getContextColor, RESET } from './colors.js';
@@ -9,6 +10,12 @@ export function renderSessionLine(ctx: RenderContext): string {
 
   const parts: string[] = [];
 
+  // Add project folder name for context
+  if (ctx.stdin.cwd) {
+    const projectName = path.basename(ctx.stdin.cwd) || ctx.stdin.cwd;
+    parts.push(cyan(`📁 ${projectName}`));
+  }
+
   parts.push(`${cyan(`[${model}]`)} ${bar} ${getContextColor(percent)}${percent}%${RESET}`);
 
   if (ctx.claudeMdCount > 0) {
diff --git a/tests/fixtures/expected/render-basic.txt b/tests/fixtures/expected/render-basic.txt
index 5b2ab6e..fdcfd97 100644
--- a/tests/fixtures/expected/render-basic.txt
+++ b/tests/fixtures/expected/render-basic.txt
@@ -1,4 +1,4 @@
-[Opus] █████░░░░░ 45%
+📁 my-project | [Opus] █████░░░░░ 45%
 ◐ Edit: .../authentication.ts | ✓ Read ×1
 ✓ explore [haiku]: Finding auth code (<1s)
 ▸ Add tests (1/2)
diff --git a/tests/integration.test.js b/tests/integration.test.js
index b9f8bd4..5f3cc4d 100644
--- a/tests/integration.test.js
+++ b/tests/integration.test.js
@@ -20,6 +20,9 @@ test('CLI renders expected output for a basic transcript', async () => {
   const expected = readFileSync(expectedPath, 'utf8').trimEnd();
 
   const homeDir = await mkdtemp(path.join(tmpdir(), 'claude-hud-home-'));
+  // Use a fixed project name for deterministic test output
+  const projectDir = path.join(homeDir, 'my-project');
+  await import('node:fs/promises').then(fs => fs.mkdir(projectDir));
   try {
     const stdin = JSON.stringify({
       model: { display_name: 'Opus' },
@@ -28,7 +31,7 @@ test('CLI renders expected output for a basic transcript', async () => {
         current_usage: { input_tokens: 45000 },
       },
       transcript_path: fixturePath,
-      cwd: homeDir,
+      cwd: projectDir,
     });
 
     const result = spawnSync('node', ['dist/index.js'], {
diff --git a/tests/render.test.js b/tests/render.test.js
index 26c484e..febb2e0 100644
--- a/tests/render.test.js
+++ b/tests/render.test.js
@@ -99,6 +99,37 @@ test('renderSessionLine includes config counts when present', () => {
   assert.ok(line.includes('hooks'));
 });
 
+test('renderSessionLine displays project name from POSIX cwd', () => {
+  const ctx = baseContext();
+  ctx.stdin.cwd = '/Users/jarrod/my-project';
+  const line = renderSessionLine(ctx);
+  assert.ok(line.includes('my-project'));
+  assert.ok(!line.includes('/Users/jarrod'));
+});
+
+test('renderSessionLine displays project name from Windows cwd', { skip: process.platform !== 'win32' }, () => {
+  const ctx = baseContext();
+  ctx.stdin.cwd = 'C:\\Users\\jarrod\\my-project';
+  const line = renderSessionLine(ctx);
+  assert.ok(line.includes('my-project'));
+  assert.ok(!line.includes('C:\\'));
+});
+
+test('renderSessionLine handles root path gracefully', () => {
+  const ctx = baseContext();
+  ctx.stdin.cwd = '/';
+  const line = renderSessionLine(ctx);
+  assert.ok(line.includes('[Opus]'));
+});
+
+test('renderSessionLine omits project name when cwd is undefined', () => {
+  const ctx = baseContext();
+  ctx.stdin.cwd = undefined;
+  const line = renderSessionLine(ctx);
+  assert.ok(line.includes('[Opus]'));
+  assert.ok(!line.includes('📁'));
+});
+
 test('renderToolsLine renders running and completed tools', () => {
   const ctx = baseContext();
   ctx.transcript.tools = [