diff --git a/src/engine/Jamfile b/src/engine/Jamfile
index 5aee1ffbc..426876c9d 100644
--- a/src/engine/Jamfile
+++ b/src/engine/Jamfile
@@ -117,7 +117,7 @@ Library         libjam.a :
 		    hash.c headers.c hdrmacro.c lists.c make.c make1.c newstr.c
 		    option.c parse.c regexp.c rules.c scan.c search.c subst.c
 		    timestamp.c variable.c modules.c strings.c filesys.c 
-		    builtins.c ;
+		    builtins.c pwd.c ;
  
 
 if $(BINDIR) 	{ InstallBin $(BINDIR) : jam ; }
@@ -138,7 +138,7 @@ ALLSOURCE =
 	parse.h patchlevel.h pathmac.c pathunix.c pathvms.c regexp.c regexp.h
 	rules.c rules.h scan.c scan.h search.c search.h subst.c timestamp.c
 	timestamp.h variable.c variable.h yyacc strings.c modules.h
-	frames.h filesys.c strings.h 
+	frames.h filesys.c strings.h pwd.c pwd.h
 	INSTALL
 	common.mk
 	builds/win32-visualc.mk
diff --git a/src/engine/builtins.c b/src/engine/builtins.c
index 9c7cef8a4..38d58eea4 100644
--- a/src/engine/builtins.c
+++ b/src/engine/builtins.c
@@ -15,6 +15,7 @@
 # include "frames.h"
 # include "hash.h"
 # include "strings.h"
+# include "pwd.h"
 
 /*
  * builtins.c - builtin jam rules
@@ -170,6 +171,12 @@ load_builtins()
           bind_builtin( "BACKTRACE" ,
                         builtin_backtrace, 0, args );
       }
+
+      {
+          char * args[] = { 0 };
+          bind_builtin( "PWD" ,
+                        builtin_pwd, 0, args );
+      }
 }
 
 /*
@@ -569,6 +576,17 @@ LIST *builtin_caller_module( PARSE *parse, FRAME *frame )
     }
 }
 
+/*
+ * Return the current working directory.
+ *
+ * Usage: pwd = [ PWD ] ;
+ */
+LIST*
+builtin_pwd( PARSE *parse, FRAME *frame )
+{
+    return pwd();
+}
+
 static void lol_build( LOL* lol, char** elements )
 {
     LIST* l = L0;
diff --git a/src/engine/builtins.h b/src/engine/builtins.h
index 8d71fe815..8a57ad850 100644
--- a/src/engine/builtins.h
+++ b/src/engine/builtins.h
@@ -27,5 +27,6 @@ LIST *builtin_import( PARSE *parse, FRAME *args );
 LIST *builtin_export( PARSE *parse, FRAME *args );
 LIST *builtin_caller_module( PARSE *parse, FRAME *args );
 LIST *builtin_backtrace( PARSE *parse, FRAME *args );
+LIST *builtin_pwd( PARSE *parse, FRAME *args );
 
 #endif
diff --git a/src/engine/common.mk b/src/engine/common.mk
index 5d55eb001..d37fa9f3c 100644
--- a/src/engine/common.mk
+++ b/src/engine/common.mk
@@ -9,7 +9,7 @@ SOURCES = \
 	hdrmacro.c headers.c jam.c jambase.c jamgram.c lists.c make.c make1.c \
 	newstr.c option.c parse.c pathunix.c pathvms.c regexp.c \
 	rules.c scan.c search.c subst.c timestamp.c variable.c modules.c \
-	strings.c filesys.c builtins.c
+	strings.c filesys.c builtins.c pwd.c
 
 # the bootstrap "jam0" build tool
 #
diff --git a/src/engine/pwd.c b/src/engine/pwd.c
new file mode 100644
index 000000000..fb60bed52
--- /dev/null
+++ b/src/engine/pwd.c
@@ -0,0 +1,28 @@
+#include "jam.h"
+#include "lists.h"
+#include "newstr.h"
+
+#ifdef NT
+#include <dir.h>
+#define PATH_MAX _MAX_PATH
+#else
+#include <unistd.h>
+#endif
+
+#include <limits.h>
+
+LIST*
+pwd(void)
+{
+    char buffer[PATH_MAX];
+    if (getcwd(buffer, sizeof(buffer)) == NULL)
+    {
+	perror("can not get current directory");
+	return L0;
+    }
+    else
+    {
+	return list_new(L0, newstr(buffer));
+    }
+}
+
diff --git a/src/engine/pwd.h b/src/engine/pwd.h
new file mode 100644
index 000000000..506eace50
--- /dev/null
+++ b/src/engine/pwd.h
@@ -0,0 +1,6 @@
+#ifndef PWD_H
+#define PWD_H
+
+LIST* pwd(void);
+
+#endif