diff --git a/src/vs/workbench/contrib/tasks/browser/terminalTaskSystem.ts b/src/vs/workbench/contrib/tasks/browser/terminalTaskSystem.ts
index d61e13e8f7143..10417447bf854 100644
--- a/src/vs/workbench/contrib/tasks/browser/terminalTaskSystem.ts
+++ b/src/vs/workbench/contrib/tasks/browser/terminalTaskSystem.ts
@@ -1174,10 +1174,12 @@ export class TerminalTaskSystem extends Disposable implements ITaskSystem {
 			shellLaunchConfig.args = windowsShellArgs ? combinedShellArgs.join(' ') : combinedShellArgs;
 			if (task.command.presentation && task.command.presentation.echo) {
 				if (needsFolderQualification && workspaceFolder) {
+					const folder = cwd ? path.posix.basename(cwd.toString()) : workspaceFolder.name;
 					shellLaunchConfig.initialText = this.taskShellIntegrationStartSequence(cwd) + formatMessageForTerminal(nls.localize({
 						key: 'task.executingInFolder',
 						comment: ['The workspace folder the task is running in', 'The task command line or label']
-					}, 'Executing task in folder {0}: {1}', workspaceFolder.name, commandLine), { excludeLeadingNewLine: true }) + this.taskShellIntegrationOutputSequence;
+
+					}, 'Executing task in folder {0}: {1}', folder, commandLine), { excludeLeadingNewLine: true }) + this.taskShellIntegrationOutputSequence;
 				} else {
 					shellLaunchConfig.initialText = this.taskShellIntegrationStartSequence(cwd) + formatMessageForTerminal(nls.localize({
 						key: 'task.executing.shellIntegration',