diff --git a/integration_tests/dockerfiles/Dockerfile_test_workdir b/integration_tests/dockerfiles/Dockerfile_test_workdir
new file mode 100644
index 000000000..6c89e4c11
--- /dev/null
+++ b/integration_tests/dockerfiles/Dockerfile_test_workdir
@@ -0,0 +1,13 @@
+FROM gcr.io/google-appengine/debian9:latest
+COPY context/foo foo
+WORKDIR /test
+# Test that this will be appended on to the previous command, to create /test/workdir
+WORKDIR workdir 
+COPY context/foo ./currentfoo
+# Test that the RUN command will happen in the correct directory
+RUN cp currentfoo newfoo
+WORKDIR /new/dir
+ENV dir /another/new/dir
+WORKDIR $dir/newdir
+WORKDIR $dir/$doesntexist
+WORKDIR /
diff --git a/integration_tests/dockerfiles/config_test_workdir.json b/integration_tests/dockerfiles/config_test_workdir.json
new file mode 100644
index 000000000..c87503403
--- /dev/null
+++ b/integration_tests/dockerfiles/config_test_workdir.json
@@ -0,0 +1,12 @@
+[
+  {
+    "Image1": "gcr.io/kbuild-test/docker-test-workdir:latest",
+    "Image2": "gcr.io/kbuild-test/kbuild-test-workdir:latest",
+    "DiffType": "File",
+    "Diff": {
+      "Adds": null,
+      "Dels": null,
+      "Mods": null
+    }
+  }
+]
\ No newline at end of file
diff --git a/integration_tests/integration_test_yaml.go b/integration_tests/integration_test_yaml.go
index 36c53d84d..9e7a19077 100644
--- a/integration_tests/integration_test_yaml.go
+++ b/integration_tests/integration_test_yaml.go
@@ -57,6 +57,13 @@ var fileTests = []struct {
 		context:        "/workspace/integration_tests/",
 		repo:           "test-copy",
 	},
+	{
+		description:    "test workdir",
+		dockerfilePath: "/workspace/integration_tests/dockerfiles/Dockerfile_test_workdir",
+		configPath:     "/workspace/integration_tests/dockerfiles/config_test_workdir.json",
+		context:        "/workspace/integration_tests/",
+		repo:           "test-workdir",
+	},
 }
 
 var structureTests = []struct {
diff --git a/pkg/commands/commands.go b/pkg/commands/commands.go
index 0c4eef17d..0376d225a 100644
--- a/pkg/commands/commands.go
+++ b/pkg/commands/commands.go
@@ -44,6 +44,8 @@ func GetCommand(cmd instructions.Command, buildcontext string) (DockerCommand, e
 		return &ExposeCommand{cmd: c}, nil
 	case *instructions.EnvCommand:
 		return &EnvCommand{cmd: c}, nil
+	case *instructions.WorkdirCommand:
+		return &WorkdirCommand{cmd: c}, nil
 	case *instructions.CmdCommand:
 		return &CmdCommand{cmd: c}, nil
 	case *instructions.EntrypointCommand:
diff --git a/pkg/commands/run.go b/pkg/commands/run.go
index b7e59bae8..6be8f33fe 100644
--- a/pkg/commands/run.go
+++ b/pkg/commands/run.go
@@ -46,6 +46,7 @@ func (r *RunCommand) ExecuteCommand(config *manifest.Schema2Config) error {
 	logrus.Infof("args: %s", newCommand[1:])
 
 	cmd := exec.Command(newCommand[0], newCommand[1:]...)
+	cmd.Dir = config.WorkingDir
 	cmd.Stdout = os.Stdout
 	// If specified, run the command as a specific user
 	if config.User != "" {
diff --git a/pkg/commands/workdir.go b/pkg/commands/workdir.go
new file mode 100644
index 000000000..f249608ac
--- /dev/null
+++ b/pkg/commands/workdir.go
@@ -0,0 +1,58 @@
+/*
+Copyright 2018 Google LLC
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package commands
+
+import (
+	"github.com/GoogleCloudPlatform/k8s-container-builder/pkg/util"
+	"github.com/containers/image/manifest"
+	"github.com/docker/docker/builder/dockerfile/instructions"
+	"github.com/sirupsen/logrus"
+	"os"
+	"path/filepath"
+)
+
+type WorkdirCommand struct {
+	cmd           *instructions.WorkdirCommand
+	snapshotFiles []string
+}
+
+func (w *WorkdirCommand) ExecuteCommand(config *manifest.Schema2Config) error {
+	logrus.Info("cmd: workdir")
+	workdirPath := w.cmd.Path
+	resolvedWorkingDir, err := util.ResolveEnvironmentReplacement(workdirPath, config.Env, true)
+	if err != nil {
+		return err
+	}
+	if filepath.IsAbs(resolvedWorkingDir) {
+		config.WorkingDir = resolvedWorkingDir
+	} else {
+		config.WorkingDir = filepath.Join(config.WorkingDir, resolvedWorkingDir)
+	}
+	logrus.Infof("Changed working directory to %s", config.WorkingDir)
+	w.snapshotFiles = []string{config.WorkingDir}
+	return os.MkdirAll(config.WorkingDir, 0755)
+}
+
+// FilesToSnapshot returns the workingdir, which should have been created if it didn't already exist
+func (w *WorkdirCommand) FilesToSnapshot() []string {
+	return w.snapshotFiles
+}
+
+// CreatedBy returns some information about the command for the image config history
+func (w *WorkdirCommand) CreatedBy() string {
+	return w.cmd.Name() + " " + w.cmd.Path
+}
diff --git a/pkg/commands/workdir_test.go b/pkg/commands/workdir_test.go
new file mode 100644
index 000000000..439d77fd5
--- /dev/null
+++ b/pkg/commands/workdir_test.go
@@ -0,0 +1,83 @@
+/*
+Copyright 2018 Google LLC
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+package commands
+
+import (
+	"github.com/GoogleCloudPlatform/k8s-container-builder/testutil"
+	"github.com/containers/image/manifest"
+	"github.com/docker/docker/builder/dockerfile/instructions"
+	"testing"
+)
+
+// Each test here changes the same WorkingDir field in the config
+// So, some of the tests build off of each other
+// This is needed to make sure WorkingDir handles paths correctly
+// For example, if WORKDIR specifies a non-absolute path, it should be appended to the current WORKDIR
+var workdirTests = []struct {
+	path         string
+	expectedPath string
+}{
+	{
+		path:         "/a",
+		expectedPath: "/a",
+	},
+	{
+		path:         "b",
+		expectedPath: "/a/b",
+	},
+	{
+		path:         "c",
+		expectedPath: "/a/b/c",
+	},
+	{
+		path:         "/d",
+		expectedPath: "/d",
+	},
+	{
+		path:         "$path",
+		expectedPath: "/d/usr",
+	},
+	{
+		path:         "$home",
+		expectedPath: "/root",
+	},
+	{
+		path:         "$path/$home",
+		expectedPath: "/root/usr/root",
+	},
+}
+
+func TestWorkdirCommand(t *testing.T) {
+
+	cfg := &manifest.Schema2Config{
+		WorkingDir: "/",
+		Env: []string{
+			"path=usr/",
+			"home=/root",
+		},
+	}
+
+	for _, test := range workdirTests {
+		cmd := WorkdirCommand{
+			cmd: &instructions.WorkdirCommand{
+				Path: test.path,
+			},
+			snapshotFiles: []string{},
+		}
+		cmd.ExecuteCommand(cfg)
+		testutil.CheckErrorAndDeepEqual(t, false, nil, test.expectedPath, cfg.WorkingDir)
+	}
+}